Gilbert Real Estate Blog

Greater Phoenix Real Estate ~ Snapshot of Current Market Conditions ~ 10/6/2009

October 6, 2009 // Comments Off

Take a look… below are a couple of graphs that are worth checking out.  They provide a quick picture of the greater Phoenix real estate market for the past year, September 2008 thru September 2009.

On this first graph, notice the significant drop in Active listings over the past 6 months.  Then take note of the increase in Sold listings over the past 6 months.

On this next chart, you can easily see that we’ve gone from a 13 month supply of inventory (listings) in November 2008 to less than 5 months of inventory for the past 5 months.

On the following graph, do you see the upturn in average prices in the greater Phoenix market over the past 6 months?  Bottom line  >>>  the laws of supply and demand are still as powerful as ever.  Significantly change supply OR demand, and we’ll always see and feel the effect.  Change BOTH supply and demand, and we’ll see and feel MAJOR effects.  Where will we be 6 months from now?  My crystal 8 Ball says, “Undecided”.

The other point I’ll make is that these graphs and charts are based on ‘averages’ in the greater Phoenix real estate market.  ‘Averages’ based on such a huge area can really skew an accurate picture of an individual town or neighborhood – especially if you’re attempting to project future trends.  If you have need of similar information for your subdivision or city, just let me know.

All information, graphs and charts are derived from the Arizona Regional MLS, and while believed to be reliable, cannot be guaranteed.

Posted in arizona market conditions, phoenix market conditions

Greater Phoenix Real Estate ~ “Is this property still available?”

September 6, 2009 // 1 Comment »

At least 2-3 times every day we receive an online inquiry, email or phone call regarding a listing.  The question is typically phrased, “Is this property still available?”

My initial answer is always, “It depends!“  I’m not trying to be a smart-ass; I’m simply attempting to lay the groundwork for what is often a complex and confusing answer to many home buyers in the greater Phoenix real estate market.

“On WHAT does it depend?”

The first issue is whether or not the listing is showing as Active in the Arizona Regional MLS.  If it is, then it means the property is indeed available to purchase – correct?!?!  Not necessarily so!  These days, we often see comments in the confidential Realtor Remarks section of a listing saying the bank/seller has received multiple offers on a home, they’re not receptive to any more offers, and they are simply waiting on the bank to notify them which offer they will be accepting.  That waiting process can take up to two weeks, and all the while, the listing remains in Active status.  In effect, however, the property is not available.

Another example is when the listing is in AWC status.  An AWC status is considered to be an “active” status, and the listing will continue to be picked up by Realtor IDX sites, secondary search engines, etc.  However, what the AWC status means is that a contract has already been accepted, but the seller is willing to consider back-up offers.  So is the buyer willing to enter into a contract that will be in second position, at best?  And if there are already 2 other back-up offers accepted, is the buyer willing to take the number 4 position?  Back to the point of this post ~ even in AWC status, the property is not available for a first position contract.

MLS status is the first thing we look at, but are there any other factors?  You guessed it!  What if the buyer is pre-approved for an FHA loan, but the property is not available via FHA financing?  That happens all the time.  If the property’s condition will not make it past an FHA appraisal, then it is not FHA-friendly.  What if the present owner is an investor who just purchased the property at trustee’s sale (foreclosure)?  The property must be owned by the seller (“seasoned”) for at least 90 days before FHA will approve the purchase/loan.  What if the owner/seller is not receptive to a Conventional loan?  Yes, that happens as well.  If the type of financing a buyer is using does not fit the type of payment terms required by the seller, then the property is not available.

Finally, what if the buyer is paying cash?  Answer — it depends on whether or not s/he can provide “proof of cash funds“.  I’ve lost count of the ‘assets’ folks have brought to me to cover the purchase price of a house, but those assets were not liquid, couldn’t readily be converted into US dollars or were under the control of another person or company.  I once had a client who was expecting to receive a large insurance claim settlement from the courts – “sometime withing the next 6-9 months.”  You get my drift?.  If the buyer does not have hard, cold, US dollars, or cannot furnish evidence of sufficient funds, satisfactory to the seller, then the property is not available.

A mortgage lender that I consider to be one of the best in the state, Jeremy House, sent me the following chart of the major loan products and guidelines that are out there right now.  He was careful to note that many things in the mortgage lending industry change on a daily basis, and can be outdated/changed in a heartbeat.  So before you make any decisions about mortgage loans, I would heartily recommend that you check with Jeremy or another local, reputable, experienced lender.  In the meantime, his chart does provide a fairly good overview of what’s out there and available, at this moment, in this room.  And the next time you’re tempted to contact your Realtor/Broker to ask if a particular property is available, be sure to smile and laugh when s/he says, “It depends!”

Posted in arizona market conditions

Greater Phoenix Area ~ Labor Day Weekend Freeway Closures & Restrictions ~ September 4–7

September 3, 2009 // Comments Off

Have a safe and fun holiday weekend, hopefully with very little labor!  

Gilbert Homes ~ Chandler Homes

Mesa Homes ~ Queen Creek Homes ~ Phoenix Homes

Posted in phoenix freeway conditions

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

Search Queen Creek Homes

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

Search Mesa Homes

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