Anyone who has applied for a Scottsdale mortgage recently knows how elusive the best interest rates, loan terms and ultimate mortgage loan approval can be. The good news is that steps can be taken to vastly improve the odds, but you need to take some of the steps for getting that Scottsdale mortgage before you even apply.
After falling for two consecutive months, Scottsdale new home sales jumped 18 percent in August to the highest level since 2008.
The jump in Scottsdale new home sales for August comes during the same month when housing construction slumped. Housing starts fell 14.4 percent in August, the biggest one-month drop in more than a year. Even so, home construction in July reached the highest level in almost seven years.
For the companies that build new homes, optimism is rising.
A recent report from the National Association of Home Builders said its builder confidence index rose for he fourth consecutive month in September, to the highest level since November 2005.
Scottsdale New Home Sales Catching Up With Builder Sentiment
While this report is prone to some volatility and revisions, it's promising to see Scottsdale new home sales finally begin to catch up with home-builder sentiment, which is at its highest level in almost a decade
The monthly builder survey covers current sales conditions, prospective buyer traffic and future sales expectations. All its metrics rose in September, according to the NAHB.
Why is this news about Scottsdale new home sales so important?
Home building, which accounts for about 3 percent of gross domestic product compared with about 12 percent for capital spending, matters because of its "broader linkages that will feed back into the economy" to spur household spending, wealth, hiring, and confidence.
We'll continue to keep a sharp eye on trends that affect Scottsdale new home sales, and report any and all trends in future updates here on our website.
In the meantime, find more current Scottsdale real estate news articles under our Scottsdale Real Estate News section under the Scottsdale Real Estate Categories to your right.
According to an article in Housingwire, recent research has shown that many Scottsdale homeowners are failing to take advantage of lending programs that could be hugely beneficial to them. It's estimated that around 20% of households who could benefit from refinancing are potentially missing out on savings of over $10,000 each year, simply by failing to take action.
The study was done by the National Bureau of Economic Research and looked at a random sample of mortgages in December 2010 and found that while people are able to take action to buy and finance a property many Scottsdale homeowners are failing to take the next step which is to refinance the loan. While it might seem puzzling that Scottsdale homeowners are willing to miss out on such substantial savings, the National Bureau of Economic Research has identified three reasons why this occurs.
The first is that it is often difficult for borrowers to calculate the type of benefits available through refinancing. This is often due to the complex transactions required combined with the limited experience most borrowers have with this situation. In addition, sometimes the benefits of refinancing the loan aren't immediately apparent but tend to build up over a longer period of time. Some Scottsdale homeowners may be put off by the amount of upfront costs that must be factored in when refinancing a loan and which may include valuing the property and reevaluating their personal financial situation.
Scottsdale Homeowners Could Save $11,500 By Refinancing
According to the study, average Scottsdale homeowners could save around $160 a month for the remaining period of their loan, and the total savings for around 20% of borrowers were approximately $11,500.
The hope is that providing more targeted information could enable greater numbers of people to take advantage of these savings. Apparently Scottsdale homeowners who work with certified housing counseling agencies are far more likely to be able to make money-saving changes to their mortgage, and are around 60% less likely to default on their loan. When necessary these borrowers can also complete short sales more quickly compared to homeowners who don't work with housing counselors.
Fannie Mae recently announced that it is updating its policy concerning the minimum waiting period following a pre-foreclosure sale which should make it easier for these borrowers to purchase another home more quickly.
In the meantime, find more tips and articles regarding financing and mortgages in the Scottsdale Mortgage Info section to your right under our Scottsdale Real Estate Categories.
An unusual surge in Scottsdale home sales is predicted this fall due to a slowdown in home price growth and a shift in pricing power from sellers to one that more closely aligns with buyers' expectations. Home buyers who have been willing to wait for better deals are starting to be rewarded for their patience.
The number of Scottsdale home sales above list price in July was down nearly 7 percent from a year ago. These numbers would indicate that sellers are starting to realize that it's not really a seller's market any more.
Scottsdale Home Sales Vary By Area
Some areas have seen more moderate price growth year-over-year but have seen their "for sale" inventories also rise.
Areas with the fewest price drops tended to have smaller increases in median home prices and for-sale inventories.
Redfin analysts are predicting a surge in home sales in September and October. "We continue to see strong buyer demand as we head into fall," according to Redfin’s housing report, which shows the number of tours and offers picking up from July and into August.
"The buyer fatigue from competing against multiple offers, bidding wars. and tight inventory is diminishing. Additionally, the widespread increase in price drops is likely to give buyers even more confidence that they have regained some of the bargaining power lost last year."
For more Scottsdale home sales news, check out our Scottsdale Real Estate News section of articles under Scottsdale Real Estate Categories to your right.