September/October 2007

Hello!

    I have been meeting more people these days that are telling me they don't read the news anymore. The fact that 70 U.S. mortgage companies closed operations or sought buyers since the start of 2006 has scared many Americans and the rest of the world. Many buyers want to wait for prices to go down and many sellers want to wait until prices go back up! Truth is, if you noticed in the last newsletter, prices and market times are still much better than 2004! So if someone has owned their home for a few years; they are still doing well. Based on historical trends it would be doubtful the prices will go back up the way they recently did. It took Tucson nearly 15 years before we saw a climbing market. Based on what is happening to the lending industry and what other property buyers are looking for in terms of homeownership and investment it probably will take 15 years before we see another climb like we just witnessed.

    Buyers can still take advantage of great interest rates. The Feds have been putting on pressure to keep the rates low. Now many lenders are doing loans like they did a few years ago. They are being tough however this is something we used to always see anyway!

    If you have anyway questions about the market or about your situation; call me!

Existing-home sales fall in 41 states
By Associated Press 

    Sales of existing homes fell in 41 states during the April-June quarter while home prices were down in one-third of the metropolitan areas surveyed.

    The new figures from the National Association of Realtors underscored the severity of the current housing slump, the worst downturn in 16 years."Although home prices are relatively flat, more metro areas are showing price gains with general improvement since bottoming-out in the fourth quarter of 2006," said Lawrence Yun, senior economist for the Realtors.

    However, a separate housing report found the industry is still being battered by the rising number of home foreclosures, particularly in the subprime mortgage market, which provided loans to borrowers with weak credit histories.

    The National Association of Home Builders said its survey of builder confidence for August dropped by 2 points to 22, its lowest reading since January 1991, when the country was also caught in a severe housing downturn.

    "Builders realize that issues related to mortgage credit cost and availability have become more acute, filtering some prospective buyers out of the market and prompting others to delay their decision to purchase a home," said Brian Catalde, a home builder from El Segundo, Calif., and the president of the home builders group.

    The states suffering the biggest drop in sales in the second quarter, compared with the same period a year ago, were Florida, down 41.3 percent, and Nevada, down 37.5 percent. Other states with big declines were Arizona, down 23.4 percent; Tennessee, down 21.5 percent; Maryland, down 21.1 percent, and California, down 19.8 percent.

    Among the biggest metropolitan areas, cities seeing price gains included New York City, up 1.7 percent, Los Angeles, up 3 percent; Chicago, up 1.7 percent, and Dallas, up 1.7 percent.

Tucson and Vicinity Re-Sale Statistics

News, Notes, Upcoming Events.

•  Starting officially mid-September, Home Owner's Associations must now allow owners to display a standard sized (18" x 24") outdoor for sale sign, including a sign rider, on the owner's property. It is no longer legal for a condo or planned community HOA to deny an owner's right to advertise his property for sale in Arizona using a for sale sign.

Did You Know .

•  The 1st observance of Labor Day is believed to have been a parade on Sept. 5, 1882 in New York City, probably organized by Peter McGuire, a Carpenters and Joiners Union secretary. By 1893 more than half the states were observing a "Labor Day" on one day or another, and a bill to establish a federal holiday was passed by Congress in 1894.

Do You Know Any Buyers For These Homes...

630 E. 1st $419,000 1927 bungalow totally redone on the inside. Quality design and construction for 3 bedroom, 2100 sq. ft. near the UofA	2616 N. Walnut $206,900 Wow! Step into a clean updated home. Chefs kitchen, nice tile, 4 bedrooms, big yard, great location….

If you are looking for a plumber or a house cleaner check your
2007-2008Service Directory. If you don't have one, please call me!
(This Newsletter is for information only and is not an attempt to solicit other Broker's listings.)

Gene Thiel CRS, GRI
at Long Realty
3130 East Broadway
Tucson, Arizona 8571
Office: (520) 918-5158
Cell phone: (520) 906-0168
Toll free: 1-800-279-2211
Web: www.tucsonishome.com
e-mail: gene@tucsonishome.com