- Maricopa County Single Family homes, 7,837 are active and on the market this morning; 14,826 are under contract (Pending/AWC) and from 1/1/2012 there have been 39,875 sold.
- For Multifamily property, 211 are active, 131 under contract and 347 have been sold this year.
- National Median existing home prices rose 7.9% to $182,600 from a year ago in May.
- Distressed home sales (foreclosures and short sales), account for 25% of May sales.
- All Cash sales slipped to 28% from a year ago 29%.
- 30 year mortgages have dropped to a record low for the 7th time in 8 weeks. Rates are at 3.66%
Monday, June 25, 2012
Lots of news over the last few weeks.
Sunday, May 27, 2012
Multiple Offers Received
Interesting article in the Globe and Mail about the Phoenix
home market having Bidding Wars. Yes, you heard right, the Buyers’ market is over
(which actually happened months ago.) I am still getting calls from Buyers that
want to buy a good property 10% to 20% under the list price. In some cases this
is still possible where the list price is pretty high, but in most cases it can’t
be done.
The Buyers dreaded term ‘Multiple Offers Received – Give us
your highest and best’ is being seen more and more.
Thursday, May 24, 2012
Less than 10,000 SF homes on the market
Just checking the ARMLS listings for this morning and noticed that there are now 9,931 active Single Family homes now listed in the system. This time last year there were closer to 50,000. There are also 217 active Multi Family (MF) properties listed; Sep 2010 had just under 600 listed.
Below are three charts of MF properties over the last few years. Since Jan 2009 with 600 properties on the market, to May 2012, with less than 200. The second chart is indicating the lowest prices for property Asking Price versus the Sold Price was in the summer of 2010. The Asking prices have skyrocketed in the couple of quarters; last summer it was not hard to find 3 and 4 unit properties in the under $100k range. Today, there are about 20 listed, and many are not those that you would consider a 'turn key' purchase.
Below are three charts of MF properties over the last few years. Since Jan 2009 with 600 properties on the market, to May 2012, with less than 200. The second chart is indicating the lowest prices for property Asking Price versus the Sold Price was in the summer of 2010. The Asking prices have skyrocketed in the couple of quarters; last summer it was not hard to find 3 and 4 unit properties in the under $100k range. Today, there are about 20 listed, and many are not those that you would consider a 'turn key' purchase.
It's now a Sellers Market
Zillow and Phoenix Business Journal had a good article last
month (4/25/12) on how Phoenix home values will have the largest national gains
in 2012. Zillow released a report indicating that the home appreciation in
Phoenix between March 2012 and March 2013 was 6.5%. The largest growth reported
among the 30 metro areas reported.
They also stated that Phoenix foreclosure resales were
about 30% of the market, which is 17% less than this time last year, and half
of what it was during the peak of 2009.
Zillow also reported just this week that Phoenix has the
second highest rate of underwater homeowners at 55%. Las Vegas was the highest
at 71% and the third was Atlanta followed by Orlando.
Another interesting note about the Phoenix market is that
this week, the available Single Family home supply was below 10,000 Active homes
for sale. There were also over 17,000 Pending/AWC homes in the ARMLS system.
This is a far cry from about this time last year where there were close to
50,000 homes available.
Many Buyers are not aware that the market has changed and
the last few years of it being a Buyers’ market, is now gone.
Monday, May 14, 2012
Six Keys to Selling Your Home in Today's Market
According to the National Association of Realtors®, more than 4.25 million homes sold in 2011. That's a lot of real estate and such numbers raise the question: How are sellers doing it?
"Because individual homes are unique, there isn't one single strategy that works equally well for every property," says Wendy Forsythe, the executive vice president of a real estate company. "The real trick is understanding that today's marketplace is cash driven, quick and highly competitive. Owners who understand their local markets and work with a knowledgeable agent are those most likely to succeed."
In March roughly one-third of all sales were cash, meaning a large number of buyers are not dependent on lender financing, the sale of their existing home or a settlement that might be 45 to 60 days in the future.
Instead, they can act quickly and in many cases seek properties which can be bought today and occupied tomorrow.
To ready a home for sale in today's marketplace, Forsythe says owners should consider six basic keys to selling success.
Six Keys to Success
1) Curb appeal counts. Most home buyers want homes which look great from the outside. It's not just a question of curb appeal -- it's about perception. If a home looks good from the street it probably means the property is ready for a new occupant without a lot of cost or hassle.
Buyers tend to pass on a home that doesn't appeal to them from the street -- not even bothering to look inside. An experienced local REALTOR® can show you how to generate the most curb appeal with the least cost.
2) A clutter-free home. With the new emphasis on cash sales and speed owners must show homes which are free and clear of clutter. A clutter-free home will make interior spaces look larger and eliminates the need to get rid of stuff when you are in the throes of moving. It makes sense to donate or reduce clutter before a home is placed on the market -- not only as a sales tactic but also as a practical step toward relocation.
3) Working condition. Having your home's systems in good mechanical condition is an advantage in today's market. Most distressed homes can't compete when it comes to such basics as working heating, plumbing and air-conditioning. Properties that can readily pass a professional home inspection are often easier to finance, and are generally more appealing to buyers who don't want to face the unknown costs and delays sometimes associated with major renovations.
4) List and negotiate properly. According to Forsythe, "a seasoned REALTOR® can show owners how best to market a particular home according to such factors as location, price, condition and financing. Owners want to work with us because our experience brings value and confidence to a transaction, factors that are enormously important in a changing marketplace."
5) Seek prequalified buyers. While many sales may be for cash, the majority still require financing. It would be frustrating to enter into a sales contract with a potential buyer who ultimately cannot obtain financing to purchase your home -- meaning you have lost time -- and potentially money -- and then you have to start over. When a home is shown by appointment, the buyer should have a pre-qualification letter in hand.
Such letters from lenders are not binding but at least show that the purchaser sat down with a loan officer and has some realistic sense of what he or she can reasonably afford.
6) Distressed properties. Roughly 30 percent of today's home sales involve "distressed" properties -- a term which includes short sales and foreclosed properties owned by lenders. You need to consider the distressed properties in your neighborhood when pricing and marketing your home. These properties typically sell at discount, especially in major foreclosure centers and sometimes require substantial repair and rehabilitation.
"Home sellers can compete with these offerings," according to Forsythe. "There's no question that a large number of distressed properties in a local market will impact prices, but price is not the only factor buyers consider. While distressed homes work for some purchasers, they're not the right choice for buyers who want homes that offer move-in condition -- homes in better shape that can often command higher prices."
While the housing market is just in the beginning stages of a recovery, it's still possible to successfully sell your home by making sure you're catering to the kind of buyers in the market today, and by making sure that you -- and your home -- are ready to move as quickly as these buyers are.
According to the National Association of Realtors®, more than 4.25 million homes sold in 2011. That's a lot of real estate and such numbers raise the question: How are sellers doing it?
"Because individual homes are unique, there isn't one single strategy that works equally well for every property," says Wendy Forsythe, the executive vice president of a real estate company. "The real trick is understanding that today's marketplace is cash driven, quick and highly competitive. Owners who understand their local markets and work with a knowledgeable agent are those most likely to succeed."
In March roughly one-third of all sales were cash, meaning a large number of buyers are not dependent on lender financing, the sale of their existing home or a settlement that might be 45 to 60 days in the future.
Instead, they can act quickly and in many cases seek properties which can be bought today and occupied tomorrow.
To ready a home for sale in today's marketplace, Forsythe says owners should consider six basic keys to selling success.
Six Keys to Success
1) Curb appeal counts. Most home buyers want homes which look great from the outside. It's not just a question of curb appeal -- it's about perception. If a home looks good from the street it probably means the property is ready for a new occupant without a lot of cost or hassle.
Buyers tend to pass on a home that doesn't appeal to them from the street -- not even bothering to look inside. An experienced local REALTOR® can show you how to generate the most curb appeal with the least cost.
2) A clutter-free home. With the new emphasis on cash sales and speed owners must show homes which are free and clear of clutter. A clutter-free home will make interior spaces look larger and eliminates the need to get rid of stuff when you are in the throes of moving. It makes sense to donate or reduce clutter before a home is placed on the market -- not only as a sales tactic but also as a practical step toward relocation.
3) Working condition. Having your home's systems in good mechanical condition is an advantage in today's market. Most distressed homes can't compete when it comes to such basics as working heating, plumbing and air-conditioning. Properties that can readily pass a professional home inspection are often easier to finance, and are generally more appealing to buyers who don't want to face the unknown costs and delays sometimes associated with major renovations.
4) List and negotiate properly. According to Forsythe, "a seasoned REALTOR® can show owners how best to market a particular home according to such factors as location, price, condition and financing. Owners want to work with us because our experience brings value and confidence to a transaction, factors that are enormously important in a changing marketplace."
5) Seek prequalified buyers. While many sales may be for cash, the majority still require financing. It would be frustrating to enter into a sales contract with a potential buyer who ultimately cannot obtain financing to purchase your home -- meaning you have lost time -- and potentially money -- and then you have to start over. When a home is shown by appointment, the buyer should have a pre-qualification letter in hand.
Such letters from lenders are not binding but at least show that the purchaser sat down with a loan officer and has some realistic sense of what he or she can reasonably afford.
6) Distressed properties. Roughly 30 percent of today's home sales involve "distressed" properties -- a term which includes short sales and foreclosed properties owned by lenders. You need to consider the distressed properties in your neighborhood when pricing and marketing your home. These properties typically sell at discount, especially in major foreclosure centers and sometimes require substantial repair and rehabilitation.
"Home sellers can compete with these offerings," according to Forsythe. "There's no question that a large number of distressed properties in a local market will impact prices, but price is not the only factor buyers consider. While distressed homes work for some purchasers, they're not the right choice for buyers who want homes that offer move-in condition -- homes in better shape that can often command higher prices."
While the housing market is just in the beginning stages of a recovery, it's still possible to successfully sell your home by making sure you're catering to the kind of buyers in the market today, and by making sure that you -- and your home -- are ready to move as quickly as these buyers are.
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