homes in phoenix
FORECLOSURES MAY CAUSE RENTS TO RISE FOR PHOENIX HOMES
In Foreclosure Crisis – Demand for Single Family Homes in Phoenix rises, Arizona Republic article May 3, 2010 reports there has been a 40% drop in desirable rental homes in the Phoenix, Arizona metro area. The high demand for these homes is due in part to the significant number of those loosing their Phoenix homes by foreclosure. Phoenix area apartment complexes still are having a tough time attracting tenants, but rental agencies managing Phoenix single family homes have waiting lists. A year ago, investors were buying a few thousand Phoenix homes each month and turning them into rentals. But now, lenders are holding on to more of their foreclosed Phoenix homes while they work on a backlog of delinquent mortgages. If this trend continues, average Phoenix rents will rise.
Contact Sam Elam, Associate Broker with Prudential Arizona Properties for more information or visit http://www.SamElam.com
FHA Home Loan Costs to buy Phoenix Homes for Sale Increase
FHA Loan Policy Changes impact loan acquisition costs by reducing the maximum amount of buyer closing costs a seller can pay on behalf of the buyers from 6% to 3% of the total sales price. At the same time FHA is increasing the up-front Mortgage Insurance Premium from 1.75% to 2.25% of the loan amount to be paid at close of escrow or rolled into the new home loan. If approved, FHA will also consider increasing the annual MIP payment. Details to follow upon approval of their recommendation.
FHA is qualifying buyers based upon their FICO score to the extent that those with a FICO score below 580 are eligible for a 90% LTV loan with the minimum down payment increased from 3.5% to 10%. Read the new FHA Loan Policy for more details.
These policy changes show the U.S. government is no longer willing to make what they perceive to be higher risk loans at very favorable loan terms. With the rampant loan defaults and huge amount of government deficit spending, loan interest rates will eventually rise.
Those buyers waiting for the opportune time to buy have already missed their chance. The Phoenix real estate market bottomed out in March/April 2009 and average prices of Chandler, Gilbert, Mesa, Scottsdale and Phoenix homes have gone up since.
If you continue to wait, you may be priced out of the market as higher loan costs and mortgage interest rates rise. Buy now to lock in a fixed rate loan that are historically very low levels and to take advantage of the First Time and Repeat Home Buyer tax credit (Up to $8000 and $6500, respectively) by contracting by April 30 and closing by June 30. This primer at explains New Home and Existing Home tax credits and how you can take advantage of them. Hurry before they expire. Call Sam Elam for assistance with your next home purchase.
For assistance with the purchase of one of our homes in Chandler, Phoenix, Scottsdale, Gilbert, Mesa or Tempe contact:
Sam Elam, Associate Broker, Prudential Arizona Properties, (480) 213-1799 or SamElam3@gmail.com
Additional buyer resource information and MLS access visit: Phoenix homes for sale – Phoenix real estate & investments
December 2009 Phoenix real estate market conditions
Quick Summary of Phoenix real estate – December 2009 market conditions
Sales are up
December 2009 sales are up 2% over November 2009 and up 39% over December 2008. The number of Phoenix real estate transactions rebounded back close to what they were before the downturn. In fact 2009 sales exceeded 2008 sales by 55%!
Prices of Phoenix homes for sale are down
Unfortunately the increase in the number of transactions has come at the expense of sales price. Our median sales price is off 52% from the peak median price of $264,800 in June 2006. Prices have been sliding since, but bottomed out in April 2009 at $115,500 and closed the year at $126,000.
Our December average sales price increased to $177,572, because more high-end REO homes sold. At this point our average and median sales price are back to where they were in February/March 2001. We have bargains galore!
Of the homes that SOLD in December 2009:
23% were Short Sales
34% were Traditional, Non-distressed Sales
43% were Bank Owned or REO Sales
50% of our Active inventory is Traditional listings
50% of our Active inventory is either Short Sale or REO listings
As a ratio of Active listings of homes in Phoenix by listing type to December Sales:
12.5% of the Short Sale inventory sold with Short Sales being 36% of Active inventory
13 % of the Traditional inventory sold with Traditionals being 50% of Active inventory
58% of the Bank Owned/REO inventory sold with REOs being 14% of Active inventory
There are not as many REO listings as one might expect, but banks price them to sell quickly!
Also noteworthy, there are more Traditional (non-distressed) sales closing escrow than Short Sales.
We see owners of non-distressed properties can sell their home. Buyers will pay premium prices for Phoenix homes that are saleable (don’t require approval to sell), in good condition (with all repairs done before it is listed for sale), staged properly (cleaned, de-cluttered and painted as needed) and easy to show on a moment’s notice (dishes washed, beds made, trash out, clothes in the washing machine and tidy).
I am cautiously optimistic the Phoenix real estate market has “turned the corner”. My expectation is our market will continue to improve, but we’ll see minor ups and downs in trends during 2010.
Check out market statistics for Arizona condos and homes in Phoenix, Scottsdale, Chandler, Gilbert, Mesa and Tempe for sale at http://bit.ly/4qpcHJ. Real estate is local and the breakdown by city will be helpful.
Author:
Sam Elam, Associate Broker, Prudential Arizona Properties, Gilbert, AZ (480) 213-1799
SamElam3@gmail.com http://www.SamElam.com
Phoenix Real Estate
The December 2009 Phoenix Real Estate Market Statistics are out and the Phoenix real estate recovery that began in March of 2009 took a stutter step this month. Sales are up over November 2009 and way up over sales in December 2008. But the increased sales came at the expense of falling average and median sales prices. Prices are still off 52%from the peak in June of 2006. The overall market summary and links to the sales breakdown of homes in Phoenix, Scottsdale, Chandler, Gilbert, Mesa and Tempe can be found at http://www.SamElam.com. Scottsdale experienced the best performance with higher home and condo sales prices than in November 2009, thanks to the ”snow birds” arriving here from the cold country looking for real estate bargains.