by Dru Bloomfield on June 17, 2008
Shailesh Ghimire over at CTX Mortgage posted yesterday that new home buying assistance funds are available for home buyers in Phoenix, Scottsdale, and …. basically the whole of Maricopa County.
This program has some great features and down payment assistance.
Income limits will work for purchasing in many Scottsdale neighborhoods, too! Since Scottsdale is a not-targeted area, limits are just a bit more restrictive. For a family of two or less, maximum income to qualify is $64,524, and for a family of three or more, the limit goes up to $74,203.
Maximum home sales price for the Scottsdale area, is $311,625, and with all the price reductions, we’ve been seeing there are many homes in this more affordable price range. As of today, almost 20%, or over 1,100 of the almost 6,000 Scottsdale homes on the market are listed in this price range.
So, if you’ve been thinking about buying a Scottsdale home, and need a bit of assistance to get started, call Shailesh to see if it’s a loan program that will work for you! Funds are limited so you will want to take action quickly.
by Dru Bloomfield on June 16, 2008
All home buyers seem to be asking this same question in today’s market:
What’s a good offer?
In the past, the sale price averaged 3-5% below list price, but in today’s real estate market, one would think that these numbers might have changed.
Recently, I represented a buyer, (we’ll call her Sue), where the home she was interested in was relatively new to the market, but priced well above the current comparable homes sales in the surrounding area.
Sue’s offer of approximately 10% below listing price was presented, and I was able to document for the not-to-happy seller’s agent how the buyer had determined her offer price. The seller countered with a price that was still too high for Sue, who opted to keep on looking for her home. Several weeks later, the house was still on the market, and my client asked me to present essentially the same offer. This time the seller accepted.
Curiosity piqued, I computed some statistics for a couple zip codes around Scottsdale, just to get a feel for where home sales prices were, as compared to the most recent listing price.
Sampling of Scottsdale Real Estate Sales Price as a Percentage of Listing Price for March 16 – June 15, 2008
|
City Area – Zip Code
|
# of Sales
|
High
|
Average
|
Low
|
|
South Scottsdale – 85257
|
91
|
107%
|
96%
|
77%
|
|
McCormick & Gainey Ranches – 85258
|
187
|
116%
|
94%
|
79%
|
|
DC & McDowell Mountain Ranches – 85255
|
252
|
120%
|
94%
|
71%
|
Interesting that we are hearing about all the low offers, and in reality are seeing some houses are selling for more than they are listed. What is even more telling, is that the average selling price of 4-6% less than listing price is not all that far off than the metric that we’ve been hearing for years.
So, when you find the house that you are ready to buy, do your research. Make an offer that’s realistic for the market, and for your budget. The seller’s response will tell you how close you are to crafting an agreement. And then, you can decide what your next steps are.
As always, your comments and questions are welcome.
by Dru Bloomfield on April 11, 2008
Home listing prices are increasing, decreasing, and holding steady, depending on which Scottsdale zip code you live or are looking to live in. I’ve put the following chart together (courtesy of Altos Research), so that you can see what’s been going on over the past year.
For instance, in far north Scottsdale (85262), the median list price actually started rising last last year and now exceeds what it was a year ago. On the other hand, Scottsdale 85254 (which is a Scottsdale zip code mostly located in the City of Phoenix), has seen a drop of over $75,000 in median list price. For the most part, the other zips are holding steady or seeing small decreases.
(Zip code 85266 is a new zip code that was split off from 85262 in July 2007, so the statistics are off and appear to normalize about October 2007.)
I’ve also included a zip code map of Scottsdale, so you can see where these particular zips are located.
You will also notice, that for the most part, lower home prices are in the southern part of the city and increase significantly as you move north.
I’ll be sharing more of these statistics soon, so if there’s a particular area in Scottsdale or a parameter (like how long it’s taking to sell a house) that you are interested in, just let me know and I’ll make that my next focus.
by Dru Bloomfield on March 31, 2008
I’ve been working with a young couple purchasing their first home. Like so many buyers today, they started their search on the Internet, and found me through “some social networking site, can’t remember which one”.
Bright, educated, and articulate, they know what they want in a home. Pre-approved for a loan. Lease up in two months. Ready to buy.
They found a house they liked and would serve their needs. Made an offer. Received a counter offer from the seller. Made a counter offer back. There was an $8,000 difference between buyer and seller on a home in the $300,000 price range, and the seller decided that he was done negotiating.
So, the buyers proceeded with their search and found a lovely home just around the corner, priced 20% higher, but a larger, much loved home, with significant upgrades. In a period of about 24 hours, they came to terms with the seller, on price and time frame. The seller even offered to leave the cat!
photo credit: foshie
We are still in a buyer’s market. Sellers often must make concessions. Buyers determine the value of the home, and a seller can choose to agree, or disagree. If there’s agreement, the house sells, if not, only time will tell.
by Dru Bloomfield on February 22, 2008
Just read this article “Don’t Fear Falling Home Prices“, where Yale Professor Robert Shiller (of the famed Case-Shiller 20-city home price index) has an interesting insight on our current home market.
“There’s nothing troubling about a gradual correction of home prices. If we keep our incomes at the current level and home prices go down we are richer, we can buy more housing,” Shiller says.
And he goes onto say in the more extensive Reuter’s article, “Gradual home price drop good: Yale’s Shiller“:
“We want a gradually declining market, we don’t want a collapse in our institutions,” Shiller said.
“The purpose of this should be to try to maintain confidence, which is a dangerous thing to lose, and we want to also maintain a sense of fair dealing, that we’re a society that cares about its people,” he added.
And here at home, where entry level single family homes in south Scottsdale were starting at astonishing levels, just two short years ago, we are now seeing entry level prices hovering about $200,000, a price that many more people can afford. When you couple that with the excellent school system, extensive recreational opportunities, and other amenities, the lower home prices will make Scottsdale home ownership more accessible for those who have planned, saved, and are ready to purchase a home.
Schiller states:
“In major cities, we see often the service people can’t live there any more, the firemen, school teachers. This is not the way we want our society. We want affordable housing,” he said.
So, as much as it hurts to see housing values go down, in the long-run, I do believe that it will all work out so that we have a much more stable market, and people will have the security of owning and living in their own home.
by Dru Bloomfield on February 19, 2008
We’ve all been hearing how slow the real estate market is. Yet, here in Scottsdale and northeast Phoenix, my business continues to grow, and I feel very fortunate. For me, what I’ve been experiencing with my clients continues to confirm what is in print and on-line everywhere.
Buyers call the shots. Offers are low, and many buyers are hanging tough on what they are willing to pay. With the rapid slide of prices, buyers are nervous and making their offers according.
Some sellers are doing what it takes to sell. While the offers are coming in low, and sellers are more than grimacing. I experienced sobbing, yelling, and screaming. And then, when home sellers are presented with the hard numbers of what the market is doing, they are countering and accepting offers more readily. Just this past week, I completed a contract for an out-of-state buyer that was totally rejected by the seller two weeks ago. The seller’s agent called back and asked if the buyer would reconsider a counter from the seller. And common ground was found.
Buyers are asking for the moon in repairs. As a listing agent, I’m seeing incredibly long repair requests, once the inspections are complete. And as a buyer’s agent, I writing them up. I used to have conversations with buyers that “you are not purchasing a new home“. Not these days. And, sellers are stepping up and completing many or all of the repairs, not wishing to jeopardize the sale.
More sellers are bringing money to the table. It’s true. Home owners have been using their homes as banks. Either to purchase their next home, or to pay off other debt. Some sellers have the resources to bring cash to close, while others are in negotiations with their lender for a “short sale”, selling for less than they owe.
Renters are in no hurry to buy. I’m writing more leases than I ever have in the past. Clients who sold homes a year or two ago are holding out to buy again. At the same time, I recently represented a buyer who sold their home three years ago and were ready to buy and settle again.
Prices are finally starting to get more real. I went on a John Hall broker tour last week, and was surprised at my reaction to a number of the homes. “Wow, this is priced well.” “Seems like a lot of house for the price.” The pricing feedback I got on the home I was showing was equally positive. Maybe we’ve been so numbed by sticker shock, that anything seems to be an improvement, or maybe we are getting close to true market values.
Realtors are either incredibly busy or wondering what to do next. A number of the agents that I’m in contact with are very busy. The real estate market has changed and staying on top of these changes takes time and perseverance. Agents who are there actively developing their business, and working with buyers and sellers, are the ones who have their finger on the pulse of what’s happening. Find them and ask lots of questions.
I could say, “it’s a great time to buy” or “it’s a perfect time to sell”, but in this market, the reality of the situation is that you, as a buyer or seller, make those choices. As I’ve mentioned before, life moves on, people get married, have kids, retire, invest, or just want to get a fresh start in a new town.
Just think of it as “Real estate is local”, right down to what is going on with you and where you want to be.
