November 2011

There are 8 blog entries for November 2011.

Where Distress In Phoenix Real Estate Is Concentrated

Tuesday, November 29th, 2011 at 6:13pm. 1055 Views, 0 Comments.

The Arizona Regional MLS is coming out with some nice data lately. It's about time, even though we have the venerable Cromford reports to rely on for well scrubbed data. The newest addition is a monthly report of distress in Greater Phoenix. Here is the intro from the ARMLS, "Gathering intelligence on Short Sales and Foreclosures is now easier with the Distressed Property Report. This report contains three interactive maps: short sales, foreclosures and a map of all distressed properties. Each map is a snapshot of the active distressed property aggregated by ZIP Code. Clicking a dot on the map will display more information. Each map is displayed below":  I like it visually.

The first map shows short sales. Notice where the concentrations are: on the

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Single Family Leasing Market In Greater Phoenix For November 2011

Tuesday, November 22nd, 2011 at 7:38pm. 1221 Views, 0 Comments.

Since many of our clients are investors the state of the rental market is fairly important as it will influence not only the price you pay, but also the return on the investment.

The most recent data via the newely formed Rent Check by the ARMLS shows the following:

Median Lease Price: $1,099

Average Lease Price: $1,271

Average Days On The Market: 41

Below is the partial data from July to December for each year from 2008 to 2011 with the number of units leased.

Jul Aug Sep Oct Nov Dec

2008 2,517 2,154 1,890 2,115 1,835 1,780
2009 2,530 2,535 2,324 2,529 2,290 2,156
2010 2,613 2,567 2,447 2,541 2,407 2,235
2011 3,050 3,005 …

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Phoenix Homes Inventory Levels By Price Range

Sunday, November 20th, 2011 at 6:18pm. 1483 Views, 0 Comments.

It's simply inventory is down for most price segments, yet demand remains high. At last look the Greater Phoenix residential inventory stood at 3.5 months for all residential properties, the weak and strong, under-priced and over-priced,  homes and condos.

3.5 months is quite low, but we need to look deeper to see where all the action is and how little there really is in some segments. Keep in mind two things. The overall consensus is that about 4-5 months is a balanced market and the higher the price bracket the higher the months of supply is normal.

phoenix_homes_supply_by_price_range_638

There is lots of activity in the price brackets under $200,000 and especially under $150,000 where plenty of home buyers and investors are present and that's why inventory there is just over 2

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Small Multifamily Properties For Large Returns

Saturday, November 19th, 2011 at 5:16pm. 847 Views, 0 Comments.

Many real estate investors gloss over some of the most profitable real estate investment properties simply because they don’t understand them. The either hit the single family home route or just go big, but many times some of the most profitable properties are right in the middle. You don’t have to get the 50, 100, or 150 unit properties to start reaping nice return.

Smaller multifamily properties can be very accessible and very profitable, they are essentially everywhere, they are easier to purchase and sell for that matter.

So let’s define small and medium multifamily properties. Small would be 2-4 units and would even fit into the realm of residential financing which is often easier to get then commercial money with lower down payment

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More Normal Listings Are Successfully Selling In Phoenix

Friday, November 18th, 2011 at 7:41pm. 725 Views, 0 Comments.

The success rate is an important measure. It gauges how many of the listings that exit the active market actually sell versus simply being taken of the market for multiple reasons,  amongst them failure to sell.

Below is chart showing the success rate of normal listings - normal meaning traditionally sold homes, i.e. not REO or short sale properties. Remember those? 

These are making a comeback in a big way. They are slowly replacing distressed properties which is a sign of a return to a normal market, one with only a small percentage of distressed properties. 

listing_sales_success_515

A higher success rate of normal homes means buyers are willing to buy these homes instead of bank owned and short sale homes. In order to do that they have to see value in this and

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Diminishing Numbers of Bank Owned Homes And Sales In Greater Phoenix

Wednesday, November 9th, 2011 at 11:30am. 1159 Views, 0 Comments.

For anyone in the market right now it's very obvious that there are fewer bank owned homes to purchase and those left have just as many buyers pursuing them. As I noted in the October Phoenix housing review, the percentage of REO active properties has dropped to 10% from 19% last year and sales have dropped as well to 35% versus 48% last year.

At this point in the market there are really only 2,400 active REO residential properties with last month's sales at 2,623 that means inventory is less than a month. 

So it's no wonder prices are on the rise. Take a look at active price per square foot at $85.65 versus $78.64 last year and sales at $63.33 per square foot versus $59.21 last year.

bank_owned_sales_in_phoenix_515

Some still have concerns about shadow inventory. I say

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Just Sold Another Triplex In The Coronado Historic District

Monday, November 7th, 2011 at 4:50pm. 684 Views, 0 Comments.

Over the last few months small multifamily pickings have become slim: demand is really high and supply very low, almost nil. So it was fortunate that our client was able to get this little gem under contract in the Coronado Historic district which is a very dynamic and hip neighborhood with lots activity from new local restaurants and plenty of remodeling. It's a neighborhood where the color beige is rare and each home is unique with decades and in some cases over a 100 years of changes and influence.

front-dayton_903

The triplex is a combo of two 2 bedroom units and one 1 bedroom unit and fits in nicely with the needs to the current rental market. The 2 to 1 combo is nice indeed. 

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Unseasonably Warm, Phoenix Homes Sales And Statistics For October 2011

Friday, November 4th, 2011 at 7:40pm. 3171 Views, 2 Comments.

While the weather may be cooling down the real estate market in Phoenix continues its hotness, yet the seasonal trend continues: supply increased, demand slowed and prices moved up.

7,436 residential properties sold in October which is awesome good compared to 6,520 last year. I would dismiss 2009 numbers or at least adjust them because there were heavy government incentives to buy at that time. 

Considering how difficult it is to find good homes I think achieving this number is actually amazing. Take away all the over priced homes or homes with unmotivated sellers and the inventory is truly much lower. Just because a home is on the market and even priced properly does not mean it's going to sell. Case in point: we've been trying to get into one

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