Household Equity Lowest Since 1952

You must read this article from Tim Cavanaugh with Reason.com.

Our national average for equity in single family homes is 20.4%.

There is no room for refinancing home mortgages on the large scale we saw in the past. That is unless prices appreciate quickly.

Make sure to read the commentary on social engineering detailing the costs and benefits of encouraging more home ownership.

Here are some more charts illustrating home equity as a percentage of GDP.

Travis J. Bohling
Brewer Caldwell Property Management
480-212-7041 (Direct Line)
480-212-7042 (Fax)
Travisb@brewercaldwell.com

Citi on Camelback Sold

Some condo investors got a great deal today. The Arizona Republic reports that Orion Residential LLC paid $70,000 for each of the remaining 178 condos in the Citi on Camelback Development. Some of the original condo owners bought their units for as much as $300,000. The $1 billion investment group said it is looking at additional deals in the valley as well. This might look painful but it is the only way we can get back to equilibrium with supply and demand.

I would not be surprised if a lot of the units bought for $300,000 end up back with the banks. New foreclosures will lower the average price even further.

Brewer Caldwell manages properties in this complex and we are having trouble finding a renter for the $970 price tag. View the listing here. We dropped the price to $750.

Read the article here.

Travis J. Bohling
Brewer Caldwell Property Management
480-212-7041 (Direct Line)
480-212-7042 (Fax)
Travisb@brewercaldwell.com

30 Year Rates Climb Again

Here is another fugly looking mustard seed from Bloomberg News:

June 4 — Fixed U.S. mortgage rates jumped to the highest level this year, signaling the Federal Reserves plan to lower borrowing costs has stalled.

Our out of control spending has erased any efforts by the Federal Reserve to maintain low rates in hopes of growing out of this recession.

Treasury yields are climbing as investors anticipate a greater supply of government debt being sold to fund federal spending. The yield on the 10-year Treasury was 3.54 percent yesterday, compared with 3 percent on March 17, the day before the Fed announced its plan to boost mortgage-backed bond purchases and to buy Treasuries.

Bond investors are ignoring efforts of the Federal Reserve.

Yields on the benchmark 10-year Treasury note and Fannie Mae mortgage bonds are higher than they were before the Federal Reserve said March 18 that it would buy as much as $1.25 trillion in mortgage-backed securities to help drive down borrowing costs.

Glad to see my tax dollars at work.

Travis J. Bohling
Brewer Caldwell Property Management
480-212-7041 (Direct Line)
480-212-7042 (Fax)
Travisb@brewercaldwell.com

Law Protects Renters From Foreclosure

MSNBC had a news story from the AP today about a new law being signed by President Obama. The law allows tenants to stay in a home for up to 90 days after a foreclosure auction. They are also entitled to stay in the home for free. Read the whole article here.

There are some missing facts in this article. Is it an Executive Order? What is the name of the law? Was there a vote in congress? Does this only apply to Fannie and Freddie loans? I am unsure on these questions but will update everyone with any new facts I can find.

Travis J. Bohling
Brewer Caldwell Property Management
480-212-7041 (Direct Line)
480-212-7042 (Fax)
Travisb@brewercaldwell.com

Jim the Realtor

Here are a collection of funny and informative videos of REO homes and foreclosures. Check him out today.

http://www.youtube.com/user/JimtheRealtor

Travis J. Bohling
Brewer Caldwell Property Management
480-212-7041 (Direct Line)
480-212-7042 (Fax)
Travisb@brewercaldwell.com

Mortgage Refinancing Stops

Rates moved back up and the refinancing craze from a couple months ago has dropped off a cliff.

Read the whole Bloomberg article here.

I am glad so many people were able to take advantage of these historic lows for 30 year mortgages. Too bad it’s over. You can still get that $8,000 federal tax credit if you have not owned a home in the past 3 years.

Travis J. Bohling
Brewer Caldwell Property Management
480-212-7041 (Direct Line)
480-212-7042 (Fax)
Travisb@brewercaldwell.com

Brewer Caldwell in the New York Times

The New York Times came and visited our office last week. They were here to report on the state of the housing industry in Maricopa County.

Read the complete article here. There are at least 3 auctions a day in Phoenix and a lot of great deals. These low prices will not last forever. Brewer Caldwell can help you find great deals on foreclosed homes. Call me today for info or listings.

Travis J. Bohling
Brewer Caldwell Property Management
480-212-7041 (Direct Line)
480-212-7042 (Fax)
Travisb@brewercaldwell.com

Who is Bitter?

I got these pics from a former co-worker. Our former boss made some major investment mistakes and is now facing foreclosure on a few properties. These pictures show how the condo looked after the foreclosure auction. Someone decided to be a petty criminal and steal all of the fixtures, appliances, cabinets, carpet, and mechanical systems. Hopefully the bank will pursue criminal charges for this THEFT.

I spoke with Dru Bloomfield today and she blogged about the same trashed condo. Read her story about how all of the neighbors witnessed the destruction and the Scottsdale Police did nothing.