Owning vs Renting

Thinking about purchasing your first home? Right now is the to buy! The interest rates on home are historically low, which gives you more flexibility with your budget. When interest rates increase, it causes your monthly payments to increase, preventing you from buying a larger or more luxurious home compared to when interest rates are lower.

Let’s take some things into consideration. If you are renting a new place, typically to move in you need first months rent, a security deposit which is usually at the very least one months rent, application fees, security deposits, and if you have pets either a pet deposit or even a monthly pet rent! When it comes down to it, that is a lot of fees, some non refundable other are, but that is a huge chunk of money to put down on something you don’t own.

One of the main hinderances from purchasing a home is the dreaded down payment. But wait! Currently there are down payment assistance and loan programs for qualified buyers that only require 3% down along with closing costs. Once, you’re in your new home you’ll be paying around the same amount monthly as renting, and often time it is even less!

Our advise would be to come sit down with one of our trained professionals to hash out all the available options. Our broker, Echo Farrell recently got a young school teacher into her first home with only 0.5% down! Call us today!

Market Conditions

With all the new incentives to become a home owner, the housing market has been on the rise showing signs of stability. Recently, foreclosures have fallen back to the pre-housing bust levels. In February, 303 houses were foreclosed on, which was the lowest monthly level since Dec. 2006 with 211 foreclosures. By early 2007 the prices of homes began to fall and in December of 2009, the foreclosures were at an all time high of 5,000 a month in the Phoenix metro area.
Now, some are worried that this could potentially lead the housing bubble to pop, but according to a professional analyst from ASU it is unlikely to happen. Giant institutional investors have purchased a large number of homes that were turned into rentals in the Phoenix area around 2011. The worry is what would happen if they decided to unload these properties all at once? That could cause a flood in the market but with a very low vacancy rate on rentals, the investors have no reason to sell because they aren’t losing any money. Overall the housing market seems to be looking up, and with the increasing amount of jobs, especially in the tech field, will only cause the market to get better and better.

Reduced Mortgage Insurance Premiums

Earlier this year President Obama visited Arizona with a plan that will help more people the ability to afford homes by reducing mortgage insurance premiums. His plan is to cut the premiums in half for most first-time home buyers along with other existing home owners making owning a home more affordable for hundreds to thousands of people. The current premium sit at 1.35%.

This plan will will save the average buyer $900 a year on FHA mortgages. Mike Orr a real estate analyst with the W.P. Carey School of Business at ASU said that the market is slowly improving, and that this reduction of premiums is step in the right direction. With the rate reduction Obama went on to advise against buying something that is out of your price range, since these rates are for responsible buyers.

Beautiful Desert Hills Home

Rare find in Desert Hills! Don’t wait too long to see this newly listed beauty near the scenic Carefree Highway. Unsurpassd views in a “Dark Skies” neighborhood – Carefree Highlands is truly a neighborhood you’ll be proud to live in! This 2,603sq ft. home has 3 bedrooms, 3 bathrooms, and tons of luxury amenities such as; a two way fireplace in the master bedroom, private pool, granite counter tops with an island, and a 3 car garage! This home has gorgeous views of the mountains and surrounding areas. The floors are mostly tile and hardwood, The two way fireplace is perfect for romantic nights along with a separate reading/exercise room. The home has some handicapped accessible features that can easily be removed. A little updating and this place will be amazing! Come out and check out the open house this weekend and see the beautiful views for yourself!

New Homes in 85085

There are tons of new homes currently being built and other that are just being put up on the market. 85085 represents an area between the I-17, Carfree highway, the 101, and almost to Cave Creek rd. This is a beautiful location in the Sonoran desert just outside of popular shopping malls and denser locations such as Scottsdale and Phoenix.We recently visited some homes in this area and wanted to show what these homes look like out here. Sometimes the stock photos don’t do the homes justice! Below are our favorite spots, and here is a link to check out new homes located in this area.

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CLA Realty
15849 N. 71st Street, Ste. 100
Scottsdale, AZ  85254


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