Housing Market Snapshot for: Las Sendas, Northeast Mesa, Arizona

April 5, 2009 // No Comments »

By:  Ann Belfield

Las Sendas, a picturesque master planned community in the desert foothills adjacent to the Tonto National Forest in Northeast Mesa, Arizona, presently has 144 single-family (s-f) detached houses for sale. The average price of homes that sold in the community in March was $275,167, while the average price of homes on the market is $964,056. The number of s-f detached home sales declined by 6 in March 2009 as compared to a year ago. The table below displays single-family detached home statistics for Las Sendas.

Overall, Las Sendas experienced a 38% decline in homes sales from the same period last year, while the 85207 zip code where Las Sendas is located, experienced a 12% increase in homes sales. The City of Mesa experienced a 28% increase in sales, and the City of Phoenix experienced a 52% increase in sales compared with March 2008.

Posted in AZ Housing Market, Arizona, Las Sendas

Phoenix – Mesa – Scottsdale Home Sales on the Rise

April 2, 2009 // No Comments »

The Arizona cities of Phoenix, Mesa and Scottsdale, experienced an increase in single-family detached home sales in March over the months of February and January. The Phoenix home sales increased 28%, up 538 closings from February to a total of 1,951 closings in March. Homes Sales in Mesa increased by 25%, while sales in Scottsdale increased by 21%. Buyers are taking advantage of the lower interest rates and the higher degree of home affordability and scooping up bargain priced homes.

Areas like Phoenix are seeing multiple offers on affordable homes. The table below presents an overview of the single-family detached home statistics in the Phoenix, Mesa, and Scottsdale market. It also reveals the numerous amounts of bank owned, short sale, and auction properties.

Market Snapshot: Single Family-Detached Home Statistics for Phoenix-Mesa-Scottsdale
			Phoenix	Mesa	Scottsdale
Total Homes Available on the Arizona Flex MLS			8,365	6,757	3,935
Active Short Sales			1940	743	499
Active REO, Bank Owned			2,916	663	264
Auction Properties (owner occupied)*			5,000*	3,465*	1,707*
Total Homes Closed
	March 2009		1,951	506	243
	February 2009		1,413	379	192
	January 2009		1,283	325	170
Average S-F Detached Home Price		$279,223		$ 293,498	$ 1,186,146
Average Days on Market		143		146	211

With lower interest rates on buyer’s sides, it is a good time to purchase.  Once the economy begins to turn around, renowned economist, Dr. Joel L. Naroff, President of Naroff Economic Advisors, predicts that the Fed may raise interest rates sharply.  He states that the Federal Funds rate could rise from 0.5 or 1% to as high as 4.5% within a six-month period at the first signs of an economic recovery.  Overall, Naroff expects the second half of 2009 to have a stronger fourth quarter than other economic models currently predict.

Sources:

• *Data gathered through ARMLS. Owner Occupied Residential. http://armls.imapp.com/ilinks/search, many of the auction properties are not listed on the MLS and include all owner-occupied properties; therefore the number of homes available in the table does not reflect this number.

• FlexMLS. 31 March 2009.
• Knowledge @ W.P. Carey. The Economic Forecast?  Cloudy with a Chance of Shower, at Least until 2010. 18 November 2008.

Information deemed reliable, but not guaranteed.

Posted in AZ Housing Market

Top Ten Projected Riskiest U.S. Housing Markets

April 1, 2009 // No Comments »

By: Ann Belfield

It’s a no brainer that the recession is heaving chaos into the housing market, so it should come to no surprise that the First Quarter 2009 Economic and Real Estate Trends Report and its widely cited U.S. Market Risk Index(SM) released today, by the PMI Mortgage Insurance Company has gloomy projections. The PMI Report projects that 98% of the 381 Metropolitan Statistical Areas (MSAs) are facing an increased risk of lower home prices by the end of 2010.

PMI’s U.S. Market Risk Index projects the market risk of home price declines over a two year period in the 50 largest MSAs. The index uses economic, housing, and mortgage market factors to assess the probability of home prices in the 50 largest MSAs. Home price appreciation, employment, affordability, excess housing supply, interest rates and foreclosure activity are variables used in factoring the market risk.

According to the U.S. Market Risk Index, the Phoenix-Mesa-Scottsdale MSA ranked 10^th, and it stands a 98.8% likelihood that the area will face lower home prices by the end of 2010. The list displayed below presents the Top Ten Riskiest of the 50 Largest MSAs. Based on PMI’s Risk Index, these MSA’s have a high degree of risk, from 98.8% in Phoenix MSA to 99.9% in Miami MSA, that the home prices will decline.

Top Ten Riskiest U.S. Housing Market Areas 1. Miami-Miami Beach-Kendall; FL 2. Riverside-San Bernardino- Ontario; CA 3. Ft. Lauderdale-Pompano Beach-Deerfield Beach FL 4. Los Angeles-Long Beach- Glendale; CA 5. Las Vegas-Paradise; NV 6. Tampa-St. Petersburg- Clearwater; FL 7.  Orlando-Kissimmee; FL 8. Santa Ana-Anaheim-Irvine; CA 9. Jacksonville; FL 10. Phoenix-Mesa-Scottsdale; AZ

Although these factors seem to dispel gloom and doom in these high Risk MSA Areas, these factors have lead to greater home affordability. While it may be a buyer’s market, some areas, like Phoenix, experience competitive bidding for many bargain priced homes.

Source:  PMI Mortgage Insurance Company. First Quarter 2009 Economic and Real Estate Trends Report 01 April 2009.

Posted in AZ Headlines, AZ Housing Market

Real Estate’s Golden Triangle: Arizona, California, and Nevada: Presents an Opportune Time for Real Estate Investors

March 30, 2009 // No Comments »

By: Ann Belfield

As credit markets begin to free up, mortgage rates at historic lows, and the prices of real estate at affordable levels, creates an opportune time to invest in real estate in the “Golden Triangle” states of California, Nevada and Arizona.   These Golden Triangle states experienced exponential growth in property values during the real estate boom, now they are experiencing upheaval in their market value, providing a lush opportunity for investors to capture. Eventually, when the market turns around, the prices of real estate in the Golden Triangle are predicted to rise quicker than other areas because of their location, climate and amenities. These are the sought after states for a reason, not just to investors, but to people all over the world. To begin with:  California.

California

California’s temperate climate, job opportunities and coastal beauty are just a few of the reasons many want to live in and own real estate in California. California is still viewed as the “golden land” of opportunity by people residing in other countries. Silicon Valley is the land of innovation, the land of Google, Apple, Adobe, Stanford, Berkeley, along with many other technology startups, universities and high tech innovators. Hollywood, need I say more?…the world knows about it and the film industry enriches our lives with entertainment. From San Diego, to Newport Beach, to Carmel, to San Francisco, to Sausalito, just to name a few, are destination areas people love to live in, tour, experience, and enjoy.

California’s Housing Market

According to Bloomberg.com, California’s home prices dropped 41% last month from a year earlier, bringing the median price down to $247,590 for a single-family home. A year ago, in February 2008, the median single-family home price was $418,260. While this pricing seems low, it is based on all of California, rather than specific regions. It includes the inland areas that are experiencing severe price deflation.

When looking at regions in California, the single-family home value in San Diego-Carlsbad-San Marcos region, according to Zillow.com, is $358,509, reflecting a decline of 34.4% from the peak value of $546,299. In Los Angeles-Long Beach-Santa Ana region, the value is $431,486, reflecting a decline of 32% from the peak value of $603,835. The San Francisco-Oakland-Fremont region’s value is $549,086, reflecting a decline of 28% from a peak value of $713,734. Although the drop is brought on by the numerous amounts of foreclosures on the market, today’s pricing in California creates a high degree of affordability, making it an opportune time to invest and buy property.

Nevada

Nevada is the entertainment state of the United States and, Las Vegas alone, draws over 37 million visitors from all over the world per year. The climate of Las Vegas, though not as sunny as its neighboring state Arizona, still enjoys over 280 sun filled days a year and offers many beautiful tourist attractions. One such attraction is Lake Mead which draws over 10 million visitors a year.

Nevada’s Housing Market

According to Zillow.com, the Las Vegas-Paradise Metropolitan Statistical Area market experienced a year-over-year decline of 27% for single-family homes, bringing the current median price down to $196,458 from a peak of $313,275. The median condo is priced at $124,181.

Arizona

Arizona is a destination choice for many to live as part-time and full-time residents. The ideal winter climate makes Arizona a prime destination spot for retirees living in colder regions to call home during the cold season in their home states. The majestic beauty of travel spots like Sedona, the Grand Canyon, Lake Havasu, and Lake Powell draw tourists from all around the world. Many times when people visit Arizona they come back to it because there are so many unique areas to explore and they become hooked on the climate and the Arizona lifestyle and want it for their life.

Arizona’s Housing Market

During the boom was a difficult time to make a purchase, but now is an ideal time. It is a buyer’s market, and with a year-over-year decline of 22%, the median single-family home price of $186,712 for the Phoenix-Scottsdale-Mesa Metropolitan Statistical Area makes it affordable compared to peak median pricing of $288,719. The median condo is priced at $137,288.

Sources:

Bloomberg.com. 25 March 2009.

Zillow.com. Zillow Real Estate Market Reports. Fourth Quarter: October-December 2008.

Posted in AZ Housing Market

Monday’s Market Snapshot: The 85207 Housing Market

March 23, 2009 // No Comments »

By: Ann Belfield

March 23, 2009, Monday’s Market Snapshot, of the 85207 Housing Market, in Mesa, Arizona, reveals there are presently 539 active listings, with an average median list price of $561,382. Since January 1, 2009, 126 homes were sold, the majority, 122, were under $1 Million, while 4 homes closed over $1 Million, with average sales price of $2,293,750. On average, homes that sold under $1M were on the market for 125 days, while those that sold over $1M were on the market for an average of 242 days.

The table below presents an overall snapshot for Monday, March 23, 2009, of the active, pending and closed single-family homes in 85207, along with an overview of the active and closed homes under $1M and equal to or over $1M. For more information on the 85207 zip code area, or surrounding areas in Mesa, Gilbert, Queen Creek and Scottsdale, click here or search to start your home search in the Phoenix area click here

Monday, March 23, 2009 Snapshot:  The 85207 Single-Family Housing Market Eye On Az.com
Home Status	# of Listings	Avg. List/Sold Price	Avg. Approx Square Feet (SF)	Avg. List or Sold Price/Approx SF	Avg. Cumulative Days on Market
Active	539	$561,382	2,891	$162.11	172
Pending	88	$252,986	2,097	$105.25	132
Closed	126	$312,844	2,346	$114.51	128
Homes Under $1M
Active	474	$380,730	2,524	$140.21	160
Closed	122	$271,551	2,220	$108.35	125
Homes Equal to and Over $1M
Active	64	$1,892,417	5,653	$328.70	254
Closed	4	$2,293,750	6,136	$299.29	242

Source:  ARMLS.Flexmls.com 09 March 2009. Information deemed reliable, but not guaranteed.

Posted in AZ Housing Market