It’s true, there were 100,959 home sales last year in our market. Of those sales, nearly half ( over 47,000 ) were CASH sales. Yep, greenbacks. No financing, at all. That’s a lot of cash.

Of the homes sold in our market last year, 87% of them were under $200,000 purchases. Of that 87%, we see that a total of 63% of 2011 home sales in our market were below $100,000! Heck, remember 2005?  You were hard pressed to find anything for less than $100,000. We have seen a LOT of investor activity in this real estate market.

Who’s buying homes?

People who have been lulled to sleep or who have not been paying attention to the real estate market for a while seem to be surprised when they have difficulty “stealing” property in today’s market. Inventory is low, rates are good, and the thought of missing the bottom of the market is pulling at people’s wallets.

My question is this. If we now have record low mortgage rates, how long will this trend continue? We are hearing reports of parents buying homes for their kids, investors pulling out of the stock market and buying multiple properties, renters looking to SAVE money on housing expenses, etc. On the other hand, we hear of overall lower home ownership rates as people struggle in this economy.

Short sales and foreclosures made for more than 70% of the sales during the last year. People talk about the “shadow inventory” of bank owned homes, but many people I have talked to in the business don’t see it coming. Many properties are being sold at the “courthouse steps” before they ever go back to the bank. The market is ever changing. Stick around, we’ll have a lot more to talk about in the very near future…

If you have any questions or comments, “Just Call Nick!” I can be reached at 602-803-6425. That’s 803-NICK.

Distressed sales.  You hear the term almost every day. Like most things you hear often, there are two sides to the story.

The fact is, not everyone is singing the blues these days. For some, the recent Trulia.com report saying that it is cheaper to buy a home in most markets than it is to rent, is good news. In the report, Phoenix and Mesa are both listed in the top five of the Top 10 Cities to Buy vs. Rent comparison done for the first quarter of 2011.

Times have certainly changed since the “mortgage-anything-you-can” height of the market. People are looking at location x3 again, financing options have changed, and reasons for buying a home may have even changed.

During one of our company events, I enjoyed this “tongue in cheek” rendition of the Short Sale Foreclosure Blues by my friend and President of Realty Executives, Rich Rector.

Short sales and foreclosures are a large part of the real estate market today and probably will be for a while. If you are facing foreclosure or have questions about your options, OR if you are now beginning to think it is time to quit renting, “Just Call Nick!” I’m glad to help…

Take a look at the video. The words are below – sing along if you’d like.

Well I bought at the top in 2005,

Life was great, beginnin’ the thrive,

Then, whoa,things took a major dive,

Got the short sale, foreclosure, repo blues,

Behind on my payments, market done tanked,

prices have fallen, zilch in the bank,

went to my lender and drew a blank,

I’ve got the short sale, foreclosure, repo blues.

If I could have, I would have paid,

If I could have, I would have stayed…

I’ve been Fannie and Freddie and FHA’d,

I’ve been Chase, Wells Fargo’d and BofA’d,

I’ve got the underwater, upside down,

short sale foreclosure blues…

I’ve been Fannie and Freddie and FHA’d,

I’ve been Chase, Wells Fargo’d and BofA’d,

I’ve got the underwater, upside down,

short sale foreclosure blues…

Recently, a local man was arrested and charged with defrauding a secure creditor and criminal damage after the deconstruction of his Chandler home.

Unfortunately, this has been a very common practice for the past couple years as the wave of foreclosures spreads throughout the valley. I see many foreclosed homes where the sinks, toilets, air conditioning units, water heaters, cabinets, counter tops, lighting and even landscaping items have been removed or vandalized.

This theft and vandalism is obviously not helping the real estate market and probably effects the values of the entire neighborhood. It seems to be a common practice with some of the “buy and bail” people, as well.

A quick look at Craigslist will often show ads for materials from a home and often sounds suspiciously similar to the practice of “deconstruction.” Just like any other criminal damage, police encourage homeowners to be aware of their surroundings and to watch foreclosed homes in their neighborhoods and report any suspicious activity.

Of course, if you are struggling with keeping your home and need any good resources to discuss your options, I am here to help as best we can. Short sale and foreclosures are a huge part of the real estate market right now. I am happy to discuss your situation and have some very helpful attorneys and and industry professionals that can answer your short sale or foreclosure questions for you. As always, if you have any real estate related questions, “Just Call Nick!”

Of course with gas prices and housing inventories both up, many people are looking for more centrally located homes. You will find that certain parts of the Valley are doing much better than others.

And while it is certainly true that many people have been priced out of the market, the need for housing never goes away. This is illustrated by the strengthening rental market. Rents are up and landlords can be more picky about tenants.

Another thing to watch is the foreclosure rate. Many bought at the top of the market and were talked into bad loans. This may be a problem if they were relying on unrealistic appreciation to help.
As always, I will be watching the market closely, so if you have any questions, “Just Call Nick!”