Ann and Ralph Heins RE Broker Tempe, Gilbert,Chandler, Mesa

PHOENIX AREA: EAST VALLEY

FEBRUARY 2012 UPDATE

Why Are There so Few Homes for Sale under $200,000???

Why are There Bidding Wars ?

What Happened to the Declining Prices?

Wall Street Journal article 2/1/12, "Obama Seeks Refinancing Aid to Lift Housing"

• The White House is implementing without Congressional approval an auction process for bulk sales of foreclosed homes that federal entities (HUD, Fannie Mae, Freddie Mac) would sell to investors (huge Wall Street firms)who will maintain them as rentals. (Ann:Actually, the Feds asked for bids 9-15-11 and big chucks of homes were sold at deep discounts)

• Now only 1 out 10 loans is backed by someone other than Fannie and Freddie (Ann: so 90% of loans under $417,000 will be sold to Wall Street. Loan over $417,000 require private money.)

• Fannie Mae just announced Bulk Sales of foreclosed homes (ie. to Wall Street)for So Cal, Atlanta, Las Vegas, Phoenix, and parts of Florida

• The President also announced that he will help millions of homeowners refinance their mortgages: (1) Must be current on mortgage payments, (2) lower-interest federally insured loans, (3) even if homes "underwater" and (4) owner has problems qualifying for a loan.

Celia Chen, S&P Housing Economist

• The recent federal and state governments' lawsuits against the top Lenders will "help avoid" up to 1 million in defaults "relieving pressure on house prices"
• "While the number of distressed homeowners helps only a small share of the estimated 14.6 million who are underwater, it will slow the flow of foreclosed, vacant properties into the market."
• The states likely to benefit the most....are Nevada, Arizona, California, Florida, Ohio, and Michigan.
• Ann: The so-called "Robo Signing" settlement was started by the Feds over alleged poor documentation. Then all 50 states jumped into the controversy and they squabbled for over a year on the millions. There was no lawsuit, no trial, no judge, no jury, no depositions, etc. - forced settlement.

Wall Street J., 2/28/12. "For the Costliest Homes, Foreclosure Comes Slowly

• "High-end homeowners are able to remain in their homes, without making payments, for far longer than those with smaller mortgages"
• Nationally: $1 Million or higher Loans-live for FREE in home average 792 days
• $250,000 or under Loans-live for FREE in home average 611 days

• Lower priced loans are resold to investors backed by Fannie and Freddie who want the foreclosed properties off their balance sheets (Ann:so sold to monster Wall Street firms in bulk)
• Banks tend to finance the high-end homes so they do not want to take the "hit" to their financials and thus have problems with the Regulators

• High-end homes are more expensive to maintain and take longer to sell

Wealthy have "more assets and better prospects of recovering"

Ann and Ralph Heins, Brokers/Owners

AZ Investing, a full service residential and commercial real estate brokerage.

Investors: We provide Property Management: Owned and Self Managed over 100+ Units

480 797-2896

mailto:InvestingInAmerica@Q.com

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http://AziHUDHomesforSale.com

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http://AZiMesaHomesforSale.com

http://AZiGilbertHomesforSale.com

http://AZiChandlerHomesforSale.com

This 4 bedroom HUD home with a pool and in Chandler AZ, 85225 has 2 baths plus a double car port and is located at 896 W Del Rio Street on a large lot in the Sunnyacres subdivision. Its block construction with beautiful brick veneer is built to last and gives this home great curb appeal. The floorplan in this 4 bedroom HUD home with a pool in Chandler AZ includes a living room, extra-large family room and formal dining room. The floors are ceramic tile with some neutral carpet. The efficient kitchen includes a dishwasher, stainless steel sink, tile counters and backsplashs. All of the bedrooms have tile floors and ceiling fans with lights. There is a cozy covered patio for BBQing and entertaining that overlooks the very large, fenced, grass back yard and the extra large private pool. Any kids who live in this 4 bedroom HUD home with a pool in Chandler AZ will attend Encinas elementary, Bogle jr high and Chandler high school. There is good shopping, transportation and the 101 freeway close by. This home is being sold AS IS and requires approximately $3,200 in repairs that can be financed by using a low down payment FHA 203k rehab loan. This is not a short sale but is a HUD government owned foreclosure. REO homes in the Phoenix area are becoming scarce with only a little over a month's supply remaining, so you will be making a very wise decision to contact us today to see and make an offer right away on this 4 bedroom HUD home with a pool in Chandler AZ, 85225

This waterfront HUD foreclosed home in Dobson Shores at 2136 W Isthmus loop, Mesa AZ 85202 is a must see. The lot has spectacular views from your own private dock. 3 bedrooms, 2 bathrooms, 2 garage and featuring a split floorplan. The Master bedroom in this waterfront HUD foreclosed home in Dobson Shores has a walk-in closet plus a separate exit to backyard. The second bedroom also boasts a walk-in closet. Both baths have tiled shower walls and upgraded faucets, sinks, mirrors and light fixtures. The cozy fireplace with a granite tiled facade will shake off those winter chills. Beautiful tile and wood flooring plus carpeting flow throughout the home. The Kitchen has tiled granite countertops and attractive track lighting. An Inside laundry is only a few steps away. This waterfront HUD foreclosed home in Dobson Shores has a desirable north/south exposure and mature landscaping that offers large shade trees front and back. Any kids living here will attend Washington Elementary school, just down the street, Rhodes Jr. High and Dobson High. This superb location is near a public library and easy Superstition freeway access plus excellent shopping and transportation. This is a HUD government owned home and is not a short sale. Although the home is in good condition It is being sold AS IS and is eligible for low down payment FHA 203K rehab financing. You will be making a very smart decision to contact us today to see and make an offer right away on this waterfront HUD foreclosed home in Dobson Shores, Mesa AZ 85202

• Val Vista Lakes Gilbert AZ has fewer homes for sale primarily due to fewer foreclosures being released by the federal government (HUD, Fannie, Freddie) and Lender Banks.
• The Feds are holding back on releasing their foreclosures pending the Administration's decision whether to transfer in bulk their properties to 5-10 major Wall Street firms who will rent the homes and then sell them.
• There are fewer Lenders' foreclosures (called REO's) due to the Feds lawsuit that the states subsquently joined in over the robo-signing controversy ( improper supervision of paperwork).
• Nation-wide less than 4% of loans in foreclosure in June were sold so 96% are waiting to sell. The average homeowner not making payments stays in their home for free for more than 600 days per Wall Street Journal.
• Prices are stabilizing for homes under $200,000 and take less time to sell. Investors are still strong buyers.

Val Vista Lakes Gilbert AZ:Non-Waterfront Homes:

• 10 are For Sale
• 10 are Under Contract of which half are Short Sales
• 3 Closed escrow. Of the 3 Closed homes, the average Sale Price was $263,000 and was on the market from list to close of 96 days.
• This is a major chance from previous months when mostly homes under $200,000 sold to Investors and First Time Home Buyers. The 3 Closed homes range from $248-$290k at an average of $93sf.

Val Vista Lakes Gilbert AZ Homes for Sale

Val Vista Lakes Gilbert AZ Sales in Zip Code 85234

• "Active Listings" (For Sale) have declined from 420 in November 2010 to 250 in July to 225 in August.
• Sales per month were at a high of 120 in May 2011 to 90 in July and 80 in August.
• Foreclosure notices were "w" shaped with a lows of 50 in May and peaks of 70 in August and May.
• Actual auction sales (foreclosed properties) are declining from 60 last August to 35 monthly now.
• So more people are receiving a notice of default and pending foreclosures yet fewer properties are coming out of the pipeline to be sold.

Val Vista Lakes Waterfront Homes for Sale

Two Val Vista waterfronts closed escrow in August at an average sales price per square foot of $120. Both sales were foreclosed properties.

One sold waterfront was a Short Sale that took 527 days from list to close in the Lakeside sub-division. The other was a Fannie Mae sale in Crystal Shores and took 20 days.

Two new waterfront listings sold within a week because they were aggressively priced as Short Sales at $158/sf (in the Crystal Shores community) and $115 sf (West Lake).

Two waterfront homes currently for sale are "Normal" Sales (not foreclosures) and are priced at $194 (Crystal Shores community) and $256 (Regatta community). Both are over 80 days on the market.

Val Vista Lakes Gilbert AZ Waterfront Homes for Sale

Val Vista Lakes Gilbert AZ: More Information

Gilbert Homes for Sale

Val Vista Lakes Waterfront Community

Val Vista Lakes Market Report August 2011

The Islands Gilbert AZ:Non-Waterfront Homes

• 15 Islands homes are for sale. The average days on the market so far before a contract are 82 days.
• 16 homes are Under Contract-9 of which are Short Sales. The Short Sales take 122 days to go under contract. Non-Short Sales average 38 days.
• 5 properties closed escrow in August at an average sales price of $297,000 and took 74 days from list to close.
• This is a good Sale Price because most sales in the Phoenix Metro are less than $200,000 because demand is from Investors and First Home Buyers.

The Islands Gilbert AZ Homes for Sale

The Islands Gilbert AZ Waterfront Homes

Four Islands Waterfronts currently for sale are all "Normal" Sales (not pre- or post foreclosure). The list price ranges from $156 per square feet to $168 sf. The 4 are in the following communities: Windhaven, Tres Vistas, Shores, and Harbor Point.

Only one waterfront is Under Contract in the community of Tres Vistas also called the "Street of Dreams". This waterfront is a Short Sale price at $125/sf. No Islands waterfronts closed in August.

The Islands Gilbert AZ Waterfront Homes for Sale

The Islands Gilbert AZ Sales in Zip Code 85233

• Active Listings (currently for sale) declined from 325 in October steadily to 175 in August.
• Notices of defaults (pending foreclosures) leaped to 50 in August from 18 to July
• However, the greatly reduced listings is due to fewer Government homes and Bank foreclosures being released to the market.
• So more people are receiving a notice of default and pending foreclosure yet fewer properties are coming out of the foreclosure pipeline to be sold.

Summary of Market Trends

• The Islands and zip 85233 have fewer homes for sale primarily due to fewer foreclosures being released to sell by the federal government (HUD, Fannie, Freddie) and Lender Banks.
• The Feds are holding back on releasing their foreclosures pending the Administration's decision whether to transfer in bulk their properties to 5-10 major Wall Street firms who will rent the homes and then sell them.
• There are fewer Lenders' foreclosures (called REO's) due to the Feds lawsuit that the states subsequently joined in over the rob-signing controversy (improper supervision of paperwork).
• Nation-wide less than 4% of loans in foreclosure in June were sold so 96% are waiting to sell.
• The average homeowner not making payments stays in their home for free for more than 600 days per the Wall Street Journal.
• Prices are stabilizing for homes under $200,00 and takes less time to sell. Now homes over $200,000 are starting to have multiple offers.

The Islands Gilbert AZ Waterfront Community

Gilbert Homes for Sale

The Islands Market Report August 2011