Home Buying vs. Renting in Fountain Hills, AZ

If you are a renter in Maricopa County, you may not realize that your cost of living could be cheaper as a homeowner!

A new study by Trulia compared the costs of owning a home against renting.Here's how the study worked and what it means for Fountain Hills.

Trulia examined rental and home sale markets in major metros, from June through August of 2012. When adding up the costs of home ownership, they considered the closing costs, property taxes, homeowner's insurance premiums, and mortgage loan interest. They also considered the effect of itemizing allowable home expenses from income tax.

For rental expenses, Trulia used the average rents for comparable properties and included renter's insurance premiums. They also used a 7-year term of home ownership vs. 7 years of rent for the purpose of the study.

And the result? For Phoenix, AZ, the cost of renting averaged $1,223 per month. The cost of home ownership averaged $625 a month. Homeowners are ahead by $598 a month!

Skeptical? The results are similar in Tucson, AZ. Renting averaged $1,172 per month; home ownership averaged $635 a month. Homeowners pocket the difference of $536!

There are situations where renting makes sense, especially for short-term occupancy. However, if you are looking at seasonal occupancy on an annual basis, ownership still serves you better in the long run. It all comes down to your personal needs, lifestyle, and long-term goals.

How do things look in Fountain Hills? Our proximity to Phoenix gives us similar price ranges for housing costs. But why not do some comparisons of your own? I have all the information you need about the beautiful homes for sale in Fountain Hills - and I can also help you find rental properties. Whether you wish to own or rent, there's one thing we can all agree on - Fountain Hills is a wonderful place to live!

With over 30 years of Fountain Hills real estate experience, I have the local expertise to guide you through our fast-changing Fountain Hills real estate market. If you are ready to enjoy the splendor of panoramic, desert views from your own home, let me show you how to get started. Contact me today about home buying in Fountain Hills!

Tina Nabers
Nabers Property Management & Real Estate
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Fountain Hills Real Estate and the Arizona Housing Recovery

There's more good news for the Fountain Hills real estate market! According to the National Association of Home Builders, four metropolitan areas in Arizona are shown in their Improving Markets Index: Phoenix-Scottsdale, Prescott, Tucson and Yuma.

Of the four Arizona metros, Phoenix-Scottsdale has experienced the strongest gain in home prices since 2011.

Cities named in the Index have shown at least six consecutive months of improvement in home prices, employment, and housing permits. Here's how it looks for Phoenix-Scottsdale:

• Home prices are up 13.6% from their low point in June 2011
• Employment has improved by 4.3% since Sept 2010
• Housing permits are up by 4.3% since March 2009

Arizona's housing recovery is also noted in a report by 24/7 Wall Street, which ranked Arizona as #1 in price improvement. According to their analysis, Arizona home prices increased 16.6% from July 2011 to July 2012. Statewide, the median home price as of July 2012 was $248,229.

We are still far from the market peaks of 2007. Distressed properties will continue to affect Arizona real estate for some time to come. However, it is the opinion of industry analysts that we have seen the bottom of the real estate market! With improvements to the short sale processes, continued low interest rates, and strengthening local employment, our home prices will improve at a gradual pace.

Fountain Hills is well-positioned for growth, having the advantages of natural beauty, ample recreation, and proximity to corporate centers, shopping and dining. If you are considering a move to Arizona, start by looking at the beautiful Fountain Hills homes available now!

Whether you are buying or selling a Fountain Hills home, put your trust in my 33 years of local real estate experience! I can help you make the most of today's opportunities in the Fountain Hills real estate market. I will also provide you the courteous, professional service you can count on! Contact me today for help with all of your real estate questions!

Tina Nabers
Nabers Property Management & Real Estate
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Mortgage News for Fountain Hills Home Buyers

What goes down, must come up! Due to recent pricing changes by Freddie Mac and Fannie Mae, mortgage interest rates may tick upwards after October 1, 2012. The government-sponsored mortgage monoliths are increasing the fees they charge to mortgage lenders by 10 basis points, which will increase costs for home buyers.

The motive behind the change is to even the playing field for investors and private capital. Since the housing crisis began, private money fled the mortgage market, leaving Freddie and Fannie guaranteeing the majority of residential mortgages. Now that housing is in recovery, it makes sense to get private capital back into the game. This spreads around the risks of mortgage financing and should reduce the odds of tax-funded bailouts in the future.

Naturally, any increase in lending costs will be passed along to the borrower. According to Bloomberg, the increase of 10 basis points will cost home buyers $4,000 over the life of a $200,000 mortgage. It will be largely transparent to the home buyer, as the increase will be in the form of slightly higher interest rates.

Given that median home prices in Fountain Hills and the greater Phoenix-Scottsdale area are hovering just under $200,000, the mortgage pricing changes should not disrupt anyone's home buying plans. After all, residential mortgage interest is tax-deductible, and the monthly payment impact in Bloomberg's example would be about $11.

Where the concern comes in, is that this pricing change is independent of market factors or economic policies. We have enjoyed low mortgage interest rates and affordable home prices for so long, that it's easy to take these conditions for granted - but they won't last forever. Now is the time to explore the beautiful Fountain Hills homes we have on the market!

As your Accredited Buyer Representative, I provide tremendous experience and local expertise to guide you through our fast-changing Fountain Hills real estate market. If you are ready to enjoy the splendor of panoramic, desert views from your own home, let me show you how to get started. Contact me today and find out more about home buying in Fountain Hills!

Tina Nabers
Nabers Property Management & Real Estate
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Shadow Inventory Fades in Fountain Hills

If you've been worried about the "shadow inventory" of homes in Fountain Hills, it's time to stop worrying!

Distressed properties account for a shrinking share of the residential real estate market in Maricopa County, according to the latest reports by DataQuick. Foreclosure sales in the metro Phoenix-Scottsdale area are at their lowest levels in 4.5 years.

Fountain Hills real estate has steadily improved during the past year. Foreclosures and short sales accounted for about 4% of the market last month. In early 2012, distressed properties accounted for 10% of the market; and a year ago, as much as 14% of the market. We've come a long way in a relatively short amount of time!

Our proximity to Phoenix often causes broad assumptions about local market conditions. But there's good news there,  too. Phoenix foreclosures are down by 50% from a year ago, and down by 66% since 2009. Metro Phoenix-Scottsdale home prices are enjoying double-digit gains as a result. 

This being said, we can still expect seasonal norms to affect Fountain Hills real estate in upcoming months, though any pullback in sales should be modest. We also have the uncertainties of an election year, which could influence market behaviors.

The bottom line: Fountain Hills, Arizona, is a magnificent place to live, work and play! Statistics aside, buying a home is really about the quality of life you can enjoy in your new neighborhood. The natural wonders of our serene, desert vistas, along with our thriving culture, and our abundant recreational opportunities will always attract new residents! 

Whether you are relocating to Arizona, or you are a current resident who is thinking of buying or selling a home, I'm here to help you! 

When you have questions about Fountain Hills real estate, contact me! As a real estate professional with over 30 years of experience, I will provide you with the best in local expertise and Fountain Hills market guidance!

 

Tina Nabers
Nabers Property Management & Real Estate
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Short Sale Rule Changes Could Help Fountain Hills Home Sellers!

While home values have been improving in Fountain Hills and the greater Phoenix-Scottsdale area, prices remain below the peaks reached in 2006. Homeowners who made purchases during the height of the housing boom have been struggling with negative equity. Add in a personal hardship, and it becomes a recipe for foreclosure. 

Fortunately, there is help on the horizon! The Federal Housing Finance Agency has announced new short sale guidelines effective November 1, 2012, for mortgages held by Fannie Mae and Freddie Mac. These government-sponsored agencies back more than half of all residential mortgages in the United States, and their short sale improvements could have a wide effect on the housing market. 

Here are some highlights of the new short sale program:

Homeowners who are current on their mortgage can be eligible for a short sale, if they have a qualifying hardship. Hardship categories include job loss, death of borrower or co-borrower, divorce, disability, or job relocation exceeding a distance of 50 miles from the home.

Mortgage servicers who work on behalf of Fannie Mae and Freddie Mac will be empowered to directly expedite qualifying short sales. 

Documentation requirements for homeowners “most in need”, who are behind on mortgage payments and have qualifying hardships, are significantly reduced. 

Homeowners who have sufficient assets will be asked to make a financial contribution to the short sale. In return, Fannie Mae and Freddie Mac will not pursue a deficiency judgment for the difference between the sale proceeds and the outstanding mortgage balance. This clause seems to address the Mortgage Debt Relief Act of 2007, which is scheduled to expire at the end of the year.

Overall, the changes in the short sale process should reduce new foreclosures and further stabilize home prices. This is good news for all Arizona homeowners! Median home values in the Phoenix-Scottsdale area have improved about 28% from a year ago, thanks in part to a reduced inventory of homes for sale. 

If you are thinking of selling your Fountain Hills home, contact me for the best in local expertise and market guidance! With over 30 years of experience in Fountain Hills real estate, I have helped home sellers succeed throughout all market conditions. 

When you have questions about the Fountain Hills real estate market, feel welcome to call me! I will be happy to help you! 

 

Tina Nabers
Nabers Property Management & Real Estate
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The Necessary Tools for Owning a Fountain Hills Home

Becoming a home owner is an exciting time, but do you have the tools to do it? There are certain tools every Fountain Hills home owner needs to have to ensure a smooth sailing. If you are not familiar with these tools, it is important to become familiar so you can fix any problem that comes your way.

Duct Tape: Every homeowner should have at least one roll of duct tape. Known to solve almost any problem, this is one item you will need repeatedly. If the duct tape you are using will be hidden from plain sight, using original grey will work just fine. However, if you are more particular about the appearance of the tape there are different colors and designs you can get. 

Hammer: Having a simple hammer will come in handy as you decorate your Fountain Hills home. Make sure your hammer is large and sturdy enough to get a nail through a wall. Buying a small hammer is helpful when using thin nails, but if you predict a larger project in your future, you should also invest in a larger one. 

Flashlight: What seems like an obvious tool to have, it is also the most easily forgotten.  Moving is a complicated process and remembering to have the most simple items sometimes seems like the hardest part.  Having a flashlight is not just important when the power goes out, but also helps when fixing something in a dark area or looking for something under a large piece of furniture. 

Tool Box: Another obvious one, but keeping your tools organized is a great way to keep your home clutter free. When something needs to be fixed the last thing you want to do is spend hours looking for one screwdriver. Keeping all of your tools in one area will be beneficial when working on a large home repair.  If you have too many tools to fit in a tool box, invest in two. A smaller one that holds the everyday tools, hammer, screwdrivers, nails, etc. Also buy a larger one for tools that you may only once in a while.

If you have any questions regarding home repairs, feel free to ask! Also, if you or anyone you know is interested in buying or selling Fountain Hills real estate, contact me! I look forward to helping you!

Tina Nabers
Nabers Property Management & Real Estate
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Views on Home Ownership after the Housing Crash

After the real estate market crashed a couple years ago, many people never thought it would turn around again. The looming question is, how did the crash affect the views on owning a home? As a Fountain Hills Real Estate agent I faced the crash head on, answering questions from clients and perspective clients about when things would get better again.

A long lasting debate has been between renting and owning a home. After the crash many reports stated that home owners would turn into renters and that the rental market would rise while the ownership market would continue to crash.  However recent statistics show that people would rather purchase a home than rent a home. 

Not every person was affected by the crash, in fact about 2/3 of the country was not involved and therefore their only connection was what they saw through the media. These people were shown to not have changed their opinion on owning a home. 

Younger home owners that were immediately affected by the crash stated that they were a little shaken up over the crisis. Being new to the real estate market younger investors were not quite sure how to handle the situation, therefore questioning whether to buy or rent a home. This had many of them wondering if they should rent a home over buying. In the end many of the younger investors still decided to purchase their home based on statistics from the past year.

During my career as Fountain Hills Real Estate agent I have found the more experienced buyers can handle tougher situations. The crash had many older home buyers still thinking positively and rarely negative thoughts towards buying a home.  However reports did show that older home owners that had been forced into foreclosure did look at the market in a negative way. 

With the crash behind us and the real estate market climbing back many people say that they would definitely buy a home over renting a home. The market will continue to rise and as it does more people will feel comfortable making the decision to purchase a home.

If you have any questions regarding the real estate market, feel free to ask. Remember, if you or anyone you know is interested in buying or selling Fountain Hills real estate, you can contact me. I look forward to speaking with you!

Tina Nabers
Nabers Property Management & Real Estate
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