Home Buyers Frustrated With Phoenix Real Estate

Home buyers looking for that still “Great Deal” home in the Phoenix metro area are soon so learn they may have waited too long to purchase.

In my busy world of real estate, working with buyers for their first home has become challenging to say the least. The recent surge we just experienced has buyers realizing that they are not the only home buyers making offers to purchase homes. Competing bids now on homes under 100k are so overwhelming that most buyers feel like they are at an auction block with competing bidders.

The below Trulia chart shows the surge that soaked up a TON of homes on the market from Late February To late June this year. Although this chart shows a drop in volume, it’s not because interest has fallen. It’s because inventory is shrinking and that’s what has buyers frustrated. The lack of affordable housing inventory has created an increase in demand which is forcing buyers to increase their offer amounts. Given so much of the inventory is foreclosed or short sale you can see how the banks are controlling the market by limiting the number of homes offered for sale and by allowing short sales to run their course before foreclosing.

Number of sold homes in Phoenix

An all to common term now in real estate home sales is “give us your highest and best offer” and usually comes with the even more familiar “Multiple Counter Offer Form”.

Fannie Mae (Homepath), Freddie Mac (Homesteps) and HUD have used this form of response to drive home buyers to become competing bidders against each other so that they can procure the highest net value for the property possible.

Banks other than the big three above that have foreclosed properties are also seeing the result of competing bidders. Even homes in the more pricey north locations of Desert Ridge, Tatum Ranch, Dove Valley Ranch or 85050, 85331 areas are seeing the demand for those less that 250k. Those homes are being looked at by potential retirees or “boomers” looking for something close to Scottsdale for less money (It’s a “lifestyle” thing) so they pull out their money from stocks, pay cash and make strong offers.

A recent article in the Arizona Republic noted how the Phoenix real estate market is on the rebound which if you are as active in valley wide real estate as I have been you knew it was coming.

So if you are thinking if purchasing a home for the family and your in the “less that 250k” range or even worse in the 100k or less range get ready to rumble. Have a lot of patience and prepare to write more than 2-3 contracts before you get one in fast enough to get it accepted.

That’s what it takes.

Stew Keene – Professional Realtor – Phoenix Arizona

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

Who Needs the iPhone 4?

OK, I know the title may be a little bit shocking to most of you who know how much I love my iPhone 4 and erupt on it’s amazing capabilities, but here me out on this.

Sitting here typing on my iPad after searching through the Internet, Face Booking, Reading RSS Feeds, Tweeting, Reading the Daily, Sharing Articles and now writing this Blog to share my latest thoughts and that brought me to an epiphany.

Why do I need an iPhone any more?

In March of this year we will see the release of a new iPad, the much talked about “iPad 2″.

This isn’t really news. It’s been talked about for months. But why should or how could it effect current or potential iPhone users and could this new iPad be having a direct impact on what was supposed to be a mass exodus from ATT to Verizon once the iPhone was announced to be moving there?

Here’s what might be happening…

I LOVE my iPhone 4

It is simply one of the most brilliant pieces of hardware combined with app software and an amazing tool for my real estate business.

That being said, like everyone else in the US, I’m also cost conscientious.

My iPhone 4 is costing me $140.00 per month to have data, SMS and use of the phone as a phone.

So, what does the iPad 2 bring to the table so well that I would consider shelving the iPhone 4?

Apps Apps and More Apps…

With the iPad 2 I will have the ability to take videos and photos, edit it and share them brilliantly with the apple software, check my voice mail with a voice mail app, check my e mail and respond with ease, surf the web, use the mapping feature to find things and navigate, write contracts, send receive and edit documents, capture electronic signatures and the rest is a list so long I could spend hours explaining…. and I can do all this for 25 to 50 bucks a month according to Verizon.

All I need a phone to do is answer and dial anymore. I can buy a used phone with a blue tooth connection on the cheap to make and receive phone calls for a fraction of the $140.00 I have been paying to do all this web stuff on the phone and I can’t emphasize strongly enough how much easier it is to do all that on the iPad.

But Wait! There’s more!

Then there’s Skype or Google Voice. I can use Skype as my phone if I choose to so now do you see why I’m becoming more and more an iPad 2 fan?

Come this March l will have a new iPad 2 and I will likely release the iPhone 4 to someone else interested in having a phone with the $140.00 monthly bill through ATT that comes with it and l will be doing it without hesitation!

I have a drawer full of Verizon phones for phone service that li could use to activate but now I’m thinking of just purchasing one of those pay per min phones if the iPad turns out to be as strong a tool as li think it will be.

What ever you decide, think it through.

Although this to me seems like a great idea, it may not be the right thing for you to do.

All The Best!

Stew Keene – Phoenix AZ Real Estate – Technology Lover