Jim Little, Your Sun City Arizona Realtor

This notice was sent to all agents who subscribe to the Arizona Regional MLS.

• SCAM ALERT: Check Your Vacant Listings
• A recent scam reported to ARMLS® involves tenants moving into a pending short sale listing. The surprised listing agent contacted the owner who had not rented the property to anyone. The tenants (two women with two children) were physically moving in and had turned on utilities in their name. The sign and the lock box were removed, and all locks were re-keyed. The tenants responded to a For Rent sign in the yard. They gave someone $1,800 as rent and signed a lease. While the short sale was able to close, the unfortunate victims of this scam were out $1800 with no place to live.
• This down economy encourages some people to take advantage of others. Listing agents should check their vacant listings regularly and provide neighbors their contact information in case they observe any suspicious activity.

One of my promises to my sellers is to check the property at least once a week when it is vacant. Do you really believe the agent who lives and works an hour across town will do that? Do they have the time? If they do have the time, why?

Many, if not most homes for sale in Sun City are vacant while on the market. Doesn't it make sense to use someone who lives and works here to help you sell your home?

The U.S. Senate has TENATIVELY agreed to extend the home buyer tax credit. If the measure passes it will include a broader credit. More people will benefit. This measure, while hoped for, is NOT yet approved. Write your congressman folks.

The House of Representatives in now looking at the Home Valuation Code of Conduct. This ill-conceived rule has been the cause of additional costs to home buyers, and inadequate appraisals. These have caused many sales to fail, costing sellers equity dollars.

Another House committee is probing predatory practices used by some in the mortgage industry. The intent is to see if these practices contributed to the current housing crisis and its resulting economic meltdown. I, for one, hope this leads to a lot of "perp"walks at executive levels.

Last, but not least, Congress has passed a resolution extending the current Fannie Mae, Freddie Mac and FHA loan limits until 2010.

I finally got around to evaluating the Sun City Market by housing type. ie Single Family vs Condominium. I used six weeks of MLS data for this. (9/1/09-10/14/09)

I have long felt that the single family home is more desirable to most of the buyers who come to Sun City, but have never done the analysis required to prove it.

As you can see from the following spreadsheet, homes sell one third faster than condos. The lesson, if you are a buyer, and want to buy a home, you must make up your mind quickly as more snowbirds will be here competing with you. If you are a seller, be patient.

The market ratio is a new metric I am using. A ratio less than 20 indicates a buyers market. A ratio of 20-30 indicates a balanced market. 30 or more is a sellers market. As you can see, the single family home segment is very close to a buyers market now, but the condominium segment is still a strong buyers market.

And, The Numbers For September Are:

1. Active Listings as of 10/1/09 689
2. Average List Price $135,500
3. 79 homes sold
4. Absorption Rate 9 months
5. Number of Single Family Homes for Sale 357
6. Number of Condos for Sale 332
7. Average Days on the Market 135

The Sales prices ranged from $46,900 to $470,000 with an average of $125,484. This represents an average price per square foot of $81.98.

The Year to Date Sales Are:

1. Total Number of Homes Sold 1/1/09-10/1/09 799
2. Number of Single Family Homes Sold 1/1/09-10/1/09 457
3. List Price/Sold Price of Single Family Homes $148,913/$138,454
4. Number of Condo Style Homes Sold 1/1/09-10/1/09 342
5. List Price/Sold Price of Condo Style Homes $102,448/$98,718

Overall, we have survive the summer relatively well. Buyers are now showing up at open houses. This is the beginning of our winter season and the outlook is generally hopeful.

I checked the numbers for single family homes in Sun City today.

• Active Listings, Up 415 houses listed
• Pending Sales Up 84 under contract
  
• Sold for the month Up 61 closed for month to date
  
• Sales year to date 758
• Sold price per square foot up
  

This is happening as our winter visitors are arriving. It looks like they will have a good inventory to choose from, but they did seem to miss the "bottom".