The Real Estate VOICE Linda Wieczorek 602.391.8246 Blogging Classic Old Homes Great Neighborhoods Up and Coming Neighborhoods Phoenix History Folklore and everything we can find about Phoenix AZ.
Showing posts with label Phoenix Real estate market. Show all posts
Showing posts with label Phoenix Real estate market. Show all posts
Saturday, September 24, 2011
Are You Sitting on the Fence, wondering if you should buy!
Thinking out of the box...That's what it takes today to land a home. If you want to work with a realtor that know how to get the home and close the deal call Linda 602-391-8246
FOR HOMES IN PHOENIX AND THE METRO PHOENIX AZ AREA USING FLEXMLS®, THE OFFICIAL AND LIVE MLS!
Should
you be sitting on cash right NOW!!!
Monday, August 30, 2010
Why is it time to Buy a Home !!!!
3 Reasons Why Real Estate is Superior to Stocks
Foreclosures
Phoenix,Gilbert,Goodyear,Avondale 60K-150K
Here are the top 3 reasons I believe real estate is a better investment than stocks:
1.) Real Estate is a Tangible Asset. It is a physical investment that you can see and touch. Shares in a company are nothing more than a piece of paper giving you an interest in the underlying company. Although a company’s shares can be valuable, because real estate is tangible it generally provides more value because people can use it in everyday life, and more importantly it is essential!
People must have homes to live in and businesses must have places to operate from. You can live in a house or an apartment, but you cannot live in a share of stock from Google. You can operate a business in a retail shopping center or an office building, but you cannot open and operate your business just because you own stock in Wal-Mart (unless of course you bought the stock way back when and your capital has increased 20X!).
2.) Real Estate allows for Leverage. Now leverage can be a double-edged sword, and over-leveraging a property can cause your asset to become a “money pit” faster than you can say “Bubble”. The over-leveraging of properties coupled with greed is the primary reason why we are experiencing the effects of the recent real estate market crash.
However, responsible leveraging can allow an investor to put up 20-30% of the purchase price of a property and borrow the remaining 70-80% of the purchase price. This leverage will generally allow the investor to realize gains much higher than that of the stock market. For example if you have $100,000 dollars to invest in real estate, you can generally leverage that into a $500,000 property. So your $100,000 will serve as a 20% down payment on a $500,000 property and you will get a mortgage for the remaining $400,000.
If the property appreciates at 5% ($25,000) over the course of a year, that is an unrealized gain of 25% on your invested capital of $100,000. In addition, if the property was generating a positive income, which is always advisable, then your returns would be greater.
Now just to be straight forward, this is the broad view of the investment. It doesn’t take into account closing costs, loan costs, illiquidity of the investment, etc. So there are more costs that would be associated with this investment that would take away from that 25% return and you would still have to sell or refinance the property to realize that 25% return, however, over the course of a few years with responsible leverage, real estate returns far outpace stock market returns. Feel free to contact me if you would like me to justify that claim in more detail. :-)
Stocks can generally only be leverage at a 50% – 100% ratio if you are trading on margin. So if you have $100,000 to invest, you can generally purchase $150,000 – $200,000 worth of stock. Assuming you purchased $200,000 worth of stock and it appreciated 5% ($10,000) over the course of a year, that is an unrealized gain of only 10% on your invested capital of $100,000. And similar with the real estate investment you still have additional fees that will take away from this gain, primarily brokerage fees and interest on the borrowed capital in your margin account.
3.) Real Estate allows for more Control. When you invest in real estate, you generally have control in how that investment is to perform. You can implement strategies to operate the investment more efficiently in order to maximize returns. Unfortunately, with stocks you really don’t have any control in how the company operates in order to maximize your returns on your investment. At best you can submit suggestions to the board of directors, and maybe they will implement some of your suggestions….MAYBE! Great article by Khary Reynolds
Saturday, August 7, 2010
Phoenix Housing Numbers - Here are some great numbers
I was out with a client yesterday from CO who feels the home prices are going to drop another 15-20% and really feels he should hold off a few more months.. this puts the housing market into perspective. THXLW- Don't Drag you feet, it is a Good time to buy.
We talk to countless people who really want to buy an urban condo but are afraid. They worry that prices are going to go down further and hurt them as the eroding market has hurt so many others.
Here are some great numbers that put the current Phoenix real estate market into perspective. This data is for real estate in general, not urban high rises and lofts specifically. However, the numbers reinforce our opinion that with all things considered (i.e. the very real possibility of higher interest rates, the very real possibility of inflation, and a real increase in buyer interest among our clients) that now is a good time to buy. Please understand that our optimistic opinion does not apply to all high rises and lofts. There are definitely some risky situations out there. But in general things look much much better.
The numbers below show what has happened since January 2002 in the greater Phoenix real estate market.
ACTIVE LISTINGS
- Currently there are 6,314 properties actively listed for sale on the Phoenix MLS.
- The highest number of listings since January 2002 was 11,591 in November 2008; almost twice today's number.
- The lowest number of listings was 1,190 in March 2005.
- The number of active listings has dropped steadily since November 2008 until July 2009 where they have staid pretty steady at 6,000.
DAYS ON MARKET
- The number of "days on market" for properties actively for sale in Phoenix is currently 110 days.
- The high was 484 in June 2008.
- The low was 19 days in March 2005.
- During the "normal" market of 2002-2004 properties took an average of 100 days to sell.
PENDING SALES
- Currently the number of "pending sales" (properties which have a buyer but the transaction has not yet closed) is at 2,598.
- The high was 3,272 in May 2009.
- The low was 530 in January 2008.
CLOSINGS
- Currently the number of properties that close each month is 1,761.
- The high was 2,380 in January 2009.
- The low was 404 in January 2008.
- Current sales velocity is equivalent to 2004 and 2005.
AVERAGE SALES PRICE
- Currently the average sales price in Phoenix is $146,598.
- The high was $343,229 July 2007.
- The low was $102,845 in March 2009.
AVERAGE SALES PRICE PER SQUARE FOOT
- The current average price per square foot is $83.06.
- The high was $185.29 April 2007.
- The low $64.40 per square foot in May of 2009.
STATE OF THE MARKET
So there you have it, data that suggests that we "hit the bottom" in real estate in early 2009 and that prices and sales activity are going up. You can believe what you read in the newspaper and see on the evening news OR you can form your own opinions based on the numbers. Fitz and I have been pretty conservative in our opinions of the real estate market during these tough times; certainly more conservative than any of our peers. We have NOT been banging the drum telling everyone to buy, buy, buy just so we could make a commission. We have instead been very skeptical of a "recovery". However, we now see things differently. We believe the numbers. We believe that prices have bottomed and are going up. We believe that the worst is behind us. We also truly believe that interest rates will be going up soon. We also truly believe that inflation is on its way. If we are right then, in general, now is the time to buy.
I say "in general" because we believe that there are exceptions to this statement. Some high rise and loft buildings are still very risky and are many months, if not years, from recovering. YOU STILL NEED AN EXPERT ON YOUR SIDE to help you find the good "buys" and to identify the stable high rise and loft buildings. Don't trust your investment to a part time agent or one who does not specialize in the urban living. Talk with AZprideProperty.com Linda
RE-Blog - WeknowUrban Thanx
Monday, May 17, 2010
Housing market diagnosis: Bipolar....It sure IS!!
The article, Housing market diagnosis: Bipolar, from CNNMoney.com, reports that bipolar is what comes to mind when diagnosing the post-home buyer tax credit market. There are two separate forces pulling it in opposite directions, and experts aren't yet sure which path the market will take. On one hand, sales and prices are rising, indicating recovery. On the other hand, so are interest rates and repossessions, which most certainly do not. And then there are the millions of foreclosures that need to be sold but haven't yet been listed -- so-called shadow inventory -- that could derail a real recovery if they hit the market in floods.
The prognosis? Negative short term but turning positive by the end of 2010. One of market's biggest hurdles is getting beyond the lapse of the $8,000 home buyer tax credit. Thanks to the incentive, buyers scrambled to beat the April 30 deadline, pushing new home sales up nearly 30% in March. "In the months immediately following the expiration of the tax credit, we expect measurably lower sales," said Lawrence Yun, chief economist for the National Association of Realtors (NAR). But there is one factor that has experts really scared: homes that are ready to be sold but haven't been put on the market. Right now, there could be more than 4.5 million homes in "shadow inventory," according to a recent report by Barclays Capital. This so-called shadow inventory is a recent phenomenon. In the past, inventory was either tight or it wasn't. But now, with home prices so low and so many foreclosures on the market, both homeowners and banks have been waiting to put properties on the market. But as more sellers put their homes up for sale, supplies increase, which will depress prices again. Rinse and repeat ad infinitum.
Here is a link to the article
http://money.cnn.com/2010/05/17/real_estate/housing_market_direction/index.htm
Monday, September 14, 2009
Exceptional real estate investment in Phoenix, HOW bout that FHA buyer!!
Phoenix, Arizona is one of the lowest priced housing markets in the West, with exceptional real estate investment opportunities.But..... How bout that FHA BUYER!!! or shall we call them discouraged qualified buyers.
Not only are we seeing 7-10 offers on every decent low priced REO property, but of those offers about 50% of them are all cash. This has become a problem for the First time FHA buyer, who are constantly losing out to these cash bids.
Trying to sell lender owned homes to FHA buyers can be very frustrating, very time consuming and an extremely long process. Most of the REO listing in the MLS will say they accept FHA financing but when they have other offers for either Cash or Conventional terms it seem like the FHA offer is on the bottom of the pile.
Hopefully as banks release more of their foreclosed properties and the competition lessens as we approach the holidays, sellers will again start looking at FHA buyers. It's a shame that so many will miss out on the $8000 tax credit, lets hope for an extension there.
Tuesday, September 8, 2009
IT'S A JUNGLE OUT THERE! a Real estate "feeding frenzy"
For Buyer's who are trying to make sense of today's crazy real estate market.
IT'S A JUNGLE OUT THERE! a "feeding frenzy" and the survivors only reap the profits. With multiple offers, contract acceptance times running anywhere from a few days to months, appraisals not coming in and with the loan programs changing almost daily. This is a market where only the well thought out plan will survive. FHA Buyers mine as well wrestle an alligator. The Feeding frenzy is here and has been here,with the majority of homes available being short sales, all with multiple offers over asking, what's a buyer to do? Especially at the lower end of our market There is no room for slow decision makers, or indecisiveness if you want a home.
With all of that said, it doesn’t mean that it’s a bad time to buy,it's a GREAT time to buy, interest rates are low and the market is affordable more then ever.The reality is, there are still a lot more short sales and foreclosures and the banks are not really making the effort to make the process any easier, which is why the market, for many, is so complicated.
Now more than ever it is important to have a Realtor you can trust, one that has your best interests at heart, an alligator wrestler, a CNE Certified Negotiation EXPERT.
Give me a call Linda 602-391-8246
Thursday, August 13, 2009
PHOENIX is one of the most popular cities in the entire United States!
* 2,164 single family detached homes were purchased in July 2009 vs. 1,120 last year (July 2008).
* The average price paid was $134,082 vs. $226,429 last year.
* The median price came in at $86,900 vs. $180,000 last year.
* The ratio of purchase price to list price was 103% vs. 97% last year.
* The average time on the market was 74 days vs. 86 days last year.
* There were 8,871 Active single family listings vs. 14,170 last year.
Phoenix (and the greater metropolitan area) is being impacted by bank owned (foreclosed/REO) properties continuing to hit the market in record numbers. As a result, several unique conditions currently exist:
The selection of available homes for sale in Phoenix is good, but significantly less than just a few months ago. Regardless of the price point, many of the bank owned (foreclosed/REO) properties are in deplorable condition (trashed/stripped by former owners and/or vandalized after being vacated/abandoned), but perhaps 10-20% of them are in terrific locations, have quality upgrades and a private pool, and are in move-in condition. There are also hundreds of single family homes, townhouses and condos in Phoenix that are on the market by homeowners who want or need to sell their homes, many of which are in outstanding condition and priced quite aggressively.
Prices in Phoenix have fallen to the point where many nearly new homes are actually priced below current comps/appraisals. Some areas have seen prices correct downward by as much as 50%. Home prices are extremely attractive and affordable in virtually every area of Phoenix, including gated communities and waterfront properties, and are arguably at or near rock-bottom levels.
In spite of the sub-prime lending crash that started in 2006, and national banking/liquidity crisis that surfaced in 2008, mortgage loans in Phoenix are still readily available. Credit requirements are more stringent than they were in recent years, but solid loan products and pre-approvals are indeed accessible. Several loan products have made a roaring come-back, including FHA loans requiring only a 3.5% down payment and VA loans requiring no down payment.
Mortgage interest rates continue to hover in an historically low range. Like most everything on this planet, the reasons for such super-low mortgage interest rates are numerous and complex. The obvious benefit is that many buyers are indeed able to finance their home purchases. And given the tremendous choice of homes and almost unbelievable pricing, bargains, deals and steals in Phoenix are happening daily.
The result of the foregoing conditions ~ abundant supply of homes, extraordinarily low prices, availability of mortgage financing and low interest rates ~ is a noticeable, steady increase in buying activity in Phoenix. Properties that are priced aggressively and in above-average condition (bank owned or not) are often drawing multiple offers and selling in just a few days.
Whether your interest is in single family homes, town homes or condos... and whether you're focused on bank owned (foreclosed/REO) properties, pre-foreclosures, short sales or homes being offered by traditional homeowner-sellers... and whether you're looking for smaller, larger, older, newer, waterfront, gated, private pool, no pool, active adult, horse property, mountain views or any other type of home in Phoenix, we're here to serve you and help you find and purchase just the right home at just the right price.
For FREE access to ALL of the currently available listings in Phoenix (or anywhere in the Valley of the Sun), simply go to AZPrideproperty.com
For FREE email delivery of ALL of the currently available listings that meet your exact wants and needs, or FREE access to a customized website where all of the details on all of the homes are displayed and updated daily ~ including photos, virtual tours, property features and even addresses ~ simply email AZhomes4u@gmail.com No registration required!
For fast, friendly, professional information and assistance regarding homes in Phoenix, email AZhomes4u@gmail.com, or call 602-391-8246. We'll respond to you quickly and courteously, by email or phone, whichever you prefer. No pushy salesmen! No pressure! No obligation! We take pride in your investment.
* The average price paid was $134,082 vs. $226,429 last year.
* The median price came in at $86,900 vs. $180,000 last year.
* The ratio of purchase price to list price was 103% vs. 97% last year.
* The average time on the market was 74 days vs. 86 days last year.
* There were 8,871 Active single family listings vs. 14,170 last year.
Phoenix (and the greater metropolitan area) is being impacted by bank owned (foreclosed/REO) properties continuing to hit the market in record numbers. As a result, several unique conditions currently exist:
The selection of available homes for sale in Phoenix is good, but significantly less than just a few months ago. Regardless of the price point, many of the bank owned (foreclosed/REO) properties are in deplorable condition (trashed/stripped by former owners and/or vandalized after being vacated/abandoned), but perhaps 10-20% of them are in terrific locations, have quality upgrades and a private pool, and are in move-in condition. There are also hundreds of single family homes, townhouses and condos in Phoenix that are on the market by homeowners who want or need to sell their homes, many of which are in outstanding condition and priced quite aggressively.
Prices in Phoenix have fallen to the point where many nearly new homes are actually priced below current comps/appraisals. Some areas have seen prices correct downward by as much as 50%. Home prices are extremely attractive and affordable in virtually every area of Phoenix, including gated communities and waterfront properties, and are arguably at or near rock-bottom levels.
In spite of the sub-prime lending crash that started in 2006, and national banking/liquidity crisis that surfaced in 2008, mortgage loans in Phoenix are still readily available. Credit requirements are more stringent than they were in recent years, but solid loan products and pre-approvals are indeed accessible. Several loan products have made a roaring come-back, including FHA loans requiring only a 3.5% down payment and VA loans requiring no down payment.
Mortgage interest rates continue to hover in an historically low range. Like most everything on this planet, the reasons for such super-low mortgage interest rates are numerous and complex. The obvious benefit is that many buyers are indeed able to finance their home purchases. And given the tremendous choice of homes and almost unbelievable pricing, bargains, deals and steals in Phoenix are happening daily.
The result of the foregoing conditions ~ abundant supply of homes, extraordinarily low prices, availability of mortgage financing and low interest rates ~ is a noticeable, steady increase in buying activity in Phoenix. Properties that are priced aggressively and in above-average condition (bank owned or not) are often drawing multiple offers and selling in just a few days.
Whether your interest is in single family homes, town homes or condos... and whether you're focused on bank owned (foreclosed/REO) properties, pre-foreclosures, short sales or homes being offered by traditional homeowner-sellers... and whether you're looking for smaller, larger, older, newer, waterfront, gated, private pool, no pool, active adult, horse property, mountain views or any other type of home in Phoenix, we're here to serve you and help you find and purchase just the right home at just the right price.
For FREE access to ALL of the currently available listings in Phoenix (or anywhere in the Valley of the Sun), simply go to AZPrideproperty.com
For FREE email delivery of ALL of the currently available listings that meet your exact wants and needs, or FREE access to a customized website where all of the details on all of the homes are displayed and updated daily ~ including photos, virtual tours, property features and even addresses ~ simply email AZhomes4u@gmail.com No registration required!
For fast, friendly, professional information and assistance regarding homes in Phoenix, email AZhomes4u@gmail.com, or call 602-391-8246. We'll respond to you quickly and courteously, by email or phone, whichever you prefer. No pushy salesmen! No pressure! No obligation! We take pride in your investment.
Subscribe to:
Comments (Atom)