Gilbert Real Estate Blog
~ by Randy Hooker of Dreamcatcher Realty
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Greater Phoenix Real Estate ~ May 2010 vs. May 2009
Courtesy of the Arizona Regional MLS, the below two charts offer up a quick overview of the current market conditions in the Valley of the Sun. Whether you’re into comparing consecutive month over month stats (like May 2010 vs. April 2010), or year over year (like May 2010 vs. May 2009), the charts are provided to help us grasp the overall picture.
Greater Phoenix Market Conditions
Greater Phoenix Market Conditions
I’m always extremely cautious about using real estate “averages”, as they can and do often skew the true picture of individual communities and areas. Nevertheless, there are a couple of points that are worth noting in the above charts.
It’s interesting that normally at this time of year we experience an increase in listings – and yet the past 2 months has seen a decrease in listings. Anybody care to speculate on the reason(s) for this anomaly?
The next observation is that the greater Phoenix market is holding fairly steadily in the number of Active listings as well as sales.
Additionally, at roughly 4.5 months inventory, the greater Phoenix market appears to be showing some consistent stabilization. As always, time will tell.
NOTE: The information and statistics contained in the above charts are deemed reliable, but not guaranteed. If you’re contemplating a major financial decision regarding residential real estate, please do yourself a huge favor and consult with a reputable real estate broker, attorney and/or accountant.
What is APR?
The Truth in Lending Form or the “TIL” was created as a result of the Truth in Lending ACT (TILA) of 1968. The primary goal of the TILA of 1968 was to protect consumers in credit transactions such as home loans and auto loans. The most commonly asked questions related to the Truth in Lending form surround the Annual Percentage Rate or APR.
The APR is NOT the same as your interest rate or “note rate.” APR consists of a combination of both the amount of interest you will pay based on your note rate and the APR fees associated with your loan. The purpose of the APR is to gauge whether or not your loan is “fee heavy.” For example if your note rate is 5.25% and your APR is at 7.5% you know there is a problem based on the drastic difference. It is important to note however that APR will almost always be higher than your note.
For example, in a scenario where the interest rate for a home loan (“note rate”) is 5.5%, the first piece of the equation would be calculated by obtaining the interest paid on the loan at 5.5%. The second part of the equation would include any fees that are considered “APR fees” (meaning they get included into the APR calculation).
Lastly, these two totals are added together and then recalculated and expressed as your APR.
The key definitions to remember are as follows:
- Interest Rate or “Note Rate”: The amount of interest you pay on your home loan. This is the percentage that has been quoted to you as your “rate.”
- Annual Percentage Rate – APR: A disclosure tool or number that is used to help consumers understand the total fees their loan has by comparing the difference between the APR and the Interest Rate.
If you have questions, do NOT hesitate to ask your Mortgage Consultant for clarification.
Greater Phoenix Real Estate ~ December 2009 vs. December 2008
Here ya go, boys and girls. Take a look at the charts below, courtesy of the Arizona Regional MLS. They provide a quick overview of the greater Phoenix real estate market for the past year, with particular interest and focus on the period of December 2009 as compared to December 2008.
I have a personal conviction that real estate should not be micro-analyzed, so I’m electing to not draw any conclusions or speculations from the latest “averages.” It’s clear that prices, on the average, are on the rise. Other than that, all indicators point to a bottoming of the residential real estate market in greater Phoenix.
As always, the information and statistics contained in the above charts are deemed reliable, but not guaranteed. If you’re contemplating a major financial decision regarding residential real estate, please do yourself a huge favor and consult with a reputable real estate broker, attorney and accountant.
Greater Phoenix Real Estate ~ Snapshot of Current Market Conditions
Most of you know that I’m not a big fan of mathematical ‘averages’, since they can really distort the truth about a specific market segment. Once in a while, however, ‘averages’ can provide a quick overview of basic trends in certain markets and areas.
Take a look at the charts below, courtesy of the Arizona Regional MLS. They provide a quick snapshot of the greater Phoenix real estate market for the past year, with particular interest placed on the period of November 2008 thru November 2009.
On this first graph, notice the upturn the past few months in Active listings. Part of that is due to the seasonal nature of the greater Phoenix market. Others would speculate that it’s an increase in bank owned listings. But notice the recent downturn in new listings, seemingly running contrary to the uptrend in total listings (inventory). What’s your take on that observation? I’m wondering if it’s not a result of the upper end of this market, particularly above $350K, where prices are continuing to decline and properties are staying on the market considerably longer than the lower end of the market.
One other note: sales have been relatively consistent and stable, on the average, for the past 8-9 months. Seasonality would predict that we’ll see a slight downturn in the next few months, so it will be interesting to watch it play out.
On the following chart, notice that total inventory just up-ticked to slightly over 5 months – coinciding with the increase in total inventory. What I’m really watching for is any hint of an avalanche of bank owed listings that many people are predicting. I have my personal doubts about this so-called ’shadow inventory’ of bank owned homes, and even greater doubts that the banks will decide to dump them in one fell swoop. And even though I’m not EVEN a fan of banks, or their real estate acumen, I still have a very difficult time believing they will shoot themselves in the foot and dump all of their residential properties onto the market in one lump. Your thoughts?
As always, the information and statistics contained in the above charts are deemed reliable, but not guaranteed. If you’re contemplating a major financial decision regarding residential real estate, please do yourself a huge favor and consult with a reputable real estate broker, attorney and accountant.
Unreliable Information about The Real Estate Market, by Rob Kosberg
Stories on TV about the national real estate market are misleading to Americans. This is because there is no such thing as a “national real estate market”. Click here for the entire article. It’s a short read, and well worth the time. The greater Phoenix real estate market is a massive market that is fraught with incredibly complex and risky situations. Trust me, every home buyer considering purchasing a home in the Valley of the Sun would be well advised to consult with a local, experienced, professional real estate broker.
Image Courtesy of Shedboy
