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Amy Golba

Real Estate News

Aug ’12

Amy Golba Designated Broker 480-628-9448 Amy.Golba@gmail.com www.21Arizona.com Century 21 Platinum Real Estate 2141 E. Pecos Rd., Chandler, AZ 85225

Home Price Index Shows Gains in All 20 Cities in May; Phoenix Leading Housing prices have now risen for the last year in more than half of major U.S. cities, marking a milestone in the historic housing collapse that set o the 2007-2009 recession and now may be nearing an end. The S&P/Case-Shiller home price index rose 2.2% in May, beating economists' forecasts, as all 20 of the nation's largest metropolitan areas posted gains from April. More important, 12 of the 20 cities now have higher prices than they did a year ago, suggesting that the improvement is durable, the report said. The 20-city composite home-price index overall is down 0.7% in the past year. The biggest gains have come in Phoenix, where prices are 11.5% higher than 2011, and the worst performance was in Atlanta, where the home price index is down 14.5% from last May.

Did You Know? A million dollars weighs about a metric ton. Hence the expression "a ton of money." If you put two straws in your mouth, one inside a drink and one outside it, you won't be able to drink through either straw. The lifespan of mammals is about 1 and a half billion heartbeats. Oprah Winfrey makes $10 per second. Elvis had a twin.

In addition to Phoenix, other hard-hit markets are posting some of the bigger gains in home prices, the Case-Shiller report said. Tampa and Miami are each up about 3% in the last year. Homes in Phoenix are still less than half as valuable as in 2006, and Las Vegas is down more than 60%, the report said. The biggest month-to-month gain was a 4.5% climb in the index for metropolitan Chicago, the report said. Atlanta had the second-biggest monthly gain. The indexes have a base value of 100 in January 2000; so an index value of 150 translates to a 50% appreciation since then for a typical home in the market. "We have observed two consecutive months of increasing home prices and overall improvements in monthly and annual returns," says David M. Blitzer, Chairman of the index committee at S&P Dow Jones Indices. "However, we need to remember that spring and early summer are seasonally strong buying months, so this trend must continue throughout the summer and into the fall.'' Housing is expected to help the economy grow this year for the first time since the recession, according to forecasts by Bank of America Merrill Lynch and other economists. Housing prices have dropped about 35% from their peak and the nation has shed more than 2.2 million construction jobs since early 2007, including 455,000 in residential construction, almost half the industry's total. Merrill's forecast says housing prices will be close to flat this year and next, with mid-single-digit nationwide gains emerging by mid-decade.


Real Estate Market Update for August 2012 Single Family Homes Only

July 2012 Closings

June 2012 Closings

Financing Types

July 2012 Closings

June 2012 Closings

Short Sales

1,779

2,035

Cash

2,506

3,081

Lender Owned

664

846

Conventional

2,155

2,547

FHA/VA

1,324

1,562

Seller Carry

24

28

Other Types

75

99

Regular/Other

3,641

4,327

Total Sales

6,084

7,208

Statistics gathered from ARMLS deemed reliable but not guaranteed. Figures gathered on 8-3-12 and reflect the entire month of July, single family homes only.

Home Warranty: Repair or Replacement? A home is one of the largest investments a person will ever make, and it’s important to protect that investment. The home warranty is a service contract that will help safeguard against the high cost of repairs or replacements to the major systems and appliances that fail due to normal wear and tear. A home warranty offers the convenience of one source for most repairs so you can avoid the hassle of finding a service contractor in your area. When a covered system or appliance breaks down, all you need to do is contact the company to report a problem. A qualified, pre-screened service technician will contact you to schedule an appointment that works for you. It’s that simple!

Without home warranty protection, typical repair or replacement costs* would be: ITEM

REPAIR ESTIMATE

REPLACEMENT ESTIMATE

Heating system

$96 - $600

$1,325 - $4,700

Central air

$200 - $1,100

$1,475 - $5,200

Water heater

$85 - $210

$420 - $805

Plumbing

$100 - $1,200

$480 - $3,225

Refrigerator

$80 - $515

$525 - $3,100

Oven/range

$80 - $310

$415 - $2,600

* Based on HSA Home Warranty’s estimates of retail cost for repairs and replacements of items listed above. Costs may vary in your geographic area.

The Mortgage Debt Relief Act of 2007 is Expiring The Mortgage Debt Relief Act of 2007 is set to expire at the end of the year. Remember, if you owe on a mortgage and they cancel or forgive the debt, the cancelled amount may be taxable. This means if you’re thinking about short selling your property, now is the time. Please contact me and I’ll go over your options with you. Century 21 Platinum Real Estate | 2141 E. Pecos Rd., Chandler, AZ 85225 | 480-497-2121

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