A Report on Pinal County Existing Single Family Sales, Median Sales Price, How Homes Were Purchased And New Monthly Listings
November 18, 2015 By
Pinal County existing single family sales: are they up or down?
August 24, 2015 By
July 2015 Existing Single Family Sales in Pinal County (see charts below)
This report covers existing single family home sales in Pinal County. Pinal County is located in the central part of Arizona. It is the third most populated county in Arizona. Pinal County is made up of the cities Apache Junction, (partially in Maricopa County), Casa Grande, Coolidge, Eloy, and Maricopa. And the towns Florence, Kearny, Mammoth, Marana (partially in Pima County), Queen Creek (partially in Maricopa County), Superior, and Winkelman (partially in Gila County).
The data in this report is compiled from the Arizona Regional Multiple Listing Services, Inc., also known as ARMLS.
In this report we compare performance for sales, sales volume, median sale price, cash purchases, mortgage purchases, and new monthly listings. Many of the comparisons are year-over-year, comparing a time period in 2014 to the same time period in 2015. Year-over-year comparisons are an effective way to measure performance, highlight differences, and negates the effect of seasonality. Note: There may be a small number of new homes included in the data.
Existing single family sales were up for the six consecutive month year-over-year. More importantly and a better indicator of the health of the single family market is sales volume. Sales volume adds up the purchase price for the number of sales. Sales volume in July 2015 was $18,112,043 higher than July 2014 and $126,946,229 higher the first seven months of this year compared to last year.
When segmenting July 2015 mortgage purchases into the categories conventional mortgages, FHA mortgages and VA mortgages, FHA led the way. There were 88 more FHA purchases than conventional purchases. Comparing the first seven months of this year to last year, FHA purchases are up 50.4% or 441 more purchases. VA purchases the first seven months of this year are up 125 or 38% compared to last year.
On September 16 attend the biggest real event of the year on the new closing rules and changes to the AAR Resale Contract.
August 21, 2015 By
I invite you to attend the 2015 Industry Partners Conference on the new closing rules starting October 3, 2015. Find out from experts how the changes to the AAR Resale Contract, the PQF, the LSU interact with the new Closing Disclosure and Loan Estimate! Do you understand the new chain of events and their timelines necessary to close a residential real estate transaction when a buyer is purchasing with a loan? Register now at https://www.aaronline.com/calendar/view-event/?id=724
Some of the speakers will be the following:
- Jim Sexton President of Arizona Association of REALTORS, DB Realty One
- Scott Drucker General Counsel to the Arizona Association of REALTORS
- Rick Mack Legal Hotline Counsel for Arizona Association of REALTORS
- Mary Frances Coleman attorney and real estate instructor, Realty Executives
- Fletcher Wilcox, 2015 Industry Partners Conference Chair, V.P. Grand Canyon Title
- Sherry Olsen, Desert Schools Federal Credit Union Mortgage Origination Manager
- Chris Mozilo, Divisional Vice President at Caliber Home Loans
- Leslie Banes, First American Title Arizona Resale Escrow Manager
https://youtu.be/_Nsc6vBcutg
Real estate agents will receive three hours of contract law and three hours of legal issues.
This event is a partnership of the Arizona Association of REALTORS, the Arizona Mortgage Lenders Association, and the Arizona State Escrow Association. Members from all three of these industries have been meeting to discuss and present to you what you must know by October 3, 2015.
2015 Industry Partners Conference Preview
Submitted by Fletcher Wilcox, 2015 Industry Partner Conference Chair
On September 16 at the Chaparral Suites in Scottsdale, REALTORS®, mortgage lenders and escrow agents will join forces during the 2015 Industry Partners Conference (IPC).
The IPC is a partnership between the Arizona REALTORS®, Arizona Mortgage Lenders and Arizona State Escrow associations that meet and share different perspectives to gain clarity over new closing process procedures.
By attending this year’s Industry Partners Conference I can say you will end the day with broader knowledge of how to get a transaction closed by understanding the specifics.
Fletcher Wilcox, VP Business Development, CFPB External Operations Expert, Real Estate Analyst, Grand Canyon Title Agency.
Grand Canyon Title Agency is a wholly owned subsidiary of FNF. FNF is ranked #314 on the list of Fortune 500 companies.
This year’s conference topics will include:
- How the new TRID rules change the closing of a residential real estate transaction
October 3 is the mandated start date for new TRID rules and docs from the CFPB; unless you only work with cash buyers, these changes will affect buyers, sellers, real estate agents, loan officers and escrow officers - What your buyers and sellers should know about the new closing process
- How new CFPB Loan Estimate & Closing Disclosure forms interact with the Residential Resale Real Estate Purchase Contract
- Different chain of events that must happen before a transaction can close
- Review revised Residential Purchase Contract, Pre-Qual Form & Loan Status Update
- Learn the new timelines
Click here to register for the 2015 Industry Partners Conference. If you have questions, contact Fletcher Wilcox via email at FWilcox@gcta.com or by calling 602.648.1230.
New AAR Documents Soon To Be Released
In addition to the new TRID rules and documents, REALTORS will soon have a new Residential Resale Real Estate Purchases Contract, a new Pre-qualification Form and a new Loan Status Update. The Arizona Association of REALTORS will be releasing these documents in September. The changes to these documents are in response to the TRID Rules. These new REALTOR documents incorporate lender events real estate agents will now need to know, such as the six pieces of information needed for a loan application, the Loan Estimate and the buyer’s intent to proceed. All of these have contract timelines. If your buyer does not correctly follow these event timelines, they may find themselves served a cure period notice.
How Should I Approach this Change?
There will be difficulties in closing some transactions. But many of these difficulties will come from a negative attitude toward the rules, and not taking the time to learn them and the new contract documents.
The best way to approach the new rules is knowing that the Loan Estimate and the Closing Disclosure will make it easier for a buyer to understand the loan and closing costs associated with the transaction. This is a good thing. And you must learn the specifics of how the new rules work with the new AAR documents. When you know and understand them, you will have confidence when representing a buyer, a seller, and when working with other real estate agents, loan officers and escrow officers.
Your Opportunity to Learn: The Industry Partners Conference
While most of you have attended a TRID seminar, most of you will not have attended a seminar as the one being offered on September 16, 2015.
At the seminar you will learn about chain of events that must happen before a transaction can close. An example of a chain of event is the following: before the appraisal can be ordered the buyer must have acknowledged an intent to proceed with the lender. Before the buyer can acknowledge an intent to proceed with the lender they must have received the Loan Estimate. Before a loan officer can send a Loan Estimate the buyer must have provided the six pieces of information necessary for a loan application. Before the buyer can supply all of the necessary six pieces for a loan application there must be contract acceptance. Each of these events has a timeline associated with it.
https://thewilcoxreport.com/on-september-16-attend-the-bigg…/ #SEVRAR #GCTA #RealEstateIdeas #RealEstateM #TRID #ArcadiaHomeTour #YouNeedToKnow #TheWilcoxReport #GCTAarketing #ARMLS #SAAR #RealEstateArizona #AZRealtors #BestSalesTeam#NewRealEstateContract #WorkingHard #GCTA #BerkshireHathaway
August 18, 2015 By
Arizona REALTOR® Voice: https://blog.aaronline.com/2015/08/cfpb-pilots-eclosings-with-consumers/
CFPB Pilots eClosings with Consumers and Don’t miss this Years Industry Partners Conference on September 16!
American Banker recently shared news that the Consumer Financial Protection Bureau (CFPB) has ramped up its push for the mortgage industry to switch to an electronic closing process after results from a pilot program.
The CFPB’s four-month pilot study showed that consumers who used eClosings had a 7 percent higher rate of positive feedback about their understanding of the quotes and final costs of the loan.
“eClosings are the future of mortgage industry,” said Fletcher Wilcox, VP Business Development, Grand Canyon Title Agency in Phoenix.
“I downloaded the ninety page study,” Wilcox continued, “and one of the findings said ‘early document delivery and review was associated with better measured outcomes in both paper and eClosing transactions, but the early delivery of documents occurred much more consistently in the eClosings.’
“The new October 3 [TRID] rule, in which the buyer has to have the Closing Disclosure three business days before signing, is already moving in the direction of the borrower having information earlier,” he added.
REALTOR® Magazine reported that consumers felt “less rushed” with the eClosing process and it was “more efficient” than reading and signing in-person at the closing table.
“Legal, regulatory and fraud factors will also have to be considered when moving toward eClosings,” cautioned Wilcox, “but it is a process that will happen over time.”
Wilcox also chairs the 2015 Industry Partners Conference on September 16. Click here to register for this event.
Fletcher R. Wilcox
V.P. Business Development, Real Estate Analyst, CFPB External Operations Expert
Grand Canyon Title Agency
FWilcox@gcta.com 602.648.
(IPC) Industry Partners Conference – Wednesday, September 16th, 2015
| Date: | Wednesday, September 16th, 2015 |
| Time: | 8:00am – 4:15pm |
| C.E. Credits: | 3 Contract Law / 3 Legal Issues |
| Cost: | 79.00 |
| Type: | AAR Events |
| Registration: | Register Here |
| Description: | REALTORS®…MORTGAGE LENDERS…ESCROW AGENTS…ALL WORKING TOGETHER TO MAKE IT HAPPEN! You will not want to miss this years event! Join in the conversations about the CFPB and the new closing process. How the new TRID rules changed the closing of a residential real estate transaction. Review new changes to the AAR Residential Purchase Contract, Pre-Qualification form, the LSU…. Don’t hesitate, register TODAY! |
| Flyer: | View Flyer |
| Calendar: | Download this event for Outlook or iCal |
| Location: | Chaparral Suites |
| Address: | 5001 N Scottsdale Road, Scottsdale, AZ 85250 |
Almost 1,000 more sales this June in Greater Phoenix – and not because of cash buyers
July 29, 2015 By
July 28, 2015
www.TheWilcoxReport.com™
Insight on existing single family sales, mortgage and job growth trends in Greater Phoenix or Maricopa County.
June 2015 Existing Single Family Sales Trends
- June 2015 existing single family sales over 6,000 for third consecutive month.
- June 2015 median sale price of $240,000, highest since January 2008, but still has a way to go to reach historic mark of $287,500 in June 2006.
- June 2015 sales volume $411,049,735 higher than June 2014.
- June 2015 sales volume highest for a month of June since 2006.
- Snap shot of last twelve years of the month of June for foreclosure starts, auctioned properties, lender owned sales, and short sales.
- Zillow’s Typical Error in Greater Phoenix is $13,650.
By
Fletcher R. Wilcox
CFPB External Operations Expert
V.P. Business Development, Real Estate Analyst
Grand Canyon Title Agency
GCTA is a wholly owned subsidiary of FNF. FNF is ranked #314 on the list of Fortune 500 companies
The June Story 
June 2015 existing single family home sales almost a 1,000 more – but not because of cash buyers
Sales of existing single family homes increased notably in June 2015. There were 980 or 18 percent more sales this June than last June. Driving the increase in sales were buyers purchasing with a home loan or mortgage.
| How Purchased | 2014 June | 2015 June | Change | % Change |
| Cash | 1,138 | 1,181 | 43 | 4% |
| Mortgage | 4,317 | 5,254 | 937 | 22% |
| Total | 5,455 | 6,435 | 980 | 18% |
When segmenting June 2015 mortgage purchases into the categories conventional mortgages, FHA mortgages and VA mortgages, conventional mortgages led the way with the most purchases. There were 2,946 purchases with conventional, 1,790 with FHA and 438 with VA. When comparing year-over-year percentage increases, FHA purchases had the highest percentage increase at 32%, conventional loans were 18% higher, and VA loans 13% higher.
| How Purchased | 2014 June | 2015 June | Change | % Change |
| Cash | 1,138 | 1,181 | 43 | 4% |
| Conventional | 2,491 | 2,946 | 455 | 18% |
| FHA | 1,352 | 1,790 | 438 | 32% |
| VA | 426 | 480 | 54 | 13% |
| Other | 48 | 38 | 10 | 21% |
| Total | 5,455 | 6,435 | 980 | 18% |
FHA Mortgage Purchases: Some reasons for the year-over-year percentage boost in FHA purchases are the following:
- On January 26, 2015 the FHA mortgage insurance premium was lowered by .50 basis points or ½ percent. Thus, allowing more people to qualify.
- The required FHA down payment is low at three and one-half percent (3.5%).
- For buyers that went through a foreclosure or short sale, FHA has a shorter time period or penalty box period to buy again than does Fannie Mae or Freddie Mac. A buyer only has to wait three years, after a foreclosure or short sale to buy again under FHA underwriting guidelines. Under Fannie Mae and Freddie Mac underwriting guidelines a buyer has to wait seven years after a foreclosure and four years after a short sale.
VA Purchases: While the number of buyers purchasing with a VA loan is considerable lower than FHA or conventional loans, VA purchases have had the highest percentage gains since the great real estate recession. VA loan purchases in June 2015 were 7.4 percent of all purchases. In June 2013 they were 5.3%, in June 2011 4.1%, in June 2009 3.7%, and in June 2007 1.2%.
According to the U.S. Census Bureau Arizona has 522,387 retired or active veterans. http://quickfacts.census.gov/qfd/states/04000.html
The growing mortgage purchase market: A year-over-year comparison for first half of 2015
Since February 2015 mortgage purchases have taken off. There were 3,729 more mortgage purchases the first six month of 2015 compared to the first six months of 2014.
| 2014 | 2015 | |
| Jan | 2,482 | 2,488 |
| Feb | 2,786 | 3,165 |
| March | 3,558 | 4,475 |
| April | 4,106 | 4,831 |
| May | 4,206 | 4,991 |
| June | 4,317 | 5,234 |
| Total | 21,455 | 25,184 |
What is fueling the growth in purchases with a mortgage?
More jobs and more people and more boomerang buyers lift sales.
Job growth: You have to have a job to get a loan or mortgage. Greater Phoenix has gained back 250,000 non-farm jobs after losing 300,000 of them.
Population growth: Maricopa County was the number two county in the nation in actual population increase with 74,000 more people according to the US Census Bureau. As of July 1, 2014 the population estimate of Maricopa County was 4,087,191.
http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk
*Population increase
- Harris, Texas (Houston) 89,000
- Maricopa, Ariz. (Phoenix) 74,000
- Los Angeles, Calif. 63,000
- San Diego, Calif. 41,000
- Clark, Nev. (Las Vegas) 40,000
- Bexar, Texas (San Antonio) 34,000
- King, Wash. (Seattle) 33,000
- Dallas, Texas 33,000
- Riverside, Calif. 32,000
- Tarrant, Texas (Fort Worth) 31,000
*Source: Phoenix Business Journal http://www.bizjournals.com/phoenix/news/2015/03/26/census-maricopa-county-2nd-in-population-growth.html
Boomerang Buyers: Boomerang buyers are defined as those people who went through a foreclosure or short sale and want to own again. I estimate that by the end of 2015, it will have been at least three years for 137,000 past homeowners that either went through a foreclosure or short sale. Some of these people will have already bought a home. Some will be ready to own again, purchasing with an FHA loan because of the shorter penalty box time period of three years after a foreclosure or short sale. These future buyers will still need to meet the necessary FHA underwriting requirements for length of employment, down payment and credit score.
Existing single family sales in June 2015 was the third consecutive month existing single family sales were over 6,000. June 2015 sales of 6,435 were the highest since May 2013. In 2014 there were not any months with over 6,000 sales.
The median sale price was $217,500 in January and ended up at $240,000 in June.
June 2015 sales volume highest for a month of June since 2006.
Summary
The increase in sales of existing single family home is a flowing together of more mortgage purchases due to more people with more jobs, along with more boomerang buyers and more veterans. The best indicator that the existing single market is coming back is the increase in sales volume of $411,049,735 this June over last June. This increase is the direct result of demand to own with a tight supply. This has pushed sales prices higher. Higher sales prices mean that there are less homes underwater and increased household equity, but higher sales prices makes affordability harder for those entering the market for the first time and for some boomerang buyers. I expect July 2015 existing single family home sales to be higher than July 2014. Below is an estimate for July sales.
| 2014 | 2015 | Change | % Change | |
| January | 3,527 | 3,400 | 127 | 3.6% |
| February | 3,917 | 4,185 | 268 | 7.0% |
| March | 4,854 | 5,718 | 864 | 18.0% |
| April | 5,591 | 6,098 | 507 | 9.1% |
| May | 5,531 | 6,083 | 552 | 10.0% |
| June | 5,455 | 6,435 | 980 | 18.0% |
| July | 5,143 | *5800 | *657 | *13.0% |
*estimate for July 2015
| Note: This report covers existing single family home sales in Greater Phoenix. The term Greater Phoenix refers to the geographic area of Maricopa County. The data in this report, unless otherwise mentioned, is compiled from the Arizona Regional Multiple Listing Services, Inc., also known as ARMLS.
In this report we compare performance for sales, sales volume, cash purchases, mortgage purchases, and new monthly listings. The report includes foreclosure starts, auctioned properties, lender owned sales and short sales for the last twelve years for the month of June. Many of the comparisons are year-over-year, comparing a time period in 2014 to the same time period in 2015. Year-over-year comparisons are an effective way to measure performance, highlight differences, and negates the effect of seasonality. |
Zillow’s Typical Error in Metro Phoenix is $13,650
Posted on July 17, 2015 by John Wake
The typical Zillow Zestimate error for metro Phoenix is $13,650.
Real estate agents hate Zillow’s estimates of home values, called Zestimates, because many are very inaccurate but mainly because many home buyers and homes sellers will fall in love with their inaccurate Zestimates. Home sellers fall in love with high Zestimates and home buyers fall in love with low Zestimates and it adds unnecessary drama to the home buying and selling process.
Here’s how it plays out, the Zestimate on a seller’s home is WAY too high but wishful thinking kicks in and the home seller really likes that high estimate and thinks up a bunch of reasons why it might be right. An economist would say that the homeowner “anchored” on the high Zestimate price.
We real estate agents can try to show homeowners why the Zestimates for their homes are way off but they won’t usually buy it. They think we’re just trying to get them to price their houses below fair market value so they’ll be fast and easy sales for us greedy real estate agents.
This never happens to home sellers when their Zestimate is low. Home sellers immediately dismiss low Zestimates as being inaccurate but they fall in love with high Zestimates. Home buyers, on the other hand, might fall in love with that low Zestimate the home seller immediately dismissed.
Zestimate Error Rate for Phoenix
Zillow is very good, however, about publishing the error rate of their Zestimates. I think it’s partly a CYA move but in metro Phoenix, the median error for Zestimates is 6.5%. They calculate the error by looking at actual sale prices of homes compared to their Zestimates immediately before the sale.
In addition, Zillow says the median sale price in metro Phoenix is $210,000.
Apply 6.5% to $210,000 and we find that Zillow Zestimates in metro Phoenix are typically off by $13,650 but you don’t know if it’s $13,650 too high or $13,650 too low. And it’s worse than that because HALF of Zillow Zestimates are off by MORE than $13,650, sometimes a LOT more than $13,650.
What’s the Typical Zillow Error for My Home?
You can fine tune the typical Zestimate error by putting your home’s price range into the equation. If your home is around $300,000, for example, just multiple $300,000 by 6.5% to get the typical error for Zillow Zestimates in that price range in metro Phoenix.
Zillow is very clear that Zestimates are not appraisals. In fact, Zillow says that for a home in the $300,000 price range in Metro Phoenix, their typical error is $19,500, but you don’t know if it’s $19,500 too high or $19,500 too low. And it’s worse than that because HALF of Zillow Zestimates are off by MORE than $19,500, sometimes a LOT more than $19,500.
I’m going to publish a LONG article on Zillow Zestimate errors on my national blog next week but the takeaway is the paragraph above.
Disclaimer
While deemed accurate this report does not guarantee the accuracy of the data. Some numbers will change. Report may not reflect all real estate activity. Information should be verified. This article is of a general nature, and is not intended as investment advice, real estate advice, lending advice or legal advice. Please consult your broker, your lender, your own independent legal counsel, your certified public accountant. The information in this report may not be the opinion of Grand Canyon Title Agency.
Note: Included in some of the charts of this report may be a small number of new home sales.
TheWilcoxReport.com™
By
Fletcher R. Wilcox
Fletcher is a member or past member of the following associations
Arizona Association of Realtors www.aaronline.com
Arizona State Escrow Association http://www.azsea.org
Arizona Mortgage Lenders Association www.azmortgagelenders.com
Scottsdale Area Association of Realtors www.saaronline.com
Statistician for the Heart of Scottsdale Real Estate Tour http://www.saaronline.com/marketing/scottsdale.php
Homebuilders Association of Central Arizona www.hbaca.org
Scottsdale Chapter Women’s Council of REALTORS www.scottsdalewcr.com
Fletcher is author of TheWilcoxReport.com This report provides statistics and analysis on single family real estate trends in Greater Phoenix. He is a contributing columnist for the Arizona Journal of Real Estate & Business and has written for Arizona Realtor Magazine a publication by the Arizona Association of Realtors. He has been a guest speaker on KTAR, KJZZ/NPR, KFNN, channel 3, 10, 12, channel 8’s Horizon show, Square Off Arizona and the Willis Report on Fox Business News. His residential analysis has been mentioned in the Wall Street Journal, Arizona Republic, AZCentral.com, Phoenix Business Journal, East Valley Tribune, Bloomberg News, Dow Jones MarketWatch, HousingWire.com and National Mortgage News.
He teaches renewal courses on the Residential Resale Real Estate Purchase Contract. Fletcher joined Alice Cooper’s Solid Rock organization as a board member. The organization promotes music and the arts and has opened a center for teenagers in Phoenix http://www.alicecoopersolidrock.com/the-rock/ Fletcher served eleven years as a citizen board member on the Phoenix Police Department’s Disciplinary Review & Use of Force Boards. He attends Living Streams Christian Church. Fletcher started snowboarding in 2008. He is not very good.
The CFPB: What really happens August 1, 2015 to closing a residential real estate transaction when there is a loan?
June 10, 2015 By
What really happens on August 1, 2015?
June 10, 2015 Scottsdale Area Association of REALTORS
Saturday, August 1, 2015 will seem just like any other hot summer day in Scottsdale. But starting on August 1, any loan application completed that day or thereafter, will be under the new CFPB rules. These new rules create new documents and change the residential closing process.
Even though the new rules are effective August 1, we will not know many of their effects on the closing process until September, because most contracts written in August involving a loan will not close until sometime in September. But until then, there are many things real estate agents can learn about the new rules that will help them in preparing for the new closing process.
What percentage of residential closings will be effected by the new rules? If the new rules had been in effect in May 2015, 76% or 5,627 of the 7,398 ARMLS residential closings in Maricopa County would have been affected. 76% is the number of closings in which a buyer purchased a property with either a conventional, FHA, VA or FMHA loan. All these loan types fall under the August 1 rules. Two loan types that are not included under the new rules are reverse mortgages, and home equity lines of credit also known as HELOCS. The new rules do not apply to a cash transaction.
So what are the new documents and how is the closing process changed?
The Good Faith Estimate and the initial Truth in Lending will be replaced by the Loan Estimate. The HUD-1 Settlement Statement and final Truth in Lending will be replaced by the Closing Disclosure.
The emphasis of this article is the effect of the Closing Disclosure. The Closing Disclosure has a timeline associated with it. Before the borrower can sign loan documents, they must have the Closing Disclosure three business days in order to review it. These three days are called the Waiting Period.
Let’s do a scenario. According to line 73 of the Arizona Association of REALTORS® (AAR) Residential Resale Real Estate Purchase Contract the borrower is to sign loan documents three (full) days before the close of escrow date. So if the close of escrow is a Friday, the borrower is to sign loan documents on the preceding Monday. If the borrower is to have the Closing Disclosure three business days before signing the loan documents, the Closing Disclosure is to be delivered no later than the preceding Thursday. So in this scenario the Closing Disclosure has to be received eight days before the close of escrow date.
| Thursday | Friday | Saturday | Sunday | Monday | Tuesday | Wednesday | Thursday | Friday |
| Closing Disclosure received.Day one of waiting period. | Day two of waiting period. | Day three of waiting period. | Sign loan documents | COE |
Before the Waiting Period begins, there are specific rules in how the Closing Disclosure may be delivered. Depending on the delivery method (email, regular mail, hand delivered), additional days may be added to the above timeline before the Waiting Period begins. Lenders are responsible for both the preparation and delivery of the Closing Disclosure to the buyer. Currently the HUD-1 Settlement Statement is prepared and presented by the escrow company. This process ends for loan applications taken on or after August 1, 2015.
What are others saying how the Closing Disclosure and its timeline may affect the closing process?
Below are two links to videos produced by the National Association of REALTORS®. I suggest you watch both for knowledge and understanding.
In the first video, it is suggested to add fifteen days to the closing time. If you usually write a thirty day close of escrow when the buyer is purchasing with a loan you may want to extend that to a forty five day close of escrow. Also suggested is that you make sure your clients are ready seven days prior to closing, and make sure that sellers abide by their agreements. I believe these are suggested because you don’t want last minute changes or negotiations that may kick in a new Closing Disclosure – with a new three day waiting period – thus delaying the closing. Note: A new Closing Disclosure doesn’t automatically mean there will be a new Waiting Period. An additional three day waiting period is required if the APR changes by 1/8% for a fixed rate mortgage. So if your clients do something toward the end of the transaction that changes the APR there may be an additional three days before closing. Adding a prepayment penalty or a change in the loan type also adds an additional three days.
http://www.realtor.org/videos/hud-1-going-away-understand-new-closing-forms-procedures
The second video mentions the need to educate your clients that transactions will likely take longer if the buyer is purchasing with a mortgage, and has other takeaways for real estate agents.
http://www.realtor.org/topics/trid-tila-respa-integrated-disclosure
It is my opinion that once we see the effects of the new rules, some agents will add contract language to the contract to address the new process and to protect their clients. It is also my opinion that the process will be much smoother for those real estate agents, lenders and escrow companies that spend the time, now, learning the changes.
Fletcher R. Wilcox recently had added to his job description the title CFPB External Operations Expert at Grand Canyon Title Agency. He is meeting with lenders and real estate agents and discussing how the closing process may be improved amongst them and escrow when the new rules take effect. Grand Canyon Title is a wholly owned subsidiary of the Fortune 316 Company FNF. All the local FNF brands in Arizona are working together in unity in presenting how they will be ready and prepared for August 1, 2015.
Fletcher is the author of www.TheWilcoxReport.com. His market analysis on residential real estate in Greater Phoenix has been mentioned in the Wall Street Journal, Bloomberg News, HousingWire.com and National Mortgage News. He has been a guest speaker on both local and national TV and radio.
– See more at: http://www.saaronline.com/news/2015/06/10/what-really-happens-on-august-1-2015#sthash.LbCWIGx4.dpuf
June 12 class on what you must know about new changes to the residential closing process. Class at Scottsdale Area Association of REALTORS.
June 9, 2015 By
What percentage of residential closings will be effected by the new rules? If the new rules had been in effect in May 2015, 76% or 5,627 of the 7,398 ARMLS residential closings in Maricopa County. Seventy-six percent is the number of closings in which a buyer purchased a property with either a conventional, FHA, VA or FMHA loan. All these loan types fall under the August 1 rules. Two loan types that are not included under the new rules are reverse mortgages, and home equity lines of credit also known as HELOCS.
Go to link below to sign up.
http://saaronline.com/cfpb-the-new-loan-estimate-and-closing-disclosure-forms-0
Some of the topics we will discuss are what your buyers and sellers should know about the new closing process. How the new closing process will influence contract writing. We will use scenarios. We will discuss why did a representative from the National Association of REALTORS say that real estate agents may want to add fifteen days to the close of escrow. What your sellers and buyers needs to know about the title insurance, the Closing Disclosure and AAR Residential Resale Real Estate Purchase Contract. Did you know a new contract is coming out this summer. What might change?
Some terminology you will need to know
- The Closing Disclosure
- The Delivery Period
- The Waiting Period
- Business days versus calendar days
- Consummation
- Why the amount of the owner’s title insurance policy and the lender’s title insurance policy shown on the Closing Disclosure may be different than what the buyer and seller actually pay
Fletcher R. Wilcox
CFPB External Operations Expert
V.P. Business Development and author of www.TheWilcoxReport.com
Grand Canyon Title Agency is a wholly owned subsidiary of Fidelity National Financial (FNF). FNF is ranked number 316 on the list of Fortune 500 companies.
Know important changes August 1, 2015 to the residential real estate closing process. Learn them and earn three hours of contract law renewal hours.
May 26, 2015 By
I want to invite you to a class I am teaching on the changes to the real estate closing process that will take effect in about two months, this August 1, 2015. These changes will affect your buyers and sellers. This class is approved by the Arizona Department of Real Estate for three hours of contract law.
Some of the topics we will discuss are what your buyers and sellers should know about the new closing process. How the new closing process will influence contract writing. We will use scenarios. We will discuss why did a representative from the National Association of REALTORS say that real estate agents may want to add fifteen days to the close of escrow. What your sellers and buyers needs to know about the title insurance, the Closing Disclosure and AAR Residential Resale Real Estate Purchase Contract. Did you know a new contract is coming out this summer. What might change?
This Friday, May 29, from 9:00 a.m. to 12:00p.m. the Scottsdale Area Association of REALTORs (SAAR) is hosting the class CFPB – The “NEW” Loan Estimate & Closing Disclosure Forms. The class will be held at SAARs new state of the art facility located at 8600 East Anderson Dr., Suite 200, Scottsdale, AZ 85255 • Phone (480) 945-2651 Click the link below to sign up.
Some terminology you will need to know
- The Closing Disclosure
- The Delivery Period
- The Waiting Period
- Business days versus calendar days
- Consummation
- Why the amount of the owner’s title insurance policy and the lender’s title insurance policy shown on the Closing Disclosure may be different than what the buyer and seller actually pay
Click the link below to sign up. The cost is twenty dollars.
And there will be a short review of residential sales trends, such as how the number of single family homes being purchased with conventional loans, FHA loans, and VA loans are increasing. I will answer why they are increasing.
I hope to see you next Friday.
Fletcher R. Wilcox
CFPB External Operations Expert
V.P. Business Development
Real Estate Analyst
Grand Canyon Title Agency
Grand Canyon Title Agency is a wholly owned subsidiary of Fidelity National Financial (FNF). FNF is ranked number 316 on the list of Fortune 500 companies.
Phoenix Real Estate: signs and numbers point to a hot spring housing market in Phoenix
March 20, 2015 By
February 2015 Results
Signs and numbers point to a heated housing market in Phoenix this spring
Purchases with a mortgage are increasing – decreasing are new monthly listings
February 2015 purchases with a mortgage were the highest for a month of February since February 2006
5,945 less new monthly listings for the last nine months year-to-year
Changes coming to residential real estate closing process starting on August 1, 2015. See page seven.
Sales in which a buyer purchased with a mortgage in February 2015 were 15% higher than February 2014. February 2015 purchases with a mortgage were the highest for a month of February since 2006, which was before the great real estate recession. Is the February 2015 increase in mortgage purchases a sign that demand to own is growing? Maybe. There are some other recent signs. Mike Orr Director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business at Arizona State University said that “During February it became clear that from watching contract rates that the market was starting to take off.” Philip Haldiman from the Rose Law Group Reporter wrote that people are camping out to buy homes at a Mesa subdivision. The subdivision is the new Mulberry Community, by builder Blandford Homes. Purchase prices start in the low $200,000 and range from 1,700 to 4,300-square feet. Watch this video from Catherine Reagor Arizona Republic reporter on once again camping out for new homes.
More signs and numbers pointing to an increase in purchases with a mortgage Increasing are job growth, and population growth, and boomerang buyers. While job growth and population growth are lower than their historic norm, and could be better, both are growing. At the same time job and population numbers grow, growing is the number of possible boomerang buyers. These three factors should contribute to an increase in mortgage purchases.
Increasing job growth. You have to have a job to get a loan. Greater Phoenix lost 302,100 non-farm jobs from December 2007 to July 2010 (December 2007 is the record month for most non-farm jobs, while July 2010 was the month with the least non-farm jobs since the start of the great real estate recession). Greater Phoenix has gained back 266,500 jobs from July 2010 to December 2014. From December 2014 to December 2015, jobs should grow by another 50,000.
Increasing population growth. The population grew by approximately 46,000 in 2014 over 2013. 2015 population growth is projected to increase by 57,000 over 2014. And from 2015 through 2020 projections are 327,800 more people. More people means more housing.
Increasing Boomerang Buyers: A boomerang buyer is defined as someone who buys after going through a foreclosure or short sale. As time goes on, more and more people will have reached the minimum wait periods or penalty boxes for being able to buy again with an FHA, Fannie Mae or Freddie Mac loan. I estimate that from 2009 through 2014, 220,536 homeowners that were owner occupants, not investors, either went through a foreclosure or short sale. The minimum wait period to buy again after a foreclosure or short sale is three years with an FHA insured loan; four years after a short sale with a Fannie Mae or Freddie Mac loan; and seven years after a foreclosure to purchase with a Fannie Mae or Freddie Mac loan. As time goes on, more and more people will meet the required wait periods, and if they have the necessary credit score, down payment, and closing costs they will be able to purchase with a mortgage. Let’s hope there will be enough inventory for them.
New Monthly Inventory of Single Family Homes June of 2014 was the first month last year, to have less new monthly listings when compared to the same month of the previous year. February 2015 was the ninth consecutive month year-to-year, that there were less new monthly listings, resulting in 5,945 less listings.
Sales by sold price range, median sale price, total volume The sold price range with the largest increase in sales year-to-year was between $200,000 and $249,999 with 185 more sales. The sold price range with highest year-to-year increase in percentage was between $300,000 and $349,999 with a 34% increase. There were thirteen more sales over $1,000,000 for an 18% increase. The February 2015 median sale price was $220,000 or $10,000 higher than February 2014. Total sales volume was $101,569,653 higher.
On August 1, 2015 new rules apply to most closed-end consumer mortgages. The rules effect existing and new home purchases, refinances, loans secured by vacant land, construction only loans, and timeshare loans. Excluded are reverse mortgages, home equity lines of credit, mortgages secured by a mobile home or a dwelling that is not attached to real property. The Consumer Financial Protection Bureau or the CFPB a creation of the Dodd-Frank Act, has integrated mortgage disclosures and created new forms. For loans originated on August 1, 2015 or later, the Good Faith Estimate and the Truth in Lending will be replaced with a new document called the Loan Estimate. And the final Truth in Lending and Settlement Statement are replaced with a new document called the Closing Disclosure. The new Loan Estimate and Closing Disclosure will make it easier for a buyer to compare their initial loan costs to their final loan costs. The timing of workflow and closings will be impacted by the new rules. The Closing Disclosure has new time tables associated with it. There is a Delivery Period and a Waiting Period before the borrower is allowed to sign loan documents. Ken Trepeta of Government Affairs for the National Association of REALTORS suggests adding fifteen more days to the normal closing process time in this video. http://www.realtor.org/videos/hud-1-going-away-understand-new-closing-forms-procedures There is much more to the upcoming changes, for more detailed information contact me, Fletcher Wilcox, at FWilcox@gcta.com or 602.648.1230. I will be representing Grand Canyon Title Agency in meeting with real estate designated brokers and their agents, and builders, and banks and lenders and their loan officers. Don’t wait to learn about the changes, but find out what you need to know, what you need to do.
Disclaimer While deemed accurate this report does not guarantee the accuracy of the data. Some numbers will change. Report may not reflect all real estate activity. Information should be verified. This article is of a general nature, and is not intended as investment advice, real estate advice, lending advice or legal advice. Please consult your broker, your lender, your own independent legal counsel, your certified public accountant. The information in this report may not be the opinion of Grand Canyon Title Agency. Note: Included in some of the charts of this report may be a small number of new home sales and listings. Below is the full report.
Phoenix Real Estate: 2014 Single Family Real Estate Trends
February 25, 2015 By
February 25, 2015
Existing Single Family Sales Go Up at End of Year. Mortgage Purchases Increasing.
- December 2014 existing single family sales ten percent higher than December 2013
- Overall sales were less in 2014 than 2013, but trending upward
- Watch listings: 2014 new monthly listings less than 2013
- Median sale price in December highest month in 2014
- Sale Volume $160,000,000 higher in December 2014 than December 2013
- 2014 Distressed Property Index lowest since 2006
- 2014 cash purchases lowest since 2008
- More purchases with a mortgage in 2014 than 2013
- Grand Canyon Title acquired by Fortune 500 Company. See page two.
- Big changes coming to residential real estate closing process starting on August 1, 2015. See page seven.
This report covers existing single family property sales in Greater Phoenix. Greater Phoenix is defined as Maricopa County. The data in this report, unless otherwise mentioned, is from the Arizona Regional Multiple Listing Services, Inc., also known as ARMLS.
In this report we compare performance for sales, sales volume, cash purchases, mortgage purchases, and new monthly listings. The report includes the Distressed Property Index covering foreclosure starts, auctioned properties, lender owned sales and short sales for the last twelve years. Most of the comparisons are year-over-year, comparing a time period in 2014 to the same time period in 2013. Year-over-year comparisons are an effective way to measure performance, highlight differences, and negates the effect of seasonality.
On January 1, 2015 Grand Canyon Title Agency was acquired by a Fortune 500 company. Grand Canyon Title became a division of Fidelity National Title Agency (FNTA). FNTA is a subsidiary of Fidelity National Financial (FNF). FNF is ranked 316 on the Fortune 500.
http://fortune.com/fortune500/fidelity-national-financial-inc-316/
FNF has more claim reserves than any other company in the industry. With more than a billion dollars in claim reserves to protect you, contact me to open your next commercial real estate transaction.
http://fidelitydfw.com/page/Financial-Strength.aspx
Existing Single Family Sales and Sale Volume
Sales were dismal for much of 2014. There were 6,563 less existing single family sales in the first three quarters of 2014 compared to 2013. Then the course reversed. In December 2014, there were 420 or ten percent more sales and $160,000,000 more in sale volume than in December 2013. These numbers made December 2014, on a year-to-year basis, the best month of 2014. Sale volume in the first eight months of 2014 was less than for the same months in 2013.
Not only were December 2014 existing sales higher than December 2013, but so were purchases with conventional, FHA and VA loans!
Distressed Property Index
Disappearing cheap distressed property for sale was a reason for less sales in 2014. According to the Arizona Regional Multiple Listing Services, Inc. (ARMLS), there were 2,149 less lender owned sales and 4,934 less short sales in 2014 compared to 2013. The Distressed Property Index in 2009 was 186,643 compared to 18,932 in 2014 for a decrease of 90%. However, the disappearance of cheap sales diminished cash sales. Cash sales were less every month in 2014 compared to 2013, resulting in 7,370 less cash purchases in 2014. Cash sales in 2014 were the lowest since 2008.
Sales under $50,000
Gone are the days when there were thousands of sales under $50,000. In 2014, there were 207 existing single family sales under $50,000 compared to 625 in 2014. From 2009 through 2013 there were 22,513 sales under $50,000. So the good news is that the glut of cheap distressed properties for sale that previously drove down home values are gone.
6,154 more sales in 2013 than 2014
7,368 more cash sales in 2013 than 2014
1,214 more sales with a mortgage in 2014 than 2013
On August 1, 2015 new rules apply to residential real estate closings.
Do you know what they are?
On August 1, 2015 new rules apply to most closed-end consumer mortgages. The rules effect existing and new home purchases, refinances, loans secured by vacant land, construction only loans, and timeshare loans. Excluded are reverse mortgages, home equity lines of credit, mortgages secured by a mobile home or a dwelling that is not attached to real property.
The Consumer Financial Protection Bureau or the CFPB a creation of the Dodd-Frank Act, has integrated mortgage disclosures and created new forms. For loans originated on August 1, 2015 or later, the Good Faith Estimate and the Truth in Lending will be replaced with a new document called the Loan Estimate. And the final Truth in Lending and Settlement Statement are replaced with a new document called the Closing Disclosure.
How will this affect the closing of real estate transactions? The timing of workflow and closings will be impacted by the new rules. The Closing Disclosure has new time tables associated with it. There is a Delivery Period and a Waiting Period before the borrower is allowed to sign loan documents.
Ken Trepeta, Government Affairs for the National Association of REALTORS suggests adding fifteen more days to the normal closing process time in this video.
http://www.realtor.org/videos/hud-1-going-away-understand-new-closing-forms-procedures
There is much more to the upcoming changes, for more detailed information contact me, Fletcher Wilcox, at FWilcox@gcta.com or 602.648.1230. I will be representing Grand Canyon Title Agency in meeting with real estate designated brokers and their agents, and builders, and banks and lenders and their loan officers. Don’t wait to learn about the changes, but find out what you need to know, what you need to do, and how the changes impact your clients.
Number of Buyers Purchasing with a Loan Improves. Fourth Quarter 2014 Best Quarter Year-To-Year
Purchases with a mortgage were 4.7% less in the first quarter of 2014 compared to the first quarter of 2013. As the year went on mortgage purchases gained momentum. In 2014, mortgage purchases up 1.3% in the second quarter, up 5.8% in the third quarter, and up 9.5% in the fourth quarter compared to the same quarters in 2013. However, the increase in mortgage purchases in the second and third quarters of 2014 was not enough to overcome the decrease in cash purchases resulting in less sales.
Segmenting Mortgages into Three Categories: Conventional, FHA and VA Loans
When segmenting mortgage purchases by conventional loans, FHA loans, and VA loans, we find the following results: Year-to-year conventional loan purchases were down the first three quarters in 2014 compared to 2013. A likely, partial reason for the decrease in conventional loans was the implementation of the new Dodd-Frank mortgage rules effective on January 10, 2014.
FHA loans were less only in the first quarter of 2014 compared to 2013, and VA loans were a hero all year long in 2014, up ever quarter of 2014 over 2013.
Keep Your Eye on Listing Inventory
The chart below is for new monthly listings of existing single properties in Greater Phoenix. The chart does not represent the total number of existing single family listings, but only new monthly listings. New monthly listings in 2014 were less from June through December compared to 2013.
Fletcher R. Wilcox
Fwilcox@GCTA.com 602.648.1230
Author of TheWilcoxReport.com(TM)
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