Tucson By Choice!: Which Way For Home Prices? Federal Housing Finance Agency Says "UP."

Which Way For Home Prices? Federal Housing Finance Agency Says "UP."

Which way for home prices?  Are they headed back up?  This morning's FHFA news release says "Yes." 

WASHINGTON, DC – U.S. home prices rose 0.9 percent on a seasonally-adjusted basis from April to May, according to the Federal Housing Finance Agency’s monthly House Price Index. The previously reported 0.1 percent decline in April was revised to a 0.3 percent decline. For the 12 months ending in May, U.S. prices fell 5.6 percent. The U.S. index is 10.7 percent below its April 2007 peak.

It's tough to predict a bottom of the market, except in the rear view mirror.  Seasonally adjusted prices from the government aren't always on target, and sometimes they have to eat their words, but still, I'm encouraged.  Today, when my buyer clients ask Which way for home prices? I'm pointing them to this news release.

 ___________________

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.
Mike Jones (Tucson Mortgage Company, LLC): Loan Officer in Tucson, Pima County, Arizona
SUNSTREET MORTGAGE
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Comment balloon 19 commentsMike Jones • July 22 2009 11:06AM

Comments

Mike,

I think it is only matter of time before the home prices reverse their downward trend.  The window opportunity for buyers will not stay open for much longer.  No one can pinpoint when we hit the bottom as you mentioned but the odds are we are near the lows and if so, the most likelihood is that homes prices will start going up.  Thank you for sharing this great news article.  Very good one to share it with clients and let them make their own conclusion.

Gerry's AR signature

Posted by Gerry Khatchikian, ASA, TRC, SFR about 9 years ago

Mike~ All federal agencies expect all prices to go up

Posted by Hugh Krone, Realtor, Sussex County NJ (Weichert Referral Associates) about 9 years ago

Hugh,

No.  They expect TAXES to go up!  LOL

Gerry,

That window is closing, isn't it!

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 9 years ago

Mike,

Housing prices are going up! Yes, up as long as mortgages are artificially low. The question is how long can we borrow trillions for government spending programs and insulate home mortgages from rate increases!

If today's average sale price is $140,000.00 the buyer with 10% down is financing $126,000 and paying 5.5% on a 30 year fix rate mortgage his P & I payment is $715.41. Assuming the buyers are buying all they can afford what will happen when the rates reflect realty?

Today they can afford a $126,000 mortgage.

At 8% only $97,499

At 10% only $81,522

At 12% only $69,551

At 14% only $66,379

At 16% a lowly $53,200

At 18% even worse $47,470

At 20% like a large car $42,813

At 22% Only $38,966!

You don't think we can get to 22%! Consider what another democrat benevolent boob left Reagan! Obama has spent more in six months than Carter did in 4 years.

The only sure thing is that buying today is going to be better than renting tomorrow!

Bill

Posted by William J. Archambault, Jr. (The Real Estate Investment Institute ) about 9 years ago

We've seen prices hold pretty steady here.. and as long as rates stay calm, we'll see our local market improve.  I'll take good news where I can get it. :)

Posted by Jesse & Kathy Clifton, Retired (Jesse Clifton & Associates, REALTORS®) about 9 years ago

Mike,

I have been seeing our list prices increase over the last several months but our avg. sales price is all over the spectrum.  I would like to see it get stable for awhile.  This could be a good indicator as to what is going on tho.

Posted by Don Rogers, Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes (Keller Williams Realty Chesterfield) about 9 years ago

Mike,

Prices are bound to go up and it looks like it will be headed in that direction. Our prices never dropped as bad as the rest of the country but our economic climate is different here. 

Posted by Dorie Dillard, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.346.1799) about 9 years ago

Mike,
That's certainly the direction we want them to go!

Posted by Cynthia Tilghman, Realtor® Onslow County NC Home Specialist (Kingsbridge Realty, Inc) about 9 years ago

Cynthia,

Now let's get the buyers on board!

Dorie,

If Texas was an independent country, it would take over the world!

Don,

A little stability would be good for everyone!

Jesse,

Do prices fluctuate up there between summer and winter?

Bill,

I love your comment; it should be a post.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 9 years ago

OK

Posted by William J. Archambault, Jr. (The Real Estate Investment Institute ) about 9 years ago

Thanks for the pointer to the news release!

Posted by Ann Heitland, Retired from Flagstaff Real Estate Sales (Retired from RE/MAX Peak Properties) about 9 years ago

Ann,

You bet!

Bill,

I'll be right over to comment!

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 9 years ago

I love your optimism...  Hope you are having a great summer

Posted by Judy Greenberg, Coldwell Banker - Buffalo Grove - Long Grove Homes (Coldwell Banker Long Grove) about 9 years ago

Judy,

Is there any better way to approach life?  Optimism attracts success, and we're having a great summer.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 9 years ago

UP is good! We'll take UP!  Yippee!!

Posted by Eleanor Thorne, Equity Resources 919-649-5058 (Equity Resources) about 9 years ago

I'm trying to remain optimistic.  Do you sometimes wonder if the government's news is just trying to stimulate the market with "hope"?

Posted by Sun City Grand Homes Surprise AZ Real Estate Leolinda Bowers Designated Broker Leolinda Realty, Sun City Grand in Surprise Arizona (Leolinda Realty) about 9 years ago

Wait a minute! Hold that UP! please.

As painful as the downturn has been for many homeowners, I do hope home prices stay in the affordable range for a while. 

There are so many homebuyers that were just simply totally priced out of the market a few years back.... and now they finally have a chance to buy again .....

It's rather nice to see buyers out and about around my area again.  We haven't seen this many buyers for a very long time...... 

 

 

Posted by Cheryl Johnson about 9 years ago

That's not the trend I'm seeing on Zillow LOL. My area had a slight decline with surplus inventory of 15%. Now inventory is down and we are seeing higher prices.

Posted by Chip Jefferson (Gibbs Realty and Auction Company) about 9 years ago

Laura,

See my featured post this morning for a program that I know is available (although probably under another name) in your state.  It will help you buck the trend in your area.

CJ,

It IS nice to see buyers, and rates are still affordable.

Leolinda,

Ditto my comment to Laura.  "Your Way Home AZ" will put buyers in Sun City.

Eleanor,

Yipee is right!!

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 9 years ago

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