Thursday, February 18, 2010

What's Really Happening in Real Estate

Welcome to another "Ground Zero" report on Real Estate in Phoenix Az. I've been getting alot of questions about where we are heading in the coming year. While I don't have a crystal ball, here is what I see coming, in my opinion.

We finished up 2009 with increased sales. Total Inventory of homes was cut by 1/3 to 1/2, depending on the report. While Foreclosures still dominated, and filled the market, buyer demand ate up the extra inventory, and kept prices stable. In fact, from Sept 09 through Nov 09, prices if Real Estate in Phoenix Az rose 3.5%.

The year 2010 is shaping up to be very similar. There are alot of foreclosures still due to come on the market, but I think banks have learned that flooding the market with all of them, at once, is bad for the market, and for them. It is my opinion they will continue to release them at a slower, steadier pace.

Another thing that banks have learned about Real Estate in Phoenix AZ is that fixed up homes sell better, and for more, than trashed ones. I see a trend developing where banks paint and carpet foreclosed homes, and make some repairs as needed, prior to selling them. This way they can sell for more, recouping their costs and then some. Not all banks are doing this, but some are.

And, as I said in earlier blog, 2010 will be a year of short sales. In fact, I had my first situation this past week where a bank came to client of mine, and THEY SUGGESTED A SHORT SALE IN LIEU OF A LOAN MODIFICATION!That has never happened in my experience before, but is a sign of banks being more proactive this year in the Phoenix AZ Real Estate Market, to prevent foreclosures.

Sales were a bit slower in January but February has been strong, and indicators are that they will continue to be for the coming year. Forecasters predict a 5% rise in Metro Phoenix AZ Real Estate prices in 2010,and that, along with predicted higher mortgage interest rates, suggests it is a good time to buy and invest.

Thursday, February 4, 2010

Make the Right Move, into the Right House For You

Last time we met, we discussed the one surprising thing to consider when buying a new home. Today, we think about the more day to day things to consider. There are many choices when thinking about buying Real Estate in Phoenix Metro Area:

Home Type: Are you looking for a single family, a multi
family, a condo, an invesment property? Are you looking for a new
construction or previously owned? If you are looking for a
previously owned, how old? There are advantages and disadvantages.

Location: What is your commute? Are you looking for views?
Large or small lot? Close to major streets or off the beaten path?

Size and Floor Plan: How big? How will you live in and use
the space. For example, do you want four bedrooms because you have
three children? Or will you use the extra bedrooms for a guest room
and separate office or hobby space? How you live in and use your
home will determine the size, configuration, and floor plan you
need.

Fixer-Upper: Do you want a fixer-upper? Are you looking
for an investment property? It's a great way to accumulate instant
equity. Consider financing. Beware: the cost may outweigh the
reward.

Special Features: Make sure the home has any special
features you may require, such as RV parking, central air, a
main-floor bedroom, or disability features. Are you looking for a
pool or spa?

Family Space: Family activities often center around the
kitchen, so this may be the most important room in the house.
Larger kitchens are usually better. If the home is a resale, have
the kitchens and baths been updated? How much space do you want in
your kitchen? Do you like the layout? Are new appliances important
to you?

There are a million things to consider when buying a home. You know what the number one consideration usually is, in the end? How does the home "feel" to you. Yes, it has to have all the right components, but in the end, out of the homes that DO have the right components, you pick the one that "feels" like home. So when you are out looking at homes, pay attantion to the various factors that matter, like size, location, etc. Just don't forget to notice how it "feels".