Havasu Home Talk

The National Association of Realtors Research Update that I received today shows latest developments indicate Pending Home Sales are showing a healthy gain.  Buyers are taking advantage of improved affordability conditions.  The Pending Home Sales index rose 6.3 percent to 87.7 from an upwardly revised reading of 82.5 in November, and is 2.1 percent higher than December 2007 when it was 85.9 according to the National Association of Realtors.  “The monthly gain in pending home sales, spurred by buyers responding to lower home prices and mortgage interest rates, more than offset an index decline in the previous month.” said Chief NAR economist Lawrence Yun.  “The biggest gains were in areas with the biggest improvements in affordability.”

We haven’t seen prices this affordable in Lake Havasu City for a number of years, now is the time to take advantage and make the lifestyle that you want a reality in Lake Havasu.  Give The Concierge Service Team a call at 928-854-5511 or email topexpert@earthlink.net and we’ll quickly respond to your request.

My friend Lonnie Stevenson at Evergreen Home Loans emailed me an article today with this title.  Even though it’s a bit of a rough market for Seller’s right now, it truly is the best time to buy a new home or to upgrade to your dream home.  It is the best market for buyer’s we’ve ever seen! 

Why you ask?

• Inventory is at record numbers – a great selection of amazing homes to choose from.
• Interest rates are on the rise – even if you are waiting for the seller to drop their price further, you might pay a lot more in financing fees with an increased interest rate in a few months
• Real Estate is a long term investment – very few people who bought real estate 20 years ago look back and say that they regret their purchase, the fact is that real estate goes up in value every year – even in a market that favors buyers. 
• A home is much more than a commodity – home flipping shows of the last 5 years would have you think otherwise, but buying a house is lifestyle decision, not solely a financial move.

Buying a home is an exciting time!  It’s more exciting than ever due to the current Buyer’s market.  Take advantage of what today has to offer – get the house you want at the price you want and enjoy the long-term gains.

If you have any questions about real estate, please Call The Concierge Service Team at 928-854-5511 or toll free 888-854-5511.  Don’t forget to visit our MLS searching website by clicking on the Green Button on the top right column of this blog – you can search through every single home available in Lake Havasu City to find your new home.

It’s almost here!  This is one of my favorite things about Lake Havasu City.  This week the Western Pyrotechnics Annual Winter Blast display happens!  Starting Wednesday night, the group displays their fireworks every night until Sunday – with the major attraction being the Public Display held at SARA Park starting at 8:00 pm Friday and Saturday. 

Many of the homes on the south end of town have a view of the fireworks right from their own yard, but if you would like to view from within the park, there is a parking fee of $5 per car.

Join us all in one of the best fireworks shows I’ve ever seen!

Got this great tidbit from Lonnie Stevenson at Evergreen Home Loans today:

If you’ve been following the financial news, you’ve probably heard that the Fed’s been buying Mortgage Backed Securities and will continue to do so as needed. Unfortunately, some media outlets have picked up on the news and mistakenly reported that these purchases will continue to cause rates to drop lower into the summer.

But is that really what it means? No.

The truth is, the Fed has been buying Mortgage Bonds. BUT… more precisely, they’re buying a lot of FNMA 30-yr 5.0% and 5.5% Bonds. Many of the mortgages in these pools are outstanding home loans with rates between 6.0% and 6.5%, as the rate that a borrower pays is different than the coupon rate given to an investor buying into that mortgage pool, with the difference being taken by Wall Street firms and government agencies. The loans in these pools the Fed is buying hand over fist are likely be refinanced and paid – because current rates make it very attractive to refinance a loan over 6.0% – and thus giving the Fed a quick recoup on some of their investment.

Bottom line: The Fed’s purchase of higher rate coupons will not necessarily help rates to move lower, as their actions do not impact the loans being originated at today’s low rates.

The Problem Is…

Many consumers are in situations where they can refinance now and save hundreds of dollars a month on their mortgage payments.  But when they hear the media throwing around teases of lower rates ahead, they decide to hold off on making the decision to save, in the hopes of gaining a few more dollars of savings per month if a lower rate came their way. Of course, while they’re waiting, rates could turn higher – and this window of opportunity could pass them by entirely.

The Clincher:  Even if they are able to time the market perfectly and save another few bucks per month, they could still end up losing.  That’s because while they delayed, they lost the savings each month they could have gained by taking action sooner.  In other words, they may have lost hundreds of dollars for every month they waited.  So even if they got lucky and obtained the rate they were looking for, it could take years to make up what they lost by waiting.

This doesn’t just affect refinances – WHO KNOWS WHAT HOME PRICES WILL DO AS WE CONTINUE TO BUILD STEAM IN OUR LOCAL MARKET?

The price of your new home might increase as the busier summer season comes. 

Last Wednesday the FED decided not to touch the current Fed Funds Rate (the rate that banks pay when they borrow money from each other here in the US).  It is currently at the lowest point it has been at ever!  The Fed says “that economic conditions are likely to warrant exceptionally low levels of the Federal Funds Rate for some time” and that “inflation pressures will remain subdued in coming quarters. 

This is one of the ways the FED, the agency whose main role is to maintain “monetary stability” in the economy, helps to keep control of the way the money flows through our economy. 

Some good news, housing reports for the final quarter of 2008 came in much stronger than expected.  Stronger housing statistics can help fuel the economy.  It’s a perfect opportunity to buy a home right now, prices are down, rates are good.  While the Fed Funds Rate will remain low for some time, it’s not likely that the interest rate you get on a home mortgages will stay as low.  They’re not necessarily connected, as mortgage rates are tied not to the Federal Funds Rate, but are insted closely tied to Mortgage Backed Securities.  Call a professional who can help you find the best terms for a home mortgage.  If you contact our team, we can put you in touch with a number of reliable Mortgage professionals.

It’s time for this year’s annual Winterfest celebration.  Each year on uptown Main Street (the area of McCulloch Boulevard between Smoketree Avenue and Acoma Boulevard) a large number of vendors set up booths in a two day long celebration.

This year over 260 vendors will display artwork, jewelry, home decor and ceramic wares, and more.  The event draws a large crowd each year, and there are kid’s events too to make it a fun time for everyone. 

Winterfest will run from 10:00 am to 5:00 pm Saturday, and 10:00 am to 4:00 pm Sunday. 

Free Admission, Parking available off Mesquite Avenue behind McCulloch Blvd Businesses and in lots west of Smoketree AVe.  Havasu ARea Transit will offer free rides into the Uptown Main Street district on Saturday.

For More information contact the Chamber of Commerce at 928-855-4115