Kim Anderson Phoenix, AZ

Nothing moves me more than to think about the hundreds of thousands of men and women of the United States Military who have made and are currently making the ultimate sacrifice to serve our country and protect the freedom that we all treasure.

When I think about the sacrifice that is made by these individuals and their families, I just feel like there is nothing I could every do in my life that would even compare to this noble job done by all of these men and women.

Saying thank you will never be enough. The best I can do is to pray daily for the safety of these men and women and to support our troops, both when they are serving and when they return and live as civilians.

Our military and veterans are the bravest of the brave and from the bottom of my heart, I say "Thank You" and "God Bless America" and "God Bless Our Troops".

Happy Memorial Day!

I have not been as faithful as I would like to be writing my blog posts. The reason is that I have been SUPER busy and the real estate market is really heating up. Something has triggered all the buyers who were on the fence to jump off and the investors have re-entered our market and are gobbling up the bargains.

I have been telling people for the last 12 months that I did not know exactly when the market would turn around, but I felt like whenever it started, it would be a mini-frenzy - not too unlike our 2004 - 2006 years. I am not suggesting we are going to see another real estate boom like that, but we are in multiple offer situations in many cases and I personally have qualified buyers who are having a hard time finding a home.

The “mini-frenzy” is what happens when the consumer believes they are not going to be buying at the lowest point and get the greatest deal. As the news travels that homes are getting multiple offers, all the buyers who have been on the sidelines jump in so they don’t miss “the bottom”. This will cause prices to stop tumbling and will drive them back up to where they really should be.

For example, I have seen older homes in Central Phoenix listed at prices that were lower than what they sold for in 1982! That means these homes that slid far beyond “pre-boom” pricing and have been driven down to super cheap due to the inventory and glut of bank owned homes that need a lot of work. This mini-frenzy will get those prices back to where they should be, but no where near the type of inflated prices that we saw during our boom.

What is causing his turnaround? I believe it is a number of factors.

1. Homes are really cheap now and buyers just finally realized that the value was there even if they did not exactly time the bottom of the market perfectly.
2. Interest rates are so low that buyers can’t resist. Take a 5% mortgage with a $99,000 house that should be $125,000 and you just can’t help but call that a great situation.
3. Homebuyer tax credit. I personally know this has motivated several people to buy before December 1, 2009. An $8,000 tax credit is significant and money in the pocket….just for buying a home in a great buyers market and great interest rates!
4. Investors have returned. Investors can cash flow on rental properties again and that is causing many to put their cash in housing for a nice return on their investment. Short term investment opportunities exist as well for the rehabbers of the investor world.

While I am happy that the market is rebounding, I also find it frustrating that in a blink of the eye I am running around with buyers and calling the listing agents to ask, “How many offers do you have on the home?” I have a very qualified couple now that has been out bid on 3 different property in the $200 - $220k range and they bid over list price every time. Crazy…..

I thought it would be fun to start a new series of posts about what kind of home you could by in Desert Ridge for a certain price range. This post is to show what you could buy in Desert Ridge for $250,000 and under.

As of today, there are 22 active listings in the MLS that are listed at $250,000 or less. There is a mix of condos and single family homes. The boundaries I have included for Desert Ridge are 56th street to the East, Pinnacle Peak Rd to the North, Black Mountain Pkwy to the West and the 101 to the South. I included La Verne Condos in the search as many consider it Desert Ridge - it is located off of 40th Street, just South of Fireside at Desert Ridge.

The least expensive home you can buy right now is $160,000. It is a Trend Home in Fiesta at Desert Ridge. Trend built these homes in 1998-1999 and they are single family homes with rather small backyards. However, they are true single family homes with 2 car garages and this home is 1,269 square feet. With an FHA loan, a person can put 3.5% down ($5,600) and have a payment around $842.00 (assuming average interest rate of 5.1% today and not including taxes and insurance). This home home sold for $326,531 three years ago. This list price is a short sale though, so the bank would still have to approve the short pay. However, based on recent sold comps, $160,000 should get approved.

Don’t want to mess with a short sale? Then the least expensive home is $198,900. It is a lender owned property and it has been on the market over a month so it is due for a price reduction - great property to make an offer on. The home is 1449 square feet and not overly upgraded, but could be a great home. With all the short sales in the area, the bank will be motivated to sell. The home is a FNMA owned home and therefore qualifies for Homepath Mortgage Financing for 3% down payment.

Lowest price per square foot home that is active is $119.00 per square foot. That is again a Trend Home that is 1,505 square feet listed at $180,00. Again, this is a short sale.

Probably the best deal out of all of the homes is an Arrezo Model in The Villages at Aviano at $219,000. This is a short sale, but the price is approved by the bank already. This model is 1,388 square feet and has granite slab counters, upgraded tile, upgraded cabinetry and many other fine appointments that are found in these Toll Brother condos. The community has gorgeous community pools, clubhouse & fitness center, tennis courts and many walking and bike paths. Toll Brothers is still building there and they do not have anything under $300,000 and that is with no upgrades.

In total, of the 22 listings, 5 listings are actual sellers - not bank owned or a short sale. 10 properties are short sales and the remaining 7 are lender owned.

If you would like more information on any of these, drop me a line or give me a call at 480.201.4185 and I can email you the list.

I do not even want to begin to try to digest the President’s Stimulus plan that was passed, so I am starting with the portion that is near and dear to my heart, housing. President Obama is in Phoenix, AZ today to unveil his “Homeowner Affordability and Stability Plan”. Some details of the the plan are outlined on the White House Blog.

I have not read it word for word, but skimming it gives me a few insights.

The program is limited to loans that are held or securitized by Fannie Mae or Freddie Mac. The other interesting thing is that it is limited to loans where the 1st mortgage that is to be refinanced cannot exceed 105% of the current market value (including refinancing costs). While I am sure there are may that fall into that category, I feel that in many areas like Queen Creek, Buckeye or Surprise, it is not going to work for many. The reason is that many people bought in the 2004 - 2006 period where prices rose to their highest level. The market has over-corrected dramatically in those areas. Homes that appraised for $200,000 are selling for $90,000. Many of those people had 100% financing, so the mortgage amounts are going to exceed the 105% limit by a lot. From what I can tell, Obama plan will not help those loans. There is no plan for a principle reduction on the mortgage.

First, it will only be able available to primary homeowners. Investors or second home owners will not be able to take advantage of any type of loan modification.

Please read the details yourself as I truly “skimmed” but I was curious. I am not trying to be pessimistic, I am actually curious as to how many people this will help and if it keeps some of the homes from going to short sale or foreclosure, then I suppose it will help housing.

Mortgage lenders will begin accepting applications for this program after the program details are announced on March 4, 2009.