Dean Carver

We are definitely in flux and ever changing! The number of “Active” properties for sale that you can readily purchase and make an offer on isn’t 27,400 as reported in the Arizona Republic this past weekend…it’s actually lower. The real number is 19,400. The 27,400 includes homes that are in AWC status or Active With Contingencies. These homes are already under contract and the seller has accepted an offer. Any offer made on a home in AWC status would be a backup offer.

Homes are put into AWC status for many reasons but the main reasons right now are lack of inventory and market volatility. Realtors thrive on advertising listings and when there isn’t enough listings to advertise the ones under contract don’t go to pending status. Also any Realtor worth their salt knows that if you’ve got a short sale or an issue house you may most likely lose the first buyer and have to go on to the 2nd offer hence the AWC.

We have always been a region of micro-markets but it is even more fractured right now. For instance in Ahwatukee we are experiencing appraisals coming in short of the contracted price. The Phoenix metro area is still considered a class 5 declining market so areas like Ahwatukee (85044, 85045, 85048) where there are only 162 single family homes for sale (Active) in the MLS under $300,000 which equates to 1.66 months of inventory are being penalized. In other words if we were to stop listing homes we would go through the current inventory that fast BUT appraisals are coming in short which doesn’t compute with the numbers.

Bottom line Ahwatukee in that price range is trying to bust upward but it’s not being allowed to do so by government and banking institution intervention. If we had more cash sales in this price range we’d have more comps that didn’t rely on appraisals and that would start pushing prices up. For example homes sold in Maricopa haven’t had a problem appraising because a very high percentage of the sales are cash.

The Luxury market is a different animal as well. We’ll say the luxury market is $500,000 and up in Ahwatukee. There are currently 48 Active listings and 8 months of inventory and average days on market of 169. But segment that by just looking at $500-750K and these are the numbers…20 Active listings and 6.6 months of inventory and average DOM at 148.

The other factor in our market is strong demand. It is rare that there aren’t multiple offers on a property if it is priced correctly and it goes relatively fast. Drill down farther into that $300K and under in Ahwatukee and you’ll see that DOM is at 89 days for all sold listings but break it out and you’ve got the following differences.

Listing Type Days on Market $ per sq ft sold

Traditional Non-Distressed 60 $111.09

REO/Bank Owned 58 $90.47

Short sales 154 $92.81

Interesting, no?

This is happening everywhere as I see posts from California and Florida experiencing the same thing. And in Phoenix even though the supply of homes is very low hovering at or below 3 months and demand is high with multiple offers the Phoenix Metro Area including Maricopa and Pinal counties are still considered a class 5 declining market by Fannie, Freddie, FHA, VA and many other financial institutions.

Non distressed properties are going under contract within hours or days of going on the market receiving multiple offers yet appraisals still continue to come in low and below contracted price. This practice by the government backed institutions and lenders is killing our chances for recovery and needs to stop. Contact your local congress person and urge them to have the declining market badge removed so we can get to a healthier real estate market.

If you’d like more information on your local real estate market in the Phoenix Metro Area give Dean Carver a call at 480.710.4608 or email at dean@carverht.com.

I get this asked at least once a week “Can you short sale a luxury home?” The quick answer: Well of course you can! You see it really doesn’t matter how big the mortgage is it’s whether there is a hardship. If you can establish a hardship well then you’re a candidate for a short sale.

For example my last 3 luxury short sales:

Ahwatukee – 2 loans both with Bank of America over $1.3 million sold for $725K. HARDSHIP = Divorce

Apache Junction – 2 loans with Bank of America over $650K. This was approved for a HAFA Pre-Approved Short Sale (this took 6 months to get approved) at $330K. HARDSHIP = Small business owner with Significant loss of income

Cave Creek – 2 Loans, 1 with Bank of America, other local bank over $1.3 million. Approved for $800K. HARDSHIP = Small business owner with Significant loss of income

There are also other variables that need to be considered but loss of income, divorce and even job transfer are all reasons that someone may have to short sale. If you have any questions regarding short sales and whether it’s right for you please contact me for a private consultation. Dean Carver – 480.710.4608 – dean@carverht.com.

THE LEGAL STUFF:

MANDATORY FTC DISCLOSURE FOR DISTRESSED HOME OWNERS: UNITED BROKERS GROUP AND CARVER HOME TEAM ARE NOT ASSOCIATED WITH THE GOVERNMENT, AND OUR COMPLIMENTARY SHORT-SALE NEGOTIATION, IF NEEDED, IS NOT APPROVED BY THE GOVERNMENT OR YOUR LENDER. EVEN IF YOU ACCEPT THIS OFFER AND USE OUR COMPLIMENTARY SERVICE, YOUR LENDER MAY NOT AGREE TO CHANGE YOUR LOAN. IF YOU STOP MAKING PAYMENTS ON YOUR MORTGAGE, YOU COULD LOSE YOUR HOME AND DAMAGE YOUR CREDIT RATING.

Planning on using the tax break for homeowner's in Arizona? Governor Brewer signed a new law Thursday that will require homeowners to provide a sworn affidavit that they occupy the home in order to receive their tax break. While it doesn't go into effect immediately, the law is designed to prevent rental owners from taking advantage of the school tax break.

Click on the link to read the article in the AZ Daily Sun.

http://www.azdailysun.com/news/local/state-and-regional/e846f423-efa7-513f-8717-c4fcb10bddc8.html

#1 Team - 200 homes sold in 24 months

Carver Home Team Founders

Million Dollar Guild Member

Certified Luxury Home Marketing Specialist

Certified Distressed Property Experts -- 95% short sale success rate.

Bank of America Preferred REO Broker

Email: sonia@carverht.com www.carverht.com

O: 480.710.4608 M: 480.612.1048

Coventry Tempe, Warner Ranch, Warner Ranch Estates, Tuscany, Estate La Colina, Ocotillo, Foothills Club West, Canyon Verde, Black Rock Canyon, Candlewood, Camelot Canyon, Crimson Canyon, Canyon Reserve, Cabrillo Canyon, Richmond Heights, Summerhill, Montana Vista, Tapestry Canyon, Sanctuary, Ahwatukee Equestrian, Ahwatukee Custom, Circle G Ranches, Corona Del Sol Estates, Buena Vista Ranchos, Fulton Ranch, DC Ranch, Scottsdale Ranch, Mountain Park Ranch, Ahwatukee Real Estate Agents, Chandler Real Estate Agents, Tempe Real Estate Agents, Gilbert Real Estate Agents, Queen Creek Real Estate Agents

The weather is gorgeous in Phoenix, Arizona and it's the perfect time to get out and check out the local Ahwatukee Farmer's Market! Located on 4700 East Warner Road, Phoenix, Az 85044 (just west of 48th St.) So easy for homeowners in Ahwatukee Equestrian, Mountain Park Ranch, and Ahwatukee Custom to access!

We went today and bought organic oranges for $1/lb. Mustard greens, Meyer lemons, fresh jalapeno cheese curds, homemade tamales, and fresh basil!

AHWATUKEE FARMERS
Date: Sundays, Year Round Market
Hours: 9am-1pm
Location: on 4700 East Warner Road, Phoenix, Az 85044 (just west of 48th St.)
(Ahwatukee Community Swim and Tennis Center parking lot)
Features: May include fresh, local, and seasonal produce, herbs, flowers, locally made jams, jellies, salsas, fresh baked breads, natural pork, beef and fish and a selection of local arts and crafts. Free admission, free adjacent parking. Also available at this market: Easy credit card shopping! One credit card charge can pay for all your purchases from the vendors! Find out more at the information booth! Visa/MasterCard, Quest Card.

Interested in seeing homes for sale in Ahwatukee or other Phoenix metro area real estate? Click here!

#1 Team - 200 homes sold in 24 months

Carver Home Team Founders

Million Dollar Guild Member

Certified Luxury Home Marketing Specialist

Certified Distressed Property Experts -- 95% short sale success rate.

Bank of America Preferred REO Broker

Email: sonia@carverht.com www.carverht.com

O: 480.710.4608 M: 480.612.1048

Coventry Tempe, Warner Ranch, Warner Ranch Estates, Tuscany, Estate La Colina, Ocotillo, Foothills Club West, Canyon Verde, Black Rock Canyon, Candlewood, Camelot Canyon, Crimson Canyon, Canyon Reserve, Cabrillo Canyon, Richmond Heights, Summerhill, Montana Vista, Tapestry Canyon, Sanctuary, Ahwatukee Equestrian, Ahwatukee Custom, Circle G Ranches, Corona Del Sol Estates, Buena Vista Ranchos, Fulton Ranch, DC Ranch, Scottsdale Ranch, Mountain Park Ranch, Ahwatukee Real Estate Agents, Chandler Real Estate Agents, Tempe Real Estate Agents, Gilbert Real Estate Agents, Queen Creek Real Estate Agents

Experts are predicting that 2011 will surpass 2010 in the amount of foreclosures. Sounds bleak, but it is definitely part of the recovery process -- painful as that may be. The real estate market will not be able to normalize with so many foreclosures and short sales in play.

Click here to read the Associated Press article about foreclosures in 2011.

One of the upsides is that the banks have been at this for a few years, so they've learned a thing or two about flooding the market. Don't expect prices to tank anytime soon like we've seen in years past in Phoenix. The giants like Bank of America and Chase are only too aware of the price tumble caused by releasing too many bank owned properties into the market at one time. For example, areas that weren't as saturated like Scottsdale, lost considerably less value than areas like Maricopa.

Those same big banks however, are still struggling with short sale time frames and the challenges of investor backed mortgages/mortgage insurance. This translates into challenges for buyers who want to put in offers on short sales. Despite the challenges, all signs point to this year continuing to be a value year for buying homes in the Phoenix metro area.

Get Information About Alternatives To Foreclosure

Get Information About The Challenges Of Purchasing A Short Sale Or Foreclosure

#1 Team - 200 homes sold in 24 months

Carver Home Team Founders

Million Dollar Guild Member

Certified Luxury Home Marketing Specialist

Certified Distressed Property Experts -- 95% short sale success rate.

Bank of America Preferred REO Broker

Email: sonia@carverht.com www.carverht.com

O: 480.710.4608 M: 480.612.1048

Coventry Tempe, Warner Ranch, Warner Ranch Estates, Tuscany, Estate La Colina, Ocotillo, Foothills Club West, Canyon Verde, Black Rock Canyon, Candlewood, Camelot Canyon, Crimson Canyon, Canyon Reserve, Cabrillo Canyon, Richmond Heights, Summerhill, Montana Vista, Tapestry Canyon, Sanctuary, Ahwatukee Equestrian, Ahwatukee Custom, Circle G Ranches, Corona Del Sol Estates, Buena Vista Ranchos, Fulton Ranch, DC Ranch, Scottsdale Ranch, and Mountain Park Ranch, Ahwatukee Real Estate, Chandler Real Estate, Tempe Real Estate, Gilbert Real Estate, Queen Creek Real Estate, Scottsdale Real Estate, Phoenix Real Estate, Paradise Valley Real Estate, Phoenix Real Estate, Maricopa Real Estate, Goodyear Real Estate