Friday, March 30, 2012
Pook's Market Message - 3/30/12
My last message discussed the changes that are occurring in the Phoenix metro housing market. It certainly wasn't the first time I reported about these changes in recent months. While the news media was slow to report that inventory is down and prices are starting to go up, they're certainly saying it now. An article in this week's Arizona Republic repeats the message. That article, along with an article from the National Association of REALTORS® saying that housing is 'awakening from hibernation,' are included in Today's Topics. Another sign that the market is turning around is that builders are building again. With that in mind, I have added a great new link for searching for new homes at my website. Information about that link is also included in Today's Topics.
Fewer Homes are for Sale in Phoenix Area; prices up
Source: The Republic | azcentral.com
Article by Catherine Reagor - Mar. 27, 2012
A surge in buyers and a drop in foreclosures have left a shortage of houses for sale in metro Phoenix, according to a newly released report on the state of the housing market.
The shrinking inventory has prompted bidding wars and pushed up home prices in many communities.
At the end of February, the supply of homes for sale was just under 24,000, down 42 percent from a year earlier, mostly because of a 52 percent drop in foreclosures during the past year, according to the latest monthly real-estate report from Arizona State University's W.P. Carey School of Business.
As banks take back fewer homes through foreclosure, fewer homes go to auction or back on the market.
Tuesday's report, which said that home prices could keep climbing if the inventory of homes for sale remains low, was the most optimistic from ASU since the beginning of the region's housing crash in 2007.
"Supply is tight, in a pretty extreme way, and it looks like it will stay that way for months," said Mike Orr, director of the Center for Real Estate Theory and Practice at ASU.
Orr said that as long as supply is tight and there are more buyers than sellers, Phoenix-area home prices will continue to climb.
Metro Phoenix's median home price has steadily been increasing since last August, when it fell to a 12-year low of $113,000. The region's median for February was $124,500, up 8 percent from a year earlier.
Climbing home prices could entice more homeowners who bought before the boom to try to sell their homes.
More sellers would increase supply, balancing the market and aiding many frustrated buyers who are currently being outbid on foreclosures and short-sale homes.
"Now, I have a ton of buyers and no properties to sell them," said Diane Brennan of Scottsdale-based Keller Williams Integrity First Realty.
"I warned buyers for months they should act quickly. Many didn't pull the trigger before because they were waiting for the bottom," she said.
There is a potential problem lurking in the recent trend: Some appraisals aren't keeping pace with the increases in home prices.
Orr said appraisers are still looking at prices from three months ago.
In some parts of metro Phoenix, though, home prices have climbed 5 percent or more since the beginning of the year.
The shrinking inventory has prompted bidding wars and pushed up home prices in many communities.
At the end of February, the supply of homes for sale was just under 24,000, down 42 percent from a year earlier, mostly because of a 52 percent drop in foreclosures during the past year, according to the latest monthly real-estate report from Arizona State University's W.P. Carey School of Business.
As banks take back fewer homes through foreclosure, fewer homes go to auction or back on the market.
Tuesday's report, which said that home prices could keep climbing if the inventory of homes for sale remains low, was the most optimistic from ASU since the beginning of the region's housing crash in 2007.
"Supply is tight, in a pretty extreme way, and it looks like it will stay that way for months," said Mike Orr, director of the Center for Real Estate Theory and Practice at ASU.
Orr said that as long as supply is tight and there are more buyers than sellers, Phoenix-area home prices will continue to climb.
Metro Phoenix's median home price has steadily been increasing since last August, when it fell to a 12-year low of $113,000. The region's median for February was $124,500, up 8 percent from a year earlier.
Climbing home prices could entice more homeowners who bought before the boom to try to sell their homes.
More sellers would increase supply, balancing the market and aiding many frustrated buyers who are currently being outbid on foreclosures and short-sale homes.
"Now, I have a ton of buyers and no properties to sell them," said Diane Brennan of Scottsdale-based Keller Williams Integrity First Realty.
"I warned buyers for months they should act quickly. Many didn't pull the trigger before because they were waiting for the bottom," she said.
There is a potential problem lurking in the recent trend: Some appraisals aren't keeping pace with the increases in home prices.
Orr said appraisers are still looking at prices from three months ago.
In some parts of metro Phoenix, though, home prices have climbed 5 percent or more since the beginning of the year.
ULTIMATE NEW HOMES SEARCH
Looking for a new construction home?
This is the place to look!
Click on the map and start searching!
Once you find some homes you are interested in, just check off those properties and click the "Request Additional Information" button and I'll get you any additional information you may want and arrange to show you any properties you'd like to see.
This is the place to look!
Click on the map and start searching!
Once you find some homes you are interested in, just check off those properties and click the "Request Additional Information" button and I'll get you any additional information you may want and arrange to show you any properties you'd like to see.This great new homes search can now be found on my website. Bookmark it for future reference!
Looking for resales? I can create searches to meet your individual needs or you can check out the preset searches at my website.
Or, if you like to search on your own, you can do your own MLS search using this "flexmlsIDX" link.
It can also be found at my website.
Looking for resales? I can create searches to meet your individual needs or you can check out the preset searches at my website.
Or, if you like to search on your own, you can do your own MLS search using this "flexmlsIDX" link.
It can also be found at my website.Housing is 'Awakening from Hibernation,' Freddie Says
Courtesy of REALTOR®Mag/National Association of REALTORS®
Daily Real Estate News | Thursday, March 29, 2012
An improving economy is contributing to a gradual rebound in home prices across the country, according to mortgage giant Freddie Mac’s 2012 Economic Outlook report, released Wednesday. But there is still a way to go in the road to recovery for the housing market, the report noted.
“The housing market is showing some signs of shaking off the depression-like conditions that have plagued it for much of the past few years,” according to the report. “As if awakening from hibernation, housing starts and home sales moved to higher levels of activity.”
In fact, the signs have prompted Freddie Mac to revise its forecast upwards for home sales and originations. One economic contributor that’s helping to stabilize housing: The drop in the unemployment rate to 8.3 percent, its lowest level in three years, according to the report.
“A variety of encouraging indicators suggest that the housing market may be feeling a nascent recovery ... and more neighborhoods may see a stabilization in overall demand and housing values this spring,” says Frank Nothaft, Freddie Mac’s chief economist.
Median home sale prices are up, despite a slight drop in new and existing home sales, Freddie Mac reports. About a half of the increase in housing starts has been for construction of rental apartments in multi-unit buildings to meet the increasing demand, the report notes. New rental construction, at its current pace, is expected to reach its highest level since 2005.
“Housing starts continue to run below net household formations [and will allow for absorption of existing vacant homes],” according to the report.
Source: “Freddie Mac: Economic Growth Expected to Stabilize Housing Market,” Dow Jones Newswires (March 28, 2012)
Daily Real Estate News | Thursday, March 29, 2012
An improving economy is contributing to a gradual rebound in home prices across the country, according to mortgage giant Freddie Mac’s 2012 Economic Outlook report, released Wednesday. But there is still a way to go in the road to recovery for the housing market, the report noted.
“The housing market is showing some signs of shaking off the depression-like conditions that have plagued it for much of the past few years,” according to the report. “As if awakening from hibernation, housing starts and home sales moved to higher levels of activity.”
In fact, the signs have prompted Freddie Mac to revise its forecast upwards for home sales and originations. One economic contributor that’s helping to stabilize housing: The drop in the unemployment rate to 8.3 percent, its lowest level in three years, according to the report.
“A variety of encouraging indicators suggest that the housing market may be feeling a nascent recovery ... and more neighborhoods may see a stabilization in overall demand and housing values this spring,” says Frank Nothaft, Freddie Mac’s chief economist.
Median home sale prices are up, despite a slight drop in new and existing home sales, Freddie Mac reports. About a half of the increase in housing starts has been for construction of rental apartments in multi-unit buildings to meet the increasing demand, the report notes. New rental construction, at its current pace, is expected to reach its highest level since 2005.
“Housing starts continue to run below net household formations [and will allow for absorption of existing vacant homes],” according to the report.
Source: “Freddie Mac: Economic Growth Expected to Stabilize Housing Market,” Dow Jones Newswires (March 28, 2012)
Tuesday, March 20, 2012
Pook's Market Message - 3/20/12
I've been telling you about the changes in the Phoenix area market for quite some time now. Today, the market for properties, especially those under $300K, is a tough one for buyers... just not much left out there. Investors are back and many properties are getting multiple offers, often full cash offers and often within hours of going on MLS, from both investors and ordinary folks looking for a home to live in. The last three contracts I've written (in various price ranges) have all had multiple offers. With demand outweighing supply, it looks like the Arizona real estate market has really turned around. According to Michael Orr, Director of Arizona State University's Center of Real Estate Theory and Practice, and the author of The Cromford Report, the market hit bottom last August. He says, "... supply has been soaked up and Phoenix is again becoming a seller's market where buyers must stand in line and move fast."
Today's Topics include a CNN article about the turn-around in the Phoenix market and information about a buyer program called "NeighborhoodLIFT" that is going to be offering down payment assistance of up to $15,000 to qualified buyers during a 2-day event at the Phoenix Convention Center March 23-24.
Housing Market at Center of Mortgage Crisis is Blooming Again
Source: CNN
Article by Lisa Desjardins, CNN Radio
updated 4:30 PM EDT, Sat March 17, 2012
Link to Article: http://www.cnn.com/2012/03/17/
Be sure to listen to the interview!
Phoenix, Arizona (CNN) -- Want a sign of economic hope? Look to a place where the housing collapse began: Phoenix, Arizona.
"We're talking about (home) prices being 3 to 4% higher than last year, which most people don't believe because they're used to bad news," said Mike Orr, director of Arizona State University's Center of Real Estate Theory and Practice.
Orr's new report on the Phoenix market shows a direct reverse of the situation that sparked a massive housing bubble. Monthly foreclosure starts have fallen 49% since a year ago. Home sales are up 8%. The result? What had been a market with far more housing supply than demand has now become a place where buyers have to act fast and beat out heavy competition.
CNN Radio's Lisa Desjardins reports on the turnaround in Phoenix
"It's no longer difficult to sell your house here," Orr told CNN Radio. "If you price it at market, it well sell quickly. The supply situation is unusually low." Supply is down some 42%, Orr estimates, from September 2008.
Top 10 turnaround towns
That is a dramatic turnaround for an area that once had a massive supply glut. According to Orr's predecessor at ASU, Jay Butler, during the recession foreclosures hit an eye-popping 12% of the homes in Maricopa County, which includes Phoenix.
But now Orr's report indicates that supply has been soaked up and Phoenix is again becoming a seller's market where buyers must stand in line and move fast.
"(The listing) came out on the market on a Friday morning. We looked at it Friday afternoon and put a bid on it Friday night," said homeowner Tim Woodward of his new house. He and his fiancé, Susan Rust, are combining their two families, which includes five teenage girls who will all live at home.
"So we need space," Rust said. She and Woodward had already lost bids on other homes and decided to put in a contract on what would become their home while sitting in the driveway after their walk-through.
"According to the neighbors, there were 11 other couples who went through this house," Rust said. "So you have to be quick."
BofA to slash mortgage balances by $100,000 or more
Rust and Woodward got their five-bedroom, three-bath house in Tempe for $290,000, 40% less than the asking price a few years ago. But neither the homeowners nor the experts think buyers are getting bargains anymore. They believe prices have already passed their low point, hit their natural floor and are rising again.
This is not the housing market of a year, or even eight months ago.
"It's getting very, very tough to find a real bargain nowadays," said Mark Stapp, a Phoenix real estate developer who also teaches at the Center for Real Estate Theory and Practice at ASU's Carey School of Business.
The classic bargains, foreclosures and bank-owned properties, are drying up. According to Orr's new report, the number of homes reverting to lenders in the Phoenix area is down 62% since January 2011. Trustee sales of foreclosed properties are down 42%.
"The market has tightened up substantially," Stapp said. "In fact, I know of investors coming to town and leaving very disappointed because they thought they'd find huge bargains and they can't find them."
The question is, will this trend last?
Orr, a self-professed data addict, says the numbers indicate a fundamental shift in the market.
"If there is a major economic crisis that we haven't foreseen, things can go back to square one," he said. "But this is not just a slight trend. This is something I see as being very significant. And it's starting to accelerate."
Article by Lisa Desjardins, CNN Radio
updated 4:30 PM EDT, Sat March 17, 2012
Link to Article: http://www.cnn.com/2012/03/17/
Be sure to listen to the interview!
Phoenix, Arizona (CNN) -- Want a sign of economic hope? Look to a place where the housing collapse began: Phoenix, Arizona.
"We're talking about (home) prices being 3 to 4% higher than last year, which most people don't believe because they're used to bad news," said Mike Orr, director of Arizona State University's Center of Real Estate Theory and Practice.
Orr's new report on the Phoenix market shows a direct reverse of the situation that sparked a massive housing bubble. Monthly foreclosure starts have fallen 49% since a year ago. Home sales are up 8%. The result? What had been a market with far more housing supply than demand has now become a place where buyers have to act fast and beat out heavy competition.
CNN Radio's Lisa Desjardins reports on the turnaround in Phoenix
"It's no longer difficult to sell your house here," Orr told CNN Radio. "If you price it at market, it well sell quickly. The supply situation is unusually low." Supply is down some 42%, Orr estimates, from September 2008.
Top 10 turnaround towns
That is a dramatic turnaround for an area that once had a massive supply glut. According to Orr's predecessor at ASU, Jay Butler, during the recession foreclosures hit an eye-popping 12% of the homes in Maricopa County, which includes Phoenix.
But now Orr's report indicates that supply has been soaked up and Phoenix is again becoming a seller's market where buyers must stand in line and move fast.
"(The listing) came out on the market on a Friday morning. We looked at it Friday afternoon and put a bid on it Friday night," said homeowner Tim Woodward of his new house. He and his fiancé, Susan Rust, are combining their two families, which includes five teenage girls who will all live at home.
"So we need space," Rust said. She and Woodward had already lost bids on other homes and decided to put in a contract on what would become their home while sitting in the driveway after their walk-through.
BofA to slash mortgage balances by $100,000 or more
Rust and Woodward got their five-bedroom, three-bath house in Tempe for $290,000, 40% less than the asking price a few years ago. But neither the homeowners nor the experts think buyers are getting bargains anymore. They believe prices have already passed their low point, hit their natural floor and are rising again.
This is not the housing market of a year, or even eight months ago.
"It's getting very, very tough to find a real bargain nowadays," said Mark Stapp, a Phoenix real estate developer who also teaches at the Center for Real Estate Theory and Practice at ASU's Carey School of Business.
The classic bargains, foreclosures and bank-owned properties, are drying up. According to Orr's new report, the number of homes reverting to lenders in the Phoenix area is down 62% since January 2011. Trustee sales of foreclosed properties are down 42%.
"The market has tightened up substantially," Stapp said. "In fact, I know of investors coming to town and leaving very disappointed because they thought they'd find huge bargains and they can't find them."
The question is, will this trend last?
Orr, a self-professed data addict, says the numbers indicate a fundamental shift in the market.
"If there is a major economic crisis that we haven't foreseen, things can go back to square one," he said. "But this is not just a slight trend. This is something I see as being very significant. And it's starting to accelerate."
Down Payment Assistance of up to $15,000 Per Qualified Buyer
The Neighborhood LIFTSM program is a collaborative program of Wells Fargo Bank, N.A., Wells Fargo Foundation, and NeighborWorks America, an independent nonprofit organization. Through this program, Wells Fargo has $8,000,000 to give away for down payment assistance at the Neighborhood LIFT event being held March 23-24 at the Phoenix Convention Center. This is a need-based program and, for those who qualify, it is an amazing opportunity to buy in the City of Phoenix! At the event, consumers can find out if they qualify for the program and reserve their funds for 60 days, even if they haven't yet found a property. Additionally, they can learn about finding and financing a home and managing the financial responsibilities of homeownership. Anyone interested can (and should) register ahead, but you must attend the event to get down payment assistance. Contact me for a list of the documents you will need to bring to the event in order to see if you qualify. Phoenix is the third city to participate in this pilot program, which has already been successful in Atlanta and L.A.
YouTube Video about the NeighborhoodLIFT program: CLICK HERE
http://www.neighborhoodlift.
YouTube Video about the NeighborhoodLIFT program: CLICK HERE
http://www.neighborhoodlift.
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