Real Estate Information

According to the National Association of Realtors we have a 6.6 month supply of homes priced under 240K. Homes priced at or over a million dollars 20.5 months supply. So the question begs to be asked, are we in or just out of a recession, in a buyers market or both? My favorite market is the buyer's and we are smack dab in the middle of the mother of all buyer's markets. 

The problem is credit has tightened and negative inventory has swollen to epic proportions so like the adage goes, cash is king and in the right hands it does compel people to do many things including accepting your offer to purchase. I think there are many valuable lessons to be learned as we emerge from this recession, don't overbuy. There is nothing worse than being house rich and cash poor. Spend your money wisely. Invest with confidence in our country our indomitable spirit will bring us all back.

It is August 09 and we finally have cooled off a bit...in housing. It is still 105 degrees outside! We have been selling 9000 + homes for more than four months now, negative inventory has been gobbled up by deal hungry investors and buyers alike. This purchasing frenzy sales cycle takes me back to 2004-05 when we were selling the same numbers of homes in record numbers like we are now, this time around however bargain prices and bidding wars on property is the norm.

The tax credit is going to fade away Nov. 30th so get your self in and closed escrow before then. Once this market corrects itself (my opinion AZ will follow the rest of the country 8-12 months behind national recovery) because of the overbuilding we did here. I really hope the fed's continue to pursue the guys who packaged up credit portfolios that they knew were toxic and sold them anyway, put them all in prison, their assets seized and distributed back to the investors and the American taxpayers that they ripped off. The market and our country will recover, just hold on and stay positive.

This month the Governor of Arizona Jan Brewer signed a law changing the anti-deficiency laws in the State of Arizona. In short the banks have thrown a fast ball past the tax payers and in doing so are violating your constitutional rights. The law now reads that after September 30th 2009 any homes that foreclose, the banks can go after the homeowner for the difference. They fail to mention despite it being a contract entered into before the law takes effect in September and is completely unenforceable it is now on the books. I am confident the Governor at the request of taxpayers and all of us REALTORS together will hold a special session to re-examine the merits of such a wide breech in our trust and in our pockets.

The argument can be made, why should I care if an investor looses his shorts to the lenders? Well in my opinion you should, it starts there and slowly erodes to you and I. If the lenders can just go after a homeowner why then would they agree to short sale a home? With our lagging market, bulging inventory and several more years of pain in front of us, why would we allow the lenders who propagated this mess to then also profit from it's decline by throwing us deeper into debt and into total turmoil? We for too long have let our country and our common rights as American's get away from us, we need to get this turned around and quickly. Let your representatives, your neighbors and family know what you think and decide upon some action.

Hopefully you have seen the news and you are good and scared, (if you need some fodder just watch any cable news channel) we are spending billions of dollars bailing out wall street, while main street closes it's doors. Is it better to keep the corporate giants alive and spending our money or should main street catch a break? We need to get middle America out of debt, our quickly eroding middle class needs a bailout AND FAST! Why can't banks just approach all homeowners and give them all a 1% fixed rate on all primary residences and lower all other property to 3%? How about a permanent tax credit or down payment assistance for buying a primary home or an investment property? Want to do something? Start blogging your ideas, tweet them, let your representatives know what you think and tell them your ideas!

Happy Fourth of July to all of us!! Be sure to show this country and it's leaders how much she means to you!!

July is here and with the usual heat and fireworks, the flags on display we will all remember this June as the best on Arizona record! not only did we have astonishing sales volume but the weather was awesome too! I like Elliott Pollack believe AZ is on the mend, we will be back on our feet within a year and wow what a ride it has been. Recored appreciation and record depreciation it is one for the history books for sure. 

Remember you home buyers out there who are waiting for the right time to buy, it's here! The federal tax credit expires in Dec but you have to be closed escrow by Nov 21st 09! Don't worry though our friends at the federal level are working on things daily to help us get back on course. Have a great fourth everyone!

Home hunting 101. Location, location, location right? In todays market you can afford to line up the shot. Check schools even if you have no kids, in a good sellers market or even a polarizing buyers market a home in the right school district will fetch a handsome price.

When considering buying a home, do ask the neighbors questions they are often the BEST source for information both good and bad. Drive the area at different times of the day just to see who and what comes out in the day and in the night.

Trust your instincts, they seldom ever lie, a good rule of thumb is if the deal seems too good to be true, then it probably is.

Take advantage of the $8000 tax credit NOW! To qualify you have to close escrow before NOV 22 09! If you are not closed and in the home by then it will be too late! Happy Summer 2009!

I meet someone everyday who is worried about what's going to happen with the market, the economy and just life in general. As a Realtor I find much of my job is simply talking people thru tough times. It is going to get better, just hold on as best you can. there are many places who can help you to consolidate your debt and make you debt free. My opinion, get credit cards under control, you need maybe one or two cards in case of emergency that's it. Everything else use your debit card, if your debit runs dry, so does your spending. Is it just that easy? Yes.

Credit cards are a force that can ruin you, you can walk away from a house, but credit cards will come after you. Open Helocs are now becoming a major issue. If you are in a situation and want to talk and just get some good advice free of charge call or write to me. I am sure by the end of the phone call or email we will have you on the path to recovery.

Months ago I told you all that the housing market was unlike the stock market in that in stocks, gains and losses are realized in a day or a week. Housing is like the dawn forcing the darkness to retreat. Slowly but surely homes are being sold. Foreclosures and short sales are getting gobbled up by deal hungry investors.

Once the foreclosures and short sales are absorbed which I think is going to be another good full year to eighteen months of great home shopping to be had in Arizona, the rates are at Historic lows and inventory is terrific. Once all those deals get eaten up guess whats left? Your house and Mine! Investors ever since investing was invented have tried to time the market to capitalize on a bull minded sellers market. The time to buy is now, hold them for a few years and then sell at the next peak! Sounds easy right?

Then why is everyone standing around scratching their heads wondering where the next hot market will spring up!? The answer is easy, do not over buy. House rich and cash poor is a recipe for disaster. Get a home you like and enjoy and can afford and keep it for as long as you want. Do not succumb to any high pressure sales techniques, the right house for you is out there and it is looking for you too.

I get asked every day the same or a similar question..where do you see the housing market going? In my opinion the real estate market is a regional phenomina. Houses in Florida are not going to sell for the same price as we will net in Arizona. As I am only licensed in AZ I can offer expertise for my state only.

In my opinion though, keep your eyes on the Florida housing market, it is the hardest hit state for foreclosures, insurance claims etc. Once the housing stabilizes there  it will be the indicator for the entire country that recovery is underway.

Arizona however since it was hit first, shall recover first and if you ask me and many others, we hit the bottom of the market in Oct 08. That being said we have plenty of inventory to yet absorb, in March 09 we had over 8,000+ resale homes sold (70% were foreclosures and short sales) compared to a year ago 08 2,400+ homes were sold. A very good sign indeed.

I would say there is great opportunity to Buy Homes at ridiculous prices and low interest rates for the next 9-12 months or so, after that the sellers will finally be able to sell and the sellers market will start to ramp up.