It appears as though our Phoenix, Arizona
market is adjusting. I’ve been keeping track since January 1, 2009 (and before),
and posting updates regularly. If...
The real estate market in the Phoenix, Arizona and Mesa, Arizona valley is going through more twists and turns as foreclosed homes come onto the market.
Unfortunately, many buyers are competing against cash buyers – and
losing. The old saying, “cash is king” is true in this competitive
real estate market.
Recently one of my buyers
made an offer on a foreclosed property. Over asking price, very clean,
and a desirable offer to any potential seller. However, the buyer lost
out to a cash buyer even though the cash buyer offered less. Even the REO agent wanted my buyer to get the home, but has no say!
Why? You ask? Would the bank
accept a lower offer? In our market, appraisals are all over the place.
As of May 1, in order to “fix” or “remedy” the problem, a new federal Home Valuation Code of Conduct
was placed into effect. No longer are the lenders allowed to speak with
the appraisers – nor are they allowed to “choose” the appraisers that
will be appraising a home “they” are lending on. Bottom line? It’s a
mess!
The left doesn’t know what
the right is doing, homes are not appraising, and there are multiple
bids on the most desirable homes.
Despite the issues we face, Realtors will continue to push through the
paperwork, the difficult appraisals, and we will write two, three, four
and more offers in order to get our buyers a home. Ridiculous? Yes!!
BUT, this, too, shall pass!
For more insight and understanding about what’s going on, click on the links here and here.
It appears as though our Phoenix, Arizona
market is adjusting. I’ve been keeping track since January 1, 2009 (and before),
and posting updates regularly. If you will recall, in January, we were up to
almost 60,000 active listings. Things are changing. As of today, May 3, 2009, we are at just above 39,000 active listings. Inventory stats of all
listings in our MLS are as follows:
March
19
Active: 48,837
Pending: 10,869
April
3
Active:45,694
Pending:11,896
April
10
Active: 44,348
Pending: 12,963
April
17
Active: 42,907
Pending: 13,403
April
29
Active: 40,437
Pending: 14,226
Listed below are the
comparisons for the cities and for the zip codes indicated. Note that I am only including Single Family Residences and not
townhomes, apartment homes, etc.
I plan to post on my websites our Phoenix, Arizona MLS market stats weekly because it is changing so quickly. I am also working at making it clear and easy to understand to give my readers information on our market in Phoenix. For weekly updates, stop by my blog at: ComeToSunnyAz.com
Inventory stats of all listings in our MLS are as follows:
March 19
Active: 48,837
Pending: 10,869
April 3
Active:45,694
Pending:11,896
April 10
Active: 44,348
Pending: 12,963
Listed below are the comparisons for the cities and for the zip codes indicated. Note that I am only including Single Family Residences and not townhomes, apartment homes, etc.
Many buyers that ARE in the market to
purchase a home have an unreasonable expectation of what homes cost.
They hear all about the “deals” out there for $50,000 $60,000 and up,
and are looking at those prices. And they want a four bedroom, pool,
three car garage, etc. I’m even hearing such things as “that home is
way overpriced!” Really? How does the buyer know that – unless he/she
hears that from a friend, or watches the news, or reads the newspaper.
How about “asking” the Realtor?
EVEN if the property is overpriced, it won’t appraise! Typically, those low ball prices indicate a beginning price, or the property has major issues. Even up to $100,000 is a questionable number when purchasing a nice home – even in Arizona.
Many are walking away from the short sales. One warning for all of those buyers considering of a short sale, and thinking what a great deal they will get. Yes, SOME may work, but the majority do NOT.
For one example: What if you make an offer on a short sale, and the seller, as most do,
has a second on the property? What if the second lender won’t acquiesce
on the money owed to them? Then what? I’ll tell you what!! For months
you wait – the first finally agrees on a dollar amount - but the
second won’t budge.
The
deal falls through. Simple as that. Never mind that the second loses
its entire dollar amount owed if the home is foreclosed upon. I was
showing a home on Saturday, spoke with the listing agent, and after
months of waiting, this exact scenario happened, and the buyers walked.
Consider purchasing from a seller with whom
you can negotiate, and who will make those repairs, and provide you
with the disclosures and insurance information that is important. On
Saturday, last, I showed several homes – one of which was listed by a
seller! It was comparable in size and in price – and in STELLAR
condition.
Yes, this is
a great time to buy a home, but do so wisely. Work with an experienced
and knowledgeable Realtor who can advise and counsel you through the
process.
Since our Arizona summers can reach into the teens, we rely heavily on our air conditioners to keep us cool. I think back on when I was a child – way back – and remember only having an evaporative cooler. Even tin sheds now have air conditioning.
Each year, SRP offers its
customers a deal for $59.95 per unit to have them checked by a
licensed, bonded and insured contractor performing a 16-point checkup
on our cooling equipment.
Good idea to perform this service before
summer arrives. Otherwise, you might be spending the night at a hotel
or a friend’s home when/if your a/c goes out. It can take a few days for a repairman to make it out to your home during the summer – and you do know? Stuff always happens on the weekend.
Call the SRP Certified Contractor Program at: 602.274-6808 and arrange to take advantage of this great offer. This offer valid until April 30.
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purchase a home have an unreasonable expectation of what homes cost.
They hear all about the “deals” out there for $50,000 $60,000 and up,
and are looking at those prices. And they want a four bedroom, pool,
three car garage, etc. I’m even hearing such things as “that home is
way overpriced!” Really? How does the buyer know that – unless he/she
hears that from a friend, or watches the news, or reads the newspaper.
How about “asking” the Realtor?
