The Phoenix Real Estate Market Is Changing

The market here in Phoenix and the surrounding metro area is changing. It’s very robust. Almost every Realtor I have spoken to feels the same way. Their clients are having to increase their purchase amounts, respond to multiple counter offers and/or being disappointed because they were outbid.

The challenges in this market in Phoenix are a complete switch from even a year ago.

So what has changed? Nothing! that’s right, nothing!

Buyers have ALWAYS been drawn to the valley of the sun because of the sunshine.

BUT Wait! There’s More! Phoenix also has some of the most affordable sunshine properties you can find and in the most desirable areas.

These homes sell now so quickly I am writing offers on the day they are listed just trying to beat that next offer! this is good for the market but very frustrating for buyers.

Most believe that the market is still on a down turn. This month alone the Arizona Real Estate Multiple Listing Service has shown 8500 sales and last month it was about 9000. Those sales numbers are HUGE! There’s a little thing called supply and demand. If you start really looking closely (as I do of course we very day) you can see how fast properties that are listed are under contract and sold. It happens so fast now it will blow your mind.

A good example is the homes in Desert Ridge and that general area. Anything under 300k sells almost immediately if it is at least 2000 sq feet. I have seen it live time because I preview that area so much.

The hot ticket is 3 bedroom, 2 bathroom homes under 250k in the north Phoenix or Scottsdale area.

Retiree’s are buying these, renting them out and planning on occupying in 2-5 years. These are great investments for people contemplating retirement in Phoenix and Scottsdale because the market is starting to show price increases. 5 years should show significant appreciation which may allow them to improve the home with a pool, interior upgrades and so on to make it their retirement treasure with a home equity loan or cash out refinance.

You will hear many Realtors telling you that NOW is the time to purchase and now you should really be heading that call.

Have a Great Mothers Day!

Stew Keene – Professional Realtor – North Phoenix and Scottsdale Arizona Homes and Land

More Positive News For Phoenix Real Estate

A recent article from Freddie Mac has shown a positive forecast for home sales in 2011 as a “slight increase” due to positive employment figures. This is due to several things but as I have said in the past over and over again, Employment will be the number 1 reason we see Real Estate start to rebound.

Another important thing is that we here in the Phoenix metro area seem to rebound much faster than the rest of the country as the sun shines, no hurricanes and recreation.

Although we may see more Phoenix homes come to the market from Foreclosure, at least the banks aren’t cutting their own throats with a panic REO inventory sale which negatively effects home valuation and stabilization.

Here is a copy of the article for you to read…

Increase in Home Sales

04/15/2011 By: Heather Hill Cernoch

Freddie Mac forecasts a 5 percent increase in 2011 home sales over 2010, according to its U.S. Economic and Housing Market Outlook for April.

The report also contends that refinancing will likely account for a smaller share of loan applications later this year as wealthy borrowers decrease and mortgage rates increase.
“Expect to see a bit of spring in homes sales activity during the second quarter,” said Frank Nothaft, VP and chief economist at McLean, Virginia-based Freddie Mac.

Nothaft continued, “Sales contract signings for existing homes were up in February, positioning the market for a bounce up going into the traditional home-buying season.”

The expected pick-up in home sales is due to recent positive employment reports, the Market Outlook reveals. Unemployment declined for the fourth straight month to 8.8 percent, and net employment increased by 216,000 jobs. Real estate employment was up by 10,000 jobs since last November.

The report also calculates that the share of adjustable-rate mortgage loans will be 7 percent in 2011 compared to the 5 percent 2010 average.

Freddie Mac compiles data on major economic and housing and mortgage market indicators and offers forecasts based on those indicators.

End of Article

My perspective? I believe it. From the decreasing inventory of homes month to month this year and the reported inventory of homes down to a 3.8% here in Phoenix that is a very low number. Just last month in March there was a 4.5% supply and this inventory is continuing to shrink.

Hot areas for a Phoenix Home such as Desert Ridge prove my point as home sales continue to remain active and prices are stable if not showing an increase in valuation according the local ARMLS numbers.

Of course, knowing where to buy is as important as it every was.

All The Best!

Stew Keene – Professional Realtor – Phoenix, Arizona

You Can Never Know Enough or Know It All…

Like life, Real Estate has a lot of twists and turns.

No matter how prepared you are there will always be a situation that pops up that you did not expect and the learning begins.

That’s the way the real estate market is, just as it is for all of us regardless of what you do.

No matter how much you try and prepare yourself, no one person can know everything nor be prepared for every different scenario.

Im sure that you are all wondering where this is going, so let me explain.

Negotiating Short Sales is a constant challenge and not many have the stomach for it.

It’s trodden with stumbling blocks along the way that only allow you to be reactive in stead or proactive.

I have had to face many a situation in real estate in which thinking your feet was the only thing you can do.

Most of the time I have been fortunate to at least pick a “best direction” which although it sounds easy, it’s not. It’s not because my business of Real Estate effects all those involved and quite directly.

If you are faced with a game changing choice that could either mean making or breaking a short sale, here is my advice.

Always make the decision in your clients best interest.

Remember that what ever the outcome, its not about the close and picking up the commission check, it’s about making the best decision for the seller and the buyer and then picking up the check, not before.

And here’s a little secret I’ll share with all of you that has taken me years to understand the value.

TIME

it’s your best friend…