Based on stats as of 5/2/09:
The economy may be suffering, but foreclosure properties that are not overpriced and not beat to hell are flying off the market here in AZ. It simply is not all doom and gloom here.
It is my job to educate my buyers and sellers and help them understand how the real estate market is truly working here. It is also my job to help my buyer's negotiate the best deal and still be a successful bidder....and find a home that meets their personal and financial needs.
I have been told that the trend is that 100% of the bank owned properties that are priced right receive at least 4 (multiple) offers within the first 7 days. Yes, 100%! Here in Arizona, it is not the buyer's market that you may think that it is when it comes to foreclosure/REO properties.
Sometimes it helps to remove yourself from the emotions of being a buyer and the news that you hear from the media, and look at things objectively by focusing on the facts/numbers.Are you familiar with the area's absorption rate? To compute the absorption rate, you need to know 2 figures....how many listings are currently on the market, and how many listings sold last month.
There are currently 376 properties actively listed for sale in the zip code of 85218. Keep in mind, even though a short sale listing may show active in the MLS, they may have offers on the property. There are 61 homes under contract/in escrow, which makes a total of 437 unclosed properties. 40 homes have successfully closed escrow over the last 30 days. Multiply 40x12=480. Divide 480 by 52 weeks, and you get 9.23 units per week. Divide that into the number of active, and you have over 40 weeks of inventory (over 9 months). If we include the homes under contract/in escrow as "active", then we have over 47 weeks of inventory (over 11.27 months). Sounds like tons of inventory and a buyer's market, doesn't it?
Now, let's narrow down the numbers to foreclosure properties. 43 of the 376 actives are designated as REO's in the MLS. 18 REO properties are under contract/in escrow, which makes a total of 61 unclosed REO properties. 13 of the 60 homes that have closed escrow over the last 30 days are REO's. Multiply 13x12=156. Divide 156 by 52 weeks, and you get 3 per week. Divide that into the number of active, and you have only 14.33 weeks of inventory, which is not even 3.5 months of inventory! If we include the homes under contract/in escrow as "active", then we have 20.33 weeks of inventory, less than 5 months of inventory.
General rule of thumb is: Normal Market - Between 5+ and 6 months of inventory. Seller's Market - Less than 5 months of inventory. Buyer's Market - 7 months of inventory and higher. As you can see, it is clearly a Seller's Market when it comes to bank owned/REO properties in zip code 85218.
We now have financing available for Canadian citizens who want to buy a second home in Arizona. I've heard that it can get awfully cold up there during certain times of the year. What better way to thaw-out than buy an Arizona home like Anthem at Merrill Ranch where you can pretty-much-wear-shorts-every-day-in-January if you want?
Anthem at Merrill Ranch will bring spectacular amenities and a small-town feel where you can truly live, work, and play. Anthem features an all ages side, called "Parkside", and an active adult (55+) neighborhood, called Sun City. Sun City Anthem Merrill Ranch (age restricted 55+) has a 48,000 square foot recreation center featuring:
In Parkside, you'll find a Big Splash Water Park, 60 acre community park featuring an outdoor amphitheater and catch and release lake, a bustling 43,000 square-foot community center, and world renowned Poston Butte Golf Club and 18 Hole Championship Golf Course, operated by Troon Golf are just a few of the amenities that will be located virtually in your backyard.
Starting about 6 months ago, lenders were pulling out of financing these loans, but we are starting to see some of them come back now. Not a lot of lenders,mind you - but at least one!
Mortgages For Canadian Citizens: Guidelines
Simply put, this is pretty much a full documentation loan for people with good credit. The interest rate on this 30 year fixed rate loan currently is .5-1% higher than today's conventional rates. The interest rate changes from time to time, but not every day.
Call Jessica for more info on this exciting community and available financing!
602-677-7977
The economy may be suffering, but foreclosure properties that are not overpriced and not beat to hell are flying off the market here in AZ. It simply is not all doom and gloom here.
It is my job to educate my buyers and sellers and help them understand how the real estate market is truly working here. It is also my job to help my buyer's negotiate the best deal and still be a successful bidder....and find a home that meets their personal and financial needs.
I have been told that the trend is that 100% of the bank owned properties that are priced right receive at least 4 (multiple) offers within the first 7 days. Yes, 100%! Here in Arizona, it is not the buyer's market that you may think that it is when it comes to foreclosure/REO properties.
Sometimes it helps to remove yourself from the emotions of being a buyer and the news that you hear from the media, and look at things objectively by focusing on the facts/numbers.Are you familiar with the area's absorption rate? To compute the absorption rate, you need to know 2 figures....how many listings are currently on the market, and how many listings sold last month.
There are currently 469 properties actively listed for sale in Queen Creek, Maricopa county. Keep in mind, even though a short sale listing may show active in the MLS, they may have offers on the property. There are 107 homes under contract/in escrow, which makes a total of 567 unclosed properties. 60 homes have successfully closed escrow over the last 30 days. Multiply 60x12=720. Divide 720 by 52 weeks, and you get 13.85 units per week. Divide that into the number of active, and you have over 33 weeks of inventory (over 7.5 months). If we include the homes under contract/in escrow as "active", then we have over 40 weeks of inventory (over 9.52 months). Sounds like tons of inventory and a buyer's market, doesn't it?
Now, let's narrow down the numbers to foreclosure properties. 82 of the 469 actives are designated as REO's in the MLS. 35 REO properties are under contract/in escrow, which makes a total of 117 unclosed REO properties. 23 of the 60 homes that have closed escrow over the last 30 days are REO's. Multiply 23x12=276. Divide 276 by 52 weeks, and you get 5.31 per week. Divide that into the number of active, and you have only 15 weeks of inventory, which is less than 4 months! If we include the homes under contract/in escrow as "active", then we have 22 weeks of inventory, about 5 months of inventory.
General rule of thumb is: Normal Market - Between 5+ and 6 months of inventory. Seller's Market - Less than 5 months of inventory. Buyer's Market - 7 months of inventory and higher. As you can see, it is clearly a Seller's Market when it comes to bank owned/REO properties.
Banks are generally hard enough to deal with as it is. Now they have entered the real estate arena, and I believe in some cases they have gotten even worse. Why? Because they can. If you don't buy their home, someone else will, as long as they price it right. So, if you don't want to "play by their rules" or allow them to call the shots, then you may need to eliminate REO's from your home search and focus on short and regular sales. Unfortunately, even the short sales are run by the banks and still function by the bank's terms.....not to mention the waiting game/headache. So, that leaves regular sales, which are few and far between and generally overpriced listings. I guess that leaves us with little choice, doesn't it?
Did you know that if you are a first-time home buyer in Pinal County, Arizona, you may be able to obtain down payment assistance for as much as $20,000?
Sounds too good to be true? Well, it is indeed very true. However, not every Pinal County home buyer is eligible. And you need to understand the true definition of "first-time home buyer" as it applies to this program.
Firstly, first-time home buyer as it pertains to this DPA (down payment assistance) program means that you must not have owned a home within the past 3 years. How the heck would anyone be able to confirm that? Simple. The lender will require that you provide your last 3 years of federal income tax returns.
You must also satisfy additional eligibility requirements including falling within specified family household income limits, as well as not exceeding specified purchase price limits.
And did you also know that an interest rate reduction bond program is available to Pinal County, first-time home buyers? The eligibility requirements for this program are the same as for the down payment assistance program.
Date: October 31
Time: 6-9 p.m.
Where: Desert Mountain Park
Carve your pumpkins, bring out the candy and don your costume; Halloween is almost upon us!
Come enjoy Queen Creek's safe and unique way to trick-or-treat! Trunk or Treat provides a safe environment for families to enjoy an inexpensive evening of Halloween fun in a festival atmosphere! Children trick-or-treat by going from car trunk to car trunk on "Trunk or Treat Street" to get their bag filled with goodies. Individuals or groups sign up to host and decorate a trunk, and the Town of Queen Creek provides all the candy to be given out at the event.
Ghouls, goblins and ghosts of all ages will enjoy a festival of activities. So come out and join us for some ghoulish games, frightening food, and freaky fun. This year's "spooktacular" highlights include:
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We are a husband and wife team specializing in selling Short Sales, pre-foreclosures, & foreclosures/bank owned homes. We service buyers and sellers all over the metro Phoenix Valley.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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