For Real Estate Investors

Steady Decrease in Homes for Sale Under $100,000 in Phoenix Area

10/11/2012
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We just received the most recent STAT Plus Quarterly Statistics report for the Phoenix area from the Arizona Regional Multiple Listing Service.  It has some interesting statistics.  If you would like a copy of this one page report, just let us know. 

There has been a steady decrease in the number of homes for sale in the $30,000 to $100,000 price range.   In the fourth quarter of 2011 there was an average of 4,742 homes available for sale each month.  In the first quarter of 2012 this dropped to 3,688 and in the second quarter dropped to 2.760.  In the third quarter, just completed in September the average was 2,383.    This reflects what we have been seeing the market as prices rise – a dwindling supply of homes priced under $100,000.  There has been high demand in this price range both from investors looking to turn the property into a rental or to fix and flip the property and from individuals looking to purchase first or second homes.

Home supply in the $100,000 to $250,000 price range has bounced around some but has remained at a more even level this year.  In the fourth quarter of 2011 there was an average of 8,852 homes available for sale each month.  In the first quarter of 2012 this dropped to 7,870 and in the second quarter dropped to 6.963.  In the third quarter, just completed in September, there was an increase to 7,851 .  The increase of  supply is good news for home buyers in this price range who have had a frustrating year competing for homes with other buyers.

Home supply in some of the higher price ranges has not been as dramatically affected.  In the third quarter the supply in the $250,000 to $500,000 price range was an average of 4,162 homes versus 4,353 in the fourth quarter of last year.  In the $500,000 to $750,000 price range the third quarter average supply was 1,038 homes versus 1.161 in the fourth quarter of last year.   Interestingly, there has been a decrease in the supply of homes priced between $750,000 and $1,000,000.  The average monthly supply in the fourth quarter of last year was 650 homes.  It was 590 homes in the third quarter of this year.

The number of distressed properties is down significantly.  The inventory of homes being sold by banks as foreclosure properties is down by about 50%.  The inventory of short sale homes for sale is about one-third of what it was last year at this time.  The number of HUD homes is down by about 50% as well.  This means that distressed properties make up a much smaller portion of the homes currently for sale than they have in past years.

 

Don’t Miss Your Opportunity to Buy a Home at Low Prices

09/12/2012
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It is no secret that average home prices in the Greater Phoenix area have been rising this year.    If you are some one who has been waiting to buy a home until the market hit bottom, you have missed it.    In this area, the bottom of market occurred in the summer of 2011.  However,  the opportunity exists to purchase now at relatively low prices before prices rise more.   The inventory of homes available for sale is low and has been since Spring.  This will continue to put upward pressure on prices.    Foreclosures and short sales make up a much smaller portion of  homes available for sale and inventory in these catagories has remained low for a while.  Traditional sales make up a much larger portion of recorded sales and homes available for sale. 

Interest rates are also at historically low levels.    This makes payments affordable for buyers.

If would like to view homes available for sale in the Greater Phoenix area, just visit our website www.RealtySecrets.net and use one of the prebuilt searches or do your home custom home search for free.

 

Home Prices Going Up In Phoenix Area

04/02/2012
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As we have been reporting, the inventory of homes in a lot of the Phoenix metro area is about half what it was last year.   The inventory of  foreclosure homes for sale is about a quarter of what it was a year ago.  This has caused competition among buyers and home prices are starting to increase. Below is a link to an article in the Arizona Republic about the current real estate market. If you have been waiting to buy a home until the market hit bottom, now is the time to buy because prices have started moving upward. Interest rates are still at historically low levels.

Phoenix-area home prices headed upward

Housing Market Moving Forward

01/20/2012
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Mike Orr was quoted in the Arizona Republic as saying that he believes the housing market in the Phoenix area hit bottom in September of 2011.  Mike Orr is the Director of the Center for Real Estate Theory and Practice for Arizona Statue University.   

We are seeing multiple offer situations for many properties priced below $150,000.  The inventory of homes for sale is roughly half of what it was a year ago.  We think this will start putting upward pressure on home prices.  It will take time but a slow recovery would be much healthier than a fast one.  Interest rates are also at historical lows which combined with the current low prices will make homes affordable for many people.

Here are some links to recent articles about the housing market. 

Mortgage Rates Reach New Record Lows

Optimism Builds in Housing Market

Foreclosures Post Big Drop

Retiree Havens Offering Good Buys

12/08/2011
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Many people are recognizing that now is a good time to buy a retirement home.  Even thought the inventory of homes for sale in the Greater Phoenix area is about half of what it was a year ago, many condos and town homes are still available for less than $100,000.   With the decrease in inventory and the many properties that are receiving multiple offers, many experts are saying that they think this is the bottom of the market.  Interest rates are still at historical lows – so this is a great time to buy.

Here is a link to an article with more information about buying a retirement home.

Retiree Havens Offering Good Buys.

Multiple Offers for Properties

04/18/2011
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We are starting to see multiple offers being made on properties in the Phoenix area.  This seems to be particularly true for properties priced under $100,000.    There are a lot of people purchasing second homes and a lot of investors buying properties.  Prices are low enough that buyers are coming back into the market.  In October there were roughly 39,000 properties available for sale in the Phoenix area.  Currently there are about 28,600 properties available for sale.  This is a significant reduction.

What does this mean for you?  If you have been waiting for the market to hit bottom before purchasing a home, now is a good time to start the purchase process.  Interest rates are still low and housing prices are affordable.  Start by talking with a lender about the loan options available to you.  FHA loans are still available that require a 3.5% down payment and allow the seller to assist the buyer with closing costs.  Once you have been pre-approved for a loan, contact a realtor to assist you with the home buying process.

If you would like to search for homes on the internet, you can search townhomes, patio homes, and condos at www.townhomesonly.com and you can search for single family homes at www.realtysecrets.net.

New Tax Rules for Landlords

02/14/2011
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If you own a rental property, even just one, you need to talk with your accountant about the new tax rules regarding reporting.   These rules took effect on January 1, 2011 and affect landlords who hire someone to work on their property if they pay $600 or more in a calendar year.    In these cases, you will need to collect a social security number or EIN (Employer Identification Number) from the person or company doing the work.  In the month of January following the year the work was done, you will need to provide them with a 1099-MISC form.

For more information:

AZ Republic Article – Tax Rules Put Burden on Landlords

IRS 2011 Instructions for 1099-MISC

Phoenix Area Housing Sales Increase in March

04/29/2010
By

Mar 10 ARMLS

March sales of existing homes through the Arizona Regional Multiple Listing Service increased over last year by 18%. Some of this is attributable to the home buyer tax credit which requires a contract by the end of April. We have also seen a number of second home buyers from other states and Canada. Home prices are low right now and many articles I’ve read indicate that we may be at the bottom of the market. Interest rates are also still at historically low levels.

The number of months of inventory of existing homes has come down significantly since 2008.  This does vary by city and neighborhood within the Greater Phoenix area.   There are also variances between single family homes and condominiums.  FHA rules have changed and it is more difficult to purchase a condo using an FHA loan than it was in past years.  This has reduced the buyer pool for condos somewhat and will likely cause price recovery for condos to fall behind that of single family homes in the months going forward.

Mar 10 ARMLS Inv

Housing Prices Stabilizing in Phoenix Area

02/25/2010
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There have been several articles in the Arizona Republic lately regarding reports on the housing market.  It looks like we will hit the price bottom for houses sometime this spring and may have already hit it for foreclosures.  Here are a few quotes and some links to the articles.

“Overall, the 20-city index (S&P/Case-Shiller 20-city home price index) climbed 0.3 percent between December and January.  Phoenix was one of only five cities to post an increase in home prices.”  — from Modest Signs of Life, AZ Republic, February 24, 2010.

According to ASU professor Karl Guntermann … “The slowdown in the rate of decline has been accelerating for several months,”  he said.   “If the present trend continues, prices will level off later this spring.”  — from Housing Price Recovery Hits Milestone, AZ Republic, February 25, 2010

This article goes on to say that foreclosures may have already hit the point where prices are the same as last year and no longer declining.  This fits what we are seeing the housing market.   There are fewer foreclosures out there and prices are very similar to last year.  There are now more short sales on the market than there were a year ago.

Canada, Eh?

11/18/2009
By

 

j0433429Are you wiring earnest money from Canada or anywhere outside the USA to open escrow on real estate?

Add the international transfer fee and ask the bank if there’s any other fees to be added.  For transfers from Canada, the fee we have seen is $10.00.

Your banker may not tell you this and you’ll be short on the needed money.  This means that you will then need to wire or send the short fall.  Worst case – this can cause you to be in default and the contract could be cancelled.