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2010 looks to be an interesting real estate year for Phoenix January 19, 2010

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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After 19 days into 2010 I have noticed a couple of disturbing trends coming about. Or exciting trends depending on which side of the real estate fence you are on, the buying real estate 🙂 or selling real estate side :(.

Keep in mind that all of the below is unscientific and we will have to wait for the official numbers from the real estate boards to quantify my observations.

Firstly, I am subscribed to a number of automatic new listing and REO feeds that are sent to bme by email daily, I have noticed that the quantity of homes and the number of emails I am receiving daily is growing dramatically. The listing count seems to be increasing at a higher rate than I have ever seen before and the number of bank owned properties or REO’s listings is also growing. Has the dam burst for the lenders and they are now releasing the growing inventory they had shelved in 2009?

We played golf and bumped into a gentleman who knew of a person who’s job was to post foreclosure notices on homes, he stated that this person had a 160 notices backlogged on his desk, is this a sign of a future increase in inventory?

Prices appear to be dropping. I am following a couple of Metro Phoenix areas for activity and a few homes we have had our eye on, and in the last 30 days we have seen asking prices start to drop as inventory increases. These drops in asking prices have been substantial, especially for some higher profile condo complexes. Asking prices for homes in nice, stable, white collar neighborhoods are 40 to 50% off what they sold for in 2005.

Finally the last point in my unscientific analysis of the Metro Phoenix real estate market is that I have noticed a growing percentage of new listing notifications that are not new homes to the market but homes that have come back on the market after the purchaser has backed out or the short sale was not approved by the lending institution.

Is this just a minor blip in the Phoenix real estate market recovery or is it the next wave of downward value readjustment some of the previous articles I posted made mention of?

Before you decide maybe take a look at the next piece of uncomfortable news in the following link:

JANUARY 19, 2010

Souring Mortgages, Weak Market Force FHA to Walk a Tightrope

By NICK TIMIRAOS

David Stevens bought his first home almost 25 years ago, paying just 3% down with a loan backed by the Federal Housing Administration. “I had no money in the bank,” he says. “If it weren’t for the FHA, I wouldn’t have gotten that home.”

Now, as FHA commissioner, Mr. Stevens has to decide how many others to let through that door. Souring FHA-insured mortgages are threatening the agency’s finances. Congress is pressuring him to tighten the easy-money standards that once helped people like him, and he is expected to announce revisions as early as this week……..

It looks like the glass is either half full or half empty depending on which side of the Phoenix real estate fence you are on, hope you are on the right side. 🙂

Cheers,

Michael

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