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Recent AZ real estate news articles August 17, 2009

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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More news articles on the metro Phoenix real estate market and beyond:

Home Prices: There’s No Quick Recovery Ahead

by Brett Arends
Monday, August 17, 2009

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So, is our long national nightmare over? Has the housing market finally hit bottom?

There has been some muted — albeit exhausted — cheering from homeowners in recent weeks. But before we break out the champagne……

Valley home building resumes as new builders take over
AZ Central.com – AZ,USA
Phoenix real-estate analyst Jim Belfiore of Belfiore Real Estate Consulting said companies are taking full advantage of recent moves by lenders to sell off …

Foreclosure bill is now tied to state’s budget
Arizona Republic – Phoenix,AZ,USA
Former Arizona State Land Commissioner Mark Winkleman joined Mortgages Ltd., the Phoenix real-estate lender founded by Scott Coles. Winkleman, a real-estate …

Fidelity Releases Metro Phoenix Real Estate Trends and Predictions
Business Wire (press release) – San Francisco,CA,USA
This information is released in partnership with The Cromford Report, a daily report tracking the residential real estate trends of the Metropolitan Phoenix …

Foreclosures Forecast to Increase

Foreclosure Investors Rely on Innovative Rental Strategies

New appliances. Upgraded bathrooms. Plasma televisions. Granite countertops. High-end fixtures. These are some of the perks foreclosure landlords are offering their tenants. With the market for home …

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Chandler Arizona Real Estate Market Showing Substantial Improvement April 7, 2009

Posted by mkuhbock in Arizona Vacation Property.
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A positive review by David Lorti

Chandler Arizona Real Estate Market Showing

Substantial Improvement

Buyer Demand for Chandler Homes Rising Rapidly

Chandler, Arizona 4/06/2009 04:41 PM GMT (TransWorldNews)

http://www.transworldnews.com/NewsStory.aspx?id=82526&cat=1

Chandler, Arizona’s real estate market is experiencing substantial improvement in residential activity with lower available home inventory and higher home sales.

This improvement is primarily due to increased buyer demand for homes as a result of lower home prices, low interest rates, and the $8,000 first-time homebuyer tax credit, all of which are spurring interest by buyers to purchase homes.

To understand the changes currently taking place in the Chandler housing market, there are three areas that require review—the number of available Chandler homes for sale, the number of Chandler homes under contract for purchase, and the number of sold Chandler homes.


Available Inventory of Chandler Homes Showing Modest Decline

Available Chandler home inventory has been experiencing a modest decline and is now at a three year low.  The rate of decline is lower when compared to other real estate markets of the Phoenix Metropolitan area where buyer demand is more robust, but Chandler has generally been less impacted by the market downturn than those same communities.

The decline in inventory is largely due to the overall improvement in buyer demand rather than cancellations and expirations of property listings.


Buyer Demand for Chandler Real Estate is Strengthening Rapidly

Buyer demand, as measured by the number of actively marketed Chandler homes currently under contract for purchase in Chandler, is showing impressive improvement.

25.6% of the properties currently for sale in the Chandler real estate market are under contract, a 9% point increase since November 2008.  More striking is that 5 points of that improvement has taken place within the last 30 days.

Put another way, for every 10 homes on the market, there are now 2 ½ buyers vs. 2 buyers a month ago.

Comparing against prior years, Chandler’s performance is surpassing that seen in the 2006-2008 period though still less than that seen in the 2003-2005 period.


As mentioned earlier, buyers are being spurred on by three major factors.  First, Chandler home prices have declined to such an extent that the prices are attracting attention.  Second, interest rates are at historical lows with borrowers attaining loans with as little as a 4-5% interest rate.  Third, “first-time homebuyers” who are eligible receive a $8,000 tax credit for purchasing a home.  This money does not have to be repaid unlike the previous homebuyer tax credit program.

The improvement in buyer demand is working to reduce existing inventory as more buyers are stepping up to purchase Chandler homes.


Sales of Chandler Homes Increasing

Chandler home sales activity is beginning to show greater strength in sales over 2008 trends as the number of homes under contract for purchase rises.  In the last 30 days, sales activity has begun to separate more clearly away from 2008 levels.  It is important to note that 2008 appears as the low point for closed sales activity in Chandler.

Given the pending home sales performance mentioned above, we should expect to see the number of actual closed sales increase over the coming 1-3 months.  Indicators are that Chandler real estate will post stronger numbers than that seen in 2008.


Chandler Foreclosures & Short Sales

Chandler, like many Valley communities, has been beset by foreclosures and short sales which have forced prices down aggressively from market highs.


Valleywide, the number of foreclosures do represent a trouble spot for the Chandler real estate market.  Indeed, the 90-day rolling average for the number of Trustee’s Sale notices issued daily continues to grow with over 300 notices given per day.  As well, the number of actual Trustee’s Sale or foreclosure auction proceedings per day is growing and represents approximately 140 foreclosures daily.  Together, these figures point to an increased number of foreclosed homes entering the marketplace in the near term, potentially driving down pricing for existing homes.


Chandler Real Estate Outlook

Overall, the Chandler real estate market is clearly experiencing improvement.
In the next 1-3 months, we should hope to see additional erosion of available Chandler homes inventory given buyer demand.  Though we could see a steady sloping of pending sales activity as the year progresses, the trend should maintain a higher level than that seen in the last two to three year period.  Actual 2009 Chandler home sales should post better results going forward for Chandler than that seen in 2008.


In summary, Chandler real estate appears to be shoring up and laying a more solid foundation for further improvement resulting in reduced inventory, higher pending sales activity, and higher home sales.  Though more foreclosures loom in the marketplace, the outlook for the Chandler real estate market is more promising for the moment.  Time will tell.


About David Lorti


David Lorti is a professional Realtor for Thompson’s Realty in the Phoenix Real Estate Market market. He holds a MBA and Certified Negotiation Expert designation and his insights have been quoted in numerous news outlets. His website, LortiHomesArizona.com, and blog, LortiHomesBlog.com, offer additional market insights on Ahwatukee Real Estate, Chandler Real Estate, Gilbert Real Estate, and all parts of the Phoenix area.

Real Estate News – Mortgage Rates Drop March 26, 2009

Posted by mkuhbock in Arizona Vacation Property.
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Mortgage rates drop to record low

Freddie Mac survey says mortgage rates fall to lowest in 38 years after Fed aids market

  • Thursday March 26, 2009, 11:47 am EDT

WASHINGTON (AP) — Rates on 30-year mortgages fell this week to the lowest level on record after the Federal Reserve launched a new effort to assist the staggering U.S. housing market.

Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.85 percent this week, from 4.98 percent last week. It was the lowest in the history of Freddie Mac’s survey, which dates back to 1971 and was down a full percentage point from a year ago.

The previous record low of 4.96 percent was set in the week of Jan. 15. Rates fell after the Fed last week said it will pump $1.2 trillion into the economy in an effort to lower rates on mortgages and loosen credit.

Rates on 30-year mortgages traditionally track yields on long-term government debt.

Though the yield on the benchmark 10-year Treasury note initially plunged by about 0.5 percentage points after the Fed’s move, lenders did ……..

For the entire article go to Mortgage Rates Drop

How to afford Arizona vacation real estate in 2009 – Joint Ownership March 17, 2009

Posted by mkuhbock in Arizona Vacation Property.
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4 comments

Hi All,
How can someone make a real estate investment in todays challenging economic climate a reality? Well read on to find out! 🙂

We all read the headlines and hear the dialogue about how the economic sky is falling, the bank and mortgage crises, global equity market realignment, the drop in the price of oil and gas and of course the plummeting value of real estate. With all of the bad news maybe we just need to focus on the glass being half full.

Lets focus on Arizona vacation real estate opportunities, although everything mentioned above is also a fantastic opportunity, and why now is one of the best times in history to get into the real estate market.

Metro Phoenix is one of the top ten residential real estate markets that got hit hard by the sub prime debacle and the effects of an over inflated real estate rush over the last 5 years. Today the opportunity to pick up well built, located, and priced properties in Metro Phoenix is abundant. Depending upon areas you can purchase an investment or vacation home for 50 to 60% of what it was valued in the peak of the market.

Great deals but how to afford the opportunity and investment in today’s market when your net worth has taken a big hit?

Unfortunately not everyone has the financial ability to put down $200,000 in cash or take out a large mortgage to leverage the buying opportunities that abound in Arizona, and specifically metro Phoenix.

As I mentioned in a previous post, Joint Ownership is a wonderful vehicle to leverage today’s market and real estate opportunities.

If you get 3 to 5 families together (2 would even work) and work through the proper processes and requirements (identifying needs, wants, desires and must haves) the capital costs of a vacation home along with the monthly operating expenses can be split evenly between the joint owners.

As an example, 5 families split a $400,000 metro Phoenix home (buys you something nice with 5 bed 3 bath, stainless, granite, 3 car garage and pool) then add $50k for any upgrades that might be needed and furniture. Thus you have ownership in a fully furnished vacation home, a 3 hour flight away, for $90,000 all in with a monthly operating cost of around $200.

At the end of the day you can probably never use it more than your proportionate share of 2.4 months a year (spread throughout the year). Now you have an asset that will substantially appreciate over time and somewhere to call home when it is minus 40 in Canada.

Take a look at what less than $400,000 could buy you in the Metro Phoenix market today.

4154 E Laurel Avenue, Gilbert, AZ

The structure of a Joint Ownership investment is easy and I am happy to assist with that if there is a need.

Cheers,

Michael

How to afford Arizona vacation real estate June 16, 2008

Posted by mkuhbock in Arizona Vacation Property.
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Well it seems like most of Alberta has jumped on the vacation home band wagon and bought something down in Arizona.  Just about everyone you talk to has bought, is looking to buy or would love to find something down south to get away from the inevitable cold weather we will be suffering in the Canadian prairies in approximately 5 to 6 months (yes the summer in Canada is way too short).

Unfortunately not everyone has the financial ability to put down $200,000 in cash or take out a large mortgage to leverage the buying opportunities that abound in Arizona, and specifically metro Phoenix.

But wait, there is a way the average Canadian can buy a vacation home in the warmer climates and not go broke doing so. Though joint ownership it is possible to purchase a great place down south for no more than the price of a new car.

If you get 3 to 5 families together (2 would even work) and work through the proper processes and requirements (identifying needs, wants, desires and must haves) the capital costs of a vacation home along with the monthly operating expenses can be split evenly between the joint owners.

As an example, 5 families split a $250,000 metro Phoenix home (buys you something nice in the 3 bed 2.5 bath in a gated community) then add $50k for any work that might be needed and furniture. Thus you have ownership in a fully furnished vacation home, a 3 hour flight away, for $60,000 all in with a monthly operating cost of around $200.

At the end of the day you can probably never use it more than your proportionate share of 2.4 months a year (spread throughout the year). Now you have an asset that will appreciate over time and somewhere to call home when it is minus 40 in Canada.

New Blog post I will cover off some of the things you need to consider when you go the joint ownership route.

Cheers,

Michael