Mortgage Rates edge down slightly this week

Mortgage rates edge down slightly, from MSNBC.com, reports that rates on 30-year mortgages, after rising for five straight weeks, edged down slightly this week as investors reacted to news that suggested the economic drag from housing could last longer than expected. The government reported that construction of new homes fell 2.1 percent in May, leaving homebuilding activity 24.2 percent below the level of a year ago, while the National Association of Home Builders said its index of builder sentiment in June fell to a 16-year low. "Mortgage rates eased this week due to market concerns that the housing market will be a longer drag on the economy," said Frank Nothaft, Freddie Mac's chief economist. Freddie Mac reported Thursday that rates on 30-year, fixed rate mortgages averaged 6.69 percent, down from 6.74 percent last week. Rates on 15-year, fixed rate mortgages fell to 6.37 percent, down from 6.43 percent last week. Five year ARMS averaged 6.31 percent, down from 6.37 percent last week.

http://www.msnbc.msn.com/id/7148582/

Phoenix at the top for business recruitment

Phoenix sweats out top ranking for business recruitment, from the Business Journal of Phoenix, reports that Phoenix claimed the number one ranking from Expansion Management magazine as the best place for recruitment and attraction, and Arizona ranked as the top state. Maricopa County came in at number 4 for counties in the U.S. Two Arizona cities also made the midsize list: Tucson at No. 4 and Flagstaff at No. 5. Yuma came in at 7th on the small cities list. The magazine, geared to company executives looking to expand or relocate their facilities, worked with the National Policy Council think tank to develop the rankings. The council analyzed the relocation activity of 19 million companies over the past eight years to determine the most popular commercial relocation destinations.

http://phoenix.bizjournals.com/phoenix/stories/2007/06/18/daily16.html?t=printable

Housing Rebound in 2008?!

Housing rebound projected for 2008, from the Business Journal of Phoenix, reports that the Greater Phoenix Blue Chip real estate panel is forecasting a 13 percent drop in single-family permits for 2007, to 37,000 permits. But they are predicting a rebound in 2008 to 40,000 permits, a 10 percent increase over 2007 levels. However there is some uncertainty to the forecast, writes topics editor Elliott Pollack. He notes a wide spread in predictions among panelists from a low of 27,000 permits for 2007 to a high of 48,000. "The single-family residential market weakened considerably late in 2006 but recently picked up again," Pollack wrote. "It remains to be seen if this is an aberration or if the worst is over", he added.

http://phoenix.bizjournals.com/phoenix/stories/2007/06/18/daily37.html?t=printable

Foreclosures up for investors.....Moody's market predictions

The first article, Foreclosures up for investors, from the Arizona Republic, reports that at least one quarter of all Phoenix-area homes to fall into foreclosure this year are owned by investors, according to an Arizona Republic analysis of residential foreclosure records. Many cannot charge high enough rents to break even or sell their property at a time when the market is flooded with listings. The effect on some Valley neighborhoods with many rentals and vacant homes can be significant. Through May, 8, 597 notices of trustee sales for homes were filed in Maricopa County, putting metro Phoenix on pace to top 18,000 this year. "Investors drove up the Valley's housing market. Now, they are driving it down with foreclosures," said Jay Butler, director of Realty Studies at ASU. "You won't find a lot of people feeling sorry for them now," he added.

http://www.azcentral.com/arizonarepublic/news/articles/0609investor0609.html

The second article, Where housing will bounce back and when, from MSNBC.com, reports on which real estate markets are projected to bounce back, and how will their rebound look. The article suggests that there are three types of recovery patterns-- a "V" shaped recovery where the market experiences a sharp, fast decline but comes out strong once it hits bottom; a "U" shaped recovery, where prices decline gradually and recover slowly; and a "L" shaped curve-- a hard, fast fall with paltry price bounceback following the market trough. Areas with good local economies and population and job growth are candidates for a "V" shaped recovery. The article states that Phoenix is one of those markets. Good affordability rates and a surging job market suggest that once Phoenix bottoms out, price growth will be strong. Moody's projection model has Phoenix reaching its price trough in the fourth quarter of 2008 and then growing by 7.7 percent the following year.


http://www.msnbc.msn.com/id/19116753/

Home prices down in the first quarter....EXCEPT ARIZONA!

Housing prices are flat, but that's definitely a plus, from the Arizona Republic, reports that California, Nevada, Florida and Arizona led the nation for housing price jumps a few years ago during the boom. Now, home prices are down in all the states except Arizona. According to figures released last week by the Office of Federal Housing Enterprise Oversight, during the first quarter of 2007, appreciation fell 0.84 percent in California, 0.34 percent in Florida and 0.52 percent in Nevada. Arizona showed a 0.13 percent gain for the first quarter. Home prices fell in 22 of the 26 California cities ranked by the federal agency. In Florida, appreciation was down in 13 of the 18 cities. Based on the drops in these other cities, our flat appreciation rate looks pretty good.

http://www.azcentral.com/arizonarepublic/business/articles/0603biz-catherine0603.html

Arcadia Teardowns

The article, Tearing down to build up, from the Arizona Republic, reports that since 2005, more than 50 demolition permits have been issued in the Arcadia area where developers are buying up older homes and tearing them down to build large, modern homes. Some residents fear that this trend will change the character of the charming Arcadia area with its 1950's era homes. Part of the appeal of the Arcadia area are the larger lots, the close in location and the great views of Camelback Mountain. As a result of its superior attributes, the median price for new and existing homes in the zip code that covers Arcadia and some adjacent neighborhoods rose 150 percent between 2001 and 2006 to $500,000. Arcadia homes typically sell for over $1 million. Today's buyers want a more open layout rather than the collection of compartmentalized rooms in a typical ranch style home, said Shawn Bellamak, an Arcadia resident and real estate agent. A good acre in Arcadia costs $1.8 million or $1.9 million, said Scott Pfeiffer, president of Sonora West Development. Look for this trend to continue in Arcadia, Paradise Valley and parts of Scottsdale.

http://www.azcentral.com/business/articles/0531arcadia031.html