Keeping Cool

With our temps rising, this time for the rest of the summer, it is important to stay cool.  APS in their newsletter this month have a few tips to keep you and your house a bit cooler while keeping the electric bill lower.

• Use fans with the air conditioner. The can help reduce energy cost by circulating the cool air.  Ceiling fans also can allow for air conditioners to be set 3 or 4 degrees higher with minimal change in comfort.
• Repair any broken windows or gaps that can allow cool air to escape.  Seal gaps in your home’s doors and windows.
• Cover windows with awnings, sunscreens or reflective film and keep drapes, blinds or shades closed during the day to keep out unwanted heat.
• Plant vegetation adjacent to windows - particularly on the west side of the home.  This will help reduce heat by blocking the sun’s rays.
• Do heat-producing chores such as laundry, cooking and dish washing during the cooler times of the day.  these tasks produce heat which requires the air conditioning to work harder.
• Avoid using the oven as much as possible.  Summer is the time for cookouts.
• Turn off electronic equipment such as computers and televisions when not in use.

Most of all, as our temps rise, remember to drink lots of water.  If you are outside working and sweating, be sure to drink an electrolyte drink like Gatorade or Pedialyte .  And if you notice getting a headache, most of the time it is the first symptom of dehydration, get drinking more fluids and stay away from diuretics.

Smart Money Magazine:Foreign Buyers Flocking to U.S. Housing Market

I was privileged to be interviewed last week by Smart Money Magazine for an article.  The number of Canadian real estate investors has grown recently.  The price of their dollar makes purchasing homes more enticing than it has been in years and years.

Foreign Buyers Flocking to U.S. Housing Market

AMERICANS’ LOVE AFFAIR with real estate may be cooling, but thanks to falling home prices and the weak dollar, attention is heating up from another group of suitors: foreign investors.

Foreign buyers have long looked to certain U.S. markets — say, high-end properties in cosmopolitan Manhattan or sexy South Beach Miami — as investment opportunities. These days, however, real estate professionals report increased international interest in a much larger range of properties — from $60,000 single-family homes in South Florida’s inland neighborhoods to $1 million waterfront villas located just miles from the Canadian border in Washington State. Almost one in five, or 18%, realtors surveyed by the National Association of Realtors last year said they sold homes to international clients between April 2006 and April 2007. More recent data isn’t yet available, but according to anecdotal evidence, those numbers continue to rise.

"There definitely is more interest in U.S. properties, no question about it," says Mark Partin, president of Toronto-based Trailridge Property Corp., which brokers deals between U.S. developers and Canadian investors interested in buying residential properties in "bulk."

For many foreign buyers, property in the U.S. is downright cheap. Canadians now get an 80% discount on what they would have paid for a piece of the U.S. just three years ago, when one Canadian dollar was worth just 80 U.S. cents and properties in some areas were 50% more expensive, Partin notes. (One Canadian dollar is now worth roughly $1 in U.S. currency.) For European buyers, whose currency carries 25% more buying power in the U.S. than it did just three years ago, today’s depressed property prices are no less attractive.

While Americans are discouraged by images of neighborhoods blighted by "For Sale" signs and taped-off properties, foreign buyers are much more optimistic, especially about the long-term health of the U.S. market, says David Michonski, a certified international property specialist and CEO of Coldwell Banker Hunt Kennedy in New York. "The foreign buyer has an unbridled confidence in the U.S. market that is lacking in the domestic purchaser today," he notes. "They view this as the bargain of a lifetime and are terribly excited about it."

Kim Kirschner, chairwoman of the Realtor Association of Greater Miami and the Beaches, recently returned from two international trade shows (one in Madrid, one in Paris) exhibiting second-home opportunities. She says interest in U.S. properties was decidedly higher than a few years ago when attendees were more interested in places that offered higher return on investment, such as Bulgaria. "Now they understand the U.S. market is more stable. We may have down cycles, but we go up back again," says Kirschner.

That profit potential is what convinced Londoner Grace Felix to start looking for a place near Fort Lauderdale, an area where she and her fiancée already spend about two weeks out of every three months. "Hotels cost an arm and a leg," she says. "It makes better sense to buy and it’s a good investment."

Felix’s realtor, Jacqueline Christophe-Hayot, receives similar inquiries from French, British and Canadian buyers on a weekly basis. And, she says, these buyers aren’t the stereotypical Florida-bound retiree, but rather "the Miami beach crowd": 30-something professionals who plan to use the property for several weeks a year and rent it out the rest of the time. With prices down to 2002 levels and sellers willing to negotiate even lower, such arrangements make a great deal of financial sense, she says.

In Phoenix and Scottsdale, Ariz., Canadians who are years away from retirement buy property now rather than risk higher prices later, says Irene Hammond, a realtor in the area. Property values in Canada remain stable, allowing many potential buyers to refinance or take home equity loans that they can use to buy in the U.S. — often, with 100% cash down. "They’ve heard there’s a fire sale going on down here," Hammond says, adding that some Canadian buyers come to her with unrealistic expectations, wanting to pay, say, $225,000 on a house listed for $300,000. (Such low-ball offers do not get accepted, she says.)

Interest is so high, that many of Hammond’s fellow real estate brokers now include the Canadian dollar exchange rate on their web sites, or even host web sites specifically targeted at foreign buyers. In fact, real estate brokerages across the country are increasingly putting an international spin on their marketing efforts.

Jean Groesbeck, a realtor in Anacortes, Wash., located on an island about 70 miles north of Seattle and south of the Canadian border, just started advertising on LuxuryPortfolio.com , a high-end property web site that can be translated into multiple languages and features currency exchange rates. Earlier this month, SecondSpace.com , an online marketplace for vacation homes and retreats, launched three web sites (ResortScape.ca ), ResortScape.co.uk and LandWatch.co.uk ) targeted at Canadian and U.K. residents.

Despite all the hoopla, though, foreign buyers alone will hardly help the U.S. crawl out of the current housing mess, says Mike Inselmann, president of national housing consultancy Metrostudy. Unsold inventory in some areas is so abundant that it cannot be absorbed, even with increased interest from our neighbors north of the border or overseas. "I wouldn’t say it’s the elegant solution to the housing inventory problem, but I do think it’ll play a minor role," he says. "Maybe bigger in some markets than others."

According to Michonski, foreigners can at least bring to the U.S. market what it’s been lacking most in the past months: "They’ll provide a psychological support of confidence," he says.

Welcome back Irene

I know I have not been a busy writer recently…

I have a good reason.  I have been busy shifting over all of my blog to a new service.  Notice the new look. The transfer had to be done manually.  Post by Post.  Ugg! - and that took some time.  I still have many things to get back onto this site, and have plans to make this blog an even better resource for you.  So be patient in the next few weeks, as I re-add in my videos, and then get busy with adding in additional goodies too.

Have a great day and enjoy this unexpected chilly weather! 

 

Inspections and the “as is” addendum

There are lots of homes out there being sold “as is’.  With all of the foreclosures, short sales, and vacant homes where there is either no one, or no money to put into repairs, the houses are requiring an “as is” addendum added to the purchase contract.  One of the first questions I get is “Do we get to do any inspections?” YES.  The “as is” addendum is letting the buyer know up front that the seller is not in a position to do any repairs.  So what you find in your inspection process allows for you to consider moving forward or canceling the contract. 

Lots of those vacant homes have no power on as we are looking thru them.  Where carrying a flashlight was a safety item in my car, now it is a standard home showing addition.  I feel like one of those CSI’s wandering thru the crime scene, my eyes following the beam of light looking for clues. I digress…  The concern in homes without power on is also inspections.  “How do we inspect with no power?”  Great question.  Once we are in contract, we get he power turned in.  Many times the power is on, just turned off at the breakers, and the water is turned off at the house.  Gas is another issue.  It is almost always off.  There must be someone present when the gas is turned on, so the Gas Man can check for leaks, and get the pilot lites all lit correctly.

Because of these issues,  we (my mom ,my partner and  I) suggest doing a 15 day inspection  rather than the standard 10 days.  This gives us time to get the power, water and gas on.(can take a couple of days)  And gives you time to fully inspect.  The normal process is to have the home inspector and termite people come out, usually the same time,  Then if the home inspector finds anything requiring a more detailed look, there is enough time to get other trade specialist in to determine condition and cost of repair.  The home inspector only identifies issues needing care or maintenance not cost of repair.  Allowing for you the buyer to make the most informed choice about your new home as possible.

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A great Race in Old Town Scottsdale

It was a great day in Old Town Scottsdale for a bike race. That’s my sweetie in the front of the pack. The temps were perfect, it was delightful sitting outside Fine’s Cellar in the shade and watch the racers fly by. The course was fast and demanding and the racers had a great day. Good news, no injuries. I like that! This was the second annual Cyclo de Mayo , a big thanks to Scott Delaune who worked so very hard putting this race on the past 2 years.

That darn FICO & changing mortgage requirements

If you don’t know already the Mortgage world is in an upset.  With requirements for loans having gone so wild, where all you needed was a pulse to get into a home… they have now swung back hard the other way.  The ‘golden rule’ was 20% down and you get the best pricing, no Mortgage Insurance.  That was what every buyer really wanted.  It is what created the 80/20 loan combo as well as the 80/10/10 and many more variations for people with less than 20% down. 

The Mortgage world has created a new ‘gold standard’.  30% down and 70% loan.  Ouch! 

Let me explain what this means.  First when you apply for a conventional loan there are many things that go into determining the interest rate you will be paying.  You credit score, or FICO is first and foremost the biggest contributing factor.  Then the amount of the loan, for example, if your loan amount is less than 100k, you get a little bump in the rate you pay.  Then the % of the loan to the value of the property or purchase price.  Where 20% down was the magic number, now it is 30% down if your credit is anything less than perfect.  The difference between someone with a 720 credit score or higher and someone with a 620 credit score is 2.75%.  So if the interest rate was 6% for the A+ credit of 720 or higher, the same loan would be at 8.75% for the person with a 620 credit score. 

The moral of the story, keep your credit score up!  If your credit score is low, put as much down as possible (your goal is 30%) .  Or purchase a home using an FHA loan (in Maricopa county till the end of 2008 that is a purchase price of about 350k). 

Cyclo de Mayo - Bicycle Race in downtown Scottsdale

My husband is a dedicated cyclist. You know, they guys out riding, even in the summer when it is over 110. He belongs to a team, Procon and this weekend they are having the second annual Cyclo de Mayo . It is a crit, meaning they ride multiple laps along the course. They will be in Old Town Scottsdale, riding a 1/2 mile course, with groups heading out to ride from 7am to 5pm. There will be a Kids Zone, with "moonbounce", Bike Rodeo, and Pinata party. Come out to join the riders, or watch the excitement. (these guys get moving, about 35mph on a bike). Register to ride with bikereg.com .

McCormick Ranch Sales numbers for April 2008

The numbers are looking good.  We have even reduced the number of active listings just a bit.  The total pending sales are remaining steady, and also see a bit of an incline.  The solds remain steady.  This is a good sign.  Each month we are anxious to see the pending and more importantly the sold listings remaining steady and hopefully increase.    The true test will come in the coming months.  Without all of the big crowd pleasers (Super bowl, Barrett Jackson, Nascar etc) and with the increase of our temps over the upcoming months, our northern visitors will be mostly out of the picture.  We will know in another couple of months if this was a seasonal influx or a true measure of the change in the market. 

	1-Feb-08	3-Mar-08	4-Apr-08	2-May-08
Total Active Listings	578	556	572	554
Single Family Homes	277	279	287	285
Patio/Town/Gemini Homes	157	150	167	149
Apartment style Homes	144	127	118	120
Total Pending Listings	57	72	70	79
Single Family Homes	36	33	39	37
Patio/Town/Gemini Homes	17	22	17	26
Apartment style Homes	4	17	14	16
	Jan	Feb	March	April
Total Sold	29	42	55	55
Single Family Homes	14	21	19	32
Patio/Town/Gemini Homes	11	17	21	14
Apartment style Homes	4	4	15	9