Prescott, AZ

IT REQUIRES A GREAT DEAL OF BOLDNESS AND A GREAT DEAL OF CAUTION TO MAKE A GREAT FORTUNE." Ralph Waldo Emerson.

This might have been the title on the new report out by Realtor.com earlier this month based on survey data. The results of the survey are based on interviews conducted from March 6 to 8, 2009. A total of 1,005 interviews were completed.

The report showed two sides of America's love affair with thier homes. One side is very worried about the state of the economy and foreclosures with 53% of Americans knowing someone faced by foreclosure. On the other side, about a quarter of adults plan to purchase a home in the next five years with more than half of them being first time homebuyers.

On the foreclosure side, unemployment is the main factor causing people to fear foreclosure. We've seen this in the Prescott and Prescott Valley markets with jobs lost in the real estate segment resulting in foreclosures and short sales by real estate and lending professionals.

More Americans are no longer viewing their homes as investments with over 60% looking at their homes as a place to live and not part of their portfolios.

"It's not all doom and gloom. We found Americans are optimistic about homeownership despite concerns," said Move, Inc., CEO Steve Berkowitz. "They're doing everything they can, from reducing discretionary spending to pay their mortgages, to planning to take advantage of the administration's new program to stop foreclosures. They're also working with lenders to modify loans. Even more impactful are numbers that show interest in home ownership is strong as nearly a quarter of all adults plan to buy a home in the next five years."

Top see the whole report: REALTOR.com National Homeownership Survey

The distressed real estate market in the Prescott area was once again busy on the listing AND closing sides this week. Eighteen new foreclosed or short sale homes came on the market, about one in every five homes being listed in the Prescott Arizona Area MLS system, and just under one half of the closings, or 8/18, were distressed sales in Prescott, Prescott Valley, Chino Valley, Dewey-Humboldt and the outlying areas of Yavapai County.

The difference between what newly listed traditional homes and Prescott foreclosed/REO and short sale properties per square foot remains large at a 40% discount.

On the sales side, multiple offer wars are being waged out there in the REO market! Of the 8 REO homes that sold this last week, 2 sold for more than asking price, and one sold at asking price. The discount between REO/bank-owned/short sale and traditional resales was 27% You want a bargain in the Prescott area market? Now is the time.

The market down in the valley is warming up too and that's good news for us as many of them buy second homes in the Prescott area.

See: More good news: Maricopa real estate market heating up

The percentage of foreclosed/REO/short sale new listings on market dropped rom 29% to 19% this week. Last week 39% of the pending sales were REO or short sales, and this week they made up 45% of the deals going into escrow. The amount of REO/short sales that closed last week went from 50% last week to 44% this week. REO/short sales also sold about 35% faster than traditional resales.

See the full report on our main web site to see what you can buy for $15 per square foot.

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Fico Scores/Reports

Activity in the distressed home market in the Prescott AZ area remains strong with 26 homes closing in the last 15 days. This compares to 43 homes sold by traditional resales.

The average price per square foot for REO and short sales was $87 and the average time to sell was 128 days compared to $124 per square foot and 169 days on market for tradional resales. You can see that the REO and short market is moving much quicker and at a much lower average price. Of the 25 distressed homes sold in the last 15 days, only 2 were short sales (highlighted in yellow). Several of the homes sold for more than asking price (see green highlight) and got multiple offers to get there. This tells me that multiple buyers are getting in the game.

Before you enter the fray, please read: Top 10 tips to win the REO multiple offer game.

To see the full report and the list of sold homes: Prescott Arizona Area Foreclosed and Short Sales

For more information on any of these listings including the days on market for an individual property, please contact me.

Search for Prescott area REO/Foreclosed and Short Sale Listings

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Homes Under $100,000 Really. At this moment in our Prescott Multiple Listing System there are 3 homes (in Prescott) under $100,000! To view these listings, please feel free to go to: http://www.paarmls.org/prs/maildoc/a002rI7665.html I am convinced this is the best time to buy property in our area! Not because we have homes under $100,000 but because prices are more realistic than they have been in the past year. Let's Be Positive!

Here in Northern Arizona an average real estate transaction still means a Seller wants to sell a home by finding a ready, willing and able Buyer to purchase said home at an agreed upon price.

No waiting 3 months or more for a bank to give approval, or purchasing a home without any disclosures because the bank has taken back the property or going "online" to bid on the property.

Less than 10%* of our Multiple Listing Service Area (Residential properties) consists of short sales listings, foreclosure or HUD Homes.

I would invite you to come and see the inventory of homes in the Prescott Area.

*As of Febraury 6, 2009.