Posts Tagged ‘government programs’

Homeowner Confidence Still Low

September 1, 2010

Home Owner Confidence in the Housing Market is still lowThe media tells us that the housing market has stabilized, but homeowners aren’t so sure. A recent report by Zillow.com shows that homeowner confidence has dropped in the second quarter of 2010. One-third of homeowners believe that home prices can still go lower.

Nationwide, only 24 percent of homeowners think their home has increased in value in the past year, even though 34 percent of homes are actually worth more than a few months ago.

Perhaps some of the reason is because many believe that the economic recovery is temporary. The nation as a whole is indeed teetering on the brink, with the national debt closing in on the gross domestic product for the first time since the Great Depression. Many economists are predicting a second dip, and even a full-blown depression, as early as 2011.

On the other hand, history shows that significant economic recessions and depressions tend to result in American’s feeling less secure for decades to come. How many of us recall the oddly frugal habits of our parents or grandparents that were a direct result of the Great Depression? Many of their generation didn’t even trust banks to hold their money and instead invested their savings in jars buried in the backyard.

Zillow’s report also showed that “27 percent of homeowners believed their own homes’ values would increase in the next 12 months, 35 percent believed they will stay the same, 12 percent expected a decrease and 26 percent did not know.”

Western homeowners, including those here in Arizona, who do expect a rise in home values, are hoping for a 10 percent jump. Northeastern homeowners also expect that 10 percent, but the rest of the nation is coming in closer at a hopeful 5 percent.

There are also many homeowners who want to sell their house, but have not had any success or just haven’t bothered. They are waiting for sure signs of stability and rising prices to put their homes on the market.

Unfortunately, the potential of 3.8 million new homes on the market could cause those rising home prices to slow or even stop. The higher the inventory, the more homes buyers have to choose from and the more sellers have to lower their prices. It’s a buyer’s market, but most homeowners want to see a seller’s market.

What can we expect? The housing market is sure to recover eventually, but that recovery may not be as fast as many would like to see. Zillow suggests for three to five years after “the bottom” that the housing market will grow at a very slow rate until the inventory levels out.


If you are in worried about the housing market, give the Curtis Johnson team a call. The Curtis Johnson Team is helping individuals who are facing foreclosure and those who are seeking their dream homes.

Go to www.CurtisJohnsonRealty.com or call 1-888-Curtis-J.

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Limited Loan Modification Success, Rising Foreclosures Mark Phoenix Real Estate Scene

April 17, 2010

Last year, President Barack Obama announced his plans for the Making Homes Affordable program–a program designed to help those on their way to foreclosure.  There was a trial period set up when this program began, and recently the number of those who made it to “permanent” status has increased. Homeowners from Phoenix were likely candidates for this program

However, the number of those who have actually made it to a permanent mortgage modification is still staggering behind those within the trial period. Why? It isn’t easy to qualify for the program in the first place; In addition, as with any “helpful” government program, those who do qualify must complete a slew of paperwork. Banks are behind  in processing the paperwork.  With the less-than-simple process toward loan modification in place, many of those who were in the process of completing the program have dropped out.

At the same time, the number of foreclosures continues to rise. Unfortunately, that cancels out any of the “good” that the president’s program has been doing. Regardless of how many people the mortgage modification program is helping, if there are still plenty of foreclosures (there are) and if that number is still increasing (it is), then it cannot  be said that this program is all that it’s cracked up to be.

Are you facing a possible foreclosure and in need of an agent to help sell your home fast? Have you been considering the mortgage modification program? Let the Curtis Johnson team help you. The Curtis Johnson Curtis Johnson Team is here to help individuals who are facing foreclosure. You don’t need to go to the government for help. Instead, go to  www.curtisjohnson.com  or call 1-888-Curtis – J.

Home Buying Trends Changing

April 11, 2010

Looking for a home in Phoenix?  Like fashion, trends in home buying and selling are changing–again. This time, though, you may have a greater chance of benefitting if you play your cards right.    

Several factors are impacting these new trends:

  • Distressed home prices are perhaps attracting more buyers, especially with the government’s home-buying incentive program. However, they’re also having a negative effect on those who are trying to sell their homes on their own. With more than 3 million homes expected to go into foreclosure this year, sellers have a lot of competition. Owners who are making purposeful decisions to walk away from their mortgages impact this trend even more.
  • Larger homes are no longer the most sought after. On the contrary, in these hard economic times, buyers are less interested in having a roomy abode and more interested in living within their means–a smart move, given the trend in foreclosures, particularly in the Phoenix area.
  • The government’s “helpful” mortgage-backing program was set to end last month. As a result, economists expect mortgage rates to rise to between 5.3% and 6% by the end of the year. This is expected to be a gradual increase, though. Anything else, and the Federal government will be back in the mortgage business.
  • It’s particularly hard to get financed for a condo or investment home. At this point, you may need a down-payment in the neighborhood of 10%, a credit score of around 720 and payments may be maxed out at no more than 31% of one’s income. Naturally, this shoves many of us out of the market for these financial investments.

What does all of this mean for you? Whether you’re in the market to buy a Phoenix home or to sell one, you’re going to need an agent to help you. If you’re of the thousands expected to go into foreclosure this year, let Curtis Johnson help you sell your home. Consider doing a short-sale to avoid the impact on your credit score that a foreclosure will have. The Curtis Johnson team is here to help you. If you’re looking to make the commitment of buying a home and want to be sure to pick a home that is within your means, call Curtis Johnson and let him help you find the right home for you!

Go to www.curtisjohnson.com or call 1-888-Curtis – J