Average Sales Price for Phoenix Homes Stable and Climbing

Here’s the latest Phoenix real estate market report from The Cromford Report™ which includes some very positive info on sales prices. Stable below $300,000, and on the rise in higher price ranges.

Cromford Report – Monthly Market Review – Jun 28, 2011

Market Headlines

  • Supply continues to fall, though rather more slowly in the ranges between $200,000 and $800,000.
  • Demand very strong below $200,000 but showing seasonal weakness above $200,000.
  • Average sales price per sq. ft. is stable below $300,000 and increasing above $300,000.
  • A change in the sales mix could adversely affect overall market average prices and medians.
  • Foreclosure activity declining and active REO inventory is at the lowest level for several years.

Homes under $100,000

  • Demand remains strong while supply is still declining. Prices now stable for 7 months.
  • Demand normally falls off during the summer but the demand in this price range is dominated by intense buying by investors who are only slightly affected by the seasons.
  • Active listings are now 7.8% below this time last year.
  • This supply continues to gradually shift away from REOs (down 15.7% in the last month) towards short sales and pre-foreclosures.

Homes Between $100,000 and $200,000

  • Supply down and demand fading slightly. Pricing remains very stable.
  • Having peaked in October, supply has fallen another 6.8% in the past month and is down 23.4% when compared with March.
  • Demand has faded a little, but this is in line with normal seasonal patterns.
  • REOs dropped to 38% of monthly sales while normal listings also fell to 38%. Short sales and pre-foreclosures increased from 21% to 24% of sales.

Homes Between $200,000 and $400,000

  • Buying interest falters a little although supply continues to decline. Pricing remains very stable.
  • The supply of single family homes dropped by another 4.1% between May 26 and June 26, and is now down 17.0% over the last three months and 29.2% over the last year.
  • Over the last month REO supply actually rose by 2.4% reversing an 8 month trend, while short sales and pre-foreclosures fell by 3.0% and normal listings fell 5.5%.

Homes Between $400,000 and $800,000

  • Supply falling but demand continues to weaken. Nevertheless sales prices remain on an upward trend.
  • Single family homes between $400,000 and $800,000 have experienced a 6.4% fall in active listings in the last month.
  • The sales volume strengthened slightly in June, with monthly sales up 7.0%.
  • REO supply didn’t change during June at 84 homes, but this is down 10.6% over the last 3 months.

Homes over $800,000

  • Demand weakens for the summer months but supply is down again. Sales prices continue to climb.
  • We see the first sign of the spring season turning to summer as pending sales start to fade.
  • The good news is that the supply of homes above $800,000 fell 8.5% in one month, 18.9% over three months and 29.2% since June 2010.
  • Active REOs rose 18.4% from 38 to 45 over the last month but these represent only 2.9% of total active listings.

For the full report: Cromford Report – Monthly Market Review – Jun 28, 2011

More real estate updates:

Scottsdale Parks–Did you know?

Lake at Chaparral Park-1

Did you know that the City of Scottsdale has:

  • 41 public parks encompassing 941 acres
  • 4 public swimming pools
  • 105 miles of bike lanes
  • 67 miles of paved paths
  • 143 miles of non-preserve trails.

Learn more about Scottsdale here Scottsdale Parks and Recreation:

One of those beautiful Scottsdale sunrises

I love this time of year. A few clouds in the Scottsdale sky can create a really striking sunrise.

sunrise-bw-0625

That is even more beautiful, in real life.

sunrise-0625 (Small)

No thunderstorms in the forecast, but it’s just a matter of time. Soon.

More sunrise photos from Scottsdale:

And a few posts about monsoon weather and beautiful sunrises:

Phoenix Metro Homes Sales at Highest Levels since 2005

Over 9,000 homes sold in the greater Phoenix metropolitan area in each of the last three months.  Approaching levels seen in 2005.

I just heard of a buyer who lost out on a Scottsdale home that was listed at $435,000, received multiple offers over list, and sold for $485,000 with the appraisal contingency waived.

Déjà vu. Sound like 2005 all over again.

Good news for home owners and sellers who are ready to see some appreciation.

Challenging for buyers, especially in the lower price ranges.

Phoenix Real Estate Market More Vibrant Than Most Realize

Months-supply-phoenix-homes

Our Phoenix Metro real estate markets have been much more vibrant than most of the rest of world has realized. Ask anyone currently looking to purchase home listed at under $250,000.

The chart above shows just small the supply is for homes in the lower price ranges. Less than 3 months supply in many cases.

Competition for home entry-level, move-up, and 2nd homes is fierce.  Short sales are even getting multiple offers.

Buyers have to be ready to move when they find a house they want to buy in today’s market.

To see how much has change in less than a year, look at the difference between now and August 2010.

Inventory-by-price-range

What you need to know if you’re buying an FHA “flip” in Scottsdale

kitchen-flip- (Medium)

I’m been working with a buyer, who is purchasing a home with FHA financing.  An investor bought the home at a trustee sale less than 90 days ago, renovated it, and then listed the property for sale. Because the buyer’s offer was accepted in this 90 day window, there are several FHA guidelines that must be followed.

Diane Gerdes, at The Mortgage Advantage shared the details with me:

FHA loans mandate guidelines for a property “flip”, or in layman terms: a property that has changed ownership within 90 days.

Underwriters have been given a list of red flags for property flips.  They include the following:

  • If the sales price is 20% or more over seller’s acquisition cost and the increase in value is due to improvements/renovation:   The appraiser is required to verify the repairs or work to the property in order to substantiate the increase in value.  A seller’s list of improvements added to the body of the appraisal with the appraiser’s comments will be required to justify the increase. Before and after pictures are welcome.
  • If the appraiser cannot warrant that legitimate work was done to the property to substantiate the increase in value, then a second appraisal will be required.   This parts hurts: the lower of the two will be used for the appraised value. (FHA loans will require an automatic second appraisal unless there is  less than a 20% increase)
  • The increase in value is not due to any significant improvements:  The appraiser will be required to provide explanations of the increase in property value and provide sales comparables to support that value since the prior title transfer; OR if the appraiser cannot justify the increase in value, a second appraisal may be required.  The lower of the two will be used for the appraised value. (Still hurts)

If the sales price is less than 20% over seller’s acquisition cost (the seller can provide receipts for improvements to help get to the 20%) typically a second appraisal is not required.  But keep in mind it is underwriters discretion.

FYI:  If you purchasing a “flipped” home utilizing FHA financing, a copy of the home inspection is required to be viewed by the underwriter.  All noted items will need to be repaired before closing. FHA expects these quick turnaround properties made near perfect.

(I added the underlining, to note some key points.)

For more information on these requirements, please contact Diane directly at:

Diane Gerdes
The Mortgage Advantage, Inc.
480-831-1588

For more on buying a house in Scottsdale:

Listing Your Home for Sale in Scottsdale

One question that I commonly get when a Scottsdale home owner is ready to list his or her home for sale is “How will you market my home?”

The answer is straightforward. On-line. That’s where the buyers are. Current stats show that 85-90% of today’s buyers are looking online.

From my personal experience, today’s buyers very much want to be the guiding force in deciding which houses they will short list for actual viewing.  Some buyers are even buying sight unseen. Photos become key.

The professional photographer that I hire, Kevin Cross of Arizona Imaging, has been in the business for years and does a marvelous job of showcasing homes for on-line exposure. He creates a virtual tour, which we include on your MLS listing and he publishes to YouTube. His tagline is right on target for selling homes today:  Web Appeal is the New Curb Appeal.

Once photographs are completed and the home is listed in the MLS, they are posted to Realtor.com and AZCentral.com.

Next, I create a custom web site that has relevant info for potential buyers, such as school and city info.  I create a custom rider with your home’s personal URL, which I hang under the For Sale sign.  I’ve started incorporating QR codes into that advertising also. And, if a buyer types in the web site or reads the QR code from their phone, they get a slimmed-down, mobile version of home’s web site, with photos and key information.

The home will also be syndicated to hundreds of web sites, including:

For a full list of web sites that a home for sale in Scottsdale is listed on, visit: Additional Syndication Sites for Listing and Selling Your Home

An enhanced version of the home listing is also posted on Zillow and Trulia. Since I’m a Premier Agent on Zillow, my listings get better placement when buyers search.

I use an online flyer service called Vflyer, which also syndicates to several of the services above, plus HotPads and Craigslist.

Another service I use to give you showing feedback is Homefeedback. Our lockbox service notifies me almost immediately that an agent has showed your house, and this automated service emails an inquiry out to the agent asking for feedback on your homes condition and pricing.  It’s the best way I’ve found to get agent feedback.

Being on-line is critical.  Since you are reading this on-line, it’s safe to say that you would agree.

I also share the following with prospective sellers:

I work with both buyers and sellers. This year, it’s about 50-50. This mix gives me some good insight into what buyers are looking for and how they are looking, so that I can help sellers position their properties most effectively.  The majority of my business comes to me through personal referral, my blog, or social media presence on Twitter, Facebook, LinkedIn, or Flickr. In the past two years, I’ve averaged 40 transactions/year, which gives me a good knowledge of today’s market, while still being available to give personalized service.

You can read a bit about my background on LinkedIn, and see a handful of reviews from past clients that they’ve posted on Zillow.

If you’d like to know more about selling your house in Scottsdale in today’s market: