The Phoenix Area Foreclosure Experts

Home prices begin to rise in Phoenix -- April and May 2009

For the first time in two years home prices are going up in the city of Phoenix. Pay particular attention to the far right-hand column in this chart that's labeled "$$ sq ft"  (price per square foot).

You'll see that the price per square foot increased from $66-$68 from March to April of 2009.  I did not write about this last month because -- face it -- it's only one month. However, you'll also see that the price per square foot increased from $68-$71 from April to May 2009.  Again, not earth shattering news, but it is the first time this has happened in 2 years.

Read the chart in this manner: May 2009 began with 7,035 active listings in the city of Phoenix.  May 2009 finished with 2,212 of those listings being sold, which is 31.4% of all active listings in the city of Phoenix.  This sales rate is equal to 3.2 months of inventory on hand.  The average size of a sold home was 1,701 square feet.  The average price was $121,169 -- which equals $71 per square foot.  Note that the average days on market was 117 days.

If you're new to this blog and wonder why I place more emphasis on price per square foot-- click here.

Phoenix area real estate market -- it's a sellers market for properties under $100,000

We've been hearing for long time that it's a buyer's market in the Phoenix area real estate arena (as it has been across the country). But it's also a sellers market.  Yes, that's right -- a sellers market.

We have a very unique situation in the Phoenix area real estate market.  Let me explain: the mid-level and upper level homes are still in a buyer's market because there is more supply than demand.  However, the lower-level homes (under $100,000) are in a seller's market.  There is clearly more demand than supply.

The situation has been building over the last six months in the Phoenix area real estate market.  Homes in the lower level segment are attracting anywhere from 3-15 offers within the first week on the market. This is resulting in homes demanding a "highest bid" and selling over the asking price. 

The chart illustrates this demand.  Read it in this manner: 9,330 residential properties sold in May of 2009 in the Phoenix area real estate market.  3,866 of those properties sold for under $100,000 ( 41.4% of all sales). However -- of the 3,866 homes that sold for under $100,000 -- 3,519 (91%) were Metro Phoenix foreclosures. The situation in this market segment resembles the frenzy of 2005.

Loan Modification Efforts Paying Off--but beware of Scam Artists

By Allen D. Butler, Esq. at www.legalaz.com, 480-921-0626 

Loan Modification Efforts Paying off—but beware of  Scam artists

 Recent news articles have highlighted two trends in the Loan Modification:

1. More lenders are participating in the Making Home Affordable program announced by the Obama administration last March—and, borrowers are in fact getting their loans modified—but progress is still slow!

Nationwide, over 150,000 borrowers have received a modification proposal on their home loans, according to CBS news.  Over 14 loan servicers, including the 5 largest have signed up for the program.  See a list of servicers at http://makinghomeaffordable.gov/contact_servicer.html.

The Making Home Affordable program offers two options to homeowners:

1.  The “Home Affordable Refinance Program” offers homeowners an opportunity to refinance their mortgages with lower rates.  There are some limitations however—including a loan to value ration no higher than 110%, and a good payment record.  In addition, this program applies only to Freddie Mac or Fannie Mae backed loans  Unfortunately many homeowners in Arizona will not qualify for this program because their homes are worth significantly less than what they owe.

3.  The Home Affordable Modification Programs offers homeowners a modification of their existing mortgage with their existing lender.  The general guideline is that the home owner is eligible for modification if the current mortgage payment on the first mortgage is more than
31% of the homeowner’s gross monthly income. 

So if Mr. and Mrs. Smith have a combined monthly income of $4,000 and their monthly mortgage payment is $1,600, they would be eligible to have their mortgage payment reduced to $1,240 a month,--including principal interest, taxes, insurance and Home Owner Association payment.

 You can see some Arizona success stories at www.legalaz.com.

2. Arizona Homeowners need to beware of  crooks and scam artists who take their money and do nothing.

Recent news articles have noted that Homeowners need to be aware of crooks and scam artists.  See the April 6 Press release from the Treasury department at www.legalaz.com (click on “Be careful who you hire”).  

Unfortunately, not everyone who contacts you is truly interested in helping you. In the recent past some of our clients have been contacted by companies or individuals who offer to help you modify your loan or save your home from foreclosure. Some of these individuals are legitimate, but some ARE NOT! They will take your money and then DO NOTHING. You will be much further ahead to hire a reputable firm who charges a reasonable fee.

Metro Phoenix foreclosures May 2009 -- cities with highest percentage foreclosure sales

The following five cities ranked among the highest in terms of percentage of sales that were of Metro Phoenix foreclosures:

• 86.8% -- Glendale (466 Metro Phoenix foreclosures/537 total sales)
• 84.9% -- Town of Maricopa (265 Metro Phoenix foreclosures/212 total sales)
• 81.6% -- Phoenix (1,804 Metro Phoenix foreclosures/2,212 total sales)
• 77.0% -- Queen Creek (371 Metro Phoenix foreclosures/482 total sales)
• 70.3% -- Gilbert 317 Metro Phoenix foreclosures/451 total sales)

Market conditions May 2009 -- Phoenix area real estate market

Prices are starting to go up in some cities in the Phoenix area real estate market.  Click on the below link for a two year history of 10 popular cities in the Phoenix area real estate market. 

***** Market report ******

Phoenix area real estate May 2009-- report card on Metro Phoenix foreclosures

Metro Phoenix foreclosures continue to dominate sales in the Phoenix area real estate market.  Here is a report card for may 2009:

Metro Phoenix foreclosures

Metro Phoenix foreclosures June 2009

Here is a list of five cities in the Phoenix area real estate market that have the highest percentage of Metro Phoenix foreclosures:

• 70.1% -- Town of Maricopa (305 Metro Phoenix foreclosures/435 listings)
• 62.1% -- Queen Creek (517 Metro Phoenix foreclosures/832 listings)
• 55.7% -- Glendale ( 587 Metro Phoenix foreclosures/1,283 listings)
• 49.5% -- Phoenix (2,882 Metro Phoenix foreclosures/5,826 listings)
• 42.9% -- Mesa (925 Metro Phoenix foreclosures/2158 listings)

 

Click here to see my top five list from M.ay 2009.

I'm in broker class

I'm going back to real estate school to obtain my broker's license. That will allow me to open my own real estate company. I have a few names in mind, but the final selection is in process.

The school is 4.5 hours per-day and will seriously cut into my client and blogging time. I'll have to keep the long-term goal in mind: to better assist my clients and increase my business potential. Posting may be erratic throughout the month of June.

Metro Phoenix foreclosures May 2009 -- REO property versus real estate short sale

Real estate short sales continued to gain on REO property (bank owned)  in the Phoenix area real estate market during May of 2009.

Read the chart in this manner: 6,896 sales during the month of May were Metro Phoenix foreclosures.  5,862 were REO property, or 85% of total Metro Phoenix foreclosure sales.  1,034 sales were real estate short sales, or 15% of total Metro Phoenix foreclosure sales. Refer to my last post for the total sales in the Phoenix area real estate market.

This is a trend that has been gaining steady momentum for the last 18 months.  Previously, many people snubbed their noses at real estate short sales because they were much more difficult to buy. REO property is much easier to acquire because the sales cycle is similar to that of a normal sale. Difficulties included three to five months sales times, lack of feedback from the banks holding the notes, and rejections of offers after buyers had waited for extended periods of time.

Currently, more people are interested in real estate short sales because they are becoming a larger part of the market.  Excluding them would be to ignore 23% of all active listings for sale in the Phoenix area real estate market.  Banks are trying to be more proactive with their handling of real estate short sales.  The numbers of short sales continue to rise each month as more homeowners are trying to avoid foreclosure.

Metro Phoenix foreclosures continue to dominate residential sales -- May 2009

73.9% of all residential sales in the May 2009 Phoenix area real estate market were comprised of Metro Phoenix foreclosures. Metro Phoenix foreclosures have accounted for more than 50% of all residential sales in each of the last eight months.

Read the chart in this manner: 9,330 residential properties sold in May 2009 in the Phoenix area real estate market.  6,896 of those properties were Metro Phoenix foreclosures, or 73.9% of all sales.  Metro Phoenix foreclosures are comprised of REO property (bank owned) and real estate short sales.

We will have a look at the makeup of Metro Phoenix foreclosures in the next few postings.