Living in The East Valley » For Real Estate Investors

Home Prices Going Up In Phoenix Area

admin — Mon, 02 Apr 2012 18:51:29 +0000

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

admin — Fri, 20 Jan 2012 17:04:27 +0000

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

admin — Thu, 08 Dec 2011 17:18:52 +0000

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

admin — Mon, 18 Apr 2011 17:27:31 +0000

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

admin — Mon, 14 Feb 2011 18:52:58 +0000

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

admin — Fri, 30 Apr 2010 00:06:34 +0000

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.

Housing Prices Stabilizing in Phoenix Area

admin — Thu, 25 Feb 2010 17:00:06 +0000

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?

patmonahan — Wed, 18 Nov 2009 17:09:09 +0000

Are 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.

Google Adds Real Estate Data to Maps

admin — Sat, 07 Nov 2009 00:27:32 +0000

Google has added real estate data as an optional display for its maps. Just go to Google Maps and enter an address. Once you have brought up the address with the surrounding neighborhood, click on the “More” tab in the upper right corner of the map. A drop down menu will appear. Click on “Real Estate” and information will be added to the map regarding homes that are for sale in that neighborhood. When checking for one of our listings, I found that the information was up to date for our listing. However, the other properties shown as available for sale had already sold a number of months ago. So use this information with caution. Remember the best source for up to date real estate information is your local REALTOR.

Phoenix Housing Market – Recent Articles

admin — Wed, 27 May 2009 18:26:41 +0000

The Phoenix housing market is starting to get a lot of media attention both in Phoenix and in other areas. Here are links to some recent articles that may be of interest to you. The AZ Republic is even reporting some price increases for homes in the area.

Amid Housing Bust, Phoenix Begins a New Frenzy - New York Times, May 23, 2009

First-time buyers grab foreclosures - AZ Republic, May 27, 2009

Phoenix’s housing bust goes boom - LA Times, May 18, 2009