Pinetop White Mountain Blog

Happy New Year Everyone!

Well, 2009 is finally over.  Santa has returned to his North Pole home for another year, and we are ready to get on with business.  At least I am.  As a Real Estate Professional I find the Holidays while enjoyable are also frustrating.  It is absolutely impossible to get anything done for two weeks.  No matter what it is the person you need to talk to just left on vacation, is off for the day, or will be back after the First of the Year.  Thank goodness all that is over now and frankly I can cheerfully say goodbye to 2009 as well.

So, what to expect in the New Year? 

First:  I know we are going to see higher interest rates.  2009 ended above 5% for the first time in a long time and everything I am reading says they will be above 6% before long.  So if you are thinking about buying you need to do it quickly now before your dream house is out of reach because the interest rate on the loan is going to be higher. 

Keep in mind too that the tax credits are only good on properties placed in escrow before April 30th.  That may seem like it is a way off but with loans taking upward of 60 to 90 days to close right now, it really isn't that far away.

Second:  Tougher Short Sale guidelines.  Yes, the good ol' US Government has come out with some very strict new guidelines for Short Sales.  If is isn't your primary residence you may be out of luck in trying to do a short sale.  Arizona is one of the few States that has an Anti-deficiency Statue that prevents your lender from coming after you for the difference between your Short Sale Price and the actual balance owed.  In 2009 legislators in Arizona tried to get that changed and they actually succeeded for a Short Time.  But, it was a badly written law and it was rescinded in Sept. '09.  It will come again though so be prepared for changes in the Short Sale and Foreclosure markets too.

Third:  Less inventory to choose from but in most areas prices will continue to fall for a while yet.  Oh I know we said a while ago that was going to stop but with the lenders being again allowed to move forward with their shadow inventory of foreclosures, you will see more of them.  The difference I think will be that they won't priced at Bargain Basement lows any longer.  The lenders learned their lesson there in 2009 when they flooded the market with millions of foreclosures all at the same time and drove values in to the ground. 

Fourth:  Loan originators will now have to be licensed in the State where they work.  This is a good thing because now they will be held accountable for their work and there will be some recourse for potential borrowers who are treated unfairly.  How enforcement will be handled is up to the individual State.

Fifth:  A New Good Faith Estimate that will delay processing of your new loan for three days while you have a chance to review the numbers.  This is mandated by the changes in the RESPA rules in Washington and will create further delays in loan processing.  Add to that the HVCC is still in force and you have more delays just getting through the initial work involved in processing a new loan. 

So you ask, what is the good new?  I'm not sure there is a lot of it.  2010 is going to present a whole new set of challenges for potential Buyers and Sellers.  As a Real Estate Professional I can only say that despite all the difficulties in the Real Estate and Mortgage Industries today, it still is a good time a buy a home.  You just need to be prepared that no sale is easy these days and there will be a ton of hoops to jump through to make it happen.  We are all on a learning curve in this "New Market" and while it may seem like a major hassle to buy property these days, in the end if you get the house of your dreams at a great price, it will be worth it. 

Give me a call and let me help you with the sale or purchase of your next home.  I am a true Pro and spend as much time as I can learning anything and everything I can to make things easier for you.  With over 11 years of experience as a licensed Pro and many years before that in the Industry from an Administrative point of view, I can help you over the bumps in buying or selling these days.

Have a wonderful Monday!

Sandra Paulow, Associate Broker, GRI - Your High Country REALTOR®