How Will the Election Affect Real Estate Values?

Lately we have been getting questions about how the November election may affect the housing industry. With all the campaign ads we have been seeing and reading, we are constantly being reminded that the election may have a big impact on our economy. I can tell you that currently, foreclosures in Maricopa County, compared to one year ago, are down. This may be because owners are now better educated about their options and are seeking out more modifications and short sales instead of letting their homes foreclose. It may also be the result of the mortgage companies allowing property owners to miss more payments before recording the Notice of Trustee Sales and setting an auction date. It could also be the result of the slow down in the mass exodus from the state. Those homeowners who chose to leave the state due to the downturn in the economy have already done so and their homes have already been processed through the system. In the meantime, real estate values in the west valley are continuing to tick upward. If you took advantage of the market and purchased while prices are low, but kept your previous home until prices rose again, you may want to consider now selling it. I am seeing many owners putting their previous homes up on the market. The homes are selling very quickly and most still have multiple offers. It is difficult to say how real estate prices will be affected by the election because, at this point, we are not sure who will be elected. And once elected, will the Senate and the House cooperate with the sitting President's plan? As we get closer and the candidates solidify and advance their plans, we will have a better estimation as to real estate future values. If you want to learn the current value of your property, give Mary Drefs a call at 623-694-0354. If you did have a short sale a few years ago and want to see if you can buy again, give Mike Drefs a call at 623-693-1505. Or visit OUR WEBSITE. They both want to see you get the most out of your real estate investments.

Short Sale Sellers-- Team Up with Your Agent and Take On Wells Fargo

We do a lot of short sales here in our office. At times, some lenders seem to change their short sale policies for the worse. Take Wells Fargo.... recently they decided to not waive borrower's deficiency in the majority of their short sale approval letters. Did Wells Fargo not consider that in state's with anti-deficiency statutes, this makes foreclosure more attractive to borrowers? If the same short sale was approved just 2 months ago, no doubt the deficiency would have been waived. Is that discrimination? Short sale borrowers should fight for their rights with Wells Fargo and prove to them what a inane blanket policy they instated. Borrowers will get quicker, better results if they call in to fight with Wells directly. Real Estate agents and other third parties have limited representation in the eyes of the lenders. Passionate borrowers seem to be getting the best results. Make sure when doing a short sale you participate with your agent and act as a team. Together with owners, we have been able to pull off remarkable fetes...such as gettting Wells Fargo to waive the deficiency on a recent short sale approval letter. We need the full participation of the borrowers to reach the ultimate success.

Summer Forecast,-- The Real Estate Market Looks Great

Real estate values have increased in the Phoenix area. In fact, Phoenix was rated the #1 real estate rebound market in the US. Yoohoo! I sincerely believe this is because the Phoenix market is one that has lead the way in Short Sale Transactions. Many of the top Short Sale agents from the Phoenix market have helped shape more efficient short sale procedures at the major lending institutions. Thousands of families in the Phx area have been saved from foreclosure. We have had another wave of investors purchasing properties here in Maricopa County. Some of the investors have purchased with the intent of flipping the properties. Others have invested to hold the properties as rentals. Currently, the values have risen to the point where flippers are not able to purchase properties, fix them up, resell them and create a healthy profit. Even at the home auctions, many of the foreclosed properties are being bid up to fair market value and above. I do anticipate that soon these flippers will be moving on to other up and coming markets. It is very common currently to have multiple offers on properties. Tuesday I listed a property and 2 days later I now have 6 cash offers on it and 3 of them are up and over list price. And this property is not a cream puff. The house does not even have flooring in the kitchen and all the carpet has paint stains that cannot be removed. Buyers are so glad to be selected in our busy market, that they have relxed their usual standards. Currently, the inventory of available homes for sale in Maricopa County is low. In some areas of the county, we have less than a 2 month supply of available homes. Buyers need to align themselves and stay loyal to their hard working agents who can use their inside knowledge to secure them a property. For now, this market should continue through the fall. If you have equity in your house it is an excellent time to sell. My listings now are 50% traditional sales and 50% are short sales. This is very different from a year ago when 100% of my listings were short sales. So, in summary, the market here is great! The hot weather in the other states is making Phx look more and more desirable. Want to join us? Give me a call!

INVESTORS--WELCOME TO AZ !!

Good News! We are seeing a bit of a shift in the Phoenix area real estate market due to the influx of investors. We are seeing many investors purchasing properties through short sales, auctions and foreclosures and remodeling them. Consequently, we are seeing a positive effect on the conditions of the property and the average pricing in these neighborhoods.

Currently we are experiencing a low volume of homes for sale in the Phoenix market. Because our prices had plummeted, many investors and second home buyers have entered the market and are attemping to purchase properties. There is a lot of competition amongst buyers and most properties receive multiple offers to purchase. We are seeing investors now willing to pay market value for homes. Consequently, it is very difficult now for buyers obtaining FHA loans and buyers asking for closing cost assistance to get under contract on a home. The market value cash buyer is now king. In many cases, it is the buyer who is willing to pay OVER list price that ends up owning the home.

As long as our pricing continues to increase incrementally and sanely, our real estate market will continue to mend itself. Ironically,investors helped drive up the market to insane values in 2008 and 2009 and investors may be the group that corrects our current real estate market. Let's roll out the red carpet and welcome the influx of money to our state. For many families, the investors are providing stable homes. Let's welcome the investors with open arms.

Investment Time is NOW !!!!

With low housing prices and low mortgage rates, NOW is the time to purchase investment property in Arizona. Many of our clients have established sizable positive cash flow by investing in rental properties. Several of our clients have purchased property with an eye on retiring to the property in several years. In the meantime, they are renting the property out. Hoards of foreign investors are purchasing investment property in AZ. When taking a look at the US stock market, one can see why. Since 1959, our stock market has had 11 years of negative appreciation and that depreciation has averaged 38%.
Since 1959, the US housing market has had 3 years of negative appreciation and the maximum depreciation was 13%.

Because of our distressed housing market, the total number of renters is high. Consequently, rents are up in the residential market. This is resulting in wonderful passive income for investors.

One does not need to be wealthy to invest. Most of our investors live comfortably and are good at saving. They are far from being millionaires today. 29% of properties being sold in the US are being purchased as investments. That number is much higher in Arizona because of our low prices.

Don't sit on the sideline and let the parade pass you by. Take a serious look at your savings and your financial goals and give Mike Drefs a call at 623-693-1505. He will be able to help you create a plan that is right for you.

Making Offers on Multiple Properties Can Force Families Into Foreclosure

As a short sale listing agent, I am growing weary of learning that a buyer has been instructed by their agent to make purchase offers on multiple properties with the intention of purchasing one. Twice this month a buyer's selfish antics have forced good families into foreclosure.

I understand it is a tough market for buyers in the Phoenix area and that many times a buyer will need to bid on 5-10 properties to be able to purchase just one. But, please buyers, make these bids one at a time. If your intention is to purchase one property and you are under contract on several at the same time, you are defrauding the seller and the seller's lender.

Frequently, short sale sellers receive approval letters 30 days or less from their auction/foreclosure date. Typically when a buyer receives notice of an approval letter, is the time the buyer cancels the deal. This leaves the seller's family less than 30 days to find another buyer and close the deal. This is impossible unless a cash buyer can be found quickly. In many cases, the seller's lender will not postpone the auction date and the seller is then forced into foreclosure.

So buyers, when you cancel, take a look in the rear view mirror as you drive away. You will see a family left in tears because of your fraud.

Nearly Half of AZ Mortgages Are Underwater

Close to half of all homes with mortgages in Arizona were upside down in the third quarter, CoreLogic reported Tuesday. In Arizona, 47.1 percent, or 617,876 residential properties with a mortgage had negative equity in the third quarter, according to CoreLogic. Nevada, at 58.3 percent, was the only state with a higher negative equity rate than Arizona.

Negative equity, often referred to as “underwater” or “upside down,” means borrowers owe more on their mortgages than their homes are worth. Nationally, 22.1 percent, or 10.7 million, of all residential properties with a mortgage were underwater at the end of the third quarter. This was down a bit from 22.5 percent, or 10.9 million properties, in the second quarter. "Negative equity remains very high, and renders many borrowers vulnerable when negative economic shocks occur, such as job loss or illness," said Mark Fleming, chief economist with CoreLogic. "The nearly $700 billion mortgage debt overhang has touched many corners of the market, and this overhang is holding back the recovery of the housing market and broader economy.”

Consequently, we believe the current pace of short sales and foreclosures will continue through 2012. No quick fix is on the way.