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If you are in the real estate market right now you know, it is dominated by Foreclosures and Short Sales. They are pushing prices lower. Until we get them worked through the system, prices will continue to drop. The good news is inventory levels continue to drop. I believe that is because the owner that "doesn't have to sell" and doesn't want today's value is just taking their home off the market.
Foreclosure rate skyrockets in April
Posted May 14th 2008 8:40AM by Michael Fowlkes
April saw a 65% increase in foreclosures from the same month a year ago.The numbers pretty much speak for themselves, with 243,353 receiving notices in April. This is a vast increase from April 2007, when "only" 147,708 homes received the same notice. This was also a 4% increase from March. The numbers are based on a report from RealtyTrac Inc.Homeowners in California and Florida are among the hardest hit. The two states had 9 metropolitan areas that ranked in the top ten areas of the country in terms of foreclosures..As big as America is, it is hard to really visualize just how severe this problem has become. So, let's put it in terms that are a bit easier to comprehend. Of all the homeowners in the country, 1 out of every 519 homes received foreclosure notices in the month. That's pretty scary if you think about it. Only 8 states did not have a higher foreclosure rate in April than they did in April of last year.The main reasons for the rise in foreclosures is nothing new, and you are probably already too aware of all of the following factors; falling home sales, falling home prices, tighter mortgage lending and refinancing, and the slowing U.S. economy. These all add up to the perfect storm for homeowners.
Read the rest of this article here:
http://www.bloggingstocks.com/2008/05/14/foreclosure-rate-skyrockets-in-april/
Wednesday, May 14, 2008
ZILLOW REPORTS HOME VALUES IN PHOENIX DOWN 15.7% Q1 2008
Zillow is not know for being very accurate on valuations, but it is a guide that one can use. Below is a report I received from zillow today. It states that "home values in Phoenix decreased 15.7% in the first quarter of 2008. We have really seen home prices dive since late February or early March. I would say this is a time where Zillow's estimate is pretty accurate.
"Home Value Trends in Phoenix According to Zillow's latest Home Value Report, home values in Phoenix decreased 15.7% in the first quarter of 2008, compared to the first quarter of 2007. Nationally, single-family home values decreased 7.5% while condo values declined 9.0% during this same period. Use this information to help keep your clients informed."
"Home Value Trends in Phoenix According to Zillow's latest Home Value Report, home values in Phoenix decreased 15.7% in the first quarter of 2008, compared to the first quarter of 2007. Nationally, single-family home values decreased 7.5% while condo values declined 9.0% during this same period. Use this information to help keep your clients informed."
Tuesday, May 13, 2008
INVESTOR BUS TOURS
I heard many stories about investors coming from California and touring Arizona neighborhoods in buses and buying homes. I never saw or was part of that in 2004 and 2005. However, a week ago Sunday I took a group of investors out from California on a tour. They flew into Scottsdale airpark in the private plane. We met early Sunday morning. I reviewed the market and gave them a presentation on the state of our real estate market.
They asked many questions and demonstrated they were very knowledgeable investors. One of the investors had bought 50 home through me and my aunt back in the mid 90’s. He made a ton on money on those homes.
We set forth on a tour and checked out several homes. They feel the bottom has not hit but it is on the horizon. They have assembled about $5,000,000 to invest in nearly $15,000,000 worth of properties. They realize this in not the time to flip, but the time to buy and hold. They are looking for good rental properties. Their main goal was to go after the bank REO property and buy in bulk. I contacted several banks and spoke with the head guy with REO at one bank. They are not interested in selling in bulk to investors at this time. I was rather shocked. But the banks were very consistent with the fact they are selling their homes at market value, so why take a discount?
We moved on to the resale market. We identified the target market for homes they would purchase.
Our target for rental properties was as follows:
Tile roof homes.
Smaller homes in neighborhoods with larger homes.
Be as near to the city center as possible. Really trying to stay inside the 101 to the west and below Carefree Hwy to the north.
No areas like Surprise, Maricopa or Queen Creek.
3 bedroom minimum but 4 bedrooms is a bonus.
No pools.
1,600 square foot homes or larger.
A purchase price of between 70 and 80% of today’s value.
Based on rental rates, we want them to break even or be close to break even.
Sticking to these criteria should protect them from making bad decisions. The investor group realizes we are not at the bottom of the market. However, the bottom will not be known until we see it in hind’s sight. They believe now is the time to start entering the market and buy homes over a period time. The idea is like dollar cost averaging into a mutual fund. Some will be bought before the bottom, some at the bottom and some will be bought as the market starts to turn positive again.
I was very encouraged to see these investors to have a similar idea as I. That idea is that the market is getting better. Just like before when the market started deteriorating it takes a long time to turn a market. Our market started adding to inventory levels in March of 2005. Inventory levels went up by 40% in October of 2005. But that wasn’t the top. Buyers kept bidding up the market until mid 2006. It took over 1 year to affect prices from the time inventory levels started increasing. I think this might be a little different.
Inventory levels topped out in October of 2007 and today are at about the same level as they were one year ago. Today, sales are at their highest level in over 2 years. It appears as though the market is about 6 or 8 months into turning around. Last time it took about 16 months to turn from the time inventory levels started growing. I don’t know how far we are from seeing this market turn around. But I feel strongly that there is “light at the end of the tunnel.” The difficulty is that we won’t know the market has turned until we see it in hinds sight.
They asked many questions and demonstrated they were very knowledgeable investors. One of the investors had bought 50 home through me and my aunt back in the mid 90’s. He made a ton on money on those homes.
We set forth on a tour and checked out several homes. They feel the bottom has not hit but it is on the horizon. They have assembled about $5,000,000 to invest in nearly $15,000,000 worth of properties. They realize this in not the time to flip, but the time to buy and hold. They are looking for good rental properties. Their main goal was to go after the bank REO property and buy in bulk. I contacted several banks and spoke with the head guy with REO at one bank. They are not interested in selling in bulk to investors at this time. I was rather shocked. But the banks were very consistent with the fact they are selling their homes at market value, so why take a discount?
We moved on to the resale market. We identified the target market for homes they would purchase.
Our target for rental properties was as follows:
Tile roof homes.
Smaller homes in neighborhoods with larger homes.
Be as near to the city center as possible. Really trying to stay inside the 101 to the west and below Carefree Hwy to the north.
No areas like Surprise, Maricopa or Queen Creek.
3 bedroom minimum but 4 bedrooms is a bonus.
No pools.
1,600 square foot homes or larger.
A purchase price of between 70 and 80% of today’s value.
Based on rental rates, we want them to break even or be close to break even.
Sticking to these criteria should protect them from making bad decisions. The investor group realizes we are not at the bottom of the market. However, the bottom will not be known until we see it in hind’s sight. They believe now is the time to start entering the market and buy homes over a period time. The idea is like dollar cost averaging into a mutual fund. Some will be bought before the bottom, some at the bottom and some will be bought as the market starts to turn positive again.
I was very encouraged to see these investors to have a similar idea as I. That idea is that the market is getting better. Just like before when the market started deteriorating it takes a long time to turn a market. Our market started adding to inventory levels in March of 2005. Inventory levels went up by 40% in October of 2005. But that wasn’t the top. Buyers kept bidding up the market until mid 2006. It took over 1 year to affect prices from the time inventory levels started increasing. I think this might be a little different.
Inventory levels topped out in October of 2007 and today are at about the same level as they were one year ago. Today, sales are at their highest level in over 2 years. It appears as though the market is about 6 or 8 months into turning around. Last time it took about 16 months to turn from the time inventory levels started growing. I don’t know how far we are from seeing this market turn around. But I feel strongly that there is “light at the end of the tunnel.” The difficulty is that we won’t know the market has turned until we see it in hinds sight.
IndyMac Bank Hires The Cameron Team
Recently IndyMac Bank decided to add 6 new agents to their pool here in Metro Phoenix. These agents are sent REO, real estate owned, properties that IndyMac wants to sell. These are the Foreclosure properties. IndyMac has decided to use the REO properties as a way to align with top agents in the valley. They only added 6 agents out of the nearly 30,000 working the Metro Phoenix market.
The Cameron Team is proud to announce we were one of those 6 agents approved.
If you are a real estate investor or want to invest in real estate we are a great contact for Foreclosure homes.
The Cameron Team is proud to announce we were one of those 6 agents approved.
If you are a real estate investor or want to invest in real estate we are a great contact for Foreclosure homes.
Wednesday, May 7, 2008
METRO PHOENIX HOME SALES, WEEK ENDED MAY 5, 2008
Well we did it. We broke through last years high of home sales. Last week I recorded 1,268 homes sold. That is the highest level of weekly home sales I have recorded since the week of May 15, 2006. Also, our 4 week moving average hit of new year high of 1,212. That was the highest recorded since May 29, 2006! Yes, both of those comparisons are from 2006, not 2007 or 2998. We are selling homes at the highest rate in 2 YEARS!
Single Family Inventory 44,600
Months of Inventory based on Pending 6.0
Pending Home Sales 7,453
Last 7 days Sales 1,268
4 week moving average Pending Home Sales 7,219
4 week moving average Last 7 days Sales 1,212
This market is like a big tanker. It moves slowly, but all the signs are moving in the right direction. Unfortunately, it took the big drop in prices that finally hit Scottsdale and the North East Valley this year. I was shocked how fast prices dropped. But did they really drop? Or had they moved there and it took sellers lowering their price to find the market?
See you next week!
Looking forward to continued good news on the housing front.
Jeff Cameron
Single Family Inventory 44,600
Months of Inventory based on Pending 6.0
Pending Home Sales 7,453
Last 7 days Sales 1,268
4 week moving average Pending Home Sales 7,219
4 week moving average Last 7 days Sales 1,212
This market is like a big tanker. It moves slowly, but all the signs are moving in the right direction. Unfortunately, it took the big drop in prices that finally hit Scottsdale and the North East Valley this year. I was shocked how fast prices dropped. But did they really drop? Or had they moved there and it took sellers lowering their price to find the market?
See you next week!
Looking forward to continued good news on the housing front.
Jeff Cameron
Tuesday, May 6, 2008
Another Cameron Team Listing Under Contract
We have acceptance!! We just listed the home at 10974 E. Mary Katherine in Scottsdale and it's Pending!! This home is bank owned and was listed at a great price which brought us a buyer and approval within a couple days. We hope to get this one pushed through quickly and closed.
We are continuing to work with Indymac Bank and selling REO properties. We are also working towards relationships with other Lenders and Banks to list and sell more REO's.
If you have questions about buying or selling a home, or want to know more information about REO properties, please feel free to contact us at 480-502-7699.
We are continuing to work with Indymac Bank and selling REO properties. We are also working towards relationships with other Lenders and Banks to list and sell more REO's.
If you have questions about buying or selling a home, or want to know more information about REO properties, please feel free to contact us at 480-502-7699.
Just Listed in Scottsdale
The Cameron Team Just Listed Another Property...This beautifully updated condo is now available for sale in the community of Quail Point Club in Scottsdale. Located off Scottsdale Rd. and Thomas it is nearby shopping, freeway access, downtown districts, and Tempe.
As a 1 Bedroom Condo there are many uses. Great for Seniors, College Students, Snowbirds, Or Low Maintenance Living.
Check out the photos and virtual tour here.
The address is: 3002 N. 70th St. #136 Scottsdale, AZ 85251
Please contact us if you would like to take a look at this available condo, or if you know someone who may be interested. We would be happy to help you with any of your Real Estate needs.
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