Gilbert Real Estate Blog

I’m done… I can’t buy a home in this market…

July 16, 2009 // 2 Comments »

Okay…  I’ll confess…  I’m bummed…  a home buyer I’ve been working with for over 6 months decided to call it quits.  No, he didn’t commit suicide – at least not in the physical sense – but in the metaphysical real estate sense.

His one question?  “Why in hell should I continue to view properties that I have no chance of buying?”

This home buyer has excellent credit and has worked his tail off to save up the 3.5% down payment required for an FHA loan.  His price range is $80K-$100K, and we’ve been looking for a home in the East Valley, primarily Mesa and Phoenix.  He’s been open to a single family detached house, townhome or condo.

I’ve lost count of the total number of properties we’ve viewed, and the  number of aggressive offers (even above comps) that we’ve submitted on nice, decent homes ~ but to no avail…

We’ve gotten our asses kicked on every last one of them – by two types of buyers:

1. Cash
2. Conventional Financing

With a cash buyer, there is typically no appraisal done on the property, and there’s no financing contingency – both of which are HUGE incentives to the seller.

With conventional financing, the buyer is paying 20% down and at least on the surface appears to be a better credit risk than an FHA buyer who is only putting down 3.5%.

My client simply got tired of the fray, and gave up.  And while I very much appreciate and respect this client, I am very disappointed with his decision.  Patience and perseverance will always prevail.  My only regret is that this particular client gave up his dream and allowed defeat to dominate his lifestyle.

Am I deluded?

Posted in arizona market conditions

Queen Creek Real Estate – June 2009 vs. June 2008

July 10, 2009 // Comments Off

QUEEN CREEK, ARIZONA

…is indeed a community with great demand and incredible values!

June 2009 vs. June 2008

404 single family detached houses were purchased last month vs. 355 last year (June 2008).

The average price paid was $140,010 vs. $170,817 last year.

The median price came in at $112,550 vs. $145,000 last year.

The ratio of purchase price to list price was 100% vs. 98% last year.

The average time on the market was 76 days vs. 96 days last year.

There were 1,755 Active single family listings vs. 2,510 last year.

Click Here for full current Queen Creek Market Conditions

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photo by Miguel Folch

Posted in queen creek market conditions

Mesa Real Estate – June 2009 vs. June 2008

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MESA, ARIZONA

…continues with its reputation of being one of the most desirable communities in The Valley of the Sun!

June 2009 vs. June 2008

666 single family detached houses were purchased last month vs. 399 last year (June 2008).

The average price paid was $153,395 vs. $233,511 last year.

The median price came in at $129,000 vs. $190,000 last year.

The ratio of purchase price to list price was 98% vs. 97% last year.

The average time on the market was 84 days vs. 91 days last year.

There were 3,128 Active single family listings vs. 4,517 last year.

Click Here for full current Mesa Market Report

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photo by Miguel Folch

Posted in mesa market conditions

Greater Phoenix Area ~ Weekend Freeway Closures & Restrictions ~ July 10 – 13, 2009

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Have a safe, fun weekend!

Gilbert Homes ~ Chandler Homes ~ Mesa Homes ~ Queen Creek Homes ~ Phoenix Homes

Posted in phoenix freeway conditions

Is ‘Making Home Affordable’ Working? Not on this planet!

July 8, 2009 // Comments Off

In a recent New York Times article, Gretchen Morgenson wrote, “LAST week, the stock market tumbled on news that housing foreclosures and delinquencies rose again in the first quarter. The Office of the Comptroller of the Currency said that among the 34 million loans it tracks, foreclosures in progress rose 22 percent, to 844,389. That figure was 73 percent higher than in the same period last year.”

She went on to say, “The Obama administration has said it wants to wrestle the foreclosure issue to the ground by encouraging mortgage loan modifications, but its efforts have gotten little traction…. Lenders and their representatives, however, don’t like to modify loans through interest rate cuts or principal reductions because, of course, it reduces the income they receive from borrowers.  No surprise, then, that loan modifications have been a trickle amid the recent foreclosure flood.”

“Alan M. White, an assistant professor at the Valparaiso University law school in Indiana, analyzed data on 3.5 million subprime and alt-A mortgages in securitization pools overseen by Wells Fargo. The loans were written in 2005 through 2007; data on their performance is provided to the trusts’ investors. Mortgages handled by five of the nation’s largest loan servicing companies — Bank of America, Chase Home Finance and Litton Loan Servicing among them — are contained in the Wells Fargo data.”

Gretchen published a very fine article on the plight of  ‘loan mods’ in this country, and is well worth reading.  Here’s a link to the article.

Posted in arizona market conditions

Chandler Real Estate – June 2009 vs. June 2008

July 7, 2009 // Comments Off

CHANDLER, ARIZONA

…truly a sparkling gem in The Valley of the Sun!

June 2009 vs. June 2008

401 single family detached houses were purchased last month vs. 331 last year (June 2008).

The average price paid was $246,616 vs. $302,381 last year.

The median price came in at $225,000 vs. $269,900 last year.

The ratio of purchase price to list price was 98% vs. 97% last year.

The average time on the market was 88 days vs. 99 days last year.

There were 1,852 Active single family listings vs. 2,670 last year.

Click Here for full current Chandler Market Report

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photo by Miguel Folch

Posted in chandler market conditions

$8,000 Home Buyer Tax Credit

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The “American Recovery and Reinvestment Act of 2009” passed the House and Senate on February 13, 2009, and was signed by President Obama on February 17, 2009.

The bill is a $780 billion package, roughly one-third of which is dedicated to a home buyer credit.

Here are the highlights:

1. 
   

   The tax credit is for first time home buyers, with a “first-time home buyer” defined as a person who has not owned a principal residence during the three-year period prior to the purchase.

2. The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000, and does not have to be repaid as long as the home is not sold within 3 years.

3. The tax credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.

4. Single persons with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

5. The credit must be claimed on a federal tax return to reduce the buyer’s income tax liability. Any remaining unused credit will be refunded to the buyer.

Below is a summary chart of the tax credit, along with a side-by-side comparison to the 2008 tax credit.

Inasmuch as this is a tax related issue, and I am neither a tax accountant or a tax attorney, you should consult with a tax professional regarding your specific situation and benefits.

Gilbert Homes ~ Chandler Homes ~ Mesa Homes ~ Queen Creek Homes ~ Phoenix Homes

Posted in tax credit