Distressed home: Foreclosures, and Short Sales: A Numbers Game

Arizona hard money

In May 2013, distressed homes, that’s to say, foreclosures and short sales accounted for 18 percent of May sales. This is unchanged from April. Fewer distressed homes, which generally sell at a discount, account for some of the price gain.

When you boil down the numbers, 11 percent of May sales were foreclosures, and 7 percent were short sales. The foreclosures sold for an average discount of 15 percent below market value in May, while short sales were discounted 12 percent.

Freddie Mac’s numbers show that the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.54 percent in May from 3.45 percent in April; it was 3.80 percent in May 2012.

Most homes were on the market for 41 days, that the median time, which is down from 46 days in April, and still this is 43 percent faster than the 72 days on market in May 2012. Meanwhile, short sales were on the market for a median of 79 days, while foreclosures typically sold in 43 days and non-distressed homes took 39 days.

In May, 45 percent of all homes sold were on the market for less than a month. This median time on the market is the shortest since monthly tracking began in May 2011. Of these homes, first-time buyers accounted for 28 percent of purchases in May, compared with a slightly higher 29 percent in April and 34 percent in May 2012.

All-cash sales were 33 percent of transactions completed in May. This is up from 32 percent in April and 28 percent in May 2012. Individual investors, who account for many cash sales, purchased 18 percent of homes in May; they were 19 percent in April and 17 percent in May 2012.

Additionally, single-family home sales rose five percent, making a seasonally adjusted annual rate of 4.60 million in May from 4.38 million in April, both of which are 12.7 percent higher than the 4.08 million-unit pace in May 2012. The median existing single-family home price was $208,700 in May, up 15.8 percent above a year ago, the strongest increase since October 2005 when it jumped 16.9 percent from a year earlier.

Existing condominium and co-op sales have slipped 1.7 percent to an annualized rate of 580,000 units in May from 590,000 just a month earlier in April, but are 13.7 percent above the 510,000-unit level just a year ago. The median existing condo price was $202,100 in May, which is 11.8 percent above a year ago.

Let’s talk regions. In the Northeast, existing-home sales rose 1.6 percent to an annual rate of 650,000 in May; that’s 8.3 percent above May 2012. The median price in the Northeast was $269,600, which is up 12.3 percent from a year ago. Existing-home sales in the Midwest also jumped: they’re up eight percent in May to a pace of 1.21 million, and are 16.3 percent higher than a year ago. The median price in the Midwest was $159,800, up 8.2 percent from May 2012.

Meanwhile, down in the South, existing-home sales rose four percent to an annual level of 2.09 million in May and are 16.1 percent above May 2012. The median price in the South was $183,300, which is 15.0 percent above a year ago.

Existing-home sales in the West increased 2.5 percent to a pace of 1.23 million in May and are seven percent above a year ago. With the tightest regional supply, the median price in the West was $276,400, up 19.9 percent from May 2012.

Big Daddy Dennis Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Improvement in May, Existing Home Sales Rise 4.2 percent

Arizona Hard Money

According to the National Association of Realtors, in May, there was happy celebration as existing-home sales improved and these numbers remain solidly above a year ago, while the median price continued to rise by double-digit rates from a year earlier. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 4.2 percent to a seasonally adjusted annual rate of 5.18 million in May from 4.97 million in April, and is 12.9 percent above the 4.59 million-unit pace in May 2012. With housing numbers positive and expected to rise, you might, but that may not be the case. Despite this gain, don’t expect the number of homes available to gain unless new home construction also begins to grow. However, this could moderate the price of new homes in the future.

Right now, existing-home sales are at the highest level they’ve been since November 2009. That’s when we saw the market jumped to 5.44 million as buyers took advantage of tax stimulus. Sales have stayed above year-ago levels for 23 months, while the national median price shows 15 consecutive months of year-over-year increases. Fantastic, right?

Want some more numbers? The total housing inventory at the end of May rose 3.3 percent to 2.22 million existing homes available for sale. That represents a 5.1-month supply at the current sales pace, which is down from 5.2 months in April. The listed inventory is 10.1 percent below a year ago, when there was a 6.5-month supply. The national median existing-home price for all housing types was $208,000 in May, up 15.4 percent from May 2012. This is a brilliant six straight months of double-digit increases; the strongest price gain since October 2005, when numbers jumped a record 16.6 percent from a year earlier, 2004. The last time there were 15 consecutive months of year-over-year price increases was from March 2005 to May 2006.

Let’s hope this keeps up!

Big Daddy Dennis Arizona Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Up to Twenty Percent of Foreclosed Properties are Vacated

Arizona Hard Money

Recently, a report released by RealtyTrac stated that as of June, homeowners had vacated 167,680 foreclosure properties all across the US. This represents 20 percent of all U.S. properties that are currently in the foreclosure process. These are in addition to 544,274 bank-owned owner-vacated foreclosures homes nationwide that have been foreclosed on but not sold to a third party.

The report went on to say that of the total 167,680 vacant foreclosure properties nationwide, Florida had been documented by far the most of any state, with 55,503, accounting for 33 percent of the national total. Illinois posted the second highest total (17,672), followed by California (9,802), Ohio (9,723), and New York (9,173). Additionally, the states where the percentage of owner-vacated foreclosures was above the national average of 20 percent included Indiana (32 percent), Oregon (28 percent), Nevada (28 percent), Washington (27 percent), and Georgia (27 percent).

Meanwhile, Chicago documented the most owner-vacated foreclosures of any metro area nationwide, with 14,717, representing 17 percent of all properties in foreclosure, followed by Miami (13,901), New York (10,074), Tampa-St. Petersburg-Clearwater (9,998), and Orlando (5,569). Florida was mentioned again when the report stated that the state accounted for 85 of the top 100 zip codes in terms of total owner-vacated foreclosures, led by zip code 34668 in the Tampa-St. Petersburg-Clearwater metropolitan statistical area.

It also came as no surprise that lower-end foreclosures had vacancy rates that were higher. 29 percent on homes valued below $50,000 and 25 percent on homes valued between $50,000 and $100,000. Meanwhile 12 percent of homes valued $1 million or more were vacant.

Who played best in this game among the servicers? Bank of America and GMAC (Ally) had the highest percentage of owner-vacated foreclosures, with 23 percent. This was followed by Chase with 21 percent and Wells Fargo and Citi lastly tied with 20 percent.

Big Daddy Dennis Arizona Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Summer home improvement trends: Sixty Percent of Homeowners are Making Improvements this Summer

Arizona Hard Money

Here’s the thing: More than 25 percent of homeowners nationwide are upside down on their mortgages. Nowadays, more and more homeowners are choosing to stay in their homes and invest in home improvements and make the most of their situation. It makes sense, considering not only the economy but the market. In fact, 60 percent of homeowners plan to make a home improvement or addition this summer. These statistics come from Zillow Digs Summer Home Improvement Trend and Spending Survey.

The Zillow Digs trend expert, Cynthia Nowak, says, "Zillow Digs is a leading resource for discovering up-and-coming design trends as actual consumers and professionals are sharing and discussing what they like."

She goes on to say, "As we head into the long days of summer, we are seeing increased interest in outdoor spaces with very natural elements such as stone fireplaces, as well as bringing more light into bathrooms with clear glass on the walls and shower enclosures."

These home improvement projects depend on the age of the homeowner, however. The type of projects being done varies by age, life-style, and life stage:

For example, the younger homeowners with children will more than likely be planning on adding an addition this summer. The percentage of people making improvements to their homes vary as much as the ages.

► 18-to-34-year-olds: 71 percent

► 35-to-54-year-olds: 61 percent

► 55 and older: 51 percent

► Homes with children: 65 percent

► Homes without children: 57 percent

But how much are they willing to spend? That depends, too. Homeowners plan to spend a median of $1,200 on summer home improvement projects. Homeowners with children as well as homeowners 54 years of age and younger plan to spend one-third more ($1,500) compared to homes without children and those 55 and older ($1,000).

Big Daddy Dennis Arizona Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

 

The Facts: Sixty Percent of Homeowners want to Make Home Improvements

Fulfillment Service Center

Here’s the thing: More than 25 percent of homeowners nationwide are upside down on their mortgages. Nowadays, more and more homeowners are choosing to stay in their homes and invest in home improvements and make the most of their situation. It makes sense, considering not only the economy but the market. In fact, 60 percent of homeowners plan to make a home improvement or addition this summer. These statistics come from Zillow Digs Summer Home Improvement Trend and Spending Survey.

The Zillow Digs trend expert, Cynthia Nowak, says, "Zillow Digs is a leading resource for discovering up-and-coming design trends as actual consumers and professionals are sharing and discussing what they like."

She goes on to say, "As we head into the long days of summer, we are seeing increased interest in outdoor spaces with very natural elements such as stone fireplaces, as well as bringing more light into bathrooms with clear glass on the walls and shower enclosures."

These home improvement projects depend on the age of the homeowner, however. The type of projects being done varies by age, life-style, and life stage:

For example, the younger homeowners with children will more than likely be planning on adding an addition this summer. The percentage of people making improvements to their homes vary as much as the ages.

 ► 18-to-34-year-olds: 71 percent
 ► 35-to-54-year-olds: 61 percent
 ► 55 and older: 51 percent
 ► Homes with children: 65 percent
 ► Homes without children: 57 percent

Fulfillment Service Center

But how much are they willing to spend? That depends, too. Homeowners plan to spend a median of $1,200 on summer home improvement projects. Homeowners with children as well as homeowners 54 years of age and younger plan to spend one-third more ($1,500) compared to homes without children and those 55 and older ($1,000).

Best West Direct Fulfillment Service
23335 N 18th Dr Suite 120
Phoenix Az 85027

Do you want to make money with Arizona Hard Money in a fix and flip?

You may ignore anything that has to do with a loan nowadays because you might think you just don’t have the credit needed for that loan you really want. Moreover, you don’t want to be in any more debt.

However, do you know that you can actually make money with Arizona hard money loans? The profit is significant enough to capture your attention, we guarantee it. Don’t believe me? What if I told you that the average profit for one fix and flip project is right around $30,000? It can be done my friend, it can be done.

What are the five steps to Make Money with Arizona Hard Money in a fix and flip?

1. First off, find the property that you think will really charm you when it’s all said and done.  Make sure that you do your research. You are going to want to consult a realtor and become an expert yourself. Make sure to constantly gather knowledge on the real estate market and find out how it works so you are always prepared. One of the most important things to know is the ins and outs of real estate in the location you are thinking of investing in. Ideally, there will be a high demand for real estate in that area. Look for a home with room for improvement and potential.

2. Evaluate the property you want. Much like step one, this part can be tough. After you've found a potential property, you need to do a thorough evaluation of the condition and the price. Crunch some numbers and see how things add up.

3. Apply for an Arizona hard money loan. This sounds like the scary part but this is actually where things get a little easier. Applying for an Arizona hard money loan is simple, and strictly equity-based- your credit will not be checked. Try to get a loan that covers most, if not all, of the property’s listed price. You likely will not have a lot of extra money to throw around on the project, so ask for what you need on a loan.

4. Start your repairs. Congratulations! If you've made it to this step, the hard part is over. It means you have the loan and you have finished most of the paperwork and, if you have a passion for rehabbing properties and homes, this is your time to really show what you can do. Make sure to create a timeline for your contractors and stick to it. Try not to have all home repairs take longer than one month.

5. List the property. The last and final step is fairly easy. Consult an agent, and price it right. Don’t overprice the home because you know how much blood, sweat, and tears went into it—otherwise it will never sell.

Making money with fix and flip projects and Arizona hard money is truly an easy and rewarding experience!

Big Daddy Dennis Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Do you need a loan? Here are a few tips on how to receive a Hard Money Loan from Arizona lenders.

There are soft loans and hard loans. You may be unfamiliar with a hard money loan. The basic definition is this: Loan approval is weighted mostly on the value and borrowers "equity" of the "hard asset" used as collateral with a lesser concern given to the borrower's credit rating. That means that you are borrowing against the property and not based on your credit rating whatsoever. That means the loan is easily approved and quickly granted to you. Usually within twenty-four hours.

This should give you a little bit of a better understanding of just what Hard money lenders in Arizona can do for you. They will provide you the loan you need for your business or personal use so you can get the property that you really want.

Here are some things you should look into if you are serious about the hard money loan in Arizona that you want to take out. Upon receiving your application, they consider the following:

·         Condition of the property

·         Length of the loan

·         Location of the property

·         Ability of the borrower to complete the project

·         Amount of work to fix the property

·         Amount of assets the borrower has to finish the project

·         Current and projected value when finished

·         Borrower’s information.

If you feel comfortable with all of this and where you stand with the above, then you will do well with a hard money loan in Arizona. 

A few facts about hard money loan lenders in Arizona.

This is just to go back over what was said before; hard money lenders in Arizona do not go by your credit rating in order to qualify you for a loan, but rather it is equity-based only. We can all breathe a sigh of relief for that! It’s okay if you have bad credit. You can rebuild your life and a hard money loan can help you do that. Another term this concept is referred to is “Private Money” or “Equity Loans.” These type of loans are unlike your typical loan from the more traditional route of a bank, but they are from methods such as private sources such as investor's personal funds, pension plans and other non-traditional sources. Arizona hard money lenders in Arizona are spread all over Arizona and other places around the United States to help you qualify for a loan. You can do this! And you don’t need a fantastic credit score.

Big Daddy Dennis Hard Money Lender

Level 4 Funding LLC
23335 N 18th Drive Suite 120
Phoenix Arizona 85027
623-582-444