In or Out of the Phoenix Real Estate Market? What Should We Do?

Dennis Dahlberg is Level 4 Funding’s General Manager and he predicts, “With low inventory and too many buyers, we believe the Phoenix Real Estate Market is on the verge of a new boom in real estate values,” Dahlberg has many years of flipping and fixing real estate experience so he has a very good grasp of the Phoenix Real Estate Market.

If the Phoenix area is heading on up, that leads to some questions like, is it time to buy real estate again? How long will it take to come back to normal, or should people get out of the market and wait? These are difficult questions to answer. But Dennis Dahlberg has some ideas. He offers the following recommendations:

• Home values will not return to the trend line for another 1-2 years. Latest trend shows Phoenix back to the highs starting July 2014.
• The upturn in values is due to lack of inventory and record low interest rates.
• Keep your home if possible.  Do whatever it takes to keep the current home.
• Do a loan modification if you need to. HAPR 2 if you can.  It’s possible, but there are very few who are successful.
• If you ‘bail out’ and let the bank foreclose, you will not be able to purchase a home for 5-7 years, maybe even never again. Remember that because inflation will come back and this could mean that you will never have the money to buy another house.
• The amount of debt in the USA will continue to grow. The amount is very frightening.
• Get out of debt any way you can; get rid of the credit cards and pay them off.  Purchase only if you have the cash.  Do not get into any debt. Inflation will turn this into a nightmare.
• Start a side business.  It’s too difficult to explain why here, but the best reason is the potential tax advantage and the possible income.  Your own side business is the LAST area the government has yet to attack.  Make it simple and get going.  An extra $400 per month really helps.
• If you are able, purchase quality single family homes in a good area and turn them into rental units.

Remember these tips and you will be all set for the bran

New Real Estate Boom is Just Around The Bend

Level 4 Funding LLC, Arizona’s leading real estate company, is predicting that the “new boom time” is near. Real estate experts believe that this boom is going to be different from any other boom, which are typically fueled on greed of the consumer, but this time it will be a supply problem.

Dennis Dahlberg, Level 4 Funding’s General Manager predicts, “With low inventory and too many buyers, we believe the Phoenix Real Estate Market is on the verge of a new boom in real estate values,” He should know! Dahlberg has many years of flipping and fixing real estate experience.

Dahlberg goes on to say that over the past six years, there is little construction or movement of dirt, leaving the Phoenix housing market, which is starving for new homes. He also explains that as home values are going to rise dramatically, and once the current home owners get above water (meaning, once they have equity), they are going to want to move up. And who can blame them?

Dahlberg explains, “We're going to have a trifecta or the perfect storm - no homes, pent-up demand, and record low interest rates.  And if you throw a little inflation on top of the mix - watch out!  Bam! It’s going to be a wild ride - a Wild West ride,” states Dahlberg, who is basing his prediction on data provided by S&P Case Shuller.

The S&P Case Shuller’s data says the bottom is over and the market is moving up again. And like the return of any monster in a movie: this time it's going to be even bigger.

As we stated, the data further suggests the real estate market in the Phoenix area is heading up. That leaves the questions; is it time to buy real estate again? How long will it take to come back to normal, or should people get out of the market and wait? These are difficult questions to answer. Check back for a future blog about what Dahlberg thinks those answers are.

Drag Phoenix Hard Money

Phoenix Hard Money Lenders

While the amount of distressed inventory is still high above the normal level of under 5 percent, real estate pros must act like superheroes, roll up their sleeves, and tackle the task of clearing these sales as efficiently as possible.

What is a distressed listing you ask? A distressed listing is a home that typically sells for 15 to 20 percent below market value, which can then cause a drag on home prices overall according to data assembled by the NATIONAL ASSOCIATION OF REALTORS®.

There is an imbalanced housing market in Phoenix, creating a sharp price Phoenix hard money discount on today’s distressed sales. Back when the market was better, a distressed property might be snapped up at market value. However, right now in order to stabilize prices, the market needs stronger home sales volumes to reduce the number of homes on the market. A great sale on a home, resulting in home price growth, will create confidence in the market, but right now, roughly 22 percent of mortgaged home owners are upside down and refinancing to raise their hopes of coming back around.

The best way to fix the ailing housing market is for a stronger economy. Consumer confidence is closely tied to job growth and stock market gains as consumers are constantly citing job concerns –and therefore, money worries- as the main reason for not purchasing a new home.

Behind the Drag Phoenix Hard Money

However, in America, apprehension about the pential spread of Europe’s debt could reduce domestic economic growth. A lack of consensus in Congress over the deficit reduction plan, and a major revision to economic growth in the first half of 2011 combined to send stocks on a roller coaster ride in the second half of 2011. This can directly affect the future feelings on the housing market. In August, consumer confidence fell to its lowest level since the recession began in 2007. Now, neither businesses nor consumers appear willing to drive the economy because they are afraid, and who can blame them for being afraid of the housing market? Job creation has averaged less than 150,000 jobs per month over the last year, below the amount needed to absorb college and high school graduates entering the workforce.

That being said, the economy isn't the only factor restraining the demand for housing. Over the years, credit standards and down payment requirements have been ratcheted up in recent years at the FHA and government-sponsored enterprises; however, banks at least have raised their standards even further in an attempt to limit potential lawsuits. A direct result of this is that FICO scores on loans backed by Fannie Mae rose from an average of 719 in 2005 to a peak average of 756 in the second quarter of 2011. Likewise, FICO scores on loans originated through the FHA averaged 632 in the second quarter of 2007 but reached 700 in the second quarter of 2011. Outside of the FHA, it is said that down payments greater than 20 percent are the norm. Although traditional credit standards are a good thing, the pendulum has swung too far in this direction. Punishing quality borrowers for the mistakes of the past is not good for the health of the markets or the economy today.

Distressed Properties and Phoenix Hard Money: Shadow Inventory

Distressed Properties and Phoenix Hard Money: Shadow Inventory

Shadow inventory, or the cache of homes not yet on the market but already—or likely to end up—on the balance sheets of banks, the FHA, Fannie Mae, or Freddie Mac for sale is another factor in keeping the level of distressed properties high.

The Bright Side Phoenix Hard Money

However, in 2011, both MLS inventories and shadow inventory showed signs of easing. An estimated 3.5 million homes appeared on MLS’s across the country in September 2011. That’s 13 percent fewer than a year earlier in 2010. Meanwhile, the shadow inventory dropped from 1.9 million to 1.6 million, according to calculations by NAR researcher Selma Hepp from February 2010 to July 2011. This reduced inventory was partly a result of firming home prices and great employment growth that carried into 2011. Together, these factors lowered the national 90-day delinquency rate of all mortgages from the 5 percent we saw in the first quarter of 2010 to 3.5 percent in the third quarter of 2011.

That being said, unfortunately, the foreclosure rate remains ridiculously high. Moreover, a large number of properties that will eventually be sold were held up in the latter half of 2010 and early 2011 due to correct processing problems. Phoenix hard money lender.

Last year, short sales rose by 26,000 while foreclosures fell by 255,000, according to Hope Now, a mortgage industry alliance. RealtyTrac reported that September 2011 marked the 12th straight month in which foreclosure activity decreased on a year-over-year basis. October, however, saw filings spiked 7 percent from the previous month, and the month-over-month activity was much higher in the housing markets of California, Nevada, Arizona, and Florida, where the downturn was sharpest, as well as in markets where the judicial process held up foreclosure sales. A RealtyTrac press release from November of 2010 from CEO James Saccacio said, “The October foreclosure numbers continue to show strong signs that foreclosure activity is coming out of the rain delay we’ve been in for the past year."

Retooling is now underway for government programs aimed at helping struggling homeowners because these programs haven’t been as helpful as some would have liked. The Home Affordable Refinance Program program of November 2010, was revised with relaxed criteria that observers hope will double the number of home owners who will eventually benefit. Meanwhile, in order to reduce monthly payments, private loan modifiers have shifted their strategy. Now, the share of loans that are six or more months in default 12 months after modification have improved, from 58.1 percent in 2008 to 26.6 percent in 2010.

Remember, it’s not too late to make distressed sales something you can do for your clients. This special report you just read takes a closer look at how these distressed sales have changed since the carefree market of 2008 and also provides insights on how to run a successful short sale or foreclosure operation. Check out Phoenix hard money lenders.

How to get an Arizona Hard Money Loan

How to get an Arizona Hard Money Loan

The commercial real estate market in Phoenix, Arizona has been consistently following the national residential real estate market by about 12 months during the past five year ‘crash’ that has been going on. However, the market now is continuing to trend upward, and soon, the nation and Arizona will be heading back to a more regular market- the way we like it!

The Phoenix commercial real estate market will most likely see improvements over the next year as we catch up with the nation. Residential real estate will begin trending upward as well. Values are beginning to go sky high and prices are increasing at a trend rate that is almost straight up! 

Yes! Indeed! The real estate market in the Phoenix area is heading on up. Should you buy real estate again? Or get out of the market?

We predict that home values will not return to the trend line for another 1-2 years. Latest trend shows Phoenix back to the highs starting July 2015! That gives you a little time. Remember also that if you ‘bail out’ and let the bank foreclose, you will not be able to purchase a home for another 5-7 years, or maybe even never again! So be careful about your choices as the amount of debt in America will continue to grow, as prices go higher.

Remember that even though rental rates are lower than their mortgage rates, don’t let your house go just because you think you can rent. Let us repeat that it will be 5-7 years before your credit report looks good to purchase a home again.  Could you really save the money in 5 to 7 years renting that you wouldn't have otherwise? Some things to think about, especially since some economist predict that hyper-inflation is going to hit.

It’s inevitable that inflation will come back. That means that the value of the dollar will drop dramatically. That could be a little scary for you and your family. If this additional hyper-inflation does come to fruition like some economist think it will in the future, it means that you will be priced right out of the market. That is a chance I don’t think many should take, especially if they have a family. Keep your home and do a HARP 2 loan modification. You can get through this.

Do You Need a Hard Money Loan?

Typically, a hard money loan goes to someone building a new house, business, or commercial property and these loans are given to people not based on credit, but instead on their project, which is far different than a bank loan. Hard loans are convenient and can offer a sufficient amount of capital (up to 70 percent) for a growing business. A loan can really help out a family or new business.

If you are in need of a loan, hard money lenders in Arizona is a very simple way to get the money that you need to create a home or business that you love. Remember that with a hard money loan, the lender does not require that your credit is perfect. Not even close, with a hard money loan, the lender bases the loan on the condition and potential of the house or property. This means you will never get turned down from a loan again. Many have been turned down for a loan by a traditional bank. IS this you? Then you may want to consider talking to hard money lender. There are plenty of hard money lenders in Arizona and they would like to help you by giving you a fast, quick, and easy money loan.

Don’t even worry! There is always a way to fix things financially and help start the family home of your dreams or create an amazing work atmosphere or commercial property. A great thing about hard money lending is that you get the money relatively quickly, and, additionally, with less paperwork than a traditional loan, so your worrying can stop a lot sooner.

Hard money loan are usually for business purposes or new property, and they’re designed especially for entrepreneurs like you who need money for a project as soon as possible. If you are a business person in need of a loan, then Hard Money Lenders in Arizona is the best way to go so you can start building your dreams from the ground up with the money you need from a trusted source. Never get turned down from a loan by a bank again.

If you work hard and want fast results, there is a hard money loan in Arizona who can help you quickly.

Wild West Phoenix Real Estate is Heading for a New Boom Time--Yeahaw Getty UP

With low inventory and too many buyers, the Phoenix Real EstateMarket is on the verge of a new boom in real estate values.

With low inventory and too many buyers the Phoenix Real Estate Market is on the verge of a new boom in real estate values.

"This boom is going to be different," according to Dennis Dahlberg, Level 4 Funding Hard Money Lender. "The last boom was fueled on greed of the consumer; this time it's going to be a supply problem. Over the past 6 years there was little construction or movement of dirt, leaving the Phoenix housing market starving for new homes. Additionally, home values are raising dramatically, and once the current home owners get above water (have equity) they are going to want to move up. We're going to have a trifecta or the perfect storm-no homes, pent-up demand, and record low interest rates. And if you throw a little inflation on top of the mix - watch out! Bam! its going to be a wild ride - a wild west ride!"

Based on the data provided by S&P Case Shuller, the bottom is over and we are moving up again and this time it's going to be even bigger! (For a high resolution  [click here  Real Estate Values])

It appears from the graph of the Phoenix House Values below, that the real estate market in the Phoenix area is heading up. Is it time to buy real estate again? How long will it take to come back to normal? Should I get out of the market and wait? These are hard questions to answer but Dennis makes these recommendations:
-- Home values will not return to the trend line for another 1-2 years. Latest trend shows Phoenix back to the highs starting July 2014!
-- The upturn in values are due to LACK OF INVENTORY AND RECORD LOW INTEREST RATES.
-- Keep your home if possible. Do whatever it takes to keep the current home.
-- Do a loan modification? HAPR 2. Its possible but there are very few who are successful.
-- If you ‘bail out’ and let the bank foreclose, you will not be able to purchase a home for 5-7 years, maybe even never again!
-- Inflation will it come back and will the value of the dollar drop dramatically? (This could change if the USA will cut spending and raise taxes, cut medical/social security, and increase the tax rate by 45%. I don't think this will happen.)
-- The amount of debt in the USA will continue to grow. The amount is very frightening.
-- At this rate,in 5-7 years, it will cost $10 to buy a loaf of bread. Gasoline will cost $25/gallon. And the average starter home price will be $600,000.
-- Get out of debt; get rid of the credit cards and pay them off. Purchase only if you have the cash. Do not get into any debt. (I sound like your mother here, but she was correct.)
-- Start a side business. It’s too difficult to explain why here, but the best reason is the potential tax advantage and the possible income. Your own side business is the LAST area the government has yet to attack. Make it simple and get going. An extra $400 per month really helps.
-- If you are able, purchase quality single family homes in a good area and turn them into rental units. (Your side business?)

I've talked to a lot of people who feel that they can ‘let their home go and rent for awhile’. Rental rates are lower than their mortgage rates. Yes, they are! ‘We can save a lot of money by renting vs. paying the mortgage, and in 2 years we can purchase again and have a good down payment.’ Well, it’s actually going to be 5-7 years before your credit report looks good enough to purchase a home again. And can you really save the money? Most people will spend the money on toys. If hyper-inflation hits, like some economists predict, then you’ll be priced out of the market. Do you want to take the chance? Keep your home, do a HARP 2 loan modification, and hang on – the next 5-7 years are going to be enjoyable.

Dennis Dahlberg is General Manager of Level 4 Funding, with many years of flipping and fixing real estate experience.