Tag Archives: cromford report

Will 2012 be the Year of “Short Sale Home for Sale” ?

According to the recently released mid-month pricing update and forecast from the Cromford Report, sales prices continue to increase across the valley, REO inventory continues to go down and Short Sale homes for sale hits a new record high.

As REO inventories continue to decline the sales prices of both REO and short sale homes for sale have been going up. I would be surprised to see that change as we finish the 4th quarter of 2011.

As we go into 2012 with significantly less REO inventory than we had at the beginning of 2011 and as many of the distressed homeowners who actually pay a professional to prepare their tax returns next spring learn from those tax professionals that the The Mortgage Debt Relief Act of 2007, which generally allows taxpayers to exclude income from the discharge of debt on their principal residence and  applies to debt forgiven in calendar years 2007 through 2012. Talk to your tax professional or visit the IRS website to see if you would qualify. I would not be at all surprised if in 2012 we saw a jump in the number of short sale homes for sale, if this takes place no doubt many of the buyers would be investors as REO properties have been a favorite for them the past couple of years and with that supply dwindling they will need inventory from somewhere.

equal housing opportunity

 

 

 

 

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax advisor to obtain further information you deem necessary. I want you to be prepared.

Homes for Sale in Queen Creek – Market Report Prices Increase Again

We have been talking about shrinking inventories for months (down to 67 days compared to 140 one year ago), particularly REO inventory, according to the Cromford Report.

Bank owned homes for sale in Queen Creek are down significantly to 30% of the market compared to bank owned homes for sale in Queen Creek a year ago at 44% of the market. Short Sale homes for sale in Queen Creek currently make up 36% of the market, up from 26% of homes for sale in Queen Creek a year ago sold as a short sale.

Homes for Sale in Queen Creek for example were selling at $58.19 per square foot as of 11/03/2011, up from $52.45 /sf on 5/06/2011 and prices of Queen Creek Homes for Sale are up over 4% for the year.

There are some listing brokers than believe that as the REO ( a favorite for investors ) inventories will continue to decline in 2012, they expect HUD inventories will increase, which will benefit any owner occupants that want to buy a home at the current market rates, which is less than you can build one for. ( subject to change I’m sure)

To do a Property Search of the MLS for homes for sale in the valley.

To search bank owned homes for sale in the east valley.

 

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.


 

Richard D Chapin, PLLC - Realtor

equal housing opportunity

Bank Owned Homes for Sale in San Tan Valley – Vanishing???

Bank Owned Homes for Sale in San Tan Valley – Vanishing???

While that is a summary of what I wrote about in a previous blog post based on stats from the Cromford Report, I been in a number of conversations recently involving listing agents of HUD homes and they seem to believe they will be an increase in HUD homes for sale on the market in the near future. How can this be I thought we had moved most of the distressed property, that had been purchased at inflated prices back in 2006-2007? Here in Arizona we move the distressed property very quickly (short sales being the exception).

First of all there are always some people that lose their homes, even in prosperous times, medical bills can happen, death, divorce, even job loses happen in good economies. That being said, the reason these agents believed there will be more HUD homes for sale in the future is because back in 2006 less than 3% of the mortgages were FHA backed, whereas today over 40% of all mortgages are FHA backed. Ok now I can believe it is possible (that’s over 1300% increase). And then this morning I go out to HUD’s website and find a new listing, and I recognize is in a development that started selling after the market crash, they lived in the house less than 2 years bought in September of 2009, after the drop, and still lost the house, and now HUD is selling it, so I can believe it could happen.

If this happens we will  no doubt see another shift in our market, Investors have been driving the market the past couple of years, seeing bank owned homes for sale in San Tan Valley as well as elsewhere as an opportunity to invest in a house for thousands for dollars less that it costs to build that same house. But as reported previously the inventory of those bank owned homes for sale in San Tan Valley has been diminishing.

The significance of an increase in HUD homes for sale would have is, HUD will give owner occupants first chance to bid for the house, Investors typically will be allowed to bid after 30 days on the homes left. This will provide owner occupants who see the ability to buy a home for thousands less than they could build the same house for as an opportunity

The danger for these potential owner occupants could be if they intend to use FHA, there has already been a FHA appraisal done, typically the listed price, if in this sellers market where multiple offers are common, refer to previous post 27 offers on 1 house, they, if they bid over the listed price ( to increase the chance of winning the bid) in this case, would have to be prepared to bring money to the table at closing. Which for your dream house at less than the cost to build shouldn’t be a problem, but you probably don’t want it to be a surprise either.

To search bank owned homes for sale in San Tan Valley.

To search HUD homes for Sale in the southeast valley.

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

equal houseing opportunity

Bank Owned Homes for Sale in Queen Creek – Prices up slightly

Bank Owned Homes for Sale in Queen Creek – Prices up slightly.

The Cromford Report published it’s mid mouth update the other day with no surprises, with REO inventories continuing to decrease and as a result the prices for those bank owned homes is increasing. Short Sale homes for sale in Queen Creek and the surrounding area are increasing in number although the selling prices have decreased.

This summary mirrors pretty closely to what is happening in the Queen Creek, San Tan Valley area where we have seen an incredible volume of distressed sales take place in the past couple or years or so.

Bank Owned homes for Sale in Queen Creek

 

In Queen Creek and San Tan Valley, while sales are down slightly from last month, sales are still higher than the same period last year. With inventory levels at a ( sellers market ) low 71 days, and the inventory of bank owned homes for sale in Queen Creek and San Tan Valley representing a smaller percentage of that inventory it is not surprising that according to the Cromford Report sales prices in Queen Creek are up 3.9% compared to last year.

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

 

 

Queen Creek Homes for Sale

Queen Creek Homes for Sale – Market Report Prices Increase

Queen Creek Homes for Sale – Market Report Prices Increase

That’s right!! For months I’ve been  talking about shrinking inventories, particularly REO inventory, according to the Cromford Report Trustee Sales in Maricopa County AZ in September 2011 were 2689 compared to 4808 in September 2010( 44% fewer). Of which only 1280 single family homes went back to the lender, the fewest number since November of 2007, 61% fewer than the lenders received back in September of 2010.

I’ve been stating for months that price is a lagging indicator following a decrease in inventory and telling people inventories have been going down, and asking, when will prices start to increase?

Homes for Sale in Queen Creek for example were selling at $57.10 per square foot as of 10/06/2011, up from $52.45 /sf on 5/06/2011 and prices of Queen Creek Homes for Sale are up 4.3% for the year.

Ok, so maybe you missed the bottom, but the good news is you may still be able to  invest in a home for less than you can build one for. ( subject to change I’m sure)

To do a Property Search of the MLS for homes for sale in the valley.

To search bank owned homes for sale in the east valley.

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

 

27 offers – one – bank owned home for sale

27 offers – one – bank owned home for sale

That’s what a real estate agent said she was up against, needless to say sales are up from last year, with activity like that who knows how long it will be before the prices start to climb.

Of course that also means inventory is shrinking, in Queen Creek homes for sale, in the southeast valley for example, as of 9/15/11 there was 72 days of inventory compared to 139 days one year prior.

It appears that investors (not speculators) are driving the market, while many who wish to buy a home sit and watch in fear (fearfully speculating the market may go down more).

I believe it was Warren Buffett that said “Be fearful when others are greedy, and greedy when others are fearful”.

Investors apparently have done the math and figured that anytime you can buy a house for less than it would cost you to build one that is an opportunity, and they have been buying up a lot of bank REO properties.

It is not only the anticipated appreciation ( I expect I’ll see more 1031 Exchanges in a few years ) but the percentage of people renting their home has increased significantly since 2007 as a result of all the people who have lost the homes they once owned to foreclosure or short sale. According the the Cromford Report the demand for rental homes is increasing at a rate of 2828 per month as of September 11,2011 compared to 2553 as of September 11, 2010. A growth rate of 5.3% from 2009 to 2010 has more than doubled to 10.8% over the last year. So not only does an investor see an opportunity for appreciation over time but immediate cashflow and a renter to make the payments on the real estate investment.

 

Search bank owned homes in Queen Creek.

Search Short Sale homes for sale in Queen Creek.

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax advisor to obtain further information you deem necessary. I want you to be prepared. Anything I can do to help, just ask!