May Resale Number and What It Means to You!

Total re-sales in Maricopa County for May were 9,113! That’s 1,365 more than last month and 1,237 more than may 2012!  REO closed was 806 which is 9% and short sales closed was 1094 which is 12%. Normal sales closed was 7214 which represents 79%. Pending inventory is down to 12,497. REO pending was at 1,017 which is 8% and short sales are at 4,132 which is 33% and normal sales pending at 7,349 which is 59%. Active inventory for Maricopa County is still dropping down to 11,960. REO active is 631 which is 5% and short sales are at 482 which is 4% and normal listings are at 10,849 which represents 91%! There is less than 2 months inventory in all but 3 cities now!!(Fountain Hills, Paradise Valley and Scottsdale)

So what does this mean for you? If you are a buyer, expect prices to continue to rise as the number of available homes for sale shrinks.  You don’t have the luxury of  “time to think about it”.  Mortgage rates are still at historic lows, but they are creeping upwards.  As the interest rates rise, the amount of home you can afford diminishes.  If you are lucky enough to find that home you have been looking for do not hesitate to make an offer that will get you the home.  The steals and deals have been gone for two years now.

If you are a seller or a potential seller, now is a great time to put your home on the market.  The shortage of  inventory makes this a seller’s market.  Anytime inventory levels fall below a 3 month supply it is considered a seller’s market.  Of course you need to be reasonable on your asking price.  If you price your home too high above the current market value, you will have very little chance of getting it sold.  With the the internet, public information is easier to obtain than ever.  Today’s buyer is tech savvy and does their research long before calling a REALTOR®.  Tax records and sold property information can be obtained in a few keystrokes.  Even if someone would entertain paying over market value for a home, it must appraise for the sale price to complete the transaction. The only exception to this would be a cash sale.  Keep in mind that cash buyers are very business minded and most likely would not pay over market value.

In summary, we have what looks like a perfect storm.  Great time to buy. Great time to sell.

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ALWAYS Get a Home Inspection

In today’s real estate market buyers are acting quickly to make an offer on a home so they do not miss out on a great buy. Acting swiftly to make a decision is an excellent strategy but, skipping details along the way is not. Even if you will not be requesting repairs, even if the home is being sold as-is, even if you want the deal to close quickly, DO NOT pass on having a home inspection.

A home inspection is important so you know what you are getting. Yes, the home may be at a price that is too good to pass up, but are the repairs more than you are willing to absorb? Go ahead and make an offer. Get your home inspection completed during the agreed upon inspection period. If the home inspection uncovers a problem beyond your budget you have the option of requesting repairs or cancelling your contract. The Arizona Real Estate Purchase Contract gives you many protections regarding repairs and items that are required to be in operating condition. In the event that you are purchasing a home as-is, it is still wise to do a home inspection. You may uncover a problem that would have you reconsider your purchase.

Be wise in your selection of a home inspector. Are they a member of American Society of Home Inspectors (ASHI)? Do they have Full Errors and Omissions and General Liability Insurance? Your Realtor can be a wonderful resource when selecting a home inspector. An experienced Realtor should have encountered several home inspection companies and can offer valuable suggestions.

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Ladies and Gentlemen…Start your engines!

It’s that most wonderful time of the year in Scottsdale, Arizona for car enthusiast. With three major collector auto auctions taking place, there is something for every motor head. Barrett-Jackson is the largest of the three and includes a large array of cars, trucks, utility vehicles, celebrity owned cars and yes, even airplanes. The event has grown over the years from a 3 day event to a 9 day car auction marathon. Don’t be fooled by all the exhaust fumes and testosterone in the tent. You can find some fantastic shopping in the lifestyle pavilion as well. Of course the people watching and celebrity sightings are worth the price of admission.

If you are more of a muscle car enthusiast, then you should definitely check out the Russo and Steele Auction. It is a smaller venue. So if you do not like large crowds and still would love to see some fabulous cars, Russo and Steele is the place to go.

Perhaps you are more interested in rare classics and exotics? Then head down to Scottsdale Fashion Square to the Gooding and Company Auction. Guys, if your wife or girlfriend is not into cars, this is a win-win. You check out the cars while she shops at the mall. At the end of the day the two of you can enjoy a relaxing dinner at one of the many fine restaurants in Old Town.

For more information on the car auctions, just click on the links below. See you there!
Barrett-Jackson January 13-20
Russo and Steele January 16-20
Gooding & Company January 18 and 19

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What’s the best down payment on a home?

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October Residential Resale Numbers

October continued the trend where Short Sales are still on average, cheaper per square foot than REO’S in all but 4 cities in Maricopa County for the 4th straight month! The overall market increased in closings with 6,236 in Maricopa County. That’s an increase of about 400 sales. REO properties closed 752 at 12% and Short Sales closed 1,671 at 27% with 3,815 being normal at 61%. Pending Inventory has 1,211 REO’s at 9% and 4,904 Normal at 35% and the slowly dwindling 7,787 Short Sales at 56%. Active inventory continues to increase slightly to 13,693 listings with 1,219 REO’S at 9% and 1025 short sales at 7% and 11,451 normal listings at 83%. That’s another monthly increase of over 1,000 homes for the second straight month!

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SEPTEMBER MARKET UPDATE

Total active listings,(with no AWC) have picked up by 1116 units over the last month. As of September 23rd, we sit at 15,228 Actives All Property Types. Sales are at 7089 for the last 30 days (as of September 23rd), down by 301 units from one month ago!  We are currently sitting at a 2.1 months of supply, (based on Active listings with no AWC). Pending sales are down slightly from the month before as of September 23rd, 10,529 vs one month ago at 10,955 . Traditionally,  3-4 months of supply indicate a balanced market.  Now is the time to list your home!

August 2012 re-sales and new sales in Maricopa County were 8280 in July 2012 there were 8050.  Compared to August 2011 8446. That is a (5.0%) decrease! The median price in Maricopa County for July 2012 was $150,000 in August 2012  it was $155,000. This marks a 3% increase. August 2011 it was $118,500 for a 31% increase! In August 2007 it was $253,000 and in August 2001 it was $141,682!

Distressed Market Pie Chart: This chart shows you the percentage of distressed properties that are being listed and sold. Short Sales represent 28% of the Closings for the last month, and 31% of the active listings for a 3.3 Months of Supply. If you take the AWC’s out we drop down to .5 months of supply! Distressed Sales (Short Sales and REOs combined) accounted for 41% of the total sales for in the last month. REO property sales equal to 13% of the sales for the last month.  The listing success rate for Short sales is 67% ! Don’t avoid these listings! They are closing with greater success rate!

Luxury: The Luxury Market of $1.0 Million and above continues to be the lowest absorption rate of any market segment. There was a 7% absorption rate for the last month. Only 59 properties in all of the MLS were sold for more than $1.0 million.

Click on this link to get the Market Update Graphs by Area

MONTHS OF SUPPLY (with AWC listings) (Single Family Only)

East Valley:2.3

Northwest:2.9

Paradise Valley: 10.2                                              

Luxury ($1mil+): 15.1

Southwest:3.0

Peoria/Glendale: 2.1

Camelback Corridor:2.4

Cave Creek: 1.4

Ahwatukee:2.4

Scottsdale: 4.2

Apache Junction:33

Fountain Hills: 3.9

Buckeye:2.5

Desert Ridge & Tatum Corridor: 2.1

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• 8 Tips for Adding Curb Appeal and Value to Your Home

  Here are eight ways to help your home put its best face forward. Read

Visit houselogic.com for more articles like this.

Copyright 2012 NATIONAL ASSOCIATION OF REALTORS®

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Are You Unknowingly Violating Arizona Traffic Law?

As I drive around the wonderful Valley of the Sun in our 110 degree summer days, I have noticed that many drivers may not be aware of a law that was passed almost 2 years ago.

As of January 1, 2009 Arizona requires that an Arizona license plate on a vehicle must be clearly visible, and that the word “Arizona” at the top of the plate may not be covered.

The wording of A.R.S. 28-2354 is:

State law, ARS 28-2354(C), requires that the state name at the top of Arizona license plates must be visible. Any license plate holder or cover that prevents the license plate from being clearly legible, is in violation of this new law.

If you have a license plate frame on your vehicle that covers the word “Arizona” you are advised to remove it. There is a good chance you have a car dealer frame around you plate that you just never paid attention to and it covers the word “Arizona”. This frame most likely has been on your car prior to January 2009. The fine, depending on where you get pulled over, could be $150 or more.
Of course if you are doing something else you should not be doing, such as driving after a few cocktails, and you have one of these license plate frames you have now added an additional expense and problem to your error.

So, take a minute to walk out to your car and check your license plate. You just may want to take a screwdriver. It the word “Arizona” is at all obstructed, I would suggest putting the screwdriver to work.

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Where Have all the “real” Realtors gone?

Whatever happened to the full service Realtor? There are so many discount Realtors, offering discount service that the true full service Realtor has been facing extinction. In this challenging market, can you really afford a discount Realtor or to be a discount Realtor? Fortunately both the consumer and these part-time, sometimes, discount Realtors are now becoming a dying breed. They both realize this model does not bide well in today’s marketplace. Personal attention has become important again.
That being said, I come back to my original question… “What ever happened to the true full service Realtor? Some of you may be saying, “I am right here” or “My Realtor is full service.” Can this really be true? When was the last time your Realtor (or you) presented an offer in person? Of course the large number of short sales and bank owned properties make this near impossible, but on a conventional sale does your Realtor (or you) present in person? Fax machines, e-mail, Blackberry, text messaging, e-Fax…does anyone ever talk to anyone anymore. Does anyone meet with the Seller and Seller’s agent face to face to “make the deal work”? As a Realtor that learned to present in person whenever possible, I still continue that practice. Unfortunately, I find it more difficult to follow that practice as the Seller’s agent does not find it necessary to represent the best interests of their client and meet face to face. I can think of several deals that have been “saved” by being personable and working with a person, not a piece of paper. Details can be explained and worked through instead of fought through. Everyone starts on the same page, therefore the entire negotiation moves more quickly and productively. All parties realize that everyone is after the same goal, a fair deal for all.
The electronic age has definitely created a shift in the way we conduct business, but we do not need to depersonalize it. I find it disheartening how so much of the younger generation cannot leave a proper voice message. Forget written communication, unless of course it is a text- message full of text lingo. The only way they know how to convey the use of humor is with a “LOL” or  emoticon. People skills, presentation skills and just plain talking to people have become a dying art. Real estate is not sales, it is a people business. Once you lose the ability to relate to a person and build lasting relationships, you lose the ability to build and grown your business.
As you make the “shift” in today’s world and use all this wonderful technology, social networking and short cut communication, remember to “keep it real”. Talk to your clients, fellow Realtors and anyone else you want to build a relationship with. Pick up the phone and make a lunch or coffee date with that past client. What about that colleague you think of often but haven’t seen in awhile. Do that once a week and watch your business bloom. After all, real estate is a conversation. Let’s talk.

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