CactusCountryProperty

SALES Month over Month
Below are the stats supplied by Arizona Residential Multiple listing Service. As they come in, we have permission to send them out. This kind of information is so welcomed. Interesting that the bank owned property sales are only representing 38% of our market and I just have to think that short sales are going through the roof. Whatever it takes to get this market balanced. If you have real estate questions or needs please know I am a phone call or email away and would love to help you
Sales continue on a strong pace over the past three months. May sales of 9,077 represent a slight dip (2%) from April sales of 9,306. This trend follows a typical spring seasonal upswing pattern in sales activity. Nationally, sales, according to NAR’s most recent figures (April), show a gain of 1.52% year to date.
SALES Year over Year
Sales for May 2009 and May 2010 were virtually the same, a first for any month over the last
twelve. Last year the trend lowered in June after the spring upswing, only to remain flat through
the summer and take a plunge in November. The 2% dip in sales from April to May could be
reflective of this pattern repeating itself, but no other economic indicators signal that this April to May 2010 dip is the beginning of a downward trend.

NEW INVENTORY
New residential inventory declined from 13,871 in April to 11,717 new listings in May. The reduction in new listings added to the market since March represents is a healthy decline. Such a pattern affects the supply and demand ratio, which directly influences pricing. The downward trend may stay on course, or perhaps be affected by Sellers who will take advantage of the summer selling season to test the market.

TOTAL INVENTORY
As new inventory is declining, total residential inventory remains high with total residential inventory at the end of May at 41,326 units compared to 39,902 in May 2009. The total inventory trend remains relatively flat over the past twelve months, hovering below 40,000 twelve months ago to just above that level presently. Year over year it appears that total inventory for 2009-10 is stalled relative to 2008-09. However, the 2008-09 inventory had hit an unprecedented number close to 60,000, too high not to realize a sizable decline eventually.

LIST PRICES
The average list price in May was $220,900 which is a small (4%) but positive gain over the previous month. The median list price declined (slightly under 3%) from April to May to $136,000.The decline in the median price coupled with a rise in the average price indicates that there are more homes in the higher range that are making it to the market. Year over year the median list price remains fairly flat.

SALES PRICES
Average sales price remain virtually unchanged from April at $171,300. Median sales price for May however shows an increase over April from $127,500 to $130,000, an indicator that while additional higher end sales are coming to the market, they are not selling for as high a percentage of their list price as are the more moderately priced units. While not huge, it represents a 2% increase and continues a pattern of year over year price increases.

The ARMLS PENDING PRICE INDEX™
The ARMLS PPI™ predicts future average and median prices based on reports of pending sales
executed but not yet closed. The ARMLS Pending Price Index is available only through ARMLS, the sole aggregator of pending sales data.
The ARMLS Pending Price Index™ last month predicted that the median sales price for May would be $128,000. The actual May figure is $130,000, actualizing the upward prediction from the April forecast. In the near future, the ARMLS Pending Price Index is predicting a slight decline in median price in June, July and August, followed by a upward tick in September. The average price predicted last month for May was $173,000, and in actuality was $171,000.
The average sales price trend predicted by the ARMLS PPI™ for the rest of the summer shows an
up tick for June and July, a decline in August with an uptick again in September. Note that predictive accuracy declines the further into the future the prediction is made.

IMPENDING FORECLOSURES
Impending Foreclosures for Maricopa County for all property classes (residential, land and commercial) was 45,898 at the end of May. This represents a steady, yet slight downward trend since March. In contrast, the previous year’s (2008-09) impending foreclosures were on a significant upward trend from June 08 through May of 09. While the downward trend for the last three months is a good sign, it should be noted that the overall number of impending foreclosures is higher than at any time the previous year.

LENDER OWNED SALES
Lender owned sales (residential), which is sold inventory that the banks have taken back from the original borrowers, was at 3,430 in May, representing a much lower percentage (38%) of the overall sales in the market. This contrasts with the lender owned percentage of overall sales from a year ago of 62%. Clearly, the market is going in the right direction. As the lender owned percentage of overall sales declines, the influence of these distressed properties on median and average sales price also declines, inching us closer to a healthy market.
© 2010 ARMLS, may be reprinted with proper attribution.

AVERAGE DAYS ON MARKET
The average days on market (residential) in May, declined one day from April, to 96, showing only a modest decline and perpetuating the downward trend which started in March. Over time as the days in market decline, the absorption of excess inventory will increase, nudging us closer to a balanced supply and demand.

COMMENTARY
The Valley housing recovery at present seems content to move at its own deliberate pace, with its monthly gains and setbacks. While a monthly glimpse keeps our eye on the pulse of the recovery, longer term trends speak a more reliable truth. Speculation continues on the effects SB-1070 might have on the housing market. If many homeowners, regardless of nationality and immigration status, decide to sell or abandon homes in expectation of negative economic and social impact of this new law, the tenuous recovery could be undermined.
Signs are apparent that the Valley real estate is gaining ground in its recovery struggle. The decline in new inventory being added to the market hints that Sellers who are not serious are remaining on the sidelines. The sold unit trend has continued to climb since January. The slight dip in sold units from April to May is a somewhat positive sign, since a much greater decline would have seemed logical when the first time home buyer credit went away. Its absence caused very little change in the total sold units.
Most notable is the much lowered percentage of lender owned sales relative to total sales, coupled with the decline in impending foreclosures. The proliferation of foreclosure sales wreaks havoc upon pricing. Thus, a slowing of impending foreclosures which feed the total number of lender owned sales is a trend that signals a future recovery
Maureen Karpinski
Find your Phoenix Arizona Property at Cactus Country Arizona Homes & Properties

May 2010
SALES Month over Month
Housing sales continued strong in April with the closing of 9,306 residential transactions,
up over 3% from the 8,990 units sold in March. Nationally, housing sales fell fractionally
for the same period.
SALES Year over Year
The April numbers were 3.5% higher than April-09 when 8,475 houses sold. This pace far
exceeds the national picture which showed only a 2% gain, according to the latest
numbers published by the National Association of REALTORS®.
1
ARMLS STAT MAY 2010
Active Inventory
13,871 new residential listings were added to the ARMLS system in April, a 25% increase
over the same month last year when 11,118 were listed.
However Active inventory added to the system was down 5% from the previous month,
continuing a seesaw pattern of ups and downs evident over the past six months. On an
annualized basis, inventory in the most recent twelve months is down 5% from 158,000
to 149,000 homes for sale, slightly ahead of calendar year 2009 when 147,000 homes
were listed.
List Prices
Asking prices on new listings continued steady at $212,250 as the average and $139,900
as the median price. (The median price is the range midpoint where there are as many
listed houses above as below it.) The divergence between monthly average and monthly
median continues to narrow. This indicates optimism from sellers who have been waiting
on the side lines to put their more expensive houses on the market to test the waters. In
January, the average list price was nearly 65% higher than the median. In April, that
difference was down to 51% continuing a downward slide trend that we have seen for the
past four months.
2
ARMLS STAT MAY 2010
Sale Prices
Closed sales continued to show signs of recovery, with the Average sale price of a single
-family home in the Valley falling by about $7,000 to $171,200, down from $178,200 in
March. However, the good news is that April’s average was over 7% higher than the
previous year average price of $159,700. This continues the three month trend of year
over year price increases substantiating that the market is starting to stabilize and
improve.
3
ARMLS STAT MAY 2010
The ARMLS Pending Price Index™
The ARMLS PPI™ predicts future average and median prices based on reports of
contracts executed but not yet closed. The ARMLS Pending Price Index is available
only through the ARMLS system and has shown to be a strong indicator of future pricing
trends.
The average price is predicted to rise in May and June, then settle back in July only to
start upward again in August. Year over year, this is a continuing indicator that the
short term market remains fairly steady but still uncertain. The market, driven by first
time and move-up home buyer tax credits that expired in April, will no longer be
bolstered by those incentives. For the summer, all bets are off as the spring market
ends, the snow birds leave for cooler climates, and the summer doldrums set in.
The ARMLS PPI for Median prices likewise shows erratic behavior, ticking upward
fractionally in May, then falling back in each of the next three months. This would
indicate continued activity in the lower price ranges of the market as bank foreclosures
continue to dominate the sale picture.
4
ARMLS STAT MAY 2010
“ARMLS PPI” is a trademark of Arizona Regional MLS.
Foreclosures
The foreclosure inventory continues to plague the resale market by saturating the MLS
with bank owned properties offered at below market rates. The average asking prices for
new listings dropped in April to $212,200, down $5,000 from the previous month.
Currently 5,029 or 12.3% of the 47,836 active listings in the ARMLS system are bank
owned/foreclosures. However, in the previous month of April, 3,538 of the 9,306 closed
sales were foreclosures. With 38% of the closings being bank owned foreclosures, the
downward pressure on prices is formidable. ARMLS expects this trend to continue until
the economy begins to recover and unemployment abates.
In the Pending Listing class, 4,760 of the 14,855 of pending listings, or 32%, are bank
owned properties.
For the eighth straight month, the number of pending foreclosures has hovered within 1%
either side of 50,000, according to the Cromford Associates LLC, the market research
affiliate of ARMLS. As they have since August, 2009, banks continue to file foreclosure
notices of trustees sales at a rate of 200-250 per day, a trend that is not expected to
change for quite some time.
5
ARMLS STAT MAY 2010
Market Time
All of this activity has its effect on market time. The average days on market of a sold
property in April was 97 days, down four days from the previous month. But this is down
from a high of 135 days the market experienced just two years ago in May 2008. Homes
now are selling on average 25% faster than they were just twenty-four months ago.
Commentary
The most recent 12 months show record sales, with March and April leading the charge.
Active inventory added to the market continues downward, putting positive pressure on
supply and demand, a necessity if prices are going to rise.
The housing market continues to try to make a meaningful recovery, but is hampered by
continuing unemployment and economic uncertainty on the national level. ARMLS is
seeing mixed signals from month to month since last October, but positive gains are
mixed with losses. This is a classic pattern that markets make in gaining traction toward
recovery.
ARMLS continues to see glimmers of hope, but no long term, reliable indicators that the
market recovery is imminent. We continue to be hopeful, but must at the same time
remain objective and realistic. This recovery is going to take a long time to develop and
probably won’t mean a normal housing market will return for at least two or three more
years. All information suppled by ARMLS
© 2010 ARMLS, may be reprinted with proper attribution.
6
ARMLS STAT MAY 2010

Good News Around the Phoenix Area: Sales Go Up as Supply Goes Down

Don’t let the media reports fool you – I question any shadow inventory in the overall market around Phoenix! Tracking ahead of last year, the positive motion of the sales market continues on, as we are now back to a 3 ½ month market supply of homes in the valley. While pending sales continue to increase, supply continues to decrease.

The media claims that there are 50,000 homes in this “shadow inventory.” The homes in question are actually homes that are in various stages of foreclosure. This can often take as long as 9 months. With almost 8000 homes sold in the month of March, about 5000 REO homes every month are being absorbed. 9 months x 5000 means 45,000 homes, which is approximately the 50,000 being portrayed as “shadow.”

In the overall market, there are currently 26,880 single family detached homes on the market. The current market supply is 3 ½ months, and closing volume in the last 30 days is 7917 homes.

The previous reports’ inventory is the basis of the current active listing comparison. Closings from the previous month divided in to the total number of active listings generates supply numbers. The data does not include condos, town homes or patio homes, and includes single family detached homes only.

In the Phoenix area, there are currently 5543 active listings and inventories have decreased 2% from last report. Closings last month were 1817, which means approximately a 3 month supply.
Inventories are down 4% since last report in the West Valley. Currently, 6250 listings are active with 2282 closings over the past month. Approximately a 2 ¾ month supply.
In the NE Valley, active listing total 4139 and inventories decreased 2% from last report. 627 closings last month, approximately a 6 ½ month supply.
Inventories have decreased by 2% from last report in SE Valley. In the last month, there were a total of 6134 active listings with 1934 closings. Approximately a 3 ¼ month supply.

In Scottsdale over $1m, inventories have decreased by 2% since last report. With approximately a 17 ½ month supply, there were a total of 950 active listings and 54 closings in the last month.
Inventories have decreased by about 2% since last report in Scottsdale under $1m. In the last month, there were a total of 1935 active listings and 408 closes. Approximately a 4 ¾ month supply.

In Paradise Valley, there were a total of 442 active listings and 29 closes in the last month. Inventories have decreased by 2% since last report, approximately a 15 ¼ month supply.

Maureen Karpinski
Find your Phoenix Arizona Property at Cactus Country Arizona Homes & Properties

If you live in the Phoenix Arizona area and have fallen on hard times, you may find yourself in a situation where you must sell your home. A short sale is a solution for many who meet the qualifications. You will need a reputable realtor with experience in short sales to help you negotiate the process. They will also do their best to quickly find a buyer for your home, so that you can get out from under the financial stress.

While the process can get lengthy and often does, it will go much more smoothly if you choose an experienced certified in short sales real estate agent that thoroughly understands the process. It is their job to find a buyer for your home, and a reliable agent will handle all of the details they possibly can for you. With the declining economy and tremendous job loss currently being experienced, many homeowners now find that they simply cannot pay their mortgage any longer. If you live in Phoenix and this describes you, learn more about the short sale process.

How does the process work? Here is a basic explanation:

1. In order to choose a short sale, you must qualify. Qualifying may include proving that the market value of your home has dropped. In addition, some lenders will consider this option if your mortgage is in or near default. You should also be ready to prove that you have fallen on hard times, and this does not mean spending your money foolishly. An example of a hardship would be: Loss of employment, death, divorce, unexpected medical bills, bankruptcy
2. You, as the seller, sign a listing agreement with a realtor who is experienced in the short sale process. The agent should then attempt to find a buyer who will make an offer for less than the balance of the mortgage.
3. As the seller, you will be responsible for accepting the offer of the buyer.
4. It is then up to your lender to decide if they are willing to accept the buyers offer.
5. The lender either accepts or declines the offer. If accepted, the lender will release the lien and you, as the seller, will give the buyer the deed.

If you do consider a short sale for your Phoenix home, be aware that your credit will be affected, but it will not be completely ruined as it would with foreclosure. With a short sale, you can generally purchase another home within 18 months to two years, whereas a foreclosure makes it nearly impossible to buy another home for about 5 to 7 years. Foreclosure is also embarrassing to many people, so taking this route helps you avoid the stigma.

Does a short sale sound like a good solution for your problems? Contact a reputable and experienced Phoenix realtor, who can explain the process in detail and help you make an informed decision.

Maureen Karpinski
Find your Phoenix Arizona Property at Cactus Country Arizona Homes & Properties

The housing market continues to decline, and more people are finding themselves under water. In Phoenix, Arizona, people are selling their homes because they can no longer afford the mortgage. While foreclosure is an option, short sales are fast becoming the more frequently chosen route. Why? This article will explain the benefits so that anyone who finds themselves in this position can make an intelligent decision.

Due to the declining housing market, many homes are now worth less money than they were when the owner bought the home. If a homeowner gets behind on their monthly payments, they are unable to refinance since the home is worth less. Many feel at this point that foreclosure is the only option, but Phoenix realtors have noticed an increase in short sales. This is advantageous for the seller in several ways.

One advantage is your credit rating. While a short sale does have a negative impact on your rating, it is less severe than foreclosure. When you go into foreclosure, your credit rating drops by 250-280 points, and you usually cannot purchase another home for at least 36 months, usually 4 years or longer. When you choose to go the short sale route, your credit score is reduced, but it is usually around 80-150 points and you may qualify for another mortgage in only 18-24 months.

Perhaps the most attractive benefit of a short sale is that if you do sell your home but the selling price isn’t enough to satisfy the mortgage, the bank or lender will often forgive the shortage. This route is beneficial for the lender as well, because he doesn’t have to endure the process of foreclosure. While the process can be a little more lengthy and annoying for those with little patience, a reputable Phoenix real estate agent can take care of the details and transactions for you, which often speeds things along.

There are some other benefits when you decide to take this route as well. Sellers usually have time to make other living arrangements, and may stay in the home during the sale. Avoiding foreclosure is a relief to many, and saving face by not having to file bankruptcy is important to many people. If you find yourself in dire financial straits and wonder if a short sale would benefit you, contact a highly-qualified Arizona realtor today. Your future may depend on it!

Signature
Maureen Karpinski
Find your Phoenix Arizona Property at Cactus Country Arizona Homes & Properties

Selling Real Estate in Phoenix – Reasons You Should Consider a Short Sale

When you are looking to sell a home in the Phoenix Arizona area, you may want to consider contacting a reputable realtor to learn about the benefits of a short sale. Current economic conditions have led to fewer people purchasing homes, which makes it more difficult when you want (or need) to sell. If you find yourself in financial straits and paying your mortgage is a problem, this may be a viable solution for you.

No one wants to go the foreclosure route. Not only can it be embarrassing, it destroys your credit and ability to make any substantial purchases in the near future. When a short sale offer is structured and negotiated properly, there is often no need for the seller to wait for the buyer to obtain financing or make repairs while every minute that goes by is bringing you closer to bankruptcy. Some people don’t even consider a short sale because they have heard that the process takes forever. In some cases it can, but a qualified and highly experienced Phoenix real estate agent can help you avoid much of the red tape so that the transaction is handled as smoothly and swiftly as possible.

Another benefit of short sales is that you, as the seller, do not have to spend money you do not have trying to “fix up” and repair. These things are typically handled by the seller, but in this instance a home is frequently sold as is, which means the buyer will be responsible for making any changes they desire to the home.

A short sale does affect your credit rating, but usually isn’t nearly as devastating as bankruptcy or foreclosure. By going this route, you will most likely be able to purchase another home in just two short years, whereas with bankruptcy or foreclosure your credit is completely obliterated, and it is normally about five years before you can purchase again.

Finances and money are tough issues for many people today, and paying your mortgage can often become a burden that is too much to bear. If you live in Phoenix and surrounding areas and are looking to get out from underneath your mortgage, contact a well seasoned and knowledgeable Certified Distress Property Professional Realtor to help you determine if going the short sale route may be the answer to your prayers.

 

While going through foreclosure is tough on the property owner, in Phoenix you will find it the perfect opportunity to invest in real estate.  If price is a real concern for you, recent economic woes make this a great time to get a bargain.  A reputable Arizona realtor can help you locate properties that suit your needs as well as your budget.

Unfortunately, some homeowners feel that if they cannot keep their homes, they don’t want the bank to have it either.  What this sometimes leads to is damage of the property.  Some people feel that if they do some damage to the home, no one else will have it either.  However, reduced prices on real estate that fits this description allow you to get a steal.  By doing a little work to the home, you can resell at a tremendous profit.  One thing there is no shortage of in Phoenix is affordable properties!

Sometimes the disrepair of the homes is not a direct result of the owner purposely doing damage.  Often times, if they could not afford the mortgage payment they could not afford to repair the roof or make other repairs that needed to be done.  Many real estate properties in Phoenix make great investments, and you can find a wide variety in various states of disrepair.  This shabbiness is one reason the price may be so low.  Another reason may be that the lender simply wants to recoup their investment in the property, which is why they are often willing to take less than what the actual value of the property is worth.

Even though you may find foreclosed real estate that have varying degrees of damage, the repairs are often not costly to make.  If you are looking for a beautiful home for your family or to simply invest in, many feel it is worth their time and energy to make as many of the repairs as possible themselves.  This will also help you save money.  When you consider that you may save tens of thousands or even hundreds of thousands of dollars on the real estate you choose, making a few repairs usually does not factor in to the decision too much.

Which would you rather do; spend $500,000 on an investment property or family home, or spend $350,000 and make a few repairs yourself?  For most people, the answer is obvious.  When you are ready to learn more about available foreclosure properties in the Phoenix area, contact an experienced and reputable Arizona realtor to help you find the perfect piece of real estate for you.  It will be money very well spent.

As everyone knows, homes and real estate in the Phoenix and surrounding areas have dramatically decreased in price over the past several months.  While this makes it the perfect time for buyers to get the home of their dreams or invest in real estate, an important part of making the process successful is the real estate agency you choose.

When you are in the market to buy or sell property, a dedicated realtor will work very hard each and every day to satisfy your needs.  Buying a family home or real estate is a big step for anyone, and probably one of the biggest investments you will ever make.  Although it is a happy times, it is often a very stressful process as well.  Finding an experienced Arizona realtor will help insure that everything falls in place, and reduce much of the stress for you.

A good realtor upholds the highest ethical standards, and has a thorough understanding of the intricacies and nuances of the Phoenix market and surrounding areas.  Whoever you choose should aggressively advocate your best interests, and remain fully accountable to you.  You want the person handling your interests to be unafraid to negotiate in your behalf in order to get the very best deal possible for you. If your most important goal is to find a home for your family or to plunge into real estate for investment purposes, you want the expertise of an agent who has extensive knowledge of the area.  The real estate agent you choose should be willing to spend time every day reviewing Phoenix real estate options for you, as a client.  In doing so, this means that the more properties an agent previews for you each week, the better understanding you have of the true values of the communities in the area. Being armed with this knowledge will allow your agent to easily match you up with the best real estate, new home, multifamily property or condo for your needs.  A realtor who has many years of experience in the market and a vast knowledge of the area is important because this helps them give you sound real estate investment guidance.  You can avoid going into any situation blindly by having someone with a solid reputation behind them to assist you.

If you are considering a new home or property investment in the Phoenix area, make sure to find a reputable Arizona realtor to assist and guide you.  This will insure that the process is much less stressful and streamlined, and that you get the very best deal for your investment.

When you are considering the perfect home your family or perhaps investing in real estate, don’t overlook Glendale Arizona.  Located nine short miles from downtown Phoenix, Glendale is known for its reputation for antiques, and its renowned Historic District.  An experienced realtor can give you all of the details and explain why this city is such a wonderful place to live. This area is a perfect location for first time home buyers and growing young families.  Glendale is a place that is called home by a diverse population.  One thing people love about this city is all of the activities available.  Shop for antiques in the historic downtown area, play golf on one of 118 golf courses, visit one of 64 libraries or browse the major museums.  There are also twelve universities, colleges and technical institutes, which is why this area is a fantastic location to invest. Investing in real estate is a huge decision for any family.  Choosing a home is probably the most important task you will ever face.  A reputable Arizona real estate agency with years of experience and vast knowledge of the area behind them can make the entire process stress-free.  When you choose a realtor with your best interests at heart, you can be sure that you will get a beautiful home or property at a price that is well within your budget.

Glendale is an area that is charming and unique from many other U.S. cities.  In fact, the city itself is older than the state of Arizona!  Another factor in the popularity of not only this city but the entire state is the fact that the sun shines on average 300 days a year.  This means that outdoor activities are always hugely popular.  Desert scenery can be enjoyed along the many biking and hiking trails winding through the area.

You will find this area totally charming and welcoming.  The community enjoys many events and celebrations all through the year, including the Jazz and Blues festival in April.  There are plenty of boutiques, restaurants and antique shops to browse and enjoy.  As you can see, whether man, woman or child Glendale is a place that will never bore you for lack of things to do.

Are you ready to find the home of your dreams in a town voted one of the best places to live?  Glendale is the perfect destination for young and growing families.  Let a dedicated Arizona realtor assist you in finding that perfect home!

If you are thinking of making Phoenix Arizona your home, there has never been a better time to buy!  An experienced real estate agent can help you find the perfect home for your family, and assist you with every transaction.  This will help ease the stress and make your search much more pleasurable.  Why is it such a good time to purchase a home?  There are several reasons.

First of all, due to the economy prices are coming down dramatically.  Buyers can now afford a home in Phoenix that would have been out of their price range just a few years ago!  Banks want to lend money to buyers who qualify, and interest rates are low.  Arizona is an exceptional place to live and work, and is now the 5th largest city in the United States.  Pressure remains on the demand for re-sale homes, and very little land is available for the building of new housing.

There are also some great tax breaks for many who purchase a home in the area.  This is a beautiful, sun-filled city that has become a prime destination for home owners.  Hiking, biking and plenty of golf is available for those who love the outdoors.  This is the city where it seems the sun shines 24 hours a day.  Another attractive fact about this area is that the unemployment rate is moderate.  A reputable Arizona realtor will help you find the home of your dreams and help you get the best deal possible on your investment.

The average price of a single family home in Phoenix is about $142,000, and prices are trending downward.  With the low interest rates now available to qualified buyers, monthly mortgage payments are extremely affordable.  If you have ever dreamed of living in home that is perfect for you in this beautiful, activity-filled city now is the perfect time to buy.  This is the opportune time, and buyers have leverage to choose the home they truly love and can afford.  Consider this fact – if you wait until you hear through the media that home prices have stabilized, you will already have missed your perfect opportunity!

If you are considering a move to the gorgeous and highly popular state of Arizona, don’t wait until it is too late.  Contact a reputable Phoenix real estate agent with the knowledge needed to get you the home you have been looking for, at a great bargain!  Remember, the time is now.