News Article From: 01-11-2013
Will Higher Prices Attract More Sellers to Recovering Phoenix Market?
The latest report from the W. P. Carey School of Business at ASU finds:
* Single family home prices rose sharply between October and November and show very large increases since November 2011:
o The median sales price is up 35.4% from $120,000 to $162,500
o Average price per square foot is up 27.4% from $81.92 to $104.34
* Overall supply (excluding homes already under contract) was down 7% at the start of December 2012 compared with December 2011, and distressed supply was down 43% over the same time frame. However overall supply increased by 31% between September and December.
* The percentage of residential properties purchased by investors remains high at 27.5% but is now in a clear downward trend having peaked at 35.3% in August.
Read article - WP Carey
New rules aim to make mortgages safer
Federal officials unveiled new mortgage rules on Thursday meant to reduce risky lending and make it easier for borrowers to know exactly what they are getting into. The new rules will eventually change the process homebuyers go through in obtaining mortgages. Here's what you need to know. Which lenders do the rules cover? All companies that give out mortgages will be governed by the new rules -- big national banks, savings and loans, community banks and credit unions. How is a "qualified mortgage" defined? The rules spell out what is called a qualified mortgage. What if a borrower doesn't meet all those guidelines? A homebuyer could still get a mortgage, but only if the mortgage payments don't exceed 43% of the borrower's pre-tax income.
Read article - CNN Money