Community Property Type Price Min Price Max Beds Baths

What Obama’s Re-Election Means for Housing

November 15, 2012 by · Leave a Comment 

Election Day has come and gone and regardless of who you voted for, there will be consequences on the domestic housing market.  This article is courtesy of Jed Kolko, Chief Economist at Trulia.com.

—–

Refinancing, new mortgage regulations, and the mortgage interest deduction all won on Tuesday. But the best shot at more principal reductions might have been lost.

Throughout the 2012 presidential campaign, both candidates were short on specifics about their housing policy, to put it very kindly. They ignored housing in the debates and acted as if the housing crisis were over. Neither their actions nor their policy statements gave a clear idea of what they might do about housing. But what the candidates DIDN’T do or say helps draw out the differences between what housing policy will look like during Obama’s second term and what housing policy would have looked like with a Romney administration. Here’s what Obama’s re-election means for housing:

1.  The refinancing push continues. The Obama Administration has made it easier for homeowners to refinance at today’s low mortgage rates and plans to make refinancing available to even more borrowers. Refinancing is economic stimulus since it gives homeowners with mortgages more spending money, but it doesn’t help most people on the verge of losing their homes. Although refinancing has been a priority for Obama, Romney made no mention of refinancing in his housing plan – despite strong support for refinancing from one of his economic advisors.

 2.  New mortgage regulations are coming. The Consumer Financial Protection Bureau, established by the Dodd-Frank Act, will set new mortgage standards by January 2013. These standards will define which mortgages are judged to be beyond a borrower’s ability to repay and would therefore trigger legal and financial implications for lenders. These standards, yet to be established, will need to strike a delicate balance between protecting consumers from high-risk loans and giving lenders the incentive to expand mortgage credit. Romney blamed Dodd-Frank for holding back mortgage lending, pledging to “repeal and replace” it. But with Obama’s re-election, Dodd-Frank–and the coming mortgage regulations–is a reality.

 3.  The mortgage interest deduction lives to fight another day.Romney proposed capping overall income tax itemized deductions at $25,000, which would have, in effect, reduced the mortgage interest deduction (which accounts for 35% of the value of total itemized deductions) even for many middle-income taxpayers. Obama, in contrast, is open to cutting the mortgage interest deduction only for the wealthy. Even if deeply cutting deductions finds bipartisan agreement in Congress–and it might–Obama is likely to resist gutting the mortgage interest deduction. Why? The ten states that benefit most from the mortgage-interest-deduction ALL voted for Obama on Tuesday (see table below). The average household in an Obama-voting state claims 66% more for the mortgage interest deduction than the average household in a Romney-voting state. If Obama takes a swing at the mortgage interest deduction, he’ll be hurting his supporters and putting his fellow Democrats in a tough political spot.

 

States with the Most Mortgage Interest Deducted Per Household
# State Average Amount Deducted, $*
1 Maryland $5,920
2 California $5,718
3 Virginia $5,100
4 Hawaii $5,009
5 New Jersey $4,890
6 Connecticut $4,739
7 Colorado $4,625
8 Washington $4,610
9 District Of Columbia $4,581
10 Massachusetts $4,490
* Average amount of mortgage interest deduction claimed per household. Includes households who do not itemize. National average = $3,343.

 

4.  A chance for principal reductions may have been lost. In his housing plan, Romney called for more “shared appreciation” loan modifications. This means that a borrower would get a reduction in their unpaid principal balance but would have to share some of the upside with whoever took the hit for the principal reduction if the home’s value appreciates. Shared-appreciation loan modifications reduce a borrower’s incentive to strategically fall behind on their payments in order to get a principal reduction. This “moral hazard” problem was one reason why many Republicans and the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, resisted the Obama Administration’s call for more principal reductions earlier this year. Shared-appreciation loan modifications are an approach to principal reductions that Democrats, Republicans, and even a financial regulator could all learn to love. It would be a shame if this approach to keeping more people in their homes goes down in defeat.

Via Jed Kolko, Chief Economist – Trulia.com

Justin Interviewed by The Globe and Mail: In hard-hit cities like Phoenix, the home market rises

August 28, 2012 by · Leave a Comment 

When it rains, it pours.

Though I’m not featured as prominently (or with a photo!) as I was in my recent interview with the Phoenix Business Journal, I was contacted out of the blue by The Globe and Mail (Toronto, ON) to comment on rising investor participation in the Greater Phoenix real estate market.  Pleasant surprises like this are uncommon and I am privileged by the opportunity.  I do not advertise in either publication, so this was truly “earned media coverage.”

Read the full article here or below.  They saved the best comments for last…  😉

In hard-hit cities like Phoenix, the home market rises

By PAUL WALDIE

Foreclosures are down and bidding wars are back as U.S. real estate begins to bounce back in areas like Arizona, Miami and southern California

The Phoenix real estate market is suddenly experiencing something it hasn’t seen in years: Bidding wars.

Phoenix used to represent just about the worst of the U.S. housing market, with suburbs full of empty homes and foreclosures running so high that investors gathered like vultures at the county courthouse to snap up distressed properties.

But like its namesake, Phoenix’s housing market is rising. Foreclosures have dropped 20 per cent in the past year and the median house price has climbed about 25 per cent, making the city one of the hottest real estate markets in the U.S. But perhaps the most telling sign of a recovery is the return of heated bidding that has been a long time coming for agents like Maureen Porter.

“A good house in a good neighbourhood will go on the market for two days and they’ll already have five or 10 offers,” Ms. Porter said. “When I started my business [four years ago]there were around 56,000 homes for sale in Maricopa County [which includes Phoenix] Now there’s about 12,000 homes for sale.”

Ms. Porter said she recently took two clients from Vancouver to look at a 70-lot housing development in Goodyear, a community outside Phoenix.

“It was all dirt, there were maybe two homes built,” Ms. Porter recalled. “We walked into the presentation centre and everything but two lots were sold out.”

The housing market is showing signs of life across the U.S., with existing home sales and the median price up about 10 per cent year-over-year, hitting levels not seen since the summer of 2010. Sales and prices have been rising steadily for months, proof that the long-suffering real estate sector may have finally turned the corner. Buyers are returning thanks to an improved employment picture, record-low mortgage rates and near-bottom prices.

Housing is a critical component to the U.S. economy and improvements in the sector usually lead to a boost in consumer confidence, employment and spending. All of which is good news for the Canadian economy, as well.

The real impact of the recovery can be seen in places like Phoenix, Miami and southern California, which were among the hardest hit during the recession. The supply of homes for sale has dropped in all three locations as banks move quickly to unload troubled properties, often through “short sales” where mortgage holders get permission from lenders to sell their property for less than the amount owed. Banks often prefer short sales to foreclosures because they are a faster way to deal with borrowers.

In Miami, the median price is up 15 per cent from a year ago and the occupancy rates in downtown condominiums is 94 per cent. Southern California has a four-month supply of homes for sale, roughly two months less than what is considered a healthy market, and foreclosure sales have reached a four-year low.

Phoenix offers some of the most dramatic evidence of the turnaround. This is a city where house prices fell by up to 50 per cent during the recession and people walked away from their homes in droves, leaving vast stretches of empty neighbourhoods. Today the number of homes listed for sale has dropped by 64 per cent in the last year and foreclosures have fallen by 20 per cent. The market has tightened up so much that prices are jumping 5 per cent each month and buyers are competing fiercely for just about anything that’s available.

“We’ve now got a fully fledged buying frenzy going on while people try to buy something before they miss the boat,” said Michael Orr, director of the Center for Real Estate Theory and Practice at Arizona State University.

Last week there were roughly 12,000 homes listed for sale across the city. That compared to more than 50,000 around the same time last year.

Despite the current boom, the market still has a long way to go. The median price is now about $135,000 (U.S.). That’s still well below the peak in 2006, when it reached $265,000, and it puts prices at about the same level as in 2000. And although the number of existing homes sold in April across the country rose to an annualized rate of 4.6 million, economists say a healthy U.S. housing market would see almost 6 million sales of existing homes a year.

Much of the activity is also being driven by outsiders, many from Canada, eager to snap up investments. In Phoenix, the number of “investor flips,” people who buy houses and then re-sell them quickly for a profit, has increased 31 per cent year-over-year, according to Mr. Orr.

But with prices rising quickly, good deals are harder to find. Three years ago, dozens of investors lined the steps of the courthouse in downtown Phoenix to bid on foreclosed properties, many going for well below $100,000. This week only a handful of bidders showed up for the auction and just four houses sold.

“The days of getting a property under $125,000 are slim to nil,” said Diane Olson, a real estate agent who caters largely to Canadians.

The question for many agents like Justin Lombard is whether this is a blip or a real recovery. He is cautiously optimistic.

“We’ve seen such steady progress in the way of inventory absorption that I’d be really surprised if we took a big backward step,” he said. “We hit bottom a long time ago. It’s just that a lot of people didn’t realize it because our bottom was so bad.”

Justin Interviewed by Phoenix Business Journal: Investors Driving Up Phoenix Housing Prices

August 25, 2012 by · Leave a Comment 

Every now and then I have a media opportunity that’s too exciting not to share.

Recently, I was interviewed by the Phoenix Business Journal, complete with photo op.  The Phoenix Business Journal is the leading business publication in the state with wide readership and I do not advertise in the Journal, so this was a great honor.  Unfortunately, full online access to the story is limited to subscribers, so I can only include the preview.

Investors returning to Phoenix housing market, driving prices up

Real estate investors and short-term flippers are back in town — for better or worse — and once again they’re dominating the housing market for sales of less than $250,000.

Investors are buying those homes with cash, which is pushing up prices in the long-downtrodden local market, tightening inventories and squeezing out traditional home buyers.

Justin Lombard, owner of Stone House Realty of Arizona, says cash sales are starting to dominate the local housing market, preventing many buyers from finding homes.
Jim Poulin/Phoenix Business Journal

Justin Lombard, owner of Stone House Realty of Arizona, says cash sales are starting to dominate the local housing market, preventing many buyers from finding homes.

“It’s very much like 2005 all over again at the entry-level segment,” said Justin Lombard, owner of Stone House Realty of Arizona in Phoenix.

Lombard said cash sales are starting to dominate the market for less expensive homes, as some sellers are looking specifically for …

Only subscribers can read the remainder of the article…click here if you’re a subscriber.

Phoenix Area Real Estate “Shadow Inventory” – Fact or Fiction?

August 20, 2012 by · Leave a Comment 

There are few absolute certainties when it comes to Phoenix real estate, and the debate about the so-called “shadow inventory” is no exception.  If you’re not aware of that term, it refers to real estate that the banks have already acquired via foreclosure and are holding onto for the perfect moment to dump them back on the market.

Many real estate aficionados believe that the shadow inventory is not only going to quell our current market recovery, but is actually going to lead to a double-dip housing bust.

The truth will only be borne out in time, as it is impossible to accurately determine numbers of properties being held across all the different lending institutions, as well as the status of negotiations with existing homeowners in default.

A number of details seem to indicate that the Phoenix area housing market won’t be subject to a shadow inventory effect.

  • Mike Orr, real estate analyst at ASU’s W.P. Carey School of Business, recently reported, “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.
  • The Mortgage Bankers’ Association reported last week that Arizona’s mortgage delinquency rate fell from 6.5% to 6.2% since the start of 2012, placing Arizona 35th in the nation in delinquency rates.
  • Filing of Notices of Trustee Sales in Maricopa County fell again to 3,219 in July 2012.  It was 4,328 in May and 3,711 in June.
  • Bank owned sales as a percentage of total monthly sales has also fallen steadily, despite a very tight inventory supply.  Here’s a graphic from R.L. Brown Reports that illustrates the trend:

At the moment, most indicators point towards the fact that there will not be a shadow inventory dump in the Greater Phoenix housing market, but only time will tell.  If the banks are holding significant inventory, with a 25% rise in the median sales price in the last 12 months and continued tight inventory levels, now would be a good time to start selling it off.

 

What do you think?  Are we going to see a shadow inventory release in the upcoming months?

Phoenix sets pace in national real estate recovery

July 17, 2012 by · Leave a Comment 

This article from CBS News discusses the fact that the Phoenix real estate market is serving as a “beacon of hope” for other housing markets that were crushed by the real estate bubble.  Much of the success of the Arizona housing market in rebounding so quickly is being credited to the streamlined non-judicial foreclosure process, which has helped the inventory absorption rate.

Here’s the article:

PHOENIX — The Phoenix metro housing market is seeing a rise in home prices and a decline in the number of houses on the market, putting the area ahead of most other U.S. cities on the road to recovery, according to real estate experts.

Economists say the upward trend in the Phoenix area may serve as a beacon of hope for other cities across the nation that suffered when the housing bubble burst.

“The Phoenix market will be a benchmark city to monitor for residents in Las Vegas, the Inland Empire of California and … the Florida market,” said Lawrence Yun, chief economist with the National Association of Realtors.

The median price for Phoenix-area homes in May was about 30 percent higher than it was the same time last year, according to a monthly report released by the W. P. Carey School of Business’s Center for Real Estate Theory and Practice at Arizona State University. The report also shows there are about half as many houses on the market as there were the same time last year.

The Phoenix area market was one of the hardest hit in the nation in terms of distressed properties, but the state’s foreclosure system allows it to work through the backlog more quickly than states in which foreclosures have to go through the judicial process. Banks and mortgage companies have the power in Arizona to foreclose homes without a judge’s approval.

Nevada’s foreclosure system is largely the same. Nasser Daneshvary, director of University of Nevada, Las Vegas’s Lied Institute for Real Estate Studies, said speedy foreclosures are healthy for the market. Too many foreclosures can sink home prices, as happened in both Phoenix and Las Vegas, but Daneshvary said a return to the depths experienced during the housing collapse isn’t likely in either city.

Arizona’s job market, with an unemployment rate that’s down to 8.2 percent from its March 2010 peak of 10.8 percent, is also a factor in real estate improvements. Yun said other areas that have sluggish job markets are likely to see slower real estate recoveries, with fewer people able to buy homes.

Michael Orr, director of the Center for Real Estate Theory and Practice at ASU’s Carey school, said dwindling housing inventory, coupled with prices that are still relatively low, means sellers now hold the power in the Phoenix-area market, and receive multiple offers, many of which come from investors who are looking to buy and rent out houses.

“Now we’ve got too few homes. Everybody’s wishing the investors would go away and stop buying, but the investors are still here buying everything they can with cash, which makes it pretty difficult for ordinary home buyers to compete,” Orr said.

Sandy and Luis Solis said they found that to be true. The couple, who moved from Los Angeles to Scottsdale last year, said the rapid decline in homes available in their price range made them feel hurried to buy. They made offers on three homes but were outbid by cash offers twice, the second time by an investor. They’re in the final stages of closing on a house in Phoenix.

“We were kind of losing hope that we were going to find the right home for us,” Sandy Solis said.

Las Vegas and some cities in California are seeing similar situations. Daneshvary said investors who buy housing for the purpose of renting are better for the market than others in the past who have purchased houses just to flip them. He said by the time investors stop buying, the market will be healthy enough to remain stable.

With houses in short supply, the construction industry will step in to fill the void. Orr said home building in the Phoenix area is slowly beginning to pick up, but it will likely be stifled by a shortage of construction workers in the state. He said Arizona has lost “80 to 90 percent of that skilled workforce” in the last six or seven years because workers have gone elsewhere or left the industry altogether.

Orr said the Phoenix-area’s home market recovery will likely level out over the next few months.

“I just don’t want people to think the next quarter is going to accelerate at the same rate,” Orr said. “That’s not likely to happen.”

That, Yun said, is a sign that the market will recover in a more healthy way.

In the long term, some city’s housing markets may end up in better shape than they were before the housing market crash. Yun said parts of Texas, Oklahoma, Nebraska and the Dakotas didn’t experience huge housing market losses but are benefiting from widespread improvements in economies.

 Source: http://www.cbsnews.com/8301-505245_162-57473281/phoenix-sets-pace-in-national-real-estate-recovery/

Phoenix Real Estate Update: 6/21/12

June 21, 2012 by · Leave a Comment 

Greater Phoenix Real Estate Update – June 21, 2012

The following stats are sourced from the Arizona Regional Multiple Listing Service (ARMLS) as of 6/21/12.

The data includes Greater Phoenix residential properties (houses, patio homes, town homes, and patio homes).  It excludes land, new construction, multi-family properties (2+ units), commercial properties, mobile homes, and timeshares.

The search area covers a 40-mile radius centered downtown on Phoenix Sky Harbor Airport, creating a circle with an 80-mile diameter.

The red number in “(brackets)” represents the results from the last report that I posted to this blog.  It’s important to note that the bracketed numbers will reflect Phoenix and Scottsdale real estate data from 1-3 weeks prior, depending on the frequency of my postings.  To help interpret the significance of the changes relative to time, I’ve added a field at the top that indicates the number of days since the last status update.

This reporting period covers the past 16 days.  Since last reporting, we’re seeing a small bump in available inventory, but just a small bump (just over 1%).  After several months of declining inventory, this is a welcome sign.  Hopefully we’ll continue to see the number rise to a historically-healthy inventory level in the mid-20,000’s of units.  One report does not constitute a trend, so time will tell.

During the last reporting period (end of early May into June),  the average sales price of Phoenix real estate rose less than 1%.  This 16 day reporting period shows an increase of 2.32%.  Still a lower growth than we have seen in previous sessions.

The median price of Phoenix real estate held steady this period.

Is the Phoenix real estate market leveling out again?  Are we starting to shift back to a more balanced market?  Stay tuned for future updates…

 

Days since last stats update posting: 16

Total Active Inventory: 10,133 units (9,914)

Single Family Homes: 8,354 units (8,152)

Patio Homes: 190 units (189)

Condos/Town Homes/Other: 1,589 units (1,570)

 

Total AWC/Pending Inventory: 18,726 units (18,763)

Single Family Homes: 16,505 units (16,544)

Patio Homes: 197 units (207)

Condos/Town Homes/Other: 2,024 units (2,012)

 

Trailing 30-Day Sales Data

Total Sales: 8,054 units (7,712)

Single Family Homes: 6,997 units (6,631)

Patio Homes: 106 units (106)

Condos/Town Homes/Other: 951 units (975)

Average Sales Price (sold properties): $210,986 ($206,209)

Median Sales Price (sold properties): $150,000 ($149,900)

 

While our market is showing definitive signs of strengthening and competition for properties is fierce, it’s always possible to find great opportunities with the right Realtor on your side.  For help with your search, call or email me directly.

If you have any questions about these stats or about the Greater Phoenix real estate market in general, feel free to post them below.

Phoenix Real Estate Update: 6/5/12

June 5, 2012 by · Leave a Comment 

Greater Phoenix Real Estate Update – June 5, 2012

The following stats are sourced from the Arizona Regional Multiple Listing Service (ARMLS) as of 6/05/12.

The data includes Greater Phoenix residential properties (houses, patio homes, town homes, and patio homes).  It excludes land, new construction, multi-family properties (2+ units), commercial properties, mobile homes, and timeshares.

The search area covers a 40-mile radius centered downtown on Phoenix Sky Harbor Airport, creating a circle with an 80-mile diameter.

The red number in “(brackets)” represents the results from the last report that I posted to this blog.  It’s important to note that the bracketed numbers will reflect Phoenix and Scottsdale real estate data from 1-3 weeks prior, depending on the frequency of my postings.  To help interpret the significance of the changes relative to time, I’ve added a field at the top that indicates the number of days since the last status update.

This reporting period covers the past 11 days.  During this time, we have officially seen inventory of all property types drop below 10,000 units within a 40-mile radius of downtown.  Other trends remain consistent with recent reports.  Active inventory continues to slowly dwindle, while AWC/Pending and Sold units show signs of stabilization — a sign of tight supply.

During the last reporting period (end of April/early May),  the average sales price of Phoenix real estate rose 4.2%.  This 11 day reporting period shows an increase of less than 1%.

Likewise, while the median price of Phoenix real estate rose 3.5% last period, this period we’ve only seen a rise of about 2%.  Look for prices to continue to rise as long as demand continues to outstrip supply.

 

Days since last stats update posting: 11

Total Active Inventory: 9,914 units (10,123)

Single Family Homes: 8,152 units (8,312)

Patio Homes: 189 units (210)

Condos/Town Homes/Other: 1,570 units (1,600)

 

Total AWC/Pending Inventory: 18,763 units (19,723)

Single Family Homes: 16,544 units (17,383)

Patio Homes: 207 units (216)

Condos/Town Homes/Other: 2,012 units (2,120)

 

Trailing 30-Day Sales Data

Total Sales: 7,712 units (7,961)

Single Family Homes: 6,631 units (6,792)

Patio Homes: 106 units (139)

Condos/Town Homes/Other: 975 units (1,031)

Average Sales Price (sold properties): $206,209 ($204,471)

Median Sales Price (sold properties): $149,900 ($147,000)

 

While our market is showing definitive signs of strengthening and competition for properties is fierce, it’s always possible to find great opportunities with the right Realtor on your side.  For help with your search, call or email me directly.

If you have any questions about these stats or about the Greater Phoenix real estate market in general, feel free to post them below.

Phoenix Real Estate Update: 5/24/12

May 25, 2012 by · Leave a Comment 

Greater Phoenix Real Estate Update – May 24, 2012

The following stats are sourced from the Arizona Regional Multiple Listing Service (ARMLS) as of 5/24/12.

The data includes Greater Phoenix residential properties (houses, patio homes, town homes, and patio homes).  It excludes land, multi-family properties (2+ units), commercial properties, mobile homes, and timeshares.

The search area covers a 40-mile radius centered downtown on Phoenix Sky Harbor Airport, creating a circle with an 80-mile diameter.

The red number in “(brackets)” represents the results from the last report that I posted to this blog.  It’s important to note that the bracketed numbers will reflect Phoenix and Scottsdale real estate data from 1-3 weeks prior, depending on the frequency of my postings.  To help interpret the significance of the changes relative to time, I’ve added a field at the top that indicates the number of days since the last status update.

This reporting period covers the past 2 weeks.  During that time, we see that Active inventory continues to slowly dwindle, while AWC/Pending and Sold units show signs of stabilization — a sign of tight supply.

Notably, we saw the average sales price increase 4.2% during this time, while the median price rose 3.5%.  Look for this trend to continue as long as demand continues to outstrip supply.

I’ve always been one to let people connect the dots for themselves, but I’ll say it anyway:  “If you’re thinking about buying in the Phoenix market, now is the time!”

 

Days since last stats update posting: 14

Total Active Inventory: 10,123 units (10,327)

Single Family Homes: 8,312 units (8,471)

Patio Homes: 210 units (217)

Condos/Town Homes/Other: 1,600 units (1,639)

 

Total AWC/Pending Inventory: 19,723 units (19,723)

Single Family Homes: 17,383 units (17,354)

Patio Homes: 216 units (219)

Condos/Town Homes/Other: 2,120 units (2,150)

 

Trailing 30-Day Sales Data

Total Sales: 7,961 units (8,036)

Single Family Homes: 6,792 units (6,823)

Patio Homes: 139 units (142)

Condos/Town Homes/Other: 1,031 units (1,071)

Average Sales Price (sold properties): $204,471 ($196,228)

Median Sales Price (sold properties): $147,000 ($142,000)

 

If you have any questions about these stats or about the Greater Phoenix real estate market in general, feel free to post them below.

Phoenix Real Estate Sellers Get Their Cocky Back

May 18, 2012 by · Leave a Comment 

Competitive Phoenix Real Estate Market Inspires Insanity

As more and more local property owners clue in to the state of today’s frenzied market, we’re starting to see some of the crazy cockiness that sellers exhibited in the mid-2000’s during the height of the boom.

Yes, our market is looking better for sellers than it has for 6-7 years, but I’m not yet convinced that some of today’s tactics are justified…if they ever are.

Here are some of my ‘favorites,’ if you can call them that.

“We’re not considering any offers that are less than asking price.”

Yep, I recently showed a property in Chandler where the Listing Agents had been instructed by their seller to not even present any offers below asking price…which was 20% over market value.  I’ve been around the block.  I understand that there are opportunists who are willing to try and capitalize on extreme market conditions.  However, this was short-sighted.  After years of negative media, excessive inventory, and fire sales, most Phoenix real estate buyers aren’t yet accustomed to the idea that they can’t at least negotiate a few thousand dollars off the asking price.  Even the savviest of buyers who are in tune with today’s aggressive conditions aren’t prepared to pay 20% over market value.  As for the sellers, if they want 20% over fair market value, that’s completely their prerogative.  However, they should ask 21% over market value so they can at least give the appearance of negotiating.

 

“Buyers Must Waive All Contingencies in the Contract After 15 Days”

This is a flashback to the “good ol’ days” that I’ve even used myself.  Unfortunately, today’s market is different than even that of 6-7 years ago.  Lending guidelines have become tighter and HOAs are less cooperative than ever with delivering docs in the contractual timeline…among other issues.  In short, my job as a Buyer’s Agent is to advise my clients of the risks of accepting this condition.  It’s up to them to determine whether or not the potential reward is worth the risk.  Personally, I wouldn’t do it today because too many things can go sideways in a transaction that one can’t foresee or prevent.

 

“Showings only at 2pm on Tuesdays and Thursdays”

Seriously.  I called a Listing Agent today to confirm availability on a property and she said her clients only allow showings on Tuesdays and Thursdays at 2pm.  Not 1:45.  Not 2:30.  2pm.  I explained to her that my clients were only in town on Friday, Saturday, and Sunday and were going to make a decision while they’re here.  Too bad, she said.  Wow!  If she was advocating her client’s interests, she would have called them and explained the extenuating circumstances and allowed them to decide whether or not to allow the showing.

As Phoenix real estate continues to sell at a torrid pace, I expect to see more unique terms and conditions from sellers that show they’ve indeed gotten their cocky back

Phoenix Real Estate Update: 5/10/12

May 10, 2012 by · Leave a Comment 

Greater Phoenix Real Estate Update – May 10, 2012

The following stats are sourced from the Arizona Regional Multiple Listing Service (ARMLS) as of 5/10/12.

The data includes Greater Phoenix residential properties (houses, patio homes, town homes, and patio homes).  It excludes land, multi-family properties (2+ units), commercial properties, mobile homes, and timeshares.

The search area covers a 40-mile radius centered downtown on Phoenix Sky Harbor Airport, creating a circle with an 80-mile diameter.

The red number in “(brackets)” represents the results from the last report that I posted to this blog.  It’s important to note that the bracketed numbers will reflect Phoenix and Scottsdale real estate data from 1-3 weeks prior, depending on the frequency of my postings.  To help interpret the significance of the changes relative to time, I’ve added a field at the top that indicates the number of days since the last status update.

This reporting period, about 13 days from the last, reveals that inventory continues to dwindle across the board, including sales.  As long as Active inventory remains scarce, we’ll see it filter through into Sold data.

The average sales price dipped slightly, while the median price rose a few thousand dollars as buyers continue to vie for limited inventory.

Our market remains a strong seller’s market.  New listings in the sub-$300k segment receive literally dozens of showings the first day they’re listed and 10-20 offers are not uncommon for opportunities that are priced right.

Days since last stats update posting: 13

Total Active Inventory: 10,327 units (10,796)

Single Family Homes: 8,471 units (8,886)

Patio Homes: 217 units (228)

Condos/Town Homes/Other: 1,639 units (1,701)

 

Total AWC/Pending Inventory: 19,723 units (20,011)

Single Family Homes: 17,354 units (17,567)

Patio Homes: 219 units (241)

Condos/Town Homes/Other: 2,150 units (2,203)

 

Trailing 30-Day Sales Data

Total Sales: 8,036 units (8,481)

Single Family Homes: 6,823 units (7,124)

Patio Homes: 142 units (141)

Condos/Town Homes/Other: 1,071 units (1,217)

Average Sales Price (sold properties): $196,228 ($197,691)

Median Sales Price (sold properties): $142,000 ($139,545)

 

If you have any questions about these stats or about the Greater Phoenix real estate market in general, feel free to post them below.