June Real Estate Market Report for Metro Phoenix and Scottsdale by Jeff Cameron Realtor
Below is a compilation of my market reports for June 2011. I posted these in Active Rain earlier this year.
I have a report on:
Metro Phoenix Home Sales
Scottsdale Home Sales
Bank Owned / Foreclosure Home Sales
Short Sale Home Sales
Traditional Home Sales
McDowell Mountain Ranch Home Sales
Tatum and Bell Home Sales
Let me know your thoughts or give me a call if you need a report on your market! 480-502-7699
Metro Phoenix Home Sales for June 2011 Real Estate Market Report by Realtor Jeff Cameron
Well this is what we have been waiting for, the market is recovering. We now have a whole different issue, for buyers at least.
I just finished writing an offer for a home in Scottsdale. It listed 3 days ago. There were at least a dozen showings. There are currently at least 3 offers. We are writing over list and removing contingencies in hope of being selected. The home was priced right at the last sale, $155,000. I am seeing this type of activity everywhere.
One would expect prices to increase. However, appraisers look in the rear view mirror when appraising. When the market dropped appraisals were all coming in over sales price, today as the market turns positive, just the opposite is happening.
Recently I had an appraiser appraise one of my listings $10k below sales price. There were 2 recent sales that justified the price. He depreciated the value by 2% decline per month due to being in a declining market. Hello…there are no homes. You are the declining issue not the market.
I then had another appraiser deduct 3% from each comp he used as the seller paid 3% for closing costs. In the $70k to $350K 90% of livable homes are financed through FHA financing and 90% of those buyers are getting 3% closing costs from the seller. This is standard in today’s market. Therefore, no deduction should be done. If no one was paying closing costs and a comp had closing costs, then an adjustment should be made. This cost the seller $10,000, the buyer had to come in with an additional $5,000 because he paid over appraised value and now there is not a comp at what should be the market value. Truly this took $10k from the seller and the buyer has $5k less in the bank. This in turn takes $15k from our economy.
Does that make sense to you????
Let’s get to the numbers for June:
17,113 Single Family Residences available for sale in metro Phoenix. This does not include new builds that are not listed in the MLS. It is only homes listed in the MLS. This is down from over 30,000 in January. This is a crazy drop of home for sale in Phoenix area. In the meantime, we are selling a ton of homes. Today, as I write this there are only 16,500 SFR on the market
9,014 SFR closed escrow last month! We now have less than 2 months supply of homes for sale. By all definitions of the past this would be a seller’s market with values increasing!
17,038 SFR are Pending. Nearly as many Pending as Available. This is a Crazy number. Actually today there are more Pending than Available as inventory continues to decline.
The appraisers can only hold this recovery back for so long. Everything is pointing to a nice market recovery in the near future.
Just my opinion…
JeffrCameron Realtor
MRW Homes
480-502-7699 Call me and let’s talk about your market.
jeff@thecameronteam.com
Foreclosure Bank Owned Homes Sold in Phoenix June 2011 by JeffrCameron Realtor Scottsdale Real Estate
Here are the home sales result for June 2011 in Scottsdale Arizona courtesy of the Multiple Listing Service, MLS.
As of July the first there were 1,733 single family homes for sale in Scottsdale. That is down from 2,556 one year ago. This is a decline of 32% from one year age. The housing crisis is about 3 things, people giving up their home, supply verses demand and ability to get financing. The amount of people in foreclosure has dropped dramatically, the amount of homes on the market and absorption rate are very positive. Lastly, Jumbo loans are back and rates are down. We have a ways to go with financing, but it is much more favorable today.
953 Homes are Pending or under contract in Scottsdale. That is 1.8 months of Available inventory. You may ask, “why is this so high?” The reason is the time it takes to get approvals on Short Sales. This is another area of the market that is improving. A year ago Realtors didn’t want to do a Short Sale for Bank of America as they were so difficult. Today, Bank of America is one of the best banks to do a short sale with. Their approval process is approaching 1 month! We are closing Friday on a home that took 5 weeks to approve. Bank of America announced earlier in the week that you no longer have to start over when you loose your buyer. This is awesome news. In the past when you lost your buyer, you had to find another buyer and go back to the beginning of the process with Bank of America, not any more.
In June, 563 home closed escrow in Scottsdale real estate market. Their average price per square foot was $156.12. Although, this is down 9% from a year ago, it is higher than September of 2010. Indicating that a floor is building. Remember, price per square foot is only a gauge. If less luxury homes sold and more entry level, this could cause ppsf to drop and vice versa to rise, while values may not be changing at all.
That is it for now. This is your quick glance at home sales for June 2011 in Scottsdale, Arizona by Realtor Jeff Cameron
Please call me with questions 480-502-7699 or email at jeff@thecameronteam.com
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Scottsdale Home Sales June 2011 Real Estate Market Report by Realtor Jeff Cameron
Foreclosure Bank Owned Homes Sold in Phoenix June 2011 by JeffrCameron Realtor Scottsdale Real Estate
What is happening in the Foreclosure Market for Metro Phoenix?
As of July 1, 2011 there were only 3,310 Bank Owned Foreclosure Homes (Single Family Residences) listed for sale across Metro Phoenix. This is down from over 7,000 foreclosure homes listed in the Phoenix Multiple Listing service on January 1, 2011. That is a drop of about 53% in Active or Available Foreclosure Listings.
Where is all the bank owned inventory. Recently we are experiencing multiple offers on most all bank owned properties. I, Jeff Cameron with MRW Homes, closed a home last week my buyer secured in a bidding war at $550,000 for a foreclosure home in Scottsdale. I am waiting to hear, from an offer last weekend, about an investor purchase foreclosure home with a bidding was at $71,000. It is all price ranges.
The Pending inventory of Single Family Residences that are Bank Owned Foreclosures is at 4,733. That is 50% over last year’s level of Foreclosure Homes under contract. But down from last months level by about 10%.
There were 3,672 Foreclosure Homes that closed escrow in June 2011. This is about the same level as the past 4 months in metro Phoenix, but a 20% increase from June 2010.
What is going on in your market?
Call me, Jeff Cameron, with MRW Homes at 480-502-7699. I will be happy to give you and educated review on your market stats.
Phoenix Area & Scottsdale Short Sale Home Sales June 2011 by Realtor JeffrCameron
Here are the numbers straight from the MLS. Nearly 2,500 Short Sales closed escrow in June. This is a new record. If this pace continues, the bottom has passed. You see based on supply and demand, our market should be going up in value. However, agents have had to price Short Sales lower to attract buyers due to the long wait and risk of approval.
If you eliminate the wait and give buyer’s confidence in the approval, then there is no need to lower the price of a Short Sale.
With only 3,879 Short Sales available in metro Phoenix, we only have a 1.5 month supply of inventory. Check out all the Pending Home Sales. There are over 9,000 buyers and sellers waiting for bank approval. I believe the Pending number will start to fall as approvals come more quickly.
Are you thinking about Short Selling your home?
Do you need an experienced professional? Let me answer that, YES!
Our team of Short Sale professionals has gotten over 150 Short Sale approvals. Let me put this in perspective. I called on a Short Sale for a buyer the other day. The agent was a CDPE and called her self an expert. She had not yet gotten a Short Sale to close escrow. You need a professional with real experience, not a newbie taking certification classes!
Traditional Real Estate Market Report Metro Phoenix by Realtor Jeff Cameron
Let’s first start out by asking the question, What is a Traditional (or Retail) home sale?
A Traditional or Retail home sale is a transaction that is not a Short Sale nor a bank owned foreclosure. These are typically not distress sales.
Currently in the metro Phoenix real estate market about 31.6% of home closings for the month of June, 2011, are Traditional home sales. Approximately half of those are investor Fix and Flips and the other half are owners with equity selling their home. Although this number is lower than last year, it seems logical to believe it is actually higher today. Last year, many short sales and REO were not designated properly in the MLS.
The Traditional market does not have the same shortage of homes we see most other markets. There are 9.922 homes listed for sale in the MLS, with 3,274 Pending and 2,850 homes that closed escrow in June. In my opinion that is due to many over priced Traditional homes. I have made it a policy to get seller’s to take their home off the market when they won’t go to today’s market value. Other agents don’t do this. Over priced homes just hurt the market. However, the mistake I have made was not listening to the fact they want to move. Some of those I have cancelled listed with another agent and finally broke down and lowered to the market to sell. Usually at a lower value than what the value was when I suggested lowering. What do you do?
With the market firming, I expect more Traditional Sales as sellers reduce and buyers begin to push the market up. Only time will tell!
That is your Traditional Market Home Sales Report for June 2011 in Metro Phoenix by Realtor Jeff Cameron
June saw inventories of single family homes decline in all areas of metro Phoenix and Scottsdale. This graph shows the activity for the McDowell Mountain Ranch located in north Scottsdale at the base and on the McDowell Mountains.
The inventory of available homes was at 56 active homes for sale on July 1, 2011. There were 31 homes that closed escrow in June with an average price of $171.47 per square foot. With 31 closings and 56 available homes there is just under a 2 month supply of homes for sale here in McDowell Mountain Ranch. That is an unhealthy level of inventory.
What is really interesting is the number of homes under contract at 47. This is relative to the time it takes to get short sales approved. However, Short Sale approvals are much quicker today than just a few months ago. I believe by fall we will see many short sales able to get approved in 30 days or less.
Values in this neighborhood had firmed last year, and since have been fluctuating in a relative range. I believe we are a similar level last October.
What other product would decline in value when inventory was at an unhealthy level?
These are the signs the market is bottoming. Once a bottom hits, I believe we will get a reasonably nice bounce.
It all depends on so many other factors such as: US government default, interest rates, FHA limits changing, new Fannie Mae rules, HVCC and the horrible appraisals.
Either way, we are moving in a positive direction. A depression can only last so long. This housing crisis began in 2006 and is 5 years old now.
If you have questions about your real estate market, call me!
McDowell Mountain Ranch Home Sales for June 2011 by JeffrCameron
McDowell Mountain Ranch Home Sales for June 2011 by JeffrCameron
Phoenix Home Sales Report for Tatum and Bell Foothills Neighborhood by JeffrCameron
June saw inventories of single family homes decline in all areas of metro Phoenix. This graph shows the activity for the Foothills neighborhood located at the north west corner of Tatum and Bell Road in north east Phoenix.
The inventory of available homes is 17 active on July 1, 2011. There were 11 homes that closed escrow in June with an average price of $100.35 per square foot. With 11 closings and 17 available homes there is just over one and half months supply of homes for sale.
What is really interesting is the number of homes under contract at 32. This is relative to the time it takes to get short sales approved. However, Short Sale approvals are much quicker today than just a few months ago. I believe by fall we will see many short sales able to get approved in 30 days or less.
Values in this neighborhood had firmed last year, but declined as we went into the holidays. Many short sale and REO closings dragged the prices down another 20% at that time.
What other product would decline in value when inventory was at an unhealthy level?
Phoenix Home Sales Report for Tatum and Bell Foothills Neighborhood by JeffrCameron
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