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September Tempe Real Estate Market Update

Patrick Walsh — Mon, 28 Sep 2009 15:38:25 +0000

More of the same… this will be the third month that numbers have remained stable with regard to supply, demand and inventory. If you don’t remember or didn’t catch my August blog, please scroll down and read “By the Numbers” in the August Tempe Real Estate Market Update.

Home prices are up for the 4^th month in a row:

We have seen a slight up tick in average and median home prices.

Between April and July there has been a 9% increase in median and average price of homes sold in the Phoenix area. (Increasing from $115K to $125k and $160k to 175K respectively). If this continues that would represent almost a 30% increase in a year.

So what will it take till everyone else jumps on board and agrees that the market has turned? Just remember you read it here first….

Is it Time to Buy?

It is clearly still a good time to buy a home. There has only been a one month supply of foreclosures for sale for several months now. But remember, short sales continue to be “long sales” as the 10 month supply stays the same.

As the tax credit window continues to close, prices are starting to increase and I am sure interest rates will be next. Need I say more?

If you know someone who is thinking of buying or selling a home please forward this link to them….

Only 3 Months Left to Claim $8,000.00 Tax Credit for First-time Buyers in Tempe

Patrick Walsh — Wed, 26 Aug 2009 14:56:56 +0000

Perhaps the most significant stroke of President Obama’s pen up to this point actually took place during his first month in office – on February 17 of this year – when he signed The American Recovery and Reinvestment Act of 2009 into law. The federal tax credit of up to $8,000.00 for first-time homebuyers is an economically beneficial component of the act that a great number of U.S. taxpayers have enjoyed during the past 7 months. But if you are a hopeful first-time buyer who has not yet seized this opportunity to save thousands of dollars on a residential purchase this year, be advised that only 3 months remain before the tax credit offer expires! As of December 1, 2009, first-time homebuyers may no longer register for up to $8,000.00 in tax savings from Uncle Sam. And remarkably, this is a tax credit that buyers do not have to pay back. This is really an incredible development, considering that the 2008 version of the ARR Act included up to only $7,500.00 in first-time homebuyer tax credit which had to be repaid. On paper, that so-called credit was actually behaving as a government loan, rather than the much needed recovery funding assistance the tax credit became this year.

To qualify for the credit as a first-time homebuyer, an individual must not have purchased a new or used home (as a primary residence) within the past 3 years before the date of purchase. Ineligibility of one spouse in a married couple means that neither spouse is eligible for the credit. However, a parent who does not qualify may co-sign on a home loan for a son or daughter who is a first-time buyer and the son or daughter will receive the tax credit (as long as the son or daughter claims the home as primary residence). A range of questions regarding tax credit eligibility are answered at the Internal Revenue Service website.

Additionally, to be eligible for the First-time Home Buyer Tax Credit, buyers must close escrow before December 1, 2009. If you are interested in taking advantage of this tax incentive, we encourage you to start looking for your new home now in order to guarantee meeting the deadline.

Patrick Walsh, your local National Association of Realtors ® Green Designee realtor in Tempe, Arizona, is also your reliable source for information you need regarding the 2009 federal tax credit for first-time homebuyers. Let Patrick Walsh guide you through the steps involved in applying for the tax credit as you work together to locate your new home in the Tempe, Arizona area. Whether buying or selling, rely on Walsh and his team of realty experts to provide you with excellence in customer care and service throughout every stage of your home buying or selling experience.

August Tempe Real Estate Market Update

Patrick Walsh — Sat, 15 Aug 2009 20:00:39 +0000

Where have all the real estate deals gone?

There have been a couple of dramatic changes in the Phoenix real estate market in the last few weeks. First, the inventory in the Baseline corridor has disappeared. The number of available real estate deals in the corridor has dropped from approximately 15-20 homes to 3 homes over night!!

Our Keller Williams bank owned property specialist has informed me that in the bank owned arena, there have been significant changes. Our bank owned property specialist was previously listing 20 new properties per week but is now listing 2 new properties per week. Apparently, cash investors with large portfolios are by-passing the traditional real estate market and buying on the county steps at deed of trust sales.

What about properties that are upside down (the value of the home is less than the loan amount)?

Banks are dropping the asking price to an amount closer to market value right before homes are sold. Bank owned properties are also being packaged for multiple property sales.

What does this mean for non-investors who are trying to buy or sell a single property?

Buying a home or selling a home just got a whole lot harder. Foreclosed properties are rapidly disappearing which is stabilizing the bottom end of the real estate market.

If you are looking for a real estate deal, the search just became more arduous. The good news is that phase one of the real estate market turnaround has begun!

By The Numbers:

Foreclosure sales (REOs or bank owned properties) have stabilized. The number of “properties for sale” and “sold properties” is nearly equal. Since May, home inventory has been approximately 1 month (meaning, at the current rate of sale, it would take 1 month for the inventory to be completely sold). Short sales continue to be long sales (meaning they take a LONG time to close). The inventory of short sale homes has been constant for 6 months at 12,000, with 1,200 sold per month, causing at least a 10-month inventory of short sale homes.

Is it time to consider selling your home?

Not quite yet. Home values are still down even though we are technically in a seller’s market that is being artificially caused by the foreclosure market. For traditional, private sales it is still a buyer’s market. There is currently a 7-month inventory of privately listed homes. We will enter a seller’s market when the inventory drops below 6 months.

Is it time to buy a home?

Absolutely. I hope you have figured out that the window of opportunity is closing. Not only are the real estate deals (the REOs) disappearing, but the $8,000 first-time home buyers’ incentive ends at the end of this year.

What are the next steps to buying a home before all the deals and incentives are gone?

Get yourself pre-qualified with one of our lenders and let’s start looking for your next home today!