Jerry Murphy

I'm not sure if this is an isolated trend specific to the Phoenix real estate market or not, but we're starting to come across loan underwriters who think they are appraisers.

Now, I understand that banks are scrutinizing every loan these days with a fine toothed comb. However, appraisers are now being ultra conservative in their property value assessments. Add to it that some of these underwriters are contesting values on R.E.O. properties and now you have just pure audacity. I'm not talking about the audacity of hope here.

For an underwriter to sit at their desk, pull up some tax records they find online and override the opinions of two professionals (the BPO and the appraiser) takes some cajones. Especially when they've never seen the home, don't know the neighborhoods, and don't understand the market conditions in our local area.

This is another example AND reason why the financial institutions are in such trouble. They have non-professionals making decisions that affect their bottom line. Sorry any underwriters that are out there reading this, prove me wrong. You guys were giving the thumbs up on all these bad loans just 3 years ago, now you're going to the other extreme and making what is already a difficult market nearly impossible.

Let the professionals do their jobs and have faith in their opinions. Any appraisers who are out there still working are the good ones. And their scared out of their gordes to make an over evaluation of a propertie's value.

If the underwriters want to become appraisers go get your appraisers licenses.

Now let's get to approving some of these loans for good, hard working, honest borrowers.

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Attention investors, first time home buyers, second/vacation home buyers. If you're not looking at the Phoenix market right now you're missing out big time.

The median home price in Maricopa county (Phoenix/Scottsdale area) has fallen from $268,000 in 2005 to $205,000 currently. A 30% decline off the peak.

In certain areas of the valley we've price declines of 50% or more from the peak. There are a tremendous amount of cash flow investment opportunities out there as well as some fantastic opportunities for first time home buyers who would pay less in mortgage than in a comparable rental.

However, time is running out (as the old T.V. pitch goes). Investors, both domestic and foreign, have begun to sweep into our market and grab up these opportunities. Right now our current supply of homes in Maricopa county stands at a 7 months supply. Historically a 5 month supply of homes marks a balanced market, whereby the market neither favors the seller or the buyer. This number has been steadily heading down over the past 6 months.

Please visit our website for more information and to search home in the Phoenix real estate market.