Troy Erickson (Terra Solis Realty, LLC) Chandler, Arizona 0

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2009 A busy year for Lenders

2010-02-01 19:14:25

2009 was a busy year for lenders. Not because they were busy loaning out money to new home buyers, but because they foreclosed on nearly 41,000 single-family detatched homes here in Maricopa County. Yes, it is a record, and it made up 35% of all existing home transactions for the year. Because of this large number of foreclosures, the total sales of single-family homes rivaled that of the glory years of 2005, but for very different reasons.

According to the report written by Jay Butler, associate professor of real estate at the W.P. Carey School of Business, foreclosures were up again in December, to 4,060. Median single-family home prices also took a dip to $140,000, from $143,000 in November. Home resales for December were at 5,740, which was up from the November total of 5,350.

If you compare December 2009 with December 2008, foreclosures were up about 31%, the median sales price was down 4%, and resale volume was up 33%. It's no coincidence that the resale volume almost equals the increase in foreclosures. Here's a graph of how some of the cities fared:

CITY	DECEMBER 2009 RESALES	% CHANGE FROM 2008	DECEMBER 2009 MEDIAN	% CHANGE FROM 2008	DECEMBER 2009 FORECLOSURES	% CHANGE FROM NOVEMBER 2009
Phoenix	1,595	17.3%	$90,000	0.0%	1,295	43.9%
Chandler	340	61.9%	$188,450	-15.5%	205	57.7%
Gilbert	350	45.8%	$185,200	-9.0%	240	60.0%
Mesa	530	19.1%	$135,000	-8.8%	380	26.7%
Tempe	80	0.0%	$181,250	-17.9%	50	25.0%
Maricopa County	5,740	33.0%	$140,000	-4.1%	4,060	36%

Folks, we're not out of the woods yet.

Foreclosure prices in Phoenix Metro near bottom

2010-02-01 19:13:25

Foreclosure prices in the Phoenix Metropolitan Area may be at bottom, but...

The price of a Phoenix area foreclosed home is roughly the same as it was a year ago. According to Arizona State University professor Karl Guntermann and his Repeat Sales Index, preliminary data shows that the median price of a foreclosed home in December 2009 was down just 2% from December 2008. This means that foreclosure prices have basically reached bottom. This has been a drastic change since October 2009, when foreclosed homes were selling for 15% less than they had a year earlier. In November, that difference dropped to 9%. The median sales price for December 2009, according to Guntermann was $127,000, up from $120,000 in November.

Interesting enough, the median sales price for non-foreclosures, or traditional home sales, is still declining. The median price for traditional sales in December was $158,000 compared to $166,000 in November. This declining trend has been continous for 32 months, since home prices peaked in the middle of 2006.

I believe that this trend will continue as the number of foreclosures decreases, and the foreclosure median sales price increases. Traditional home sales prices will continue to decrease because they are listed at a higher price than foreclosures, and not selling. They must lower their prices to compete with the roughly 35% of homes for sale that are foreclosures.

If this trend continues, we will eventually see that there may not be any difference between the sales price of a foreclosed home and a traditional home sale. Right now that gap has closed to just under a 20% difference.

Chandler, AZ Beauty: 1219 S Emmett Drive

2009-01-19 00:50:31

Check out our latest listing!

http://www.realbird.com/feed.aspx?id=B7D3D3B4

Top 10 Things to look for in a Buyer's Agent

2009-01-19 00:37:26

1. The agent should be able to demonstrate how they will help you obtain your goals; typically through their education, communication, negotiation skills, and commitment.

2. Agents should have a plan to find the right house, as well as an objective assessment of the home, and ability to help with the financing and inspection process.

3. An agent should have the time available to work specifically with you, and not be too consumed with multiple buyers and sellers as to neglect your time.

4. An agent should agree with you on how often you will be communicating with each other.

5. Agents should look for homes in the price range you are comfortable with, not necessarily what you qualify for. An agent should be able to provide you with a list of comperable sales to establish an offering price.

6. Buyers need to understand the real estate purchase process, so agents need to be comfortable in explaining the procedure; from searching for a home, to making and negotiating an offer, to inspections, lending, escrow, and closing.

7. A buyer will want an agent that is current on education and real estate law. Commitment to education indicates a high degree of professionalism.

8. Agents need to be able to discuss how a business relationship with the buyer can be improved or terminated so there are no surprises.

9. Reputation of an agent is critical in the real estate industry. An agent should be able to provide any buyer with references from past clients, as well as business partners such as title companies, lenders, and home inspectors.

10. A buyer should be looking for a Realtor because a Realtor is a member of the National Association of Realtors, and is obligated to follow a strict code of ethics.

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