Ability Realty

To me, this looks like another slow month. The Total units Sold went up to 1038, but that was a reflection of the 1724 units reported in November as Listings under Contract. The new number of Listings under Contract is 1506, which is a new low, and leads me to believe we are still in that slow area, and this will probably continue for the next 3 months or more. The new Lending guidelines will cause a further erosion of Sales. It will be tougher to get a Loan if you do not have good credit and a fair job. If you were close last year, you will be unable to do it until you improve your scores and have a good job. The Average Sales price went up, but that was because of the Larger number of Sales over $500,000 as that number jumped to 57. I hate to say it, but this slowness will continue for a few months or more.

I had a couple of Loan officers tell me their business is down by 50% or more, and they are hearing other companies are letting people go. A lot of the small banks will slow or stop in their ability to originate Loans. This will also include Credit Unions. The big Banks like Wells Fargo, Chase, and Bank of America will still be available, but with stiffer Lending requirements brought on by Congress. You can thank the Democrats for this one. I just saw that a House committie is looking at this now. It is a big problem. Stay tuned.

I have not heard anything about VA Loans, so if you are eligible for a VA Loan, it may be the way to go.

Our Economy is in a very fragile stage right now and another wrong mistake by this Administration or Congress could send us lower, in what I still call a recession, that we have really not gotten out of. With all the unemployed that stopped looking, and lost their Unemployment Insurance, the number is closer to 10%+ unemployment. The last jobs report was anemic at the most. When the Administration finally comes to their senses that jobs are created by small companies, they might be able to bring things under control or at least start the up hill climb.

Right now we are headed into the 2014 election year, and Obamacare has rolled out. Obamacare looks to me like a heavy shoe will drop in November of this year. These two items will cause the economy to go down hill, I fear. I want to be wrong, but after 3+ years of the same crap, I do not think I am.

Enough said for today. If you have questions about buying or selling Tucson real estate call me at 240-7130. I WILL answer the phone. Do not forget we are a Property Management Company also. We can manage your property or help you buy an Investment Property.