• Annual Appreciation: -8.3% (Values are dropping/increasing at this rate.)
• Recent Appreciation Trend: -2.0% (The drop/increase in value is getting better or worse at this rate.)
• 4,625 Active Homes Listed For Sale: 47.87% Short Sales, 16.54% Foreclosures & 35.59% Normal Sale.
• 1,894 Homes Sold Monthly: 24.18% Short Sales, 47.94% Foreclosure, & 27.88% Normal Sale. 

Scottsdale

• Annual Appreciation: -5.0%
• Recent Appreciation Trend: -5.0%
• 1,979 Active Homes Listed For Sale: 25.42% Short Sales, 6.06% Foreclosures & 68.52% Normal Sale.
• 397 Average Homes Sold Monthly: 22.25% Short Sales, 25.53% Foreclosure, & 52.22% Normal Sale. 

Paradise Valley/Cave Creek/Fountain Hills 

• Annual Appreciation: -12.6%, -2.0%, +1.7%
• Recent Appreciation Trend: -14.1%, +5.8%, -7.6%

Mesa/Glendale/Peoria

• Annual Appreciation: -14.3%, -14.9%, -4.6%
• Recent Appreciation Trend: -6.6%, -2.6%, -0.4%

Overall Market Data (Data from Maricopa, Pinal and Yavapai County)

• Annual Appreciation: -6.4%
• Annual Sales: +21.0%
• Active Listings: -39.0% (Inventory has decreased/increased at this rate.)
• Average Days On Market: 120 days
• Average Active Listing Price is $135.35/Sq.Ft. vs Sold Price of $82.28/Sq.Ft. (Price reductions of 39.21% are normally made before the home sells.)

Other Cities & Data:  The above data is provided by the Cromford Report, the leading authority on residential market data.  If you are interested in data from additional cities email jkepple@thekepplegroup.com 

Opinion Segment:  Although data shows us prices will continue to decline in the near future, there is one positive sign that cannot be overlooked. Inventory is about 27% lower than normal (active listings are down significantly) which may lead to some price relief if the inventory stays this low. The prediction made in our last newsflash for luxury cities has been proven correct; prices have begun to drop due to the depressed values in other neighboring cities.  Be wary of any forecasts over a year because there is no clear trend in the data. 

Do not let the market discourage you, there are plenty of proven solutions if you are upside down, looking for deals, and/or great investments.  The current environment presents unique challenges so make sure you are represented by the right real estate company. 


Please feel free to reach out with your real estate needs and questions,

This property is now back on the market!!  Call us today for more information! 480-626-7465

There is still a massive amount of distressed inventory on the market as well as defaulted loans which are in the banks back log.    The government has conveyed to the banks that they need to do everything possible to prevent the home to going to foreclosure and becoming a bank owned property.  Therefore they are doing everything in their power to short sale properities, do deed in lieu of foreclosure as well as selling them at trustee sale which will make the number of foreclosures drop.  Though not only are they now looking at more and different ways of liquidating these distressed assets though when they implemented these strategies it now takes them longer to actually become a bank owned property.  We are in that lagtime right now.  There will be more foreclosures hitting the market in the next 18 months.

With that said we actually need inventory right now.  As of May 9th we had roughly 28,000 active listings in our MLS, which is down from roughly 39,000 as of January 1, 2011.  Which is good, as supply goes down prices tend to go up.  The demand in our marketplace right now is through the roof as we have 22,000 homes in our MLS in pending status as of May 9th, which again is is up dramatically from January 1, 2011.

In summary it appears that everything is headed in the right direction and prices are rebounding in certain areas.  Our real estate market is a simple supply and demand market and right now it is safe to say we are in a sellers market.   There will be more inventory coming in the next year though I feel that will be our last go around of our massive amount of distressed inventory in our Phoenix Arizona Metro Real Estate Market. 

Buyers agent Craig Cagney and CEO John Kepple will be featured on the below radio show today.  Tune in and find out how to take advantage of some of the most lucrative real estate investment strategies in today’s Arizona marketplace.

I was invited to be a guest on one of Arizona’s Top Real Estate Radio Shows to give my opinion and observations of  the Arizona Real Estate  market. 

To listen to the show please click the microphone at 3 P.M. Wednesday January 26th.  Enjoy the show and call me for your Real Estate needs!!

For more information about the show, please visit www.arizonarealestateupdate.com

Cheaper to buy than to rent in 72% of largest U.S. cities

Despite the rising number of renters across the country, it is cheaper to buy a home rather than rent one in 72 percent of the 50 largest cities in the U.S., according to an index released by real estate search and marketing site Trulia.

"Since the start of the 'Great Recession,' many former homeowners have flooded the rental market. Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets," said Pete Flint, CEO and co-founder of Trulia, in a statement.

"Though necessary for achieving true economic recovery, stricter bank lending practices have also further aggravated the struggling housing market in the short term. Even highly qualified homebuyers face intense scrutiny on their income, savings, existing debt and credit history before they can get a mortgage loan."

Trulia's rent vs. buy index compares the median list price with the median rent on two-bedroom apartments, condominiums and townhomes listed on Trulia.com as of Jan. 10, 2011.

A price-to-rent ratio of 1 to 15 means that it's much cheaper to buy than to rent in a particular city. A ratio between 16 and 20 means that it's more expensive to rent than to buy, but, depending on the family's situation, buying could "make financial sense," the site said. Any ratio above 20 indicates that owning is much more costly than renting in a city.

In 36 out of 50 of the country's most populous cities, buying a two-bedroom home is less expensive than renting one. These cities include many areas that have been hit hard by foreclosures, such as Las Vegas, Phoenix and Fresno, Calif.

Top 10 cities to buy vs. rent:

Source: Trulia

In 10 cities, renting is cheaper, but buying might make more financial sense, according to Trulia. These cities include Los Angeles, Boston, and Fort Worth, Texas.

The index considers the total cost of homeownership compared to the total cost of renting. Calculations for the total cost of homeownership include mortgage principal and interest, property taxes, hazard insurance, closing costs at time of purchase, homeowners association dues, and private mortgage insurance. The homeownership cost calculation also includes tax advantages from mortgage interest, property tax and closing-cost deductions.

Calculations for total rental cost include rent and renters insurance.

The total cost of homeownership was highest, compared to the cost to rent, in New York; Seattle; Kansas City, Mo.; and San Francisco.

Top 10 cities to rent vs. buy:

Source: Trulia

"Although owning a home is relatively more affordable in most cities, market conditions have caused an interesting demographic swap between traditional renters and buyers," said Tara-Nicholle Nelson, consumer educator for Trulia, in a statement. Nelson is also an Inman news columnist.

"For example, lifelong renters are seizing the opportunity to become homeowners while affordability is high. At the same time, a growing number of longtime homeowners are finding themselves tenants -- some by choice and others by necessity."

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The number of active listings on the market remained steady at a healthy 33,000 listings.  Though the number of homes sold the last 30 days is still at it's 2010 peak at 8,600 homes sold.  The number which is grossly skewed is the number of homes pending.  We finally saw that number drop, though only 300, to just over 22,000.  This is the first time this number has dropped in over a month as we are continually breaking new records for the number of homes pending.  The reason for this is the number of short sales which are pending, as these homes take much longer to close.  My opinion is don't look at the number of homes pending as it is grossly skewed.  The accurate number to look at is the number of homes sold in the last 30 days.  This number is a real number and just because a home is in a pending status doesn't mean it is going to close, especially a short sale. 

Overall, other than the pending numbers and days on market it appears we are in a fairly healthy market.  Homes under 400K are in a sellers market, it is the Arizona Luxury Home market which prices will continue to fall.  We will continue to see the amount of bank owned homes fall throughout the year as banks are now looking to other alternatives in the liquidation of these defaulted assets, one of which is aiding the seller in the short sale of the home.  For more short sale information visit www.removenegativeequity.com

Click here to view the 2009-2010 market data graph chart.

http://www.thekepplegroup.com/seller-value.asp

http://www.zillow.com/howto/FamousUnique.htm

http://www.azcentral.com/thingstodo/

http://www.flexmls.com/cgi-bin/mainmenu.cgi?cmd=url+other/run_public_link.html&public_link_tech_id=rgvj4facdw4&s=12&id=1&cid=1

http://www.flexmls.com/cgi-bin/mainmenu.cgi?cmd=url+other/run_public_link.html&public_link_tech_id=rgvj1e3lxhw&s=12&id=1&cid=1

http://glo.msn.com/living/skinny-homes-2984.gallery?GT1=49000

Sign reads: "Lemonade $6.2 million a glass. House free with lemonade."

Apr. 23, 2010 07:40 AM
Associated Press

Purchases climbed 6.8 percent to a 5.35 million annual rate, more than anticipated, from a 5.01 million pace in February, figures from the National Association of Realtors showed today in Washington. The median prices climbed 0.4 percent from March 2009.

The thawing out from Februarys blizzards probably helped the market last month, while the Obama administrations credit worth up to $8,000 may keep underpinning demand through June, when it's next due to lapse. The outlook for the second half of the year depends on the speed and magnitude of the recovery in the job market, indicating the housing rebound may be slow to develop.

You have some fundamental improvement in housing, said Stuart Hoffman, chief economist at PNC Financial Services Group. Inc. in Pittsburgh. Housing is coming back. It's still got a long way to go.

Existing home sales were forecast to rise to a 5.29 million annual rate, according to the median estimate of 76, economists in a Bloomberg News survey, from a previously reported 5.02 million rate in February. Projections ranged from 5.05 million to 5.5 million.

Fewer Claims

Other reports today showed the number of claims for jobless benefits dropped last week and whole prices climbed in March.

Stocks held earlier loses after the report on concern of rising government debt levels in Europe and disappointing forecasts at Nokia Oyj, EBay Inc. and Qualcomm Inc.

The Standard & Poor's 500 Index dropped 0.9 percent to 1,194.85 at 10:24 a.m. in New York.

Purchases of existing homes were up 20 percent compared with a year earlier, before adjusting for seasonal variations. The median price creased to $170,700 from $170,000 a year ago.

The number of previously-owned homes on the market increased 1.5 percent to 3.58 million. At the current sales pace, it would take 8 months to sell those houses compared with 8.5 months at the end of the prior month.

First-Time Buyers

The share of homes sold to first-time buyers increased to 44 percent, from 42 percent in February and 40 percent in January, Lawrence Yun, the Realtors groups chief economist said, showing the influence of the tax incentive.

The tax credit has done its job, Yun said at a press conference. It's brought more buyers into the market and has helped stabilize prices, he said.

Today's report showed sales of existing single-family homes increased 7.3 percent to an annual rate of 4.68 million. Sales of multifamily properties, including condominiums and townhouses, rose 3.1 percent to a 670,000 pace.

Purchases climbed in all four regions of the country. Demand increased 7.2 percent in the Midwest, 7.1 percent in the South, 6.6 percent in the West and 6 percent in the Northeast.

The Commerce Department may report tomorrow that new home sales, which are recorded at the time contracts are signed, rose last month after falling to a record low in February.

Reports last week showed builder confidence climbed in April and housing stars in March reached the highest level in more than a year, while building permits increased to the highest point since October 2008.

Tax Credit

The Obama administration extended a tax credit for first- time homebuyers in November and expanded it to include some current owners. The deadline for signing contracts is the end of this month, and the transactions must be completed by June 30.

Sales of existing houses, which account for 90 percent of the housing market, are tabulated at contract closings, meaning demand may remain elevated through June. Purchases of new houses, due from the Commerce Department tomorrow, reflect signings, indicating the credits maximum influence will be evident in the March and April data.

Foreclosures may also dictate the direction of the housing market after the tax incentive is over. Filings rose 16 percent in the first quarter from a year earlier and bank seizures reached a record, according to Irvine, California-based RealtyTrac Inc.

More Affordable

While hurting household finances by driving property values, foreclosures are also making the market affordable to more buyers. At the same time, they create increased competition for builders, hurting profits.

Some builders are finding ways to protect earnings. Lennar Corp., the third-biggest U.S. homebuilder by revenue, last month said its quarterly loss narrowed after it cut administrative costs and trimmed incentives to buyers. The Miami-based company also is investing in failed bank loans and distressed real- estate assets to boost revenue.

Lennar also benefited from selling in communities with less competition from foreclosures, Chief Executive Officer Stuart Miller said March 24.

--With assistance from Oshrat Carmiel in New York. Editor: Carlos Torres

To contact the reporter on this story: Courtney Schlisserman in Washington at +1-202-624-1943 or cschlissermabloomberg.net

Always feel free to call me if you have any questions or would like additional information on your home or neighborhood.

Have a wonderful day,

John Kepple

480-626-7465

Valuing a home today in metropolitan Phoenix is difficult for many homeowners.
Foreclosures and short sales weigh heavily on comparable sales figures, the “comps,” in every neighborhood. How those below market sale prices affect a home's value varies by neighborhood.
To help readers develop their own real-time estimates of a home's value, I asked a group of area real estate and lending experts for their advice. The worksheet they helped me develop will appear later this week with a story on home market psychology. The experts acknowledge that a specific home's market value can be hard to pin down. But with an eye on the latest sales and some other calculations to consider, here is what they said:
Holly Eslinger, president of the Arizona Association of Realtors,ƒ¤ advises homeowners to consider current active listings and comps in their neighborhood. Real estate agents have access to Arizona Regional Multiple Listing Service data that tracks both. “Active listings with days on the market will show homeowners what they are competing against,” she said. “The closed sales information will show homeowners how long properties stay on the market and who is selling.”
Mike Orr, publisher of the Cromford Report that tracks ARMLS data, says to use a number of methods including the Assessor website, obtaining a Competitive Market Analysis from an agent and paying for an appraisal to obtain the best overall estimate of a home' value. “The reason people think its difficult (to value a Phoenix home) is because they usually have a hard time accepting the answer they get,” said Orr. “It makes them nauseous.”
Tom Ruff of the Information Market says, on average, homes are currently selling at 80 percent of the Maricopa County Assessor's 2009 Full Cash Valueƒ¤ for them.
 Jay Luber of Phoenix-based Galaxy Lending says websites like Zillow can be used to see trends in values but shouldn't be relied on for a real value of a home. “Appraising has never been an exact science,” he said. “and on any given day depending on the comps used, the outcome can vary,” he said.
Valley appraiser Drue Bates advises homeowners to physically check out the comps in their neighborhood, particularly foreclosure homes. “Some houses may look okay from the street but are trashed on the inside,” he said. “Don't be afraid to call the real estate agent selling the home. They know the story.”
Margie O'Campo de Castillo of Arizona Dream Realty tells people to be wary of some listings because people are “playing games” such as low-balling the price to draw multiple offers and make the winning bidder accept their terms.
Phoenix mortgage broker Amy Swaney says what people perceive a home to be worth may not be what a lender will make a loan for now because of changes in the market.

Call me if you have any questions or would like my team of experts to do a market analysis of your home. There is no obligation, just informative information for your personal use. 480-768-9333 John Kepple with The Kepple Group.