David Thomas, ABR, ePro, Realtor, Gilbert, AZ

After reading this article http://www.msnbc.msn.com/id/32939476/ns/business-personal_finance// I felt the need to write to Mr. Schoen.

Dear Mr. Schoen,

I read with interest your analysis on real estate agents and their motives. I have been a real estate agent now for over 23 years and certainly can see the logic in your argument. Real estate agents are indeed commission based, the higher the price and the sooner they buy the argument goes the better it is for this breed of unscrupulous and greedy folk. Clearly the real estate mess we are in today must largely be the responsibility of this group.

Unfortunately, as with so many articles written by journalist experts, it appears that the easy populist slant reflects a lack of understanding. It would be my expectation that someone in your professional capacity, as an educator of the public, would have dug a little deeper. In my business as an independent contractor and a business man, I rely on my clients for their referrals and repeat business, I have in other words a vested interest in taking my responsibilities to them seriously. Their satisfaction with me feeds my children!

There are individuals who take the easy road to make a buck today (or sell an article now) and the Wall Street money managers have a few examples. Perhaps, instead of venting spleen on an industry whose participants for the most part were caught up in a storm not of their making you may want to look to the money managers who knew what they were doing and did not care.

I have a high regard for the "Fourth Estate" as a protector of our society. Clearly you failed us with Iraq! It would be interesting to read an article investigating why the banks appear to be so reluctant to work out mortgages for those who are loosing their homes. Is there profit in foreclosure? Check it out (hint talk to some realtors) and maybe you can save people from loosing their homes. I know in my market there are over 47,000 people who would thank you!

Sincerely,

David Thomas ABR, ePRO
West USA Realty
602-763-6363 cell
david@OnlineArizonaHomes.com

By all means join the chorus!

"Existing Home Sales Jump to Two Year High" today's Bloomberg News proclaims and in the Arizona Republic there was the headline; " After 27-month slide, Valley home prices holding steady" affirming that our market is also stabilizing. The National Association of Realtors reports today that sales of existing homes jumped 7.2% in July the highest gain on record. Statistics that I have been keeping echo the headlines - in July there were 8,093 resale homes sold and currently there are 18,854 homes that have received an accepted offer pending closing. Multiple Listing inventory (all categories of homes) is down to 31,352 homes.

To better understand what this means it would be helpful to place the numbers in context. At the start of this last boom/bust cycle, in 2003, inventories in the Multiple Listing service were running approximately 30-35,000 homes. In June 2005 those numbers had dropped to 5,000 homes for sale but by December, 2005 they were back up to 25,000 listings. Sales were clipping along at a rate of 11-12,000 per month with new home sales adding an additional 3-4,000 per month. Gradually through 06 and 07 sales dipped and inventory jumped to over 57,000 listings

What changed?

Bank foreclosures, price drops and a national perception that we had averted the worst! As banks saw prices dropping and their inventory of foreclosed (REO) homes growing they shifted their tactics. No longer were REO homes coming on the market and dropping their prices every 30 days. Instead they were listing them well below market values to stay ahead of the curve. As affordability rose buyers came out of the woodwork. In January of 2009 we had 47,000 listings and sales had started to climb. In January of this year there were 4,238 homes sold - in July there were over 8,000 closings!

Now what?

The biggest factors are foreclosures, new construction and the economy. There are 47,000 homes in the Phoenix metro area with a notice of Trustees Sale. Does that mean we are in for another fall? Not necessarily, a growing number of trustee sales are being cancelled and we are seeing a consistent 4,000 homes per month being foreclosed on with an absorption rate double that. New home builders have been decimated by bankruptcy etc - the good news is very little new home inventory is being added forcing buyers to focus on resales. Fed Chairman Ben Bernanke today echoed what many economic gurus are saying -we are on the verge of a recovery. And aging baby boomers still look to our climate, golf and shopping for their golden years. Add to this the various stimulous/incentive packages for home buyers including the $8,000.00 tax credit and you get what I am seeing in the trenches - multiple offers competing on the same house. Evidence perhaps of a growing confidence?

Are prices going to go up?

Excess inventory at the fringes of the market are being sold off and the median resale prices for homes has increased from $126,00 in January to $129,000 in July. As long as low interest rates, low prices, incentives and economic factors improve, these historically low prices will gradually disappear. An increase to the prices reached in 06 however may be a ways down the road.

This is finally some good news!

To see the articles click on the following links:

http://www.azcentral.com/business/realestate/articles/2009/08/20/20090820biz-homeprices0820.html

http://www.azcentral.com/business/articles/2009/08/21/20090821biz-existinghomessales0821.html

David Thomas

David Thomas ABR, e-PRO

West USA Realty

602-763-6363

David@OnlineArizonaHomes.com

www.OnlineArizonaHomes.com

If you do not wish to receive future

I am now a Certified Mortgage Protection Specialist (CMPS) and as such I can provide buyers and sellers with the HELP program. This program provides job loss protection so that for the first two years after a home is purchased this program will pay up to six months of mortgage payments (up to $1,800.00/month) if the homeowner unexpectedly loses their job.

So, if you were thinking about buying a home but were concerned that an unexpected job loss would then put your homeownership in jeopardy, knowing that for the first two years you will be covered for up to six months of mortgage payments can help to ease your worries.

If you were thinking about selling your home and you wanted a way to stand-out above the crowd offering this plan is going to do just that.

Given the tax credit, the financial incentives for buying foreclosed homes and now a plan to put worries of job loss aside this is a great time to be buying a home. If you would like more information or if you would like to start looking for a home give me a call at 602 763-6363 or e-mail me at David@OnlineArizonaHomes.com.

Regards, David

David Thomas

David Thomas ABR, e-PRO, CMPS

West USA Realty

602-763-6363

David@OnlineArizonaHomes

Time is running out for taking advantage of the First Time Homebuyer Tax Credit. To get this credit you must close on a home before December 1, 2009. Don't wait or you might lose out.

Home prices are historically low and there is a lot of competition for them. If you have any questions or if you would like to start looking for your new home give me a call at 602 763-6363 or e-mail me at David@OnlineArizonaHomes.com.

FOUNTAIN HILLS

Where is the largest fountain in the world located? While some might answer that it is Le Jet d'Eau in Geneva, Switzerland many would be surprised to hear that it is actually in Fountain Hills, Arizona. At 560' high it is 100' higher than its rival in Switzerland as noted in the Guinness Book of World Records.

The beauty of Fountain Hills is unrivaled with its pristine lake and fountain surrounded by mountain views both near and far. The hills are alive with natural vegetation and of course the signature saguaros stand tall.

Fountain Hills, while blessed with much beauty is a fantastic place to live - so much so that it was voted the #1 place to live in the greater metropolitan Phoenix area in 2006.

Residents and visitors enjoy the many community events throughout the year. On St. Patty's Day the fountain turns green and the streets are aglow in December for Luminarias. In February there is the Fountain Hills Great Fair featuring the Hot Air Balloon Rally and in November the Fountain Festival of Arts is a great place to get started on holiday shopping.

If we are talking about Arizona we must be talking golf, and in Fountain Hills with 4 golf courses open to the public there are opportunities for golfers of all levels.

Fountain Hills welcomes one with its unique beauty and small town feel. It is truly a diamond in the desert - a great place to live and visit as well.