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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Private water ski community in Deland, FL

Private water ski community in Deland, FL.

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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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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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Forclosure Data for August 2012

Here is the Foreclosure Data through the end of August 2012.

1. Active Notices of trustee sale for residential properties as of the end of August 2012 were 14,999 units. Down from last month of 16,018. Down from the all time high of December 2009 of 47,606.

2. Residential Foreclosures were at there all time high in March 2010 at 5,451. Residential foreclosures were 2517 last month. This was up by 644 units from July.

3. The residential REO properties are sitting at 5,970 vs. last month of 5,453. Up slightly by 517 units from last month! August of 2011 there were 14,480 REO properties, down 59%! Listed REO properties are approximately 1300 units and pending are 1296. That tells us that there are approximately 3374 properties that are foreclosed but not yet on the market.
4. Short Sales Represent approximately 30% of the total sales and REO’s are down to 14.0%. Normal Sales are at the highest point in the last 5 years. They represent 56% of total sales!

Business continues to be strong. We are in a rare opportunity to buy! Interest rates are very low and prices are still low….. But not for long. REO properties seem to be going away as short sales continue to get approved.

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Do you believe in the “Boogey Man”? Then, why believe in “Shadow Inventory”?

Newest numbers don’t cast ‘shadow’

by Catherine Reagor – Aug. 17, 2012 03:07 PM
The Republic

The debate among housing market watchers over whether metro Phoenix has a looming shadow inventory goes on, even as foreclosures fall and home prices keep rising.

Some believe there are thousands of homes in the region on which mortgage payments haven’t been made for years, but lenders haven’t moved to foreclose.

The concern is those homes make up a “shadow inventory” that could be dumped on the market anytime or all at once, stalling the current recovery.

Other housing experts don’t believe the area has a shadow inventory problem.

New numbers on mortgage delinquencies show the number of borrowers behind on their monthly loan payments in Arizona has fallen. Also, foreclosures starts in metro Phoenix have been slowing since January. Those who don’t believe the region has a shadow inventory problem point to the declines in these key indicators as evidence.

Mike Orr, a real estate analyst at Arizona State University’s W.P. Carey’s School of Business, said there’s no “shadow inventory” in sight.

“There is still no sign of any significant new supply of homes coming onto the market, and those who anticipate a flood of bank-owned ‘shadow inventory’ are likely to be very disappointed,” said Orr in his latest real estate report.

Last week, the Mortgage Bankers Association released its latest data on late loan payments. Arizona’s mortgage delinquency rate fell to 6.2 percent at the end of the second quarter. It was 6.5 percent at the beginning of the year.

According to the mortgage association, Arizona ranks 35th for mortgage delinquencies.

Mississippi ranks No. 1 with a delinquency rate of 11.8 percent. The national mortgage delinquency rate is 7.3 percent.

The number of new foreclosure filings, or notice of trustee sales, in Maricopa County dipped again in July. Last month, 3,219 new notices were filed, according to the Information Market and AZBidder.com. That’s down from 3,711 in June and 4,328 in May.

Foreclosures, or trustee sales, have remained below 2,000 since March. A year ago, there were regularly 4,000 foreclosures or more a month in the region.

Big deals

The ongoing recovery of metro Phoenix’s housing market has enticed more developers and investors as well as than homebuyers.

New Jersey-based home builder Hovnanian Enterprises recently paid $31.5 million for 490 home lots in northwest Phoenix.

Builders are looking for land as new home sales climb. There were 332 actively selling new home subdivisions in the Phoenix area as of July 15, down from 400 in early January, according to Belfiore Real Estate Consulting. More than 60 percent of the current subdivisions under construction are expected to run out of lots within a year.

Courtland Homes sold the land. Scottsdale-based Nathan & Associates brokered the deal.

The industrial building housing Amazon’s Arizona distribution business sold for $90 million earlier this month.

The 1.3 million-square-foot warehouse, near 75th Avenue and Interstate 10, was purchased by the Black Creek Group. Valley industrial developer Buzz Oates Cos. was the seller.

Phoenix-based commercial real estate research firm VIZZDA reports the property is Arizona’s largest single warehouse.

Earlier this week, Westport Capital Partners paid $23.3 million for the 27-acre Agave Center in Tempe.

Dennis Desmond and Brian Ackerman of Jones Lang LaSalle negotiated the deal.

The property, near Warner Road and I-10, includes four office buildings, an industrial building and nearly five vacant acres for development.

Reach the reporter at Catherine.reagor@arizonarepublic.com

Read more: http://www.azcentral.com/business/realestate/articles/2012/08/14/20120814newest-numbers-dont-cast-shadow.html#ixzz246lztIYG

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5 Foreclosure Myths for 2012

There is a lot of “urban legend” circulating when it comes to foreclosures and the current state of the real estate market.  The steals and deals are gone, but you can still get a great buy an on a good home.  Here are some important things to be aware of in the foreclosure market.  Read on…

March 14, 2012|

Author: Carl Medford, a practicing Realtor with Prudential California Realty in the San Francisco Bay Area

Beginning in 2007, foreclosures rocked the real estate world. Like an out-of-control freight train, they began decimating the market, peaking in 2009. Myths and rumors began propagating like mushrooms as consumers struggled to understand the new reality. Although many misconceptions have come and gone, we still encounter five myths on a regular basis.

1. There is going to be a flood of new foreclosures to the market.

This rumor has appeared every year since 2008 and has been routinely debunked. However, recent announcements that the Feds reached a settlement over the robo-signing scandal have reignited speculation. The idea is simple: Since the cork is now out of the foreclosure bottle, we’ll soon see another flood of REOs inundating the marketplace.

My personal opinion: don’t hold your breath.

Banks have learned that if they control inventory, they can affect local prices. By releasing homes in measured amounts, they realize higher prices than if they released a glut of homes. In addition, they’ve learned that if they can mitigate their losses by agreeing to a short sale, everyone wins.

2. You can go directly to a bank to buy a foreclosure.

Every few weeks I’m asked how to buy foreclosures direct from a bank. Someone knows a friend being foreclosed on and they want to step in and grab the house before it hits the market. Don’t we all? In reality, banks have a simple system – they first offer properties on the courthouse steps. The rest they assign to asset mangers who then hire local real estate agents to put them on the market along with all the other homes. Want an REO? Pay cash at the courthouse steps or get in line witheveryone else when they hit the local MLS (Multiple Listing Service).

3. You can get a killer deal by submitting lowball offers on foreclosures.

You would think this myth would be dead by now. Unfortunately, like Elvis sightings, it just won’t go away. Here’s the truth: Banks want REOs sold in 30 days or less, so they typically appear on the market priced slightly under comparable properties. If the property doesn’t sell quickly, the bank will lower the price after about 30 days. Lowball offers are ignored and are, quite frankly, a waste of everyone’s time and effort. You might get a deal by offering a lower price on a foreclosure that’s been sitting on the market for more than 90 days, but remember that there are good reasons it’s gone unsold for so long. And even if you have cash, your lowball offer won’t be accepted —seriously.

4. You can’t use foreclosures when doing an appraisal.

Or short sales, for that matter. That is no longer true. In fact, in many neighborhoods, that’s all that’s there. Therefore, foreclosed or distressed sales represent the actual value of homes in the area and HAVE to be used to appraise other properties. Don’t like it? Get over it. Times have changed and the ways neighborhoods are valued have changed as well.

5. Foreclosures are only affecting the bottom end of the market.

This used to be true. However, while foreclosure rates on the lower end of the market have actually decreased, they’re actually increasing on the upper end. According to Daren Blomquist, vice president of RealtyTrac, the market share of foreclosed homes under $1 million is shrinking, but those among properties valued over $1 million are rising – up 115% since 2007. And foreclosures on properties valued upwards of $2 million have increased by 273%. While some well-known jet-setters have melted down and lost everything, others are choosing to strategically default. They see it like liquidating a poorly performing portfolio – they have enough resources to cut their losses and move on. Historically, banks have been reticent to foreclose high-end homes and absorb a large loss, but defaulters are now forcing their hands and mansion foreclosure rates are moving on up.

Myths control behavior, and this has never been truer than in the housing market. Savvy agents will work hard to educate their clients, debunk myths, explain market trends, educate with solid facts – and actually close transactions.

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