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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2012 Real Estate Year in Review

This past year we have seen improvement in the real estate market with rising home prices and a diminishing inventory of distressed properties.  For all the details, click on this link…

stat-2012-year-in-review.pdf

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How to Teach Kids to Save Money

Here is an article worth reading and implementing.  Saving money is an important skill that needs to be learned early on in life.  It is so important for the future of our children, our economy and the direction of our great county.

How to Teach Kids to Save Money

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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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The Romney Housing Policy

Worth watching…not an endorsement or opposition, just presenting information for you to digest.

The Romney Housing Policy.

 

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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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