16th Street Should Not Be Ignored

That is the message of Por Vida Gallery. Our January 2011 Get Your PHX was a celebration of 16th St. and we are going back to see what’s new.

Por Vida owners Pablo Luna, Thomas “Breeze” Marcus, and Lalo Cota have a foothold and a new statement that they want to share with you.

Lalo Cota tells us that 16th is the next logical step in art in Phoenix. First Friday, he says, can’t be about just 3rd and Roosevelt anymore. He tells us that space has become too much about food and artists are struggling. So it is time to expand.

Come see if the leading edge of art in Phoenix truly is making a move east and see Douglas Miles’ transfixing =Apacheria= show in which Miles challenges cliché images of Native American life through mixed media.

This will be the most engaging Get Your PHX that we’ve hosted for some time. So, don’t miss it!

Special sponsors to be announced soon!

Please join us and RSVP at our Facebook Fan Page.

March Get Your PHX
Thursday, March 22nd from 5:30 to 7:30pm.
2800 N. 16th St
Phoenix, AZ 85006 Map Here

Good news on the Home loan front. President Barack Obama has signed HR 2112! Oh, you don’t know what that means? Trust me it’s exciting.

Here, let me quote you!!

FHA maximum Loan Limits effective October 1, 2011 through December 31, 2012 – Mortgagee Letter 2011-39

 FHA Loan Limits that were in effect from January 1, 2011 through September 30, 2011, as announced in ML 10-40, shall apply for case numbers assigned from November 18, 2011 through December 31, 2011 – Maricopa County $346,250

 FHA Loan Limits with case numbers assigned on or after January 1, 2012 through December 31, 2012 will remain the same as those that were in effect from January 1, 2011 through September 30, 2011 – Maricopa County $346,250

 FHA Loan limits with case numbers assigned before November 18, 2011 are subject to the LOWER limits that were in effect from October 1, 2011 through November 17, 2011 (some exceptions apply) – Maricopa County $271,050

So what does all of that mean?

Moral of the story is:  FHA Case #’s assigned Jan 1, 2011 through September 30, 2011 maximum loan limit for Maricopa County was $346,250 –

Case numbers assigned October 1, 2011 thru November 17^th, 2011 are subject to the REDUCED loan limits of $271,050 for Maricopa County – And yet another change FHA Case numbers assigned November 18^th, 2011 thru December 31, 2011 will jump back up to $346,250

Basically, you can borrow more under FHA….

Don’t you love how long it took them to say what I said in seven words?

Stay Tuned for more FHA changes.  Please call Jeannie Bolger, Sr. Loan Officer – Nova Home Loans if you have questions. 

Exciting Right?

Christmas has come early! Statistics and Graphs galore! If you’re looking for a home here in Phoenix, here is a trend that you might want to know about.

As a general rule, fewer  people buy houses between October and February. With the beautiful winter weather here in the valley, you would think sales would rise. But, most home buyers move in the late spring and summer in order to change schools. So, what does that mean for real estate agents….other than that we should probably go out and get second jobs waiting tables or pre-stocking for Black Friday?

What does it mean for you? Well, it’s great news if you’re a soon to be home buyer. As you can see by the graphs, sales per month is down between October and February while the monthly supply stays relatively the same. Aren’t graphs amazing?

Continue for more witty comments, below the graphs.

So, follow me here. If the sales per month are down and the inventory stays largely the same that is great for you if you are a buyer. It means that sellers are more desperate to sell. Not only are you going to have a greater selection, you might have an opportunity to negotiate the price!

So, get out into the beautiful weather and buy! If  you have any questions I’d be happy to help, just give me a call 602-456-9388

For those of you who were at last month’s Get Your PHX event, you saw the beauty of the Audubon Center first hand. This Friday the Audubon Center will be holding River Nights, a fundraiser party featuring music from Sergio Mendoza y la Orkestra, Four Peaks Beer, and delicious street tacos from Taqueria Guadalajar, to benefit their education and conservation program.

The customarily free-admission Audubon Center offers interactive exhibits, an interpretive loop trail, connections to the Rio Salado Habitat’s sixteen miles of hiking and riding trails, which draw in local students year round as well as veteran members. The center hopes to bring in a young professional crowd for future support with this Fridays chic, lounge-themed evening.  Valerie Ramos, who is coordinating the event, wants to engage and education the “next generation of leaders” through events and activities at the center.

The Arizona Audubon Center believes exposing urban young people to the beauty and complexity of the natural world is existential, in hopes that they are inclined to protect it as adults. The center believes there is ample habitat for birds and other wildlife, even amongst our urban sprawl. They work daily to promote interaction and appreciation of the natural environment and   educate and motivate local youth to become the conservation leaders of tomorrow.

River Night will be this Friday, November 4 from 5:30-9:30 pm at the Nina Mason Pulliam Rio Salado Audubon Center at 3131 S Central Ave. Admission will be $25 advanced admission or $30 at the door. For more information, visit www.riosalado.audubon.org or call 602-468-6470.

You probably know about our up-coming second annual open air holiday market, the Phoestivus market.  You know about it, especially if you are a vendor or own a food truck.

Well, this year, it wil be expanded to 2 nights: December 14th and December 21st.

Here is the information for vendors from our planning committee vendor point person, Monika Woolsey.

WHO:  Local creators of arts, crafts, and foods!

 WHAT: Second Annual Phoestivus (New this year!  Pheats of Strength, Airing of Grievances, and a Phoestivus Pole!)

 WHERE:  Downtown Phoenix Public Market

 WHEN:  December 14 and 21, 4 to 8 pm

 WHY:  Because we’re all just super cool and want to celebrate that. 🙂

HOW:  Please visit this link to apply to be a vendor.  If you are not a regular vendor, the annual fee does not apply.http://foodconnect.org/phxmarket/?page_id=7212  Please note, if you are on this email list you’re getting first dibs at available spaces.  Please, if this event is important to you, submit your application ASAP.  I’m sending a general call for vendors this coming weekend.

We’re encouraging all vendors to be phoestive with their booths as well as having wares to sell.  Decorations of all kinds are encouraged!

A special note:  The Clarendon Hotel will be offering a special Phoestivus room rate for all of December.  We hope for those vendors coming in from a distance, this might be a nice evening for you to stay in town and kick back, instead of hurrying home.  More details later!

You will eventually be connecting with myself and Troy Benjamin as the vendor coordinators but until we receive word from the Downtown Market that you’re on the official list, we are officially out of the loop.  So be sure to get  your application in!

Monika Woolsey

Phoestivus Committee

You’ve heard me ramble on about how great it is to live in Central Phoenix. It’s the truth! CenPho is the place to live and offers residents so much that other cities just don’t offer.

But, check this out. Here’s another reason you should consider moving in to CenPho if you are not already here: a long commute may increase your chances of divorce by 40%. Really.

One recent study in particular conducted by the Umea University in Sweden showed that there was a large increase in the risk of divorce with an increased commute.

OK. I’m being a little facetious. But there is probably some truth here. The two hours you are NOT travelling to and from work you could spend with your main squeeze at the Phoenix Art Museum, or one of the upteen thousand new restaurants downtown.

One thing the study does not mention is the importance of the aesthetic on our lives. Even though Phoenix has torn town waaay too much of its architectural heritage, what’s left still gives people something that the burbs can’t –a sense of space and identity.

A sense of history really brings out the artistic side of people with architecture and individuality when it comes to homes and businesses.

The various cultures and demographics of everyone living in CenPho make it so unique and lively that there is something for everyone. I’m constantly reminded of Richard Florida’s book The Rise of the Creative Class.  Its kinda old news now. Remember when he came to Phoenix in about 2003 to speak and we filled up the Orpheum? Much of what he said has held true, despite the economic downtown

1) If you build an organic (versus top-down) community, the creative class will come.

2) Areas with dense urban centers and creative outlets survive economic downturn better than other areas.

This is true of Phoenix. We saw it ten years ago and we see it today.

I’m just sayin’.

I’ve had first time home buyer clients who are frustrated by how much distressed property there is in the market. They can’t afford a renovated home, but they can’t afford to fix up the property on their own.

Well, there is an answer.

The U.S. Department of Housing and Urban Development (HUD) offers homebuyers the opportunity to secure a loan known as a 203(k) loan. This loan is administered through the Federal Housing Administration (FHA) and gives homebuyers the necessary funds to rehabilitate a home.

Many times, a bank will be hesitant and may reject lending money when the home is not habitable. This is where the 203(k) loan comes into play and can help homebuyers obtain the necessary funds to not only buy the home but to purchase the necessary upgrades to make it habitable.

This loan is an incredible opportunity and is coming into play more now than ever since the housing market took a dive. With many people facing foreclosure, they stripped their house of everything that wasn’t, or was, bolted down leaving the house a complete disaster. This loan gives homebuyers the chance to come in and fix up the house.

This does two things: 1) increases the value of the home and surrounding area and 2) boosts the economy of the community by having another family living and buying in the area.

My friend Jeannie Bolger, of Nova Home Loans is well versed in helping you get these “fixer-upper” loans. Jeannie has been trained to help guide clients through the entire process.

But as with any mortgage, there are some criteria both the homebuyer and the home must meet:

1)      The homebuyer must meet FHA financing guidelines which means a FICO score of 640 or more and a debt to income ratio of 31/43 (see FHA for more info)

2)      The home must be the primary residence

3)      For the home to qualify, it must be existing for more than one year

4)      The work must be completed by a Licensed General Contractor – sorry do-it-yourselfers

5)      Work starts after you close on the home and must be completed within 6 months

There are also two types of 203(k)s that homeowners can choose from depending on the extent of the work required:

1)      Streamline 203(k) – this includes uncomplicated repairs and improvements to home up to $35,000 and no more than 2 subcontractors needed for entire project

2)      Standard 203K – this is for major repairs and improvements along with structural improvements to property exceeding $35,000 – up to 6 months PITI (principle, interest, taxes and insurance) can be included in mortgage if property cannot be occupied during construction. A Licensed General Contractor is needed if layered work is involved

These 203(k) loans are a great way to get our housing market back up and running. With a wide selection of homes in the Central Phoenix area, there is something for everyone.

And don’t forget, the Realtor, Lender, HUD Consultant and Contractor will hold your hand throughout the WHOLE process.

If you would like more information on the 203(k) loan, or just on homes in CenPho, give me a call today at 602-456-9388.

If I have to hear another person predict a massive “shadow inventory” I’m going to turn green, and you wouldn’t like me when I turn green.

Well, not really green, more like red with some veins popping out on my forehead and my head spinning around.

So what am I talking about? Well, I’m a news junkie and when I hear every pundit on TV prattle on about  a shadow inventory, like its the forthcoming of the “four horsemen of the house-pocolypse,”  Where is the data to back it up? If they were looking at the same data as I am, then they wouldn’t be saying this nonsense.

I mean, come on, just do some quick research and see for yourself. The Cromford Index is the best guide out there and comes directly from the MLS as well as the county court and recorder’s documents. I would say those are just a teensy bit credible, I mean after all, they take the information directly from sales, right?

Yeah, that’s what I thought.

So what exactly is a shadow inventory? At its core, shadow inventory refers to properties, which are on their way to foreclosure or are already foreclosed that have not yet been sold or put on the market (for whatever reason, we don’t know).

Well, here is why there will be no shadow inventory in the Phoenix area:

1)      A house will not be part of any inventory of foreclosed homes until it has been given a foreclosure notice (see “Pending Foreclosures” on the graphs below). Even if it is a short sale, it probably has a foreclosure notice pending, so it is likely part of the big purple area below. A foreclosure notice is when the bank sends you a note to say, “Dearest customer. We noticed you stopped paying your mortgage. While we love you very much, we will throw your sorry butt out on the street by such and such date unless you pay up. Signed, Your Favorite Bank.”

(Click on graphs to enlarge)

That’s it. That is all there is. You could try to argue that more homes are going to go in to foreclosure because the economy is going to go in to a double-dip recession, but it is waaaay too early to predict that. Further, the foreclosures are going down because the market is clearing of those properties that were purchased at the peak of the market. There are just fewer of them now.

So, please. Tell your friends. Tell your family. Tell your neighbors and strangers whom you don’t even know.

Let’s put this shadow inventory myth to bed for good…

If you are buying a house, this means the inventory is dropping and prices are going to go up. So, don’t delay. If you are looking to sell a house, times are getting better for you. Either way, call me at 602-456-9388.

Did you notice how some major stores are starting to close up shop in urban settings which in turn is affecting the surrounding areas?

I’m talking about major stores such as Target, Best Buy, even Safeway – these stores are considered “anchor stores” because they “anchor” and are supposed to bring stability to the local area. That Target at 7th Ave and Camelback has been closed for a couple years now.

So, what happens when one of those stores closes its doors?

I started thinking about this over the weekend after hearing an interview on National Public Radio about the subject and they used the book store Borders as an example since they are closing up stores after filing for bankruptcy.

You may be thinking the same thing I was at first that with these anchor stores leaving, the surrounding neighborhoods and community would be greatly affected in a negative way. Well, in many cases that may be, but for cities and developers who get on the ball, these closures can lead to positive developments.

If approached with the right mindset by city leaders, smaller stores and boutiques can come in and flourish, filling the void and revitalizing the area. This is what makes the Central Phoenix area so amazing! There may not necessarily be major anchor stores in the area, but it’s the artistic boutiques and small shops that fill in the holes like grains of sand between large rocks that make the area a solid and thriving community!

Most of you probably remember when, Richard Florida (of the famed book Rise of the Creative Class) came to town in about 2003. The interview on NPR with a Brookings Institute researcher really just backs up the same arguments.  Although major anchor stores leave and are replaced, as long as there is a culture that brings people together, you will have a community.

Further, a few failed stores in a whole line of smaller stores has less of a devastating impact that the loss of an anchor store.

This is what makes Central Phoenix such a dynamic micro-economy and why I love working and selling homes in the area. There is so much life and vitality that is often missing in other areas. There has been so much work done over the past decades to revive the area that just makes it the place to live!

I’ve love to hear what you think about this.

If you were one of those homeowners who had a foreclosure recently, did you know that you could become a homeowner again sooner than you think?

There is no doubt that a foreclosure affects your credit score, but according to Jeannie Bolger, Senior Loan Officer with Nova Home Loans, it all depends on your situation.

“After a foreclosure, your credit score will definitely go down between 100 and 200 points on the credit FICO score,” said Bolger. “But it’s a tough question because everyone’s situation is so different and it depends on past payment history, mortgage late payments and debt.”

But Bolger also said the waiting period after a foreclosure for an FHA loan is 3 years, for a VA loan it is 2 years, and a conventional loan is 4 years. Although this seems like a long time, it is a perfect time to re-establish your credit and make yourself more desirable for a loan.

And if you did foreclose on your home, Bolger believes there are some important tips you need to follow.

“Do not overbuy and really know what your budget is,” she said. “Have an emergency fund to allow for ‘unexpected’ emergencies and have a savings account to make mortgage payments if you lose employment or get sick.” Have your credit run 6 months after the Foreclosure by a mortgage professional so you will be better prepared to meet the minimum FICO score requirements required by the loan terms.

If you or someone you know foreclosed on a home, there are options available to ensure homeownership again. The US Department of Housing and Urban Development offers tips about foreclosure and information about the process.

If you would like more information on what it takes to buy a home again after foreclosure, give me a call today at 602-456-9388 and I can find you the perfect home in the valley!