From neighbor Sam comes this article from the New York Times entitled "When a High Bid Isn't Enough". It is tough for folks using a conventional loan to buy a home in times of reduced inventory like we have now. Cash will always be the preferred offer sellers like to see. Why? Because here are the ways a buyer can cancel their offer and get their earnest money back:
-10 day inspection results
-a concern over information in the Sellers Property Disclosure Statement
-a concern over information in the CC&R's
-a concern over information in the title report
-an Act of God which damages the home more than 10% of sales price
The Arizona Association of Realtors Residential Purchase Contract is skewed towards favoring buyers. Money can't buy you love but it sure will get you whatever house you want. Thanks for the article Sam.
From Elliott D. Pollack and Company Monday Morning Quarterback:
"The trends of the last year continued in Greater Phoenix housing over the last month. Single family listings declined modestly as did the total sold. Normal sales continue to play a larger role in the mix as foreclosures continue to decline. Resale prices continue to increase and now stand almost 25% over a year ago. Days on market continue to decline. This is all good news."
From Stuart Crawford at V.I.P. Mortgage, Inc.
"While the prior week was packed with central bank meetings and major economic data, there was very little significant economic news last week. The small amount of data that was released reinforced the view that the labor market is improving. This is great for the economy, but bad for mortgage rates, and rates ended the week higher.
The latest reading for Weekly Jobless Claims showed a decline to 323K, the lowest level since January 2008. This marked the third straight week that Jobless Claims were below the 350K level. Weekly Jobless Claims measure the number of new claims for unemployment benefits. There will always be some number of job changes each week, so there will always be new claims. In the years prior to 2008, Jobless Claims mostly held steady between 300K and 350K. The financial crisis then caused Jobless Claims to spike to levels above 600K during the first half of 2009. The labor market has been slowly improving since then, and it appears that Jobless Claims have finally returned to the levels seen before the financial crisis.
Keep in mind, Jobless Claims are only one half of the story. The other big factor in the strength of the labor market is the number of people being hired. During a recession, companies often reduce the size of their workforce. In a typical economic recovery, companies first slow the pace of layoffs and then begin to retain their existing employees as business picks up. Eventually, companies reach the point where they need to add employees to meet growing demand. The stronger than expected Employment report and the recent Jobless Claims data provide positive indications that the economy may be at this point. Increased job gains will be great news for the economy and for the housing market."
Stuart can be reached at 602.710.8975
Tags:aviano,desert ridge,phoenix,real estate,villages at aviano,fireside,Arizona,short sale,foreclosure,fireside at desert ridge,Toll Brothers,pulte,bella monte,north phoenix. Information and pictures supplied by MLS and deemed reliable but not guaranteed. Charts courtesy of The Cromford Report and Michael Orr.