The S&P Case-Shiller housing report is out. It is GOOD news for Buyers and not so good news for Sellers.
"January housing numbers for Phoenix and the U.S. as a whole were not good in January, according to new S&P Case-Shiller index numbers put out Tuesday morning.
Home prices are down 9.1 percent in Phoenix since January 2010, according to the index. Phoenix had the largest year-over-year drop of the 20 metro areas in the housing index.
From December 2010 to January 2011, Phoenix home prices are down 1.5 percent. U.S. home prices are down 1 percent for the same time period.
Indicators point to Buy, Buy, Buy !!!
Wednesday, March 30, 2011
Tuesday, February 1, 2011
TOP TEN REASONS PHOENIX WILL PROSPER IN 2011
Enjoy this Top Ten List borrowed from Diane Gerdes of The Mortgage Advantage.
Phoenix has withstood additional blows with negative press, but all in all 2010 showed small signs of recovery for our great state.
2011 will be even better, here are the top ten reasons Phoenix will have a prosperous 2011:
10. Phoenix's unemployment rate dropped below the National average to 8.5% in December, 2010 and is expected to slowly decline. Technology and resort-leisure jobs are still the go-to jobs in Arizona, unless you open a pawnshop.
9. Arizonan's love to shop. Wal-Mart is Arizona's largest employer employing over 30,000 people.
8. Arizona is all grown up by implementing their very own stock index called The L&D Arizona Composite Index. It is compiled of companies headquartered in Arizona and publicly traded on the NYSE and NASDAQ.
7. We are not depending on the 5 C's that have defined our state for decades: Citrus, Cattle, Cotton, Copper, and Climate. History Lesson: All five are incorporated on our state symbol.
6. Green is the word! Solar and Algae are the buzz words for fuel sources in the 21st Century. Both industries are continuing to anchor themselves in our state. If oil prices continue to rise, and stay high, we may finally be forced to mass-produce cleaner and more effective alternatives to our oil addiction. Segway's are not the answer if you wear high heels and worry about your toupee.
5. China's inflation may be the U.S.'s windfall: the cost of our goods will become competitive. The Chinese don't want to buy goods labeled "made in China."
4. Our border state geography is a benefit for legal exports and imports from Mexico, Arizona's largest trading partner. According to azcentral.com, exports to Mexico topped $5.9 billion and imports $5.2 billion in 2008. That is a lot of Chihuahuas.
3. The Phoenix metro-plex offers the most affordable housing in the U. S. With rock bottom prices and low interest rates (stop whining, no, they're not at 4% but still pretty darn low) make for an unbeatable combination. Also, families who lost their homes in 2007 and 2008 may be able to re-enter the mortgage market this year.
2. We have the Grand Canyon. Air traffic through Sky Harbor increased in 2010 over 2009.
1. Arizona is not Green Bay or Pittsburg. With the brutal winter in many parts of the U.S. and Canada, pictures of our sunshine will continue to entice people to visit and stay awhile.
No matter what the circumstances of our economy, it will be up to us to energize 2011 and help make it a great year.
Phoenix has withstood additional blows with negative press, but all in all 2010 showed small signs of recovery for our great state.
2011 will be even better, here are the top ten reasons Phoenix will have a prosperous 2011:
10. Phoenix's unemployment rate dropped below the National average to 8.5% in December, 2010 and is expected to slowly decline. Technology and resort-leisure jobs are still the go-to jobs in Arizona, unless you open a pawnshop.
9. Arizonan's love to shop. Wal-Mart is Arizona's largest employer employing over 30,000 people.
8. Arizona is all grown up by implementing their very own stock index called The L&D Arizona Composite Index. It is compiled of companies headquartered in Arizona and publicly traded on the NYSE and NASDAQ.
7. We are not depending on the 5 C's that have defined our state for decades: Citrus, Cattle, Cotton, Copper, and Climate. History Lesson: All five are incorporated on our state symbol.
6. Green is the word! Solar and Algae are the buzz words for fuel sources in the 21st Century. Both industries are continuing to anchor themselves in our state. If oil prices continue to rise, and stay high, we may finally be forced to mass-produce cleaner and more effective alternatives to our oil addiction. Segway's are not the answer if you wear high heels and worry about your toupee.
5. China's inflation may be the U.S.'s windfall: the cost of our goods will become competitive. The Chinese don't want to buy goods labeled "made in China."
4. Our border state geography is a benefit for legal exports and imports from Mexico, Arizona's largest trading partner. According to azcentral.com, exports to Mexico topped $5.9 billion and imports $5.2 billion in 2008. That is a lot of Chihuahuas.
3. The Phoenix metro-plex offers the most affordable housing in the U. S. With rock bottom prices and low interest rates (stop whining, no, they're not at 4% but still pretty darn low) make for an unbeatable combination. Also, families who lost their homes in 2007 and 2008 may be able to re-enter the mortgage market this year.
2. We have the Grand Canyon. Air traffic through Sky Harbor increased in 2010 over 2009.
1. Arizona is not Green Bay or Pittsburg. With the brutal winter in many parts of the U.S. and Canada, pictures of our sunshine will continue to entice people to visit and stay awhile.
No matter what the circumstances of our economy, it will be up to us to energize 2011 and help make it a great year.
MAKE 2011 YOUR YEAR!!
In the last 2 weeks we have seen less than positive news regarding the Real Estate Market in the Phoenix area. Luncheons and meetings have been held where people pay hundreds of dollars to hear experts speak on where the Phoenix market is headed. The general concensus is that it may takes us a bit longer to recover.
In every market, however, there are positives. For Buyers, this is one of the best markets ever. Our Phoenix area prices are down. Coupled with low interest rates, this is one of the best times ever to purchase a home in the Valley of the Sun.
For Renters, there is a larger, more upgraded inventory of rental homes. Investors are purchasing homes in quantity and are turning these homes into rental properties. I have seen many homeowners short sale their home and move into bigger, nicer rental properties.
The key to surviving in Real Estate is to move and adapt to the market.
Consequently, our short sale inventory is way up and we have many buyers purchasing "investment properties" that their "children" will live in while the children reestablish their credit. This market, like any market, is an opportunity for both buyers and sellers. Buyers can purchase low priced homes at excellent rates and Sellers can get out from under a mortgage that will otherwise drag them under financially for years to come. The key is simply to be knowledgeable about the market and to react to its ebbs and tides with your future in sight.
If you need help, just let us know. 623-694-0354.
In every market, however, there are positives. For Buyers, this is one of the best markets ever. Our Phoenix area prices are down. Coupled with low interest rates, this is one of the best times ever to purchase a home in the Valley of the Sun.
For Renters, there is a larger, more upgraded inventory of rental homes. Investors are purchasing homes in quantity and are turning these homes into rental properties. I have seen many homeowners short sale their home and move into bigger, nicer rental properties.
The key to surviving in Real Estate is to move and adapt to the market.
Consequently, our short sale inventory is way up and we have many buyers purchasing "investment properties" that their "children" will live in while the children reestablish their credit. This market, like any market, is an opportunity for both buyers and sellers. Buyers can purchase low priced homes at excellent rates and Sellers can get out from under a mortgage that will otherwise drag them under financially for years to come. The key is simply to be knowledgeable about the market and to react to its ebbs and tides with your future in sight.
If you need help, just let us know. 623-694-0354.
Saturday, January 1, 2011
Real Estate and the New Year Prediction
Happy New Year!! I wanted to share with you the latest predictions for 2011 from the Association of Realtors for our region, Region 2..
Region Two
Phoenix, West Maricopa County Regional
Region Two, consisting of Phoenix and the West Valley up to and including Wickenburg, has had a tough year. We are still moving through a large amount of REO properties, and the market has been top heavy with short sales. Once the tax credit expired, the market calmed for a month or two but seems to be coming back. The buyers are still buying, especially investors. First-time homebuyers are, once again, having difficulty getting an accepted contract due to bidding wars on lesser-priced properties. This will be reflected in price stabilization in certain neighborhoods. We are hoping to see some of these areas switch into more of a buyer’s market after the first of the year. We have experienced a year similar to the one described in the summary. There is a lot of competition for low priced and exceptional homes. Short Sales are still running the market, followed closely by REO (lender owned properties). We still will have a steady stream of foreclosure and short sale inventory thru 2011 based on the number of Notice of Trustee Sale notices that are being recorded at the county offices.
Buyers are capitalizing on the low prices and low interest rates. If you are thinking of upsizing or downsizing, 2011 is the year to do it. If you are experiencing financial distress, please call us. We will be able to go over your options with you so you can make the choice that is best for your family.
Greet the New Year with a hopeful heart and be confident that you will make 2011 your best year yet.
Happy New Year!
Mary & Mike Drefs
Keller Williams Realty Professional Partners
623-694-0354 Mary
marydrefs@cox.net
623-693-1505 Mike
mikedrefs@cox.net
Top Agent 2001, 2002, 2003 & 2004
Top Team 2005, 2006, 2007 & 2008!!
Region Two
Phoenix, West Maricopa County Regional
Region Two, consisting of Phoenix and the West Valley up to and including Wickenburg, has had a tough year. We are still moving through a large amount of REO properties, and the market has been top heavy with short sales. Once the tax credit expired, the market calmed for a month or two but seems to be coming back. The buyers are still buying, especially investors. First-time homebuyers are, once again, having difficulty getting an accepted contract due to bidding wars on lesser-priced properties. This will be reflected in price stabilization in certain neighborhoods. We are hoping to see some of these areas switch into more of a buyer’s market after the first of the year. We have experienced a year similar to the one described in the summary. There is a lot of competition for low priced and exceptional homes. Short Sales are still running the market, followed closely by REO (lender owned properties). We still will have a steady stream of foreclosure and short sale inventory thru 2011 based on the number of Notice of Trustee Sale notices that are being recorded at the county offices.
Buyers are capitalizing on the low prices and low interest rates. If you are thinking of upsizing or downsizing, 2011 is the year to do it. If you are experiencing financial distress, please call us. We will be able to go over your options with you so you can make the choice that is best for your family.
Greet the New Year with a hopeful heart and be confident that you will make 2011 your best year yet.
Happy New Year!
Mary & Mike Drefs
Keller Williams Realty Professional Partners
623-694-0354 Mary
marydrefs@cox.net
623-693-1505 Mike
mikedrefs@cox.net
Top Agent 2001, 2002, 2003 & 2004
Top Team 2005, 2006, 2007 & 2008!!
Thursday, December 2, 2010
Where do you think Real Estate will be in 2-3 years??
The most common question I get from homeowners is,"Where will Real Estate values be in 2-3 years?" I wish I had a crystal ball. For now, I will just have to make an educated guess.
Seeing that the volume of foreclosures is barely slowing in Maricopa County, I think that, in 2-3 years, we will be in approximately the same market as we are in now...a market fueled by distressed properties. I believe the small slowdown we have seen in the number of foreclosures is due to the increase in the number of short sales and the fact that some lenders have been postponing auctions. I believe the general public is now better informed as to the benefits of short sales and is now more inclined to pursue one.
I think that those homeowners who are underwater and are "on the fence" about short saling or strategically defaulting will take the plunge and attempt a short sale. The more distressed homeowners are talking to each other regarding their financial difficulties, the less the negative stigma of a short sale or foreclosure. The higher the number of homeowners defaulting, the more those "on the fence" will see a short sale as a viable solution and a wise market opportunity.
I believe that in the future we will see another wave in the West Valley...an onslot of bankruptcies. Just as we begin to see a slight tapering in the number of short sales and foreclosures in the years ahead, the swell of bankruptcies will begin. Consequently, we will have a market with a steady supply of distressed properties for at least the next 2-3 years. And, with a wealth of inventory, comes low, affordable prices.
If you have any questions about the value of your home and/or know of anyone who is considering capitalizing on this market, give us a call at 623-694-0354 or visit our website. www.MaryDrefs.com. We are here to help.
Seeing that the volume of foreclosures is barely slowing in Maricopa County, I think that, in 2-3 years, we will be in approximately the same market as we are in now...a market fueled by distressed properties. I believe the small slowdown we have seen in the number of foreclosures is due to the increase in the number of short sales and the fact that some lenders have been postponing auctions. I believe the general public is now better informed as to the benefits of short sales and is now more inclined to pursue one.
I think that those homeowners who are underwater and are "on the fence" about short saling or strategically defaulting will take the plunge and attempt a short sale. The more distressed homeowners are talking to each other regarding their financial difficulties, the less the negative stigma of a short sale or foreclosure. The higher the number of homeowners defaulting, the more those "on the fence" will see a short sale as a viable solution and a wise market opportunity.
I believe that in the future we will see another wave in the West Valley...an onslot of bankruptcies. Just as we begin to see a slight tapering in the number of short sales and foreclosures in the years ahead, the swell of bankruptcies will begin. Consequently, we will have a market with a steady supply of distressed properties for at least the next 2-3 years. And, with a wealth of inventory, comes low, affordable prices.
If you have any questions about the value of your home and/or know of anyone who is considering capitalizing on this market, give us a call at 623-694-0354 or visit our website. www.MaryDrefs.com. We are here to help.
Monday, November 15, 2010
BANKS CRY FOUL! LET'S ALL CRY.........
Yesterday, the Arizona Republic ran a story about Real Estate "Flopping" in Arizona. Basically, the story relayed that "flopping" is when a buyer purchases a foreclosed or short sale property and then immediately lines up another buyer to purchase the property at a higher price. Apparently, it is big news because banks are crying "Foul!" Banks are saying that if they knew that another buyer would pay a higher price, they would have sold directly to that party...or would they?
Banks call this flopping. I call it capitalism. Show me a business that does not have a middleman that gets paid for his knowledge and service. If the buyer of the foreclosed home is cunning enough to line up another buyer who is willing to pay more, so what? Personally, I would never go to the court house steps to purchase a foreclosed property because I don't know all of the intricacies of purchasing a foreclosed property. I am too afraid that I would purchase a house with a huge tax lien or structural or environmental defects. Would I purchase a house from an experienced court house step buyer? Yes. And I realize I would have to pay more for the house for utilizing his expertise.
Some buyers right now want to purchase properties but cannot get financing using traditional lending companies because of increased loan requirements. Are these buyers willing to pay more for a home that offers seller financing? Absolutely. Should those sellers who are carrying the note and the financial risk receive more for these homes? Yes!
The lenders are crying Foul. But is the average Joe feeling sorry for the lenders? Please note that if a house forecloses or is short saled and has a loan that is government insured, the lender is handsomely financially rewarded after the transaction closes. This is where the billions of dollars to solve the housing crisis is going. It is not going directly into the hands of any homeowners. Ultimately, we will all contribute to these billions by paying taxes. So, in the end, the banks win again...and again...and again.
Banks call this flopping. I call it capitalism. Show me a business that does not have a middleman that gets paid for his knowledge and service. If the buyer of the foreclosed home is cunning enough to line up another buyer who is willing to pay more, so what? Personally, I would never go to the court house steps to purchase a foreclosed property because I don't know all of the intricacies of purchasing a foreclosed property. I am too afraid that I would purchase a house with a huge tax lien or structural or environmental defects. Would I purchase a house from an experienced court house step buyer? Yes. And I realize I would have to pay more for the house for utilizing his expertise.
Some buyers right now want to purchase properties but cannot get financing using traditional lending companies because of increased loan requirements. Are these buyers willing to pay more for a home that offers seller financing? Absolutely. Should those sellers who are carrying the note and the financial risk receive more for these homes? Yes!
The lenders are crying Foul. But is the average Joe feeling sorry for the lenders? Please note that if a house forecloses or is short saled and has a loan that is government insured, the lender is handsomely financially rewarded after the transaction closes. This is where the billions of dollars to solve the housing crisis is going. It is not going directly into the hands of any homeowners. Ultimately, we will all contribute to these billions by paying taxes. So, in the end, the banks win again...and again...and again.
Thursday, November 4, 2010
PHOENIX AREA REAL ESTATE MARKET FORECAST
It has now been two and a half years since we started to see a marked increase in foreclosures in Maricopa County. Since April 2008, there have been 232,456 Notices of Trustee's Sale filed in Maricopa County. 115,214 of those homes have actually ended with a recorded trustee's deed indicating foreclosure. The other homeowners have either gotten current on their loan, successfully sold the house as a short sale or are attempting loan modification. Since January 1, 2010, the number of notices filed in Maricopa County stands at 87,747. However, while fewer properties are entering into the foreclosure process, the banks have picked up the pace at which they are foreclosing.
It has now been two and a half years since we started to see a marked increase in foreclosures in Maricopa County. Since April 2008, there have been 232,456 Notices of Trustee's Sale filed in Maricopa County. 115,214 of those homes have actually ended with a recorded trustee's deed indicating foreclosure. The other homeowners have either gotten current on their loan, successfully sold the house as a short sale or are attempting loan modification. Since January 1, 2010, the number of notices filed in Maricopa County stands at 87,747. However, while fewer properties are entering into the foreclosure process, the banks have picked up the pace at which they are foreclosing.
In October, due to legal pressure, several of the big lenders placed moratoriums on their foreclosures. Bank of America, GMAC, and Wells Fargo were several lenders who stopped foreclosures. Now, Wells Fargo has quickly ended their moratorium and is back to foreclosing. The court system did have testimony from several bank employees who stated that they had given their approval on directives to foreclose without actually reviewing the files. This was due to the overwhelming number of files the employees were assigned. Fearing more lawsuits, the lenders ordered the moratoriums.
Currently, the bank owned inventory of homes for sale is rising. Of the approximate 4,800 homes auctioned at the trustee sales, approximately only 1,000 are being purchased by investors. This means approx. 3,800 are returned to the banks for them to sell. Of these returned homes, approx. 2,600 are actually being purchased thru the MLS. This means the REO or lender owned properties inventory for sale is increasing by approx. 1,200 homes per month. Excess inventory means lower prices. All of this inventory needs to be absorbed, or purchased, for us to see prices rise again.
At this time, experts are predicting the next big wave of foreclosures to hit just after the first of the year. In the meantime, mortgage interest rates are remaining low and lenders are reporting that refinanced loans are up.
Need to sell or looking to purchase?? Give us a call. We can help you make sense out of the current market and choose the path that is best for you.
It has now been two and a half years since we started to see a marked increase in foreclosures in Maricopa County. Since April 2008, there have been 232,456 Notices of Trustee's Sale filed in Maricopa County. 115,214 of those homes have actually ended with a recorded trustee's deed indicating foreclosure. The other homeowners have either gotten current on their loan, successfully sold the house as a short sale or are attempting loan modification. Since January 1, 2010, the number of notices filed in Maricopa County stands at 87,747. However, while fewer properties are entering into the foreclosure process, the banks have picked up the pace at which they are foreclosing.
In October, due to legal pressure, several of the big lenders placed moratoriums on their foreclosures. Bank of America, GMAC, and Wells Fargo were several lenders who stopped foreclosures. Now, Wells Fargo has quickly ended their moratorium and is back to foreclosing. The court system did have testimony from several bank employees who stated that they had given their approval on directives to foreclose without actually reviewing the files. This was due to the overwhelming number of files the employees were assigned. Fearing more lawsuits, the lenders ordered the moratoriums.
Currently, the bank owned inventory of homes for sale is rising. Of the approximate 4,800 homes auctioned at the trustee sales, approximately only 1,000 are being purchased by investors. This means approx. 3,800 are returned to the banks for them to sell. Of these returned homes, approx. 2,600 are actually being purchased thru the MLS. This means the REO or lender owned properties inventory for sale is increasing by approx. 1,200 homes per month. Excess inventory means lower prices. All of this inventory needs to be absorbed, or purchased, for us to see prices rise again.
At this time, experts are predicting the next big wave of foreclosures to hit just after the first of the year. In the meantime, mortgage interest rates are remaining low and lenders are reporting that refinanced loans are up.
Need to sell or looking to purchase?? Give us a call. We can help you make sense out of the current market and choose the path that is best for you.
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