Real Estate Information

So it’s been about a month since the last time I shared an update on the current market inventory in Maricopa County. Maybe it’s a shock, maybe it’s not but as of today, we have more sale pending homes than we do current available inventory! As of this morning, Maricopa County is reporting 16,391 active homes and a combined total of 17,996 between pending sales and sales with contingencies. Last month I talked about the why – robo signing, etc. This month I want to talk about history, the future and what I want to call the “ebb and flow factor.”

The metro area is roughly 4 million in population and we are the 14^th largest city in the U.S. In reality, the median home price has dropped 53% since the peak of 2006 where we are currently hovering around $120,000 – pretty brutal, huh? But history will remind us that Phoenix is no stranger to a “boom and bust” market. But it was not that long ago (late 1980’s) after the savings-and-loan nightmare took down several local developers, including Mr. Charles Keating (who served 4 ½ years in prison for fraud after his Lincoln Savings and Loan collapsed in 1989) that Phoenix experience what we thought at the time was economically catastrophic. The future then? Well, we recovered.

Home sales were up in June by 22% according to NAR (National Association of Realtors) and it was the second consecutive month of strong sales with June reported to be the best since December 2006. Good? I remain optimistic – I have to believe we are on the road to recovery in some fashion, even if it’s by way of a Flintstone vehicle.  

The future – well in reality, we sold a total of 4,725 homes in the month of June – a large degree of those home sales were to non-owner occupants. Nearly half of the foreclosure sales over the past year have been turned into rentals – either with International monies or investors capitalizing on the opportunity to buy low and hold.

The ebb and flow factor? I think so. Evictees have to rent – which has caused rental rates to go up by 9% - which on the surface may not seem like a positive but in the big picture it is. Let me explain.

A few years ago there was a rash of catalytic converters stolen out of parked cars. So some genius came up with the idea to create a cage for your vehicle to protect the catalytic converter – while one thing is a negative, the other is a positive – thus creating a win-win for the economy. Right? The ebb and flow factor.

While the rental market has shifted greatly, home affordability has improved tremendously. With home prices down, mortgage rates practically free (today they are 3.750% for a 30year fixed FHA loan) this is the best time to buy in Phoenix is over 20 years – in some areas of the Valley, prices have come down below values in 1998. People who thought homeownership was completely out of reach for them in 2006 are now able to buy their dream home – for cheap.

So yeah the higher rental rate might be a negative but for every person who has to rent, there are 2 or 3 who can afford to buy – and that is the positive – or the ebb and flow factor. The future? Although I do not have a crystal ball, I will say this – if you are sitting on the fence, its time to jump before you miss out on history! Call me today to get started – first time, inventory, 2^nd home – it doesn’t matter what you want, we can help you do it. I look forward to hearing from you.

Arrowhead Grill, located at 8280 W. Union Hills Drive is celebrating their 3 year anniversary! This is one of my favorite places to dine, so I thought I would share their unique way of celebrating.

Each week in August, Arrowhead Grill is giving back to the community - pretty cool, huh? Check it out:
August 8th-14th - for every Delmonico Steak purchased, Arrowhead Grill will donate $3.00 to a local Glendale and Peoria Elementary school. All the students will have a choice of hamburger or popcorn shrimp - for free!

August 15-21st - Join Arrowhead Grillon FaceBook - anyone who posts a comment on the Arrowhead Grill Fan Page will be entered to win a daily drawing for a $30.00 gift card. Plus $3.00 will be donated to St. Mary's Food Bank with any Delmonico steak purchase.

August 22-31st - Arrowhead Grill will be hosting a week long charity drive for St. Mary's Food Bank. The guest who has the largest cash contribution to St. Mary's Food Bank will win a private dinner prepared by Chef Charles. Again, with all purchases of a Delmonico steak, $3.00 will also be donated to St. Mary's Food Bank.

If you haven't been to Arrowhead Grill yet, this is a great opportunity to help them celebrate, give back to the community and experience great food! I know I will be - hope to see you there!

Tomorrow, August 11th, 2011 is "Miracle Treat Day" - buy a blizzard at any Dairy Queen and $1.00 will be donated to the Children's Miracle Network. Since 1984, DQ has raised over $86 million for the network hospitals.

As part of the RE/MAX family, we donate a portion of every commission we earn to CMN which goes to help our local Phoenix Children's Hospital. We are huge supporters of this fabulous organization that helps thousands of sick kids every year.

Join us tomorrow, August 11th for "Miracle Treat Day" and help us continuing to provide assistance to our valley's youth by purchasing your favoriate blizzard treat at a DQ near you!

There are many options when it comes to picking a Realtor to work with. Check out this funny video that compares the competition with a RE/MAX agent - why choose RE/MAX? Because nobody in the world sells more real estate than RE/MAX. If you are looking to buy or sell in the Phoenix market, please call me today!

The Five Star Institute, a mortgage industry group based in Dallas, Texas, announced a partnership with Fannie Mae to educate real estate agents on Fannie Mae’s Short Sale Assistance Desk (SSAD).

Fannie Mae’s SSAD helps expedite the process by allowing real estate agents to reach out to Fannie Mae directly for short sale approval of first-lien, Fannie Mae-backed loans. Agents can access the appropriate forms through multiple listing services (MLS).

The SSAD simplifies complex, post-offer issues that arise in regards to servicer responsiveness, second liens, and mortgage insurance.

After receiving forms through MLS, Fannie Mae reviews each case and coordinates with servicers to complete short sales when possible. The Five Star Institute – which offers certification courses in REOs, short sales, and BPOs – will now add SSAD training to its curriculum.

With 107,953 short sales last year, short sales continue in significant numbers this year – 35,406 as of April, according to the Federal Housing Finance Agency.

“We are committed to helping homeowners avoid foreclosure whenever possible. The Fannie Mae Short Sale Assistance Desk helps real estate professionals resolve any issues that they may encounter during the review and approval process,” said Marcel Bryar, Vice President of Fannie Mae.

“We are pleased to leverage Five Star’s expertise in using advanced training programs for agents and brokers specializing in REO, default, and foreclosure to educate them on the benefits of the Desk,” he continued.

The Five Star Institute provides education and networking opportunities to real estate professionals through educational courses and its annual Five Star Conference and Expo, attended by more than 5,000 agents, brokers, and servicers each year.

“We are honored to work with Fannie Mae by incorporating the Fannie Mae Short Sale Assistance Desk into the innovative curricula that Five Star makes available for mortgage industry professionals,” said Ed Delgado, CEO of the Five Star Institute.

“This is good for homeowners in distress; good for the mortgage servicers, agents, and brokers that provide these short-sale services; and good for the housing and economic recovery at large,” he said.

Source: DSNews.com
(Note: The Five Star Institute is the parent company of DS News magazine and DSNews.com)

Millions of homeowners across the nation are experiencing difficulties paying their mortgages. If you or someone you care about is feeling the stress of an unaffordable mortgage, please take the time to visit www.AZShortSaleResource.com to learn how we can help you.

As a Certified Distressed Property Expert (CDPE), I've been extensively trained to counsel and guide homeowners through their options. There are dignified solutions available to help people get back on path to financial stability. My clients have found strength in the knowledge that they are able to take an active role in avoiding foreclosure.

I would like to offer you a free report with 10 Ways to Alleviate the Stress of an Unaffordable Mortgage Payment.

They know that avoiding foreclosure is key in providing for a brighter future. Foreclosure can wreak havoc on credit and affect current and future employment status in addition to many other long-lasting side effects. In the report, I demonstrate just how harmful foreclosure is in comparison to an extremely effective alternative called a short sale.

I can help you or someone you care about create a strategy for living a life without the burden of missed payments. Call me today, and let's work together to put you back on the path of financial stability.

http://www.nateshomes.com/agent_files/REMAX%20National%20Housing%20Report_June%202011.pdf

RE/MAX, LLC | 5075 S. Syracuse St. | Denver, CO 80237 | United States

Top 10 Tips for Back to School

It seems like it was just the other day we were bracing ourselves for another hot Arizona summer – and now, across the Valley, kids and parents are gearing up for the first day of school. Here is a list of 10 back to school tips to help prepare you and your child for a successful school year.

1.)    Confirm the date school starts and when your child should arrive. Highlight this date on the family calendar so everyone knows well in advance. This will help reduce last minute stress. Find out important school phone numbers, school hours and how to report any absences before you need them. Post this information on the refrigerator or some place that is accessible for everyone in the family to see.

2.)    During the summer it is easy to let your child stay up later than normal or get off their daily routine to allow for summer time activities and events. But it’s a good idea to start back on the “school day” routine a week before school starts, so your child is back in the groove and getting enough sleep.

3.)    In the event the school needs to reach you or someone in your family, make sure you have filled out emergency contact information. Keep this information up-to-date if there are any changes throughout the school year.

4.)    Have an emergency plan with you child – do not wait for something bad to happen to create a plan! If your child walks or rides a bike to school, make sure they have a buddy or stay with a group to and from school. Review the route with them and stress the importance of staying on the route (no short cuts!). Have a safety plan if someone approaches them; teach them what to do and how to call for help. If your child is old enough, they should know how to dial 911!

5.)    To ensure the best learning opportunity for your child, you should have their vision and hearing tested before school starts. If they need to wear glasses or require special seating arrangements, review this with their teachers before the first day of school.

6.)    Meet your child’s teachers – ask lots of questions about their school year curriculum, teaching preferences and grading styles. Find out how their teacher(s) would like to communicate with you – via phone or email or both.

7.)    Get involved and stay involved in your child’s learning – mark all school events on the family calendar.

8.)    Know the bus routes, pick up and drop off times. Make sure you child knows what bus # they are suppose to take to and from school. Have a family plan if your child should accidently miss the bus.

9.)    School Supplies – be familiar with what your child or children will need for their grade in school supplies. Ask their teachers what will be provided and what you need to provide, especially when it comes to special projects. Some basics all kids, no matter what grade will need are:

• Back pack
• Lunch box
• Pens (assorted colors)
• Pencils, including colored pencils
• Crayons
• Erasers
• Spiral note books, sheet paper
• Highlighters
• Glue sticks
• Pocket folder

10.)   Shopping for School Clothes – be sure you know about your child’s school dress code before you spend money on clothes. Make sure they have plenty of the appropriate gym clothes (if applicable).

• Before you go shopping, take a quick inventory of what your child already has and what they will need. Donate or take their good, used clothes to a consignment shop for cash.
• Stock up on the basics, like socks and underwear and any other items your child uses a lot throughout the year.
• Looks for coupons, specials – a great place to shop for a discount is at outlet stores or online through “over stock” websites.
• Be familiar with current trends – there is no sense buying your child something they will not wear if they do not think it is “cool.” Know what is appropriate for your child’s age before you go shopping - it will safe you the headache of returns later!  

Phoenix Market Update

Today in the Arizona Regional Multiple Listing Service (MLS) there are reported to be 17,295 active available homes for sale. This is down from the last report I shared a month ago when there were 22,750 active homes on the market. Where are all the properties going? Why is the inventory slipping at such a rapid rate? Are we really seeing signs of recovery?

There are currently 10,850 homes sale pending with another 7,023 homes under contract accepting back up offers. Add these two numbers together and we have more properties with accepted offers then we do available inventory -- even in the 2003-2005 boom this never happened to our inventory!

So what is happening? According to a report by RealtyTrac, there are processing problems with the major mortgage servicers due to the robo-signing antics we heard about last fall.

There were several big banks, in 50 different states, under investigation for so-called “fraudulent” foreclosure proceedings which has caused the pendulum to swing the other way -- we went from hundreds of files being funneled through the foreclosure channels daily to a screeching halted which has resulted in minimal new inventory coming onto the market.

RealtyTrac reported, lenders issued a foreclosure filing on more than 1.1 million properties in the first half 2011, down 29% from the same period one year ago. More than 608,000 properties received a filing in the second quarter, down 32% from the same period last year. And foreclosures in June were down 29% from one year ago, the ninth straight month of yearly declines.

"It would be nice to report that foreclosure activity is dropping as a result of improvements in the economy or the housing market," said RealtyTrac CEO James Saccacio. "Unfortunately, with unemployment rates inching back up, consumer confidence weak and home sales and prices continuing to languish, this doesn’t appear to be the case."

"Processing and procedural delays are pushing foreclosures further and further out," Saccaccio said. "This casts an ominous shadow over the housing market, where recovery is unlikely to happen until the current and forthcoming inventory of distressed properties can be whittled down to a manageable number."

It is projected that this robo-signing mess, which is still being sorted out and corrected by big banks, could push the pending foreclosure inventory well into 2012 before it is completed addressed. However, each month, the foreclosure process seems to be showing signs of life. In June foreclosure filings across the country increased 4%.

Here, in our Phoenix Market, we had a record number of sales in June – 5,114 homes closed! Although the inventory is lower than normal properties are flying off the shelves in record numbers. We are seeing signs of stabilization and in some communities prices are starting to increase due to multiple offers. I know there is still a lot of uncertainty, especially when we read reports such as the one I have shared. But I will tell you, in my 25 year career, I have never experienced a market like we are in today. Housings we sold 5 years ago or even 10 years ago are now for sale for thousands less -- even with the looming possibility of foreclosure inventory continuing for years to come, we are still at a record low for home pricing. It is a great time to buy -- first time, move up, investment or vacation home -- take advantage of the market and buy now!