It is very rewarding to work with people that truly deserve a home. These two wonderful people did exactly what we told them 8 months ago to prepare to purchase a home and because they followed all the details outlined by myself and of course my brilliant lender wife Angie Keene with Amerifirst Financial they just closed on their first home together!

Let my team of professionals help you achieve your dream of homeownership. Contact Stew Keene today at 480-220-7491 or stewkeene@gmail.com

Stew Keene – Professional Phoenix Real Estate Agent Providing Professional Real Estate Services In Phoenix Arizona

We have all been waiting for a real estate pricing recovery for the last few years since 2005 when the prices dropped nearly 50% in Phoenix just in the first year. Well, now it seems we got our wish, but not necessarily the one we asked for or at least not the kind of outcome that is a benefit to buyers.

In the last few months any affordable housing, specifically homes valued under 150 thousand, are seeing foreign investors purchasing those homes with all cash, close in two weeks and some now coming in higher than the asking price.

National Association of Realtors Credits Investors With Home Purchase Spike

A recent article published by Lawrence Yun with the NAR cited that Investors are pushing up market values again:

Investment and Vacation Homes Surge in 2011

What does this mean to Phoenix and Scottsdale first time home buyers? Well, from personal experience it means that being able to purchase a home that is within budget may be quickly approaching an end. In the last 2 months I have personally written at a minimum 3 contracts for properties near Scottsdale and Fountain Hills at full price with no seller concessions and we have had those rejected. It generally takes a 4^th or 5^th try and with a first time home buyer the patience and romance of buying a home can be more than frustrating as they fall in and out of love. This is creating an emotional roller coaster and defeatist attitude of “I may never be able to buy a home now” feeling.

Phoenix and Scottsdale Realtors are feeling the pain

Writing contract after contract and showing more than 20 or 30 homes to one buyer with a purchase price of 150 thousand dollars can take 3-6 weeks before a resulting accepted contract is finally in place. With some of those properties being offered at a very reduced commission, the cost of fuel services and technology and tremendous time invested in writing a contract offer some will look at themselves in the mirror and start asking why they still continue?

That being said, I still continue to work without hesitation. The need of people is so strong in this price point I feel that as long as I have a real estate license I’ll always try relentlessly to give hope where it’s needed and my clients will attest to that.

Phoenix Area New Construction On The Rebound

All is not lost though. New construction is finally taking hold of the market and none too soon. Builders in the Valley are reporting record numbers of people coming through their showrooms and applications to the county for build permits are flooding in. Although one inhibiting factor is that most are pushing the price point above 200k and I anticipate that with the current employment payroll standards providing less that most people need to make a higher payment, we may soon see the 40 year mortgage loan gain ground so that once again people can qualify for the payment.

HUD, Fannie Mae and Freddie Mac Foreclosures Offer Some Hope

All of these above foreclosure sellers have rules in place that prohibit offers from investors being considered for a home they have for sale until a time line of 10-15 days from the date it is listed for sale in the MLS. This can help keep competing cash investor offers from coming in to play and if the offer is fair most will be accepted.

With the continued reduction of available homes in Phoenix it is likely that this will continue to create a problem for the affordable housing market in less that 150k.

Here is a list of Homes For sale Under 150k

Showing properties 1 - 10 of 500+. See more city of Phoenix real estate.
(all data current as of 5/19/2012)

1. $55,000 : 2212 W Virginia Avenue, Phoenix
   
   3 beds, 1.00 baths

   Home size: 990 sq ft

   Lot size: 8,499 sqft

   Year built: 1954

   Parking spots: 3

   Days on market: 0
   
2. $74,900 : 3544 E Le Marche Avenue, Phoenix
   
   2 beds, 2.50 baths

   Home size: 1,201 sq ft

   Lot size: 2,117 sqft

   Year built: 1986

   Parking spots: 2

   Days on market: 0
   
3. $149,000 : 1438 E Kerry Lane, Phoenix
   
   3 beds, 2.50 baths

   Home size: 1,536 sq ft

   Lot size: 1 sqft

   Year built: 1986

   Parking spots: 2

   Days on market: 0
   
4. $125,000 : 3702 W Phelps Road, Phoenix
   
   3 beds, 2.00 baths

   Home size: 1,903 sq ft

   Lot size: 10,138 sqft

   Year built: 1979

   Parking spots: 4

   Days on market: 0
   
5. $64,900 : 2069 E Burgess Lane, Phoenix
   
   3 beds, 2.00 baths

   Home size: 1,695 sq ft

   Lot size: 6,460 sqft

   Year built: 1960

   Parking spots: 3

   Days on market: 0
   
6. $131,250 : 2313 W Village Drive, Phoenix
   
   3 beds, 1.75 baths

   Home size: 1,885 sq ft

   Lot size: 8,654 sqft

   Year built: 1959

   Parking spots: 2

   Days on market: 0
   
7. $95,000 : 907 W Saint Kateri Drive, Phoenix
   
   3 beds, 2.00 baths

   Home size: 1,349 sq ft

   Lot size: 4,780 sqft

   Year built: 2003

   Parking spots: 2

   Days on market: 0
   
8. $65,000 : 4020 E Aster Drive, Phoenix
   
   3 beds, 2.00 baths

   Home size: 1,248 sq ft

   Lot size: 7,058 sqft

   Year built: 1978

   Parking spots: 2

   Days on market: 0
   
9. $129,900 : 2801 W Muriel Drive, Phoenix
   
   3 beds, 2.00 baths

   Home size: 1,451 sq ft

   Lot size: 5,260 sqft

   Year built: 1994

   Parking spots: 4

   Days on market: 0
   
10. $110,000 : 2443 W Mobile Lane, Phoenix
    
    4 beds, 2.00 baths

    Home size: 1,900 sq ft

    Lot size: 5,414 sqft

    Year built: 2005

    Parking spots: 2

    Days on market: 0
    

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Most every buyer I work with that starts looking at homes in Scottsdale eventually comes across homes for sale in “South Scottsdale” that are priced well, although older.  Their are some value properties in South Scottsdale that are a mixed blend of Scottsdale Patio Homes, Town homes, Apartment Conversions and Single Family Detached Homes. Build Dates are between 1965 to about 1985 in most of the “Older Communities of Scottsdale” and further investigation will reveal that these homes are located in areas where manufacturing companies like Motorola, Siemens and Smith-Kline Beecham were once producing products with chemicals and pouring those off into the ground. So began the creation of the Superfund Site.

Awareness of Toxic Waste in Scottsdale

Awareness of Toxic Waste became more and more prevalent in the late 70′s and early 80′s. Further investigation performed by the EPA discovered that companies around the US were embracing this practice so theEPA and other Governmental entities and public pressure forced regulation condemning the practice. One of those companies that were major contributors were Motorola and they were heavily fined along with other companies. The bulk of those fines were placed in account named the “Super Fund”. Monies from the Super Fund account were used to pay for clean up of the toxins in the soils and those toxins that leached into the ground water.

The first proposed remedy in the EPA’s outline agreed to by those companies that were the big contributors came in 1988 when the ground water clean up plan was initiated which followed in 1991 with the soils treatment and then finally the 2001 decision for a final outline of the clean up process. The EPA’s site will also tell you that the process is still continuing. Soil clean up is expected to have been completed by this year but the ground water clean up is still ongoing. Here is a map of the Areas near homes in or around 85250, 85251, 85257 and 85258 that may be effected by this environmental issue.

North Indian Bend Wash Superfund Site Map

In spite of the fact that this environmental area has been of a concern, it has not prevented people from living actively in their homes in this area at all. In fact, much of this area is seeing an improved home structure and neighborhood. Investors are purchasing and flipping homes updating them with more modern features typically called “Mid-Century Modern” which is very appealing to a younger crowd. The improvements can be pretty substantial with new wiring, plumbing, air conditioning and so on.

Investors Pay Cash For Scottsdale Town Homes

The area is also fraught with Canadian investors paying cash for anything under 150 thousand located in this area. Some are using the dwellings for 2nd residences and others are renting those out.

Not much is changing and I have seen no sign of any kind that would indicate that this area is a turn off for buyers, inspire of the Superfund site stigma.

Here is a list of homes for sale in, near or around the super fund site area in South Scottsdale in case you are curious.

Resources for this article include:

EPA Page for Region 9 Super Fund Site

• Containment and Risks
• Investigation and Clean Up Activities
• Clean Up Results To Date
• Public Information Contacts

Happy Friday!

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