National economists and experts are predicting strong home sales in the summer and second half of 2008. The Casa Grande area is already experiencing a strong increase in home sales. The market is heating up due to a combination of factors including lower interest rates, lower home prices, pent up demand and revamped financing programs.

The numbers shown above indicate a lower number of new listings each month, with increasing numbers of pending sales and closed sales each month, as well as a higher listing price to sales price ratio. These are the strongest number of sales since the height of the past real estate market cycle in 2005. Statistics obtained from sales and listings reported to ARMLS (AZ Regional MLS) and include the Casa Grande and Arizona City areas.

Sales of bank owned homes accounted for the largest percentage of recent sales and are frequently experiencing multiple offers resulting in a sales price close to even higher than listed price. Nearly 46% of new Casa Grande listings sold within 30 days of being listed with only 13% of those listings on the market longer than 30 days selling. What does this mean? The good homes always sell fast!

In the Casa Grande area FHA and VA financing were used in only 5% of sales in 2006, 9% in 2007, and 26% in the first two months of 2008. Why the increase? FHA and VA loan programs were updated to once again meet the financing needs of the average homebuyer. Down payments are as little as 3% for FHA and can be combined with down payment assistance programs to result in no down payment for those who qualify. VA loans have always been available with no down payment for veterans. The FHA maximum loan limit was increased to $346,250 which will allow a maximum sales price of $356,950 in Pinal and Maricopa Counties. There are a variety of financing options for buyers with good credit (perfect credit isn’t required), low or no down payments, and sellers can pay for buyer’s closing costs. Now, more than ever, it’s important to work with an experienced loan officer who knows the financing options and requirements for this specific area.

With the growing number of homeowners facing foreclosure, there are numerous agencies that have been established to help these homeowners. In March, the state received $1.45 million in federal funding as part of the National Foreclosure Mitigation Counseling Program. This money is solely dedicated to assist in foreclosure prevention. Earlier this year the Arizona Supreme Court announced a new statewide initiative, Lawyers Helping Homeowners, which is comprised of volunteer lawyers. The Lawyers Helping Homeowners program will provide informational clinics for homeowners who may be facing foreclosure, answer individual questions that are posted to the program website, meet with eligible homeowners who may be faced with pending foreclosure and tenants who may lose their housing due to their landlord’s foreclosure.

 

HOPE Now: 1-888-995-4673 / www.hopenow.com/