4th of July in Flagstaff!

Here are updates from today's newspaper:

Fireworks fans will want to stake their claims early on Saturday night if they want the best views of the holiday pyrotechnics....

Flagstaff's Fourth of July Events

Have a safe and happy 4th of July!

Home loan rates dropped slightly in the last week, according to Freddie Mac’s Primary Mortgage Market Survey,^® released today. According to the survey, 30-year fixed-rate mortgages averaged 5.32 percent with an average 0.7 point to obtain that rate. This shows mortgage rates down for the week ending July 2, 2009, compared with the prior week when the average showed at 5.42 percent. Last year at this time, the 30-year fixed rate home loans averaged 6.35 percent.

“Lower mortgage rates are helping to support the housing market,” said Frank Nothaft, Freddie Mac vice president and chief economist. The 30-year fixed-rate mortgage rate peaked this year during the week of June 11. Lower rates have led to a 7.2 percent increase in conventional mortgage applications for home purchases by the last full week of June, according to the Mortgage Bankers Association.

Nothaft also said: “The decline in house prices may be moderating as well. Home values fell at a monthly rate of 0.6 percent in April, representing the smallest decrease since June 2008, according to the S&P/Case-Shiller^® 20-city composite index. In addition, home prices rose in eight of the cities in April.”

For the full press release, visit Freddie Mac’s website.

Today or tomorrow would be an excellent time to lock your rate. Next week, there are large Treasury Note and Bond auctions scheduled. That is likely to drive down the bond market and accordingly drive rates back up.

To buy or sell a Flagstaff home, contact Team Heitland at RE/MAX Peak Properties!

If my month of June is any representation of what’s going on in the Flagstaff market, and who knows if it is, home sales will happen if your agent works hard enough and if you, as the seller or buyer, are motivated enough.

On the buyer’s side, you need to have persistence is working with your lender (assuming you are not one of those rare cash buyers – we had one this month). The loan process is really tough and you can’t treat it casually. Even when you’ve done all the work required of you, it may not work if the appraiser and the several layers of underwriting don’t like the deal you’ve negotiated. Your mortgage loan originator should have options available to you if the first try at a loan source doesn’t work. Most of my transactions this month were done with FHA-guaranteed loans – even those at higher prices and with substantial down payments.

On the seller’s side, it won’t work if you don’t price it right and clean it up. Using a professional stager helps. Once you get an offer, take a deep breath and don’t count on it closing on time – see the last paragraph. When it does, it is because the people working on your behalf, and for the buyer, pulled off a miracle.

So, if any one tells you Flagstaff homes are not selling, tell them they are wrong. So far, the report for June shows 95 homes sold.

Here are the seven I was involved with:

1407 S. Union Pacific – foreclosure sale was a great deal for our buyer but the title issues were a challenge

11110 N. Lupine Lane – Listing - was under contract before the ink was dry but “Oh My!” what lending issues we had, and then it was done!

9130 W. Arden Lane – represented the buyer – like all purchases nowadays diligence on the lending process got it done!

11160  Rodeo Road – Listing -- under contract in a week and closed in 26 days!

3939 N. Paradise Road – Listing – some twists and turns then we got it done three appraisals later!

8215 Autumn Drive – Listing – sold with creative, last-minute financing switch!

2640 E. Matterhorn – Listing – sold at 100%

To buy or sell a home in Flagstaff, start by contacting Team Heitland at RE/MAX Peak Properties!

At least 10,000 people will line the streets to watch the Fourth of July parade in downtown Flagstaff. Since most Flagstaff residents will actually be in the parade, it’s going to be very crowded downtown. The parade starts at 9 a.m. on Saturday – arrive early to get a seat in the shade!

You’ll want to be in Flagstaff Friday night to begin the holiday weekend with First Friday Artwalk. Munch your way through downtown Flagstaff and enjoy the art on display in various galleries and businesses. Even the Coconino County Democratic Party will be celebrating its new location, just north of the downtown Flagstaff library at 324 W. Birch, with a display of photographs by Flagstaff photographer Debbie Leavitt. Democratic Headquarters grand opening begins at 5 p.m.

On the 4^th of July (Saturday), you can enjoy a crafts show at Wheeler Park in downtown Flagstaff, festivals at both the Pioneer Museum and the Museum of Northern Arizona (the 76^th Annual Hopi Festival!), horse races at the County Fairgrounds, a symphony concert at Pine Mountain Amphitheater, and fireworks at the Flagstaff Mall. The horse races are an Independence Day weekend tradition in Flagstaff and actually begin with post time at 1 p.m. on Thursday, July 2. Racing continues through Sunday.

Whatever you do this weekend, enjoy it! Welcome to Flagstaff, AZ! Have a great 4th of July!

Many homeowners who don’t need to sell in this market are choosing to sit it out. Fearful that their homes will sell for less than they would have three years ago, many homeowners are missing the opportunity presented by the current real estate market. It’s only natural that a homeowner will focus on the loss in home prices compared with recent years, but “move-up” buyers need to focus on the importance of buying now in order to have a long-term positive impact on their net worth.

The smaller loss at sale will be compensated by greater savings at purchase, resulting in a significant net gain. The example here assumes a 10% drop in the home market at both levels. In fact, in Flagstaff, the advantage may be even greater because the prices of lower-priced homes seem to be beginning to hold while the higher priced homes continue to go down.

An early read on the June Flagstaff homes market shows that the number of sales is likely to be about the same as in May, but the median price, so far, is over $35,000 higher than in May. The median price tells us what price ranges are selling, and so it appears that the volume of sales higher-priced homes in Flagstaff may be improving. Thus, it may be that some homeowners are taking advantage of this market to “step-up” their housing. Certainly, some of my clients are.

When you buy a larger and better home under the current market conditions, you are saving more on the purchase than you lost on the sale of your previous home, and your new home is of often better positioned for appreciation when the market rebounds. If you take the example above, and assume that the homes appreciate 10% in value, the first home gains $27,000, while the second gains $45,000. Over my lifetime, I’ve traded up several times – including in a market when interest rates where 12% and above. Each time, I was able to add to my net worth with appreciation on the larger and better home.

Let me assist you in deciding if now is the time for you to sell your Flagstaff home and trade up to take advantage of this buyer’s market in Flagstaff. Contact Team Heitland at RE/MAX Peak Properties: 928-714-0001.

This Friday in downtown Flagstaff, enjoy music and telescopes in the early evening followed by a free, outdoor movie at dusk. This week, the movie is SpongeBob SquarePants. Enjoy Heritage Square in downtown Flagstaff!

There will be lots of music in Flagstaff this weekend. The Gin Blossoms entertain at Pine Mountain Ampitheater on Saturday night, with BBQ beginning at 3:30 p.m. At the other end of town, the Flagstaff Folk Festival will liven up the Coconino Center for the Arts and the Pioneer Musuem beginning from 10:00 a.m.  to 6 p.m. on both Saturday and Sunday. Bluegrass fans will want to catch the concert at Heritage Square from 4 p.m. to 6 p.m. on Saturday afternoon.

Outdoor group activities this weekend include a strenuous ranger-led hike at Walnut Canyon on Saturday, beginning at 9 a.m. Reservations are required. Call 928-526-3367. There is an Audobon-society sponsored walk at The Arboretum at Flagstaff on Saturday beginning at 7:30 a.m. Call 928-774-1442 for that one. 

The RE/MAX open house tours on both Saturday and Sunday this weekend! Saturday, look for the signs in Country Club. Sunday will be in Ponderosa Trails. Your host for the RE/MAX Peak Properties weekend home tours is Xavier Wynns. For details:

Five Open Houses in Flagstaff's Country Club Region on Saturday!

Three Open Houses in Ponderosa Trails on Sunday!

If these scheduled open house times don't work for you, and you're ready to buy a Flagstaff home, give us a call next week and we'll arrange a personal showing for you: Team Heitland at RE/MAX Peak Properties!

"Mixed economic reports on the state of the housing market helped hold mortgage rates fairly flat this week," said Frank Nothaft, Freddie Mac chief economist, in a news release. The 30-year fixed-rate mortgage averaged 5.42% for the week ending June 25, up slightly from 5.38% last week; the mortgage averaged 6.45% a year ago, according to Freddie Mac's weekly survey of conforming mortgage rates. To obtain the rates, all mortgages in the survey required payment of an average 0.7 point. A point is 1% of the mortgage amount, charged as prepaid interest.

Sales of existing homes showed another gain in May according statistics released this week by the National Association of Realtors.^® May’s increase was the first back-to-back monthly gain since September 2005. This is a national number and Flagstaff, so far, is lagging the national recovery. For Flagstaff home sales statistics for May, read my monthly report by clicking here.

Nationally, existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.4 percent to a seasonally adjusted annual rate of 4.77 million units in May from a downwardly revised level of 4.66 million units in April. Sales remained 3.6 percent below the 4.95 million-unit pace in May 2008.

Lawrence Yun, NAR chief economist, explained the improvement in sales: “Historically low mortgage interest rates clearly drew buyers into the market, and housing remains very affordable even with a recent uptick in rates,” Yun says. “First-time buyers also are being drawn off the sidelines by the $8,000 tax credit, which is helping to absorb inventory.

However, the increase in sales is less than anticipated based upon the Realtors^® Pending-Home-Sales Index because transactions are stalling in escrow. Yun blamed “faulty” appraisals for preventing buyers from getting loans. In Flagstaff, we have certainly had lengthy, and sometimes failed, transactions because of the difficulties of appraising property when there are so few sales for appraisers to compare contracts to. Underwriters and mortgage insurers are taking a very cautious approach to lending, even when an appraisal matches the purchase price. Several successful Flagstaff transactions have had to switch from conventional lending to government-guaranteed FHA loans because of the cautious private lenders.

An NAR practitioner survey in May showed first-time buyers accounted for 29 percent of transactions, and that the number of buyers looking at homes is nearly 10 percentage points higher than a year ago. First-time homebuyers have been spurred by the up to $8000 tax credit available to them this year for homes that close prior to December 1. This, in turn, is beginning to spur repeat buyers as they are able to sell their homes and step-up. Yun said, however, that “investors appear less active, but are more prevalent in areas with large price corrections.”

National median existing-home price: for all housing types was $173,000 in May, down 16.8 percent from a year earlier. The market share for distressed properties declined to 33 percent of all sales in May from 45 percent in April.  Single-family home sales: rose 1.9 percent to a seasonally adjusted annual rate of 4.25 million in May from a pace of 4.17 million in April, but are 3 percent below the 4.38 million-unit level in May 2008. The median existing single-family home price was $172,900 in May, down 16.1 percent from a year ago. Existing condominium and co-op sales: increased 6.1 percent to a seasonally adjusted annual rate of 520,000 units in May from 490,000 in April, but are 8.9 percent below the 571,000-unit level in May 2008. The median existing condo price was $173,800 in May, down 21.9 percent from a year earlier.

Regionally, here’s how housing fared across the country for existing-home sales:

• Northeast: rose 3.9 percent to an annual level of 800,000 in May, but are 10.1 percent below a year ago. Median price: $243,600, which is 12.5 percent below May 2008.

• Midwest: jumped 9 percent in May to a pace of 1.09 million but are 4.4 percent below May 2008. Median price: $145,800, which is 10.4 percent lower than a year ago.

• South: unchanged at an annual pace of 1.74 million in May but are 8.9 percent below a year ago. Median price: $157,400, down 9.9 percent from May 2008.

• West: slipped 0.9 percent to an annual rate of 1.14 million in May, but are 11.8 percent higher than May 2008. Median price: $197,700, down 30.6 percent from a year ago.

4184 Broken Rock Loop

This home is in turnkey condition with features you will love.

Let's start with the lot: Large, corner, Ponderosa Pines, excellent landscaping with sprinkler system.

Inside, you'll find a cozy wood-burning fireplace, outstanding flooring and much more that reflects pride of ownership. Don't miss the superior door to the deck, which adds light and energy-efficiency. The combined kitchen and family room extend nearly the entire length of the home, providing great space to relax and entertain. Laundry room includes a utility sink and cabinets.

You'll appreciate the comfort of central air and the energy-savings of a furnace installed in the last 3 years. Garage includes a tool bench and amazing built-in storage closets.

Continental Country Club amenities: Clubhouse, Jotini's Restaurant, 2 Swimming Pools, Kids Recreation Center, Tennis Courts, Golf, Miniature Golf, Work Out Facilities.

Oh, and there is a basketball court in the backyard!

Arizona Governor Brewer's Northern Arizona Representative, Joanne Keene, will present the Governor's views on the state budget and accept questions from the audience. The event is sponsored by the Education and Policy Committee of the Coconino County Democratic Party. The Committee's goal is to learn and understand public policy. All are welcome to attend for a civil discussion, which should be especially interesting in light of today's Arizona Supreme Court's ruling against Governor Brewer in her on-going budget battle with the legislature.

This is the regular meeting of the Coconino County Democrats' Education and Policy Committee.

Although the bank rate set by the Federal Reserve is not directly connected to home loan rates, it does effect the overall economic situation. Good news for the economy is bad news for mortgage rates. Since we're not out of the recession-woods yet, the Fed is unlikely to raise rates. This is intended to spur economic improvement.

The Fed is meeting Tuesday and Wednesday and will make an annoucement about rates Wednesday.

As I was studying the MLS hot sheet for Flagstaff home listing changes since last Friday, I noticed quite a few sales. The price per square foot of the sold homes varied widely – from $121 per square foot to over $240 per square foot. Of course, the homes varied widely, too: From stripped and unlivable to a pristine Flagstaff Country Club townhome. There was another luxury property on a one-acre lot in the same region of Flagstaff in the same higher price per square foot range.

What’s the lesson in this for buyers who may be hesitating about buying a Flagstaff home? Very little. One cannot tell from such a snapshot of the market what is going on in the Flagstaff real estate market except this: You will not find a home for $50 per square foot – and it’s highly unlikely that we’ll see one for $100. Also, you can tell that Flagstaff homes are selling. Some buyers think the time to buy is now. After all, the prices per square foot are down from a year ago, when they were down from the year before, and folks need a place to live!

Will Flagstaff home prices go lower? Perhaps. But signs are that Flagstaff home prices are leveling out. At most we will not see the kind of drop we saw in the last year. Meanwhile, interest rates are going up. If your goal is to buy a home, this is a great time to do it and here’s why: A 10% home price drop is immediately nullified by a 1 percentage point increase in prices.

Note: assumes a 90/10 loan-value.

Even at 6.5%, rates will be considered low and favorable to the housing market. I’ve lived through (and bought homes) when interest rates were over 12%. The question is not, do you want a home, or do you want a “deal.” The question is do you know what the deal is? Timing the market is a bad idea whether it’s stocks, bonds, or homes.

If the market you want to be in is one that will give you a home in Flagstaff, start here: Team Heitland at RE/MAX Peak Properties. Or, give us a call: 928-714-0001.

Compliments of MMG Weekly - Click for Details!

Home loan rates were up again last week in spite of some improvement early in the week. At the beginning of the week, inflation readings came in lower than expected, with a year-over-year reading at its lowest level since 1950. Indications that the economy is still very weak came through early with the announcement of a manufacturing index at lower levels than economists expected. This pushed rates lower at the beginning of last week – it would have been a good time to lock your mortgage rate if you were in escrow to buy a home!

Mid-week, rates rose and ended the week higher than at the outset. The stock market rose, taking money out of bonds and bond supply continued to pour onto the market to finance the massive government stimulus. Housing news was better than expected, indicating the economy may be stronger than thought by the markets earlier in the week. All of this drove rates higher.

The coming week is likely to be just as volatile as there will be several major announcements about how housing and the economy in general are doing. Overall, however, rates are on the rise. Now is the time to buy a home and lock your 30-year home loan for the inflationary future that is not too far away.

Be in touch with your mortgage lender to make sure you don't miss the right moment to lock your rate!

Walnut Canyon Overlook

We took advantage of the National Park Service free fee weekend today to do the Island Trail at Walnut Canyon National Monument, which is just outside of Flagstaff. Walnut Canyon was declared a National Monument in 1915 by then President Woodrow Wilson. Previously, the ancient ruins had been desecrated by tourists taking trophies back to such places as San Francisco.

Today, the Walnut Canyon National Monument is a great place to learn a bit about Flagstaff and American history as well as that of the ancient native peoples. In the 1930s, the Monument’s Island Trail was built by the Civilian Conservation Corps. The Island Trail leads us back 700 years into the world of the people archeologists call Sinagua. The spectacular canyon scenery and rock formations demonstrate unique geological formations from millions of years ago, when Northern Arizona had beach-front property. As from many other places in Flagstaff, there are glimpses of the San Francisco Peaks.

If you go, be prepared. While the Island Trail is only a mile long, the hike is strenuous. The trail descends 185 vertical feet into the canyon, and returns the same way. The trail is paved and there are steps built into the cliffs. Of course, for newbies to Flagstaff, it is more strenuous because of the 7000 foot elevation. For Flagstaff locals, it’s a nice workout in a beautiful spot!

Don’t avoid the Walnut Canyon National Monument just because you think you can’t do the Island Trail. There is also the Rim Trail – an above-the-rim experience that allows spectacular views of the canyon below. And then, of course, there is the gift shop! The visitor’s center also has an observation deck.

The National Park Service has schedule two more fee-free weekends this summer, so if you missed this weekend, don’t despair. The program does not apply to all parks. For example, the Grand Canyon is not included. Of course, you can also buy a year-round pass to all National Parks and Monuments!

Last Weekend!

As usual, there are many things to do in Flagstaff this weekend. Check out the Flagstaff community calendar! Flagstaff events this weekend include a music festival, a fajita festival, and a beer festival (different locales!). In addition, the National Parks surrounding Flagstaff are offering free entry on Saturday and Sunday! The weather here in Flagstaff this weekend should be cool, sunny and just plain wonderful!

This is the last weekend to see Expecting Isabel at the Doris Harper White Community Playhouse in downtown Flagstaff. Don’t miss this exciting Theatrikos production. Previews on You Tube.

For archeology buffs, or just folks looking for a nice day outdoors, it’s Elden Pueblo Day on Saturday.

The RE/MAX open house tour is in the Northeast Region of Flagstaff Saturday and will begin at 11 a.m.

On Sunday morning, visit the Flagstaff Community Market, downtown, just west of the Flagstaff City Hall.

Have a great weekend in Flagstaff! Flagstaff is a great place to live! If you’d like to buy or sell a home in Flagstaff, contact Ann Heitland at RE/MAX Peak Properties!

Biking on Flagstaff Urban Trail Near Farmhouse Estates

Farmhouse Estates is a small, relatively new, subdivision carved out of an old farmstead in northwest Flagstaff. The neighborhood lies just west of the Museum of Northern Arizona and at an entrance to the Flagstaff Urban Trail that leads from the Cheshire neighborhood into downtown Flagstaff. The mountain views are gorgeous!

The neighborhood is popular because of its relative proximity to downtown Flagstaff and the Arizona Snowbowl, as well as to popular Forest Service biking and hiking areas off of the nearby Schultz Pass and Elden Springs Roads. Recently, my photographer strolled the neighborhood and took a series of photographs: Click here to see photos of the Museum of Northern Arizona neighborhood in northwest Flagstaff.

Right now, we have two homes for sale in the Farmhouse Estates neighborhood. There are several building lots for sale. Some of the lots have deed restrictions prohibiting two-story homes in order to preserve the views of others in the neighborhood. To see these, or any other home for sale in Flagstaff, contact Team Heitland at RE/MAX Peak Properties.

Bond Market Made Gains Thursday & Friday

Mortgage rates have been climbing the last few weeks, as reported over the weekend, but why? Home loan rates rise as mortgage bond rates fall (or, in a less exact correlation, as bond rates in general fall). The change in recent weeks can be traced to an increase in supply of mortgage bonds (more supply = lower cost). Thanks to MMG Weekly for the info reported with my own twists here.

The increased supply of mortgage bonds comes in part from the significant number of refinances that have been spurred by lower home loan rates over the last several months. As the refinances close, they are turned into mortgage-backed securities and sold on the bond market. The U.S. government has a program to purchase some of these mortgage-backed bonds for the very purpose of keeping interest rates low, but the government program has not been able to keep up.The second source of increased supply of bonds comes from the government stimulus spending itself. All of that spending is financed by issuing U.S. Treasury bonds.

Bonds and home loan rates improved slightly last Thursday and Friday as shown in the accompanying chart, but the overall home loan rate was still up for the week, as it had been for the last several. The downward pressure of the last two days of last week came as a hedge-fund made large purchases of mortgage-backed securities, according to MMG Weekly.

Since bond prices react negatively to any news of economic recovery, and interest rates change on a daily basis (or sometimes more often), it's important to work with a knowledgeable advisor who monitors the market’s every move. You’ll find some excellent Flagstaff lenders listed on my website: Flagstaff home lenders.

Several economic reports can make the rates move this coming week:

• Tuesday will bring some news about the housing market with the Housing Starts and Building Permits Report.
• Tuesday and Wednesday should also bring us a clearer picture of where things stand on the inflation front. On Tuesday, we’ll hear the wholesale price inflation measuring Producer Price Index (PPI) Report, and on Wednesday, the inflation news on the retail level, via the Consumer Price Index (CPI) Report. Remember: Inflation is will make home loan rates go up, so it will be very important to see what these reports reveal.
• Thursday will bring news from the Philadelphia Federal Reserve Bank. This monthly survey of manufacturing purchasing managers conducting business around the tri-state area of Pennsylvania, New Jersey, and Delaware is one of the most-watched manufacturing reports overall.
• Since last week's Continuing Jobless Claims reaching a new record, this week's Initial Jobless Claims Report will be another important report to watch.

Personally, I think the jobs reports are the most important indicator of whether we’re really out of a recession in the housing market. Without jobs, people simply cannot buy homes. Other indicators may “lead” the news, but we need to worry that we could get a mixture of poor job creation and inflation, as the economy gave us in the 1970s. Refinances are likely to continue to slow as rates rise, so that component which has been pushing rates higher will ease, but others are coming into the picture and the government spending is not going away. Look for continuing higher rates overall -- with occassional small dips like late last week.

P.S. The stock market was down significantly today. That usually improves bond prices. If you're ready to lock your loan, you should talk with your mortgage broker today for current advice!

What's happening with foreclosures in Flagstaff? That's a very good question.... one that I've been searching to answer in an intelligent way for a couple of weeks now. For several months, I posted the Coconino County foreclosure lists on my other blog on Active Rain. I stopped the postings because I thought the statistics were telling the same story every week -- and because I ran out of time in this busy season of buying and selling Flagstaff real estate.

Here are the straight facts that the foreclosure sales lists were telling: Every Monday, many (20-50) foreclosure sales were scheduled on the courthouse steps in Flagstaff. Many of these were for outlying county properties, but several also were in Flagstaff itself. Reviewing the lists of actual sales at the end of each week, however, showed that few of the sales actually occurred. Homeowners were somehow rescuing their homes from the foreclosure block just as the gavel was about to fall. The serious story is how and why was this happening?

I still don’t know the whole answer. Some of it is surely that the homeowners turn over a deed-in-lieu of foreclosure at the last moment. A few of the cancelled trustee sales are due to last minute closings on successful short-sales. In one case I know of the sale was not even short – it was just desperate. Some last minute cancellations are a result of bankruptcy judges issuing temporary orders of stay. Others are last minute workouts and rescues due to some of the government plans that have been put in place. Some are loans provided by family members or once-in-a-lifetime windfalls – although there are probably very few of these.

What I do know is that there are, right now, very few bank-owned properties for sale in Flagstaff. That’s because we haven’t seen many actual foreclosures in the last few months. But I’m not certain this will continue. Partly because the official moratorium that was in place during the winter for government-guaranteed loans and for some big banks stopped about three months ago and that's about the time it takes for a bank to get a home ready for market after it takes title. Also because I hear other stories – stories of homeowners who stopped paying their home loans months ago and their banks have not foreclosed. Why is this? I speculate that it is because the banks don’t want to own the property.

And there is a deeper story there as well. We’ve heard throughout this foreclosure mess that banks don’t want to foreclose because it costs them an average of $50,000 to process the foreclosure – attorney fees, trustee fees, Realtor^® fees, cleanup and utility expenses. But there is more at work when homeowners never hear from the bank. Or the bank takes the foreclosure process to the brink and doesn’t force the gavel down. Here’s what it is: the banks don’t want to own the property because of their balance sheets.

The scary part of all of this is that even though nationally we’ve had over one-million foreclosures this year alone, it’s likely that there are many more to come. And, that means that home prices may have hit bottom – because the inventory from now on may trickle out – but the prices are not going up for a long-while, for the same reason.

Freddie Mac Survey Results Past 3 Weeks

Mortgage rates have been at unprecedented lows for many months, now home loan rates have moved back up into just the bargain category. Anything below 6.5% beats the rates home buyers were paying during the housing boom.

Last week, Freddie Mac's weekly survey pegged interest on 30-year fixed mortgages at an average of 5.59 percent -- up from 5.29 percent last week and the highest rate since November 2008.

Other rates also climbed:

• Interest climbed to 5.06 percent from 4.79 percent for 15-year fixed loans;
• 5.17 percent from 4.85 percent for five-year, adjustable-rate mortgages;
• 5.04 percent from 4.81 percent for one-year ARMs.

Freddie Mac chief economist Frank Nothaft says the gains are not affecting home purchase loans but that re-financing applications fell during the week.

Remember, when you buy a home, two major things factor into what you pay: The price of the home and the mortgage rate. Flagstaff home prices are down, don't let that other factor -- the interest rate -- get in the way of buying now while the overall picture is to your advantage. Contact Team Heitland at RE/MAX Peak Properties to get started!

Steer clear of the many activities in downtown Flagstaff this Saturday and head for some Flagstaff open houses in the Southeast quadrant of town -- Flagstaff's classy and classic Continental Country Club neighborhood.

See the schedule below:

                        10-11              4621 E Timber Point Way    $469,900

                        11-12              4511 E Burning Tree Ln        $545,000

                        12-1                2899 N Rio De Flag Dr         $619,000

                        1-2                  2148 N Cypress Point         $375,000

                        2-3                  2155 N Fox Hill Rd              $498,500

                        3-4                  5804 E Ridge Rd                 $400,000

Your Realtor^® host for Saturday's tour is Xavier Wynns of RE/MAX Peak Properties.

If this schedule does not work for you, and you are a qualified home buyer, contact Team Heitland at RE/MAX Peak Properties to arrange your private showing of any of these, or any other, Flagstaff homes.

Tonight's movie on Flagstaff's downtown Heritage Square is the classic adventure Raiders of the Lost Ark. Meanwhile, up the street at the Doris Harper White Community Playhouse, you'll find Theatrikos' production of Expecting Isabel continues after its opening weekend last weekend.

A few blocks away and up the hill, you'll find an exhibit celebrating the 40th anniversary of humans walking on the moon and highlights Flagstaff’s role in lunar exploration. This exhibit is open during both day and evening hours at Lowell Observatory, but I recommend going at night so that you can also enjoy telescope viewing.

On Saturday, you'll find festivals in two of Flagstaff's downtown parks. At Wheeler Park,across from City Hall, it's the annual Pride in the Pines all-day-and-into-the-night event. Go west to Thorpe Park to find the 26th Annual Route 66 Regional Chili Cookoff.

Also, around Flagstaff on Saturday, you'll find a music festival at Pine Mountain Amphitheatre -- starting at noon and going into the night! -- and the annual Juneteenth Celebration at Coghill Recreation Center.

Late Saturday afternoon, there will be music by the Gypsy Chicks at Heritage Square from 4 p.m. to 6 p.m. Expecting Isabel runs Friday and Saturday night with a Sunday matinee.

Have a great weekend in Flagstaff, AZ!

Kimberly Sharp, Flagstaff's Neighborhood Planning specialist, sent out the "friendly reminder" that there is a big meeting for those interested in Flagstaff's future this afternoon, at the Flagstaff Aquaplex:

Regional Plan Focus Group 1 (Land Use, Growth Areas, Circulation & Bicycles) is TODAY, June 11, from 1:30-4:30 p.m. at the Aquaplex, 1702 N. Fourth Street.

 Click Here for the Agenda

To gain background information, existing Regional Plan policies, what AZ State statute is asking for, and some 'trend' data (if you print these on 11x17 front & back you will have a 'newsletter'):

·         Land Use - http://www.flagstaff.az.gov/DocumentView.aspx?DID=8955

·         Growth Areas - http://www.flagstaff.az.gov/DocumentView.aspx?DID=8955

·         Circulation - http://www.flagstaff.az.gov/DocumentView.aspx?DID=9190

·         Bicycles - http://www.flagstaff.az.gov/DocumentView.aspx?DID=8956

There will be hard copies of the above materials available before today's meeting at the Aquaplex.

Real estate prices in Flagstaff have lagged other markets in the home price downtrend. This year, Flagstaff homes are catching up with the nationwide downward real estate spiral. In May 2009, the median price of a single-family home sold in Flagstaff was 19% lower than for Flagstaff homes sold a year ago. SFR prices for the Flagstaff metro area for May 2009 were down 25.9% from the peak for the month of May that was reached in 2007, when the median price of a home sold in the Flagstaff area was $399,750. Last month, the median price broke $300,000 going in the other direction – it was $296,000.

The glimmer of good news is that volume of sales improved substantially in May compared to earlier in the year, as we usually expect this time of year. Sixty-nine single family homes sold in the Flagstaff area in May; however over three hundred more homes were for sale at the beginning of June than at the beginning of May. This leaves Flagstaff with more than 14-months’ supply of homes actively for sale – a strong home buyers’ market.

Remember, this report is the overall Flagstaff homes market. Trying to buy a home in the median price range is a different story. Homes priced right, in decent condition, and in the lower price ranges are flying off the market quickly. However, in the $400,000-and-above range, there is a great deal of competition and still very few buyers.

Townhome sales improved slightly in May, with six Flagstaff townhomes selling during the month. The median sales price was $244,750 – down 7.6% from May 2008. There were 96 townhomes for sale in Flagstaff at the beginning of June, so the Flagstaff townhome market is still obviously overloaded and prices are likely to continue to come down in this category. Townhome sales in Flagstaff have suffered because the demand for second homes is down and because single-family-residence prices have fallen into a range to compete with townhomes.

Remember: all real estate is local and a market analysis for your neighborhood and price range must be done specifically for your home, or your future home, before you make a decision about buying or selling. Before making this important financial and personal decision, get a Realtor^® who knows the market well and will perform the analytic work specifically for your home.

Statistics used in this report are gathered from the Northern Arizona Multiple-Listing Service owned by the Northern Arizona Association of Realtors.^® The information is deemed reliable, but is not guaranteed since it is based on reports from a variety of brokers and agents within the association. The home sales reported do not include all sales in the area. The slice of the Northern Arizona MLS data used here is based on homes with Flagstaff mailing addresses – whether within the City of Flagstaff or outside the city and in the immediately surrounding Coconino County areas.

If you’re ready to buy or sell, contact Team Heitland at RE/MAX Peak Properties!

Head over to the Flagstaff Community Market Sunday morning at Flagstaff City Hall (actually, the parking lot east of Flagstaff City Hall). The popular Sunday gathering in downtown Flagstaff is moving this year from its former location south of the tracks because that area has now become a Mountain Line bus transfer station. Tomorrow’s market opens at 8 a.m. and continues to noon.

The Flagstaff Community Market is a regional producers’ market that operates for growers and producers of agricultural and related products. The market is designed to provide unique and fun market events for the Flagstaff community.

This year’s Flagstaff Community Market will run every Sunday in the City Hall parking lot, beginning tomorrow through October 11. In addition, the market will add a second day, beginning July 8 and running through September 9. The alternative day is Wednesday, from 4 p.m. to 7 p.m. in the St. Pius Church parking lot at the corner of Cedar Ave. and 4^th Street.

Enjoy!

Home loan rates have been trending upward the last few weeks. Last week, the 30-year fixed mortgage rate averaged above 5% for the first time in a while, according to the Freddie Mac weekly survey:

For good local information on home loan rates and how to get a mortgage, contact one of these Flagstaff lenders.

This Saturday, the open house tour will be in the Ponderosa Trails area of Flagstaff.

Each home will be open for one hour:

10-11 am             1500 W Lil Ben                     $429,000

11-noon              1108 W Lil Ben                     $459,000

12-1 pm              3760 S Hideout                    $370,000

1-2 pm              508 W Nugget Trail                  $465,000

2-3 pm             301 W Wulfenite                    $375,000

3-4 pm           4814 S Elves Chasm                  $335,000

Your Realtor^® host for Saturday's tour is Xavier Wynns of RE/MAX Peak Properties.

Click here to learn more about Flagstaff’s Ponderosa Trails neighborhood.

If this schedule does not work for you, and you are a qualified home buyer, contact Team Heitland at RE/MAX Peak Properties to arrange your private showing of any of these, or any other, Flagstaff homes.

The Doris Harper White Community Playhouse in downtown Flagstaff will be the site for Theatrikos latest performance, which opens Friday: Expecting Isabel. Learn more about this play, which runs weekends through June 21, and get tickets here.

Stroll through downtown Flagstaff on Friday night and enjoy the First Friday Artwalk -- download a map here.

Friday night, you'll compete for space at Heritage Square as the Gypsy Chicks perform in the early evening and the outdoor movie begins at dusk. This week's movie: Madagascar 2. By the way, the far right picture in the permanent banner of this Flagstaff Real Estate and Community News blog is of Heritage Square.

On Saturday in Heritage Square, you'll find great musical entertainment with Burnett Family Bluegrass. This local group won the Telluride Bluegrass Fest Band Competition in 2005! The music starts at 4 p.m. and closes down at 6 p.m. -- just as downtown begins to liven up for Saturday evening.

Earlier in the day on Saturday, you'll have the opportunity to tour six homes in Ponderosa Trails --- look for more on the open house tour here tomorrow.

Have a great weekend!

Wednesday, June 3^rd, 6:00 - 7:30

Flagstaff Aquaplex @ 4^th / Industrial

As part of the Fourth Street overpass discussions with BNSF, the City agreed to study the possibility of closing either the Steves or Fanning rail crossing. The design firm, Kimley Horn, has been retained by the City to complete the study.  Some components of the study are compiling existing traffic information; having three public meeting from June to August 2009 and modeling traffic patterns if a crossing was closed.

The public meetings will be at the Flagstaff Aquaplex on the first Wednesday of June, July and August from 6:00 to 7:30 pm. At the first meeting on June 3^rd; existing traffic conditions, future projects that will affect the area and preliminary traffic modeling will be presented.

• At the second meeting on July 1^st; an analysis of the information gathered to date and public comments from the June meeting will be presented.
• At the final public meeting on August 5, preliminary recommendations will be presented.
• It is anticipated that a draft final report will be presented to Council in the month of September.

Your participation is critical for the public’s input to the Council and all ideas are welcome.

If you have any questions or concerns please Email Randy Whitaker P.E., Senior Project Manager at rwhitaker@flagstaffaz.gov or call 928-226-4844

You guessed it. Mortgage rates are headed up. Last week, they ended .25% to .375% worse than where they began.

Flagstaff home prices may have a bit further to fall, but, meanwhile, interest rates on home loans are going up. This means waiting to buy is not the best idea.

Consult a Flagstaff lender and get started on the road to buying your Flagstaff home!