I have transfered my old blog at suncityneighborhood.net and my old website at suncityneighborhood.com to this platform. It now allows you to read my blog, and Search the MLS with NO registration required. Please check back from time to time as I add new information and features to this site.
Please feel free to email or call if I can be of any help to you in buying or selling a home in the Sun City Az Neighborhood.
Thanks from,
Jim Little, your SUN CITY NEIGHBORHOOD REALTOR
Selling a Home, Sun City, Sun City West AZ, Surprise AZ, West Valley, buying a home, homes for sale | admin | May 9, 2009 | 
Comments (168)
adult community, buying a home, homes for sale, retirement community, Selling a Home, Sun City
The real estate market in Sun City is showing mixed signs of recovery. We have 770 active listings and 123 listings were sold in April. This results in 6.26 months of inventory. Thi 6.26 months of inventory (absorption rate) is very significant. An absorption rate of 6 is considered to be a balanced market. More than six is considered a buyer"s market. less than 6 is a seller's market. If this continues for 2 more months we will have a balanced market for the first time since the 2004-2005 market bubble.
Average selling prices were $135,000 for single family homes and $99,000 for condos and duplexes. Interest rates are at a 37 year low now. This, coupled with the first time buyer's refundable tax credit of up to $8,000 makes today the best time to buy a home in the memory of most agents in the business today.
Jim Little, your Sun City REALTOR
The Adjustable Rate Mortgage (ARM) can be a valuable tool when buying a home. It can also become your worst nightmare.
Benefits of an ARM include:
- Ability to qualify for more house since the qualification is based upon the first payment level.
- Gradual increase in payments if the ARM is correctly selected. This increase will hopefully be made up by an increase in your earnings.
Pitfalls of the ARM:
- Teaser, or introductory rates. This is why so many people are in trouble today. These rates mean your payments will be abnormally low at the beginning. The loss to the lender is made up by resetting after the introductory period to a level greater than the market rate. The change in monthly payment isn’t gradual, it happens at once, causing monthly payments to be more than many can pay. Foreclosure is the result.
- High prepayment penalties and excessively long prepayment periods. These lock the borrower into the loan, as it is not possible to borrow enough to pay these. Recently I have seen prepayment penalties of 7% and prepayment periods of up to 9 years.
- Income fails to rise as expected, Even if your income doesn’t increase, your payments may. You are obligated to make payments based upon your index, not your income.
I hope this series helps to explain the Adjustable Rate Mortgage. If you have any questions, drop me a line.
Jim Little, Your Sun City Realtor
http://jclittle.com/
Ken Meade Realty
17001 N Del Webb Blvd
Sun City AZ 85373
800-877-1776
623-977-1776
By the way…if you know someone who is interested in buying or selling real estate in the Sun City Neighborhood, Peoria, Glendale or Surprise, please call me with their name and phone number. Thank you!
