Meaningful Market Update: Information You Can Trust!

YOU HEARD IT HERE FIRST AND IT FINALLY HIT THE NEWSPAPER!

For those of you that have abandoned our local newspaper, you might have missed the headline on the business page last Friday:

          REPORT: FINDINGS UPBEAT FOR ARIZ. HOUSING MARKET

                   Prices Rise, foreclosures are down

We have been seeing this trend for the last year but no one outside of the real estate world believed it to be true. The article goes on to say that “Metro Phoenix home prices are up. Fewer inexpensive homes are for sale, and the number of pending foreclosures are down.” This positive update is a result of ASU’s W.P. Carey School of Business naming Mike Orr director. He is the publisher of The Cromford Report, the daily online analysis of the Phoenix housing market that we follow carefully.

Investors have grabbed the oversupply of homes under $300,000 and there is no glut of homes that the banks are hiding. It may be true for other markets, but not ours. We are still getting foreclosures but the rate has dropped nearly 50%. The supply of homes at all price points in metro Phoenix is down 42% from a year ago.

We are all anxious for home values to rise across the board so that everyone again has equity in their homes. The last indicator to rise will be home prices; it was the last indicator to fall when this meltdown occurred and it will be the last to improve. We have been in this situation since 2007 but it took until 2009 for housing prices to drop significantly. Be patient; they will rise again. We need our luxury market to sell faster and higher (luxury being $1,000,000 and up) and that will pull the rest of the market up.

The supply of homes listed for sale in metro Phoenix is down 42% from one year ago. ARMLS shows that the entire Phoenix metro area has about 15,000 homes/condos/patio homes for sale. Nearly every city has seen a drop in the number of listings with few coming onto the market. There are more listings pending (in escrow) than active and this has been true for a couple of months.

Supply is down, demand is holding strong. In a normal market, prices would rise. We are not a normal market yet but prices are creeping up and we are returning to a seller’s market in some price points. It is still neighborhood by neighborhood and house by house.

Spring and summer are our strongest buying periods so if demand stays this high, prices should begin to follow! Stay tuned for more!! And call us if you want us to look at your neighborhood!

Another Home Sold! Another Donation Made!

It has been a full family project for the Wingos! Shana and Ben shopped and previewed and Bob and Paulette trusted their excellent taste. The result is a fabulous vacation retreat in a gorgeous golf community! We know there will be many happy times together and great memories will be made. Congratulations!


A donation to angel mamas has been made in honor of your new home! Angel mamas' mission is Connecting mothers to support each other and families in our community.

Another Home Sold! Another Donation Made!

Congratulations to the Campbell family on their new home in Scottsdale! Perseverance, determination, and tolerance of old wallpaper and creative plumbing were critical for this sale! Good job, may the redo go smoothly, and we wish you many years of happiness!


A donation to angel mamas has been made in honor of your new home! Angel mamas' mission is Connecting mothers to support each other and families in our community.  

Another Home Sold! Another Donation Made!

Congratulations to Harvey and Paula on the purchase of their new Phoenix home! How wonderful that their daughter and grandchildren will have a lovely home and yard (with no Koi pond!) to share with you. A fabulous family home for a wonderful family! And enough bedrooms for everyone!!


A donation to angel mamas has been made in honor of your new home! Angel mamas' mission is Connecting mothers to support each other and families in our community.

Meaningful Market Update: Information You Can Trust

Some current facts about the Phoenix housing market. According to The Cromford Report, we are headed for a housing crisis unless sellers begin to list their homes. We are declining rapidly every month!

See below for Cromford:

Anyone attempting to buy a residential property in Greater Phoenix for less than $500,000 is currently finding relatively little choice and very strong competition from other buyers. This is particularly true for those buyers who need financing, who are often losing out to the large number of cash purchasers unless they are willing to bid significantly higher. Selling, however, is relatively easy, in a market where pricing is moving up and supply is very tight. 

There are currently 13,657 single family homes that are listed as Active in the MLS for the entire Valley with dwindling notices of foreclosures:

To put the current levels of foreclosure in context we need to compare January 2012 to January 2011:

• New Notices of Trustee Sale: 3,483 versus 6,784 - down 48.7%
• Trustee Sales: 2,677 versus 4,523 - down 40.8%

Despite a severe imbalance between supply and demand, reflected in the rise in the Cromford Market Index™, current pricing is fairly stable after recovering from the weakness of July through September 2011. However the recent sharp rise in the Cromford Market Index™ suggests a more significant upward price movement could possibly appear later in 2012 or in early 2013.

Bottom line is be aware of the declining inventory and prediction of rising prices!

Important Information - WILL SAVE YOU $$$$$

The Mortgage Debt Relief Act expires 12/31/12!!!

If you are interested in Short Selling your property, you must get it closed by 12/31/12 to receive the benefits of the Mortgage Debt Relief Act. The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

February 26th - Valuation Notices from the County Assessor!

If you receive your valuation and feel that the assessment is too high, you have 60 days from notice to appeal the assessed value.

Property Tax Class - Watch Out!

There are two classes of Property Tax: 1. Class 3 = Owner Occupied. Owner Occupied homes receive a $200-$600 education rebate. Class 4 = Non Owner Occupied and you DO NOT receive the education rebate. Forms will be sent to all homeowners and you are required to return the form IF you are Class 3 (Owner Occupied). That is, the state is assuming all homeowners are Class 4 and you must return the form so that you get the education rebate as a Class 3.