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Phoenix Homes for Sale and Phoenix Foreclosures; photos, MLS searches, and Information.
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December 2009 Housing - Phoenix Foreclosures
Here is another in a series of reports for Phoenix Foreclosures. Results for December 2009 indicated an increase in the number of homes that sold for under $100,000. December 2009 is the first month in which there was any significant increase in this statistical category.
Looking at the total number of homes that sold for under $100,000 is one way to look at Metro Phoenix Foreclosure sales. Market information is revealed in the following chart and is read in this manner: "There were 7,670 homes sold in metropolitan Phoenix during the month of December 2009. 2,811 (or 36.6%) of all these sales were under $100,000. 2,249 of those homes (80% of the total) were Metro Phoenix foreclosure sales."I define Phoenix foreclosures as both bank owned homes and short sales.
As indicated by the color yellow, this number had been on a decline since a peak of 3,866 homes in May 2009. At that time 90% of all homes that sold for under $100,000 were foreclosure-type sales in the Phoenix area(indicated in orange).
A primary reason for the June through November decline has been the gradual increase of home prices in the Phoenix area. Our Phoenix market tracker has indicated the increase began in April 2009 when the average price in the entire metropolitan area was approximately $84.00 per square foot. Price per square foot in December 2009 was approximately $91.00.
Phoenix Real Estate and Homes for Sale
Phoenix housing market
DMOZ Directory
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FHA Guidelines change - 1 year waiver of Flipping Rule An announcement from HUD on waiving the FHA guidelines for flipping:
"In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy change in FHA guidelines that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure."
The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:
- All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction
- In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
- The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
Download the HUD and FHA guidelines for Flipping Waiver
Investing in real estate, Phoenix, Scottsdale, Tempe
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Down Payment on House Gift |Tax Free Way from IRA
Looking for a way to get a down payment gift from a relative? Did you know your parents could take money from their IRA to give you a down payment gift -- and not face any tax penalties?
Many people are buying Phoenix foreclosures for owner occupied homes and using FHA financing because it allows the least amount of money down from the buyer. One of the nicest features about using FHA financing is that it allows gift funds to be given from a relative to the buyer.
So let’s say that you were buying a 100,000 home and you needed the required 3.5% or $3,500 dollars of down payment to qualify -- but you only have $1,000 in your bank account. A relative (and in some cases a non relative) can gift you the money with a statement stating that no repayment is required (called a gift letter) along with some other simple documentation. Then the gift funds can be counted as YOUR funds.
This might save you up to several months/years of saving money to make it to the $3,500 down-payment mark.
One thing many people don’t know is that the IRS allows a parent to pull money out of their IRA “WITHOUT” penalty or taxation in order to gift those funds to a family member’s home. Most people know you can take money out of your IRA for your own home. But many do not know that you can take money out of your account for the use of a parent's, child’s or grandchild’s home -- even if you will not live in that home!
See how nice the government is to NOT tax you on something.
See the IRS publication attached and see for yourself.
Click here Down Payment on House Gift |Tax Free Way from IRA
Phoenix real estate
Phoenix homes for sale
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Active Phoenix foreclosures exceeded 41% of all homes for sale to begin January 2010. This information is seen in the orange color on the first chart. I've defined Phoenix foreclosures as both bank owned property and real estate short sales, though;short sales are typically considered to be "pre-foreclosure." This is the first time since April 2009 the percentage has exceeded 40%, as the months of May through December 2009 averaged 38%.
The primary reason for the higher percentage is the increase in bank owned properties, as indicated in blue on the second chart. 5,380 bank owned Phoenix foreclosures mark the highest level since May 2009. Is this the beginning of more bank owned properties on the market? It does appear so, as the second chart indicates a four month increase. 2010 marks the year that many of the 5/1 adjustable rate mortgages will have rate increases and many interest only loans will revert to principle and interest loans. Expect Phoenix foreclosures to increase during 2010, but the effect will not be as devastating as was felt in 2007 and 2008 with the 3/1 ARMS. Having said that, the state of the economy in 2010 will probably have a greater effect than adjustable rate mortgages if unemployment continues on its current course.
Another statistic not shown by these charts is the number of days listings are currently on the market. The normal listings (not Phoenix foreclosures) on the market have been there for an average of 183 days. Phoenix foreclosures have been on the market for average of 106 days. The latter number would be smaller if not for the extended sale time of short sales.
The second chart indicates 5,380 bank owned properties (38.9% of all Phoenix foreclosures in red) and 8,445 short sales (61.1% of all Phoenix foreclosures in green). Watch for further increases in 2010 for both categories of Phoenix foreclosures.
Arizona Mortgage Lender
2 week Mortgage Close
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Phoenix real estate listings - 7 months of stability - January 2010
The number of listings on the Phoenix real estate market has remained relatively stable over the last 7months. The chart indicates 33,278 active listings on the Phoenix real estate market to begin January 2010, just 319 less than during the beginning of December 2009.
Active listings reached their peak near the middle / end of 2008. The decline began in early 2009, reaching a low point in September with 30,995 active listings on the Phoenix real estate market. The period of relative stability began in July, and the 7 month average since July has equaled approximately 32,000 active listings.
The decrease in listings was due primarily to 2 factors: the moratorium on foreclosures and the number of "normal" sellers that canceled their listings or chose not to put their home on the market.
Here is a snapshot of active listings in some of the more popular cities around the Phoenix real estate market.
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| City |
Active Listings |
% of Total |
| Phoenix |
5,485 |
16.5 |
| Scottsdale |
2,473 |
7.4 |
| Mesa |
2,275 |
6.8 |
| Gilbert |
1,323 |
4.0 |
| Chandler |
1,149 |
3.5 |
| Glendale |
1,046 |
3.1 |
| Queen Creek |
733 |
2.2 |
| Maricopa |
585 |
1.8 |
| Tempe |
571 |
1.7 |
| Ahwatukee |
427 |
1.3 |
These 10 cities are some of the more popular and well known within the Phoenix real estate market.
Tempe, Scottsdale, Mesa, Glendale, Chandler, Gilbert
Phoenix real estate housing market, tracker
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The Phoenix foreclosures "sales %" dropped to a 12 month low in November 2009. 60.2% of all residential sales were foreclosure type sales. Phoenix foreclosures are defined as bank owned (REO, or real estate owned) properties and short sales.
That chart indicates that 7,586 residential properties were sold in the Phoenix real estate market in November 2009. 3,018 (or 39.8%) were normal sales while 4,568 (60.2%) were Phoenix foreclosures. The last time the percentage was near 60% was last December 2008. The peak in the sale of Phoenix foreclosures was 75.9% in March 2009. They have continued on a slow and consistent decline since that time.
Although the actual number of sales for Phoenix foreclosures follows the same basic trend as the %, the highest number of foreclosure sales was in May 2009. The number of foreclosure sales has decreased for two primary reasons: 1.) there are less foreclosures for sale and 2.) the price gap between normal sales and Phoenix foreclosures has shrunk, making normal sales more attractive than they have been in a long time.
Here's a look at how several cities in the Phoenix real estate market compared to the 60.2% average for all Phoenix foreclosures :
- Maricopa - 69.8%
- Glendale - 64.4%
- Phoenix - 63.6%
- Nov 09 - 60.2%
- Mesa - 59.7%
- Queen Creek - 57.8%
- Gilbert - 52.7%
- Chandler - 52.2%
- Scottsdale - 47.9%
- Tempe - 41.1%
- Ahwatukee - 39.5%
More Phoenix Foreclosures
Selling Your Home
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Phoenix real estate market closes 7,586 sales in November 2009
 The 7,586 residential sales recorded in November 2009 are 559 sales less than those recorded in October 2009. This reduction in sales is considered both normal and cyclical in the Phoenix real estate market. Sales peaked in June 2009 when 9,358 home sales were recorded.
The chart indicates a steady increase in home sales beginning in February and lasting until the peak in June. The steady decrease began in July and continues to date. Although not indicated on the chart, the year over year (YOY) sales in the Phoenix real estate market have now increased for two consecutive years. Sales in October 2007 were 3, 421 and sales in October 2008 were 5,267.
The Town of Maricopa was the only municipality in the Phoenix real estate market that was contrary to the decline in home sales. The Town of Maricopa experienced a slight increase in sales from 224 home sales in October to 235 homes sales and November 2009, a 5% increase.
Around the Phoenix real estate market, Scottsdale was the only other city with home sales consistent with October 2009. Scottsdale experienced a decrease of just under 2%.
I've been on other projects and slow to update these reports. Merry Christmas to all!
More about the Phoenix real estate market
Arizona Relocation
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Residential listings increased for the third consecutive month in the Phoenix Real Estate Market to begin December 2009. That translates into more homes for sale.
The increase in homes for sale began in October 1st, 2009 and has continued for the last three months (in pink). The 3-month total increase in the number of homes for sale is 1,482 -- or 4.8% from October 1, 2009 -- from when the Phoenix real estate market was at two-year low in the number of residential homes for sale.
 The demand for homes in the Phoenix real estate market has been particularly strong in 2009. The demand is due in part to the low prices of foreclosure homes for sale, low interest rates, and the home buyer tax credit. According to CromfordReport.com (who does extensive reporting on the Phoenix real estate market and homes for sale):
The big news in our pending home sales situation is the dramatic contrast with the national picture. The NAR today released the news that pending listings for home sales were 19.8% higher than a year ago. For Greater Phoenix real estate the equivalent increase is currently 102%. In fact a few days ago on October 30 we set an all time record of 107%. Demand is clearly at an exceptional level for real estate.
The increase in the number of homes for sale is a normal seasonal pattern in the Phoenix real estate market and does not indicate a significant change. If normal annual trends continue, the active listing count will peak in November and then decline toward the end of the year. I will post about November real estate sales in the next few days.
Phoenix real estate
Phoenix housing market
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 2009 is in position to be the 3rd best year in last decade for Phoenix homes for sale. The housing market forecast in the Phoenix area is looking very promising going into 2010. As of November 12, over 79,500 residential home sales have been completed in the metropolitan Phoenix area. Homes sales should easily reach 90,000 by the end of December. The only years that were better were the boom years of 2004 and 2005.
Housing sales in 2007 and 2008 averaged 56,754 residential homes. 2009 home sales will be an estimated 58% higher than in the two previous years. We can clearly signal the end of the buyer's market in the Phoenix area.
There were plenty of doomsayers to begin this year. The Phoenix housing market forecast was uncertain and many home buyers debated what to do. Continuing lower prices and the first-time home buyers tax credit helped people to a decision. It was also very helpful that mortgage interest rates stayed very low.
Search Phoenix area homes for sale
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Phoenix Area Home Sales Increase Slightly in October 2009
The increase was slight, but October 2009 home sales in Phoenix surpassed those of September by about 200 sales. These numbers continue to be evidence of confidence from buyers looking for homes in the Phoenix area. 
The confidence can be attributed lower housing prices and the first-time home buyers credit. It also helps that the number of active listings in Phoenix has remained stable thereby keeping the balance between a "buyers" and "sellers" market in check.
This is great news for the housing market in Phoenix. Increased sales always stimulates the overall economy. People who have "gotten off the fence" and contributed to Phoenix home sales are making this the 3rd best sales year in the last decade.
As seen in the charts, 8,145 homes sold in October of 2009. Only four months had higher sales in the Phoenix area. It is also important to note that in the previous two years home sales were already tapering off by October. However, Phoenix area sales over the last three months have been stable.
if you are comfortable with housing prices, president Obama's policies, and interest rates -- this may be your time to consider homes for sale in the Phoenix area.
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The $8000 / $6500 Home Buyer Tax Credit is alive and well. As anticipated, President Obama signed the $8,000 first-time home buyer tax credit extension into law on Friday. You can now collect the credit if your home purchase is under contract by April 30, 2010 and is complete by June 30, 2010. The good news for current owners: The extension also offers a tax credit for people who are purchasing a new residence, but aren't first-time homeowners.
Tax Credit is Refundable
A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.
For example:
- A first-time home buyer who qualifies for the full $8,000 credit who owes $4,000 in federal income taxes would pay nothing to the IRS and receive a $4,000 payment from the government
- A first-time home buyer who was to receive a $3,000 refund would receive $11,000 ($3,000 plus the $8,000 first-time homebuyer tax credit)
- A repeat buyer who owes $4,000 would pay nothing to the IRS and receive $2,500 back from the government
- A repeat buyer who was due to get a $2,000 refund would get $8,500 ($2,000 plus the $6,500 repeat buyer tax credit)
All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return.
Payback Provisions
The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.
Summary Details of TAX CREDIT:
- Under contract by April 30, 2010
- Close escrow by June 30, 2010
- $8,000 for 1st time buyers
- $6,500 for current homeowners who have lived in their house 5 of the past 8 years
- $125,000 individual income limit
- $225,000 joint income limit
History of the $8,000 tax credit
Detailed Tax Credit Explanation
IRS Rules about the $8,000
Calculating the Tax Credit
Put the $8,000 tax credit on line 69 of this form
Frequently asked questions about the home buyers tax credit
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Selecting the Best Arizona Mortgage Company
How to do it right:
Use these questions to determine the expertise of Arizona Mortgage Lenders. The largest financial transaction of your life is too important to risk with someone or a company who is not capable of advising you properly on the best options for your specific mortgage loan situation. But how can you tell?
Here are four simple questions your Arizona Mortgage Company absolutely must be able to answer correctly. If they do not know the answers, run -- don't walk -- to a lender who does.
- What are interest rates based on?
The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. The 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds. It can also move in completely opposite directions. DO NOT work with Arizona lenders who have their eyes on the wrong indicators.
- What is the next Economic Report or event that could cause interest rate movement?
Professional lenders will have this information at their fingertips. Ask about a current calendar of weekly economic reports and events that may cause rates to fluctuate.
- When Bernacke (formerly Greenspan) and the Fed “change rates”, what does this mean...
...and what impact does this have on home loan interest rates? The answer may surprise you. When the Fed makes a move, they are changing a rate called the “Fed Funds Rate”. This is a very short-term rate that impacts credit cards, credit lines, auto loans and the like. Interest rates most often will actually move in the opposite direction as the Fed change, due to the dynamics within the financial markets. For more information and an explanation on how this affects your lending situation, just give us a call.
- What is happening in the market today and what do you see in the near future?
If a lender cannot explain how Mortgage Bonds and interest rates are moving at the present time, as well as
what is coming up in the near future, you are likely NOT talking to a professional lender or lending company. Be smart... ask questions… get answers!
This is one of the largest and most important financial transactions you will ever make. You may take this voyage only two - five times your entire life. Professional mortgage lenders cruise these waters every single day. It’s your home and your future in Arizona. Place them in the hands of a professional loan officer and Arizona Mortgage Company.
Thanks to my good friend and trusted lender, Craig Bohall, for helping to put these words onto virtual paper.
Understanding the Mortgage Loan Process
Help with Phoenix Homes for Sale and the Mortgage Lending Processs
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Phoenix Foreclosures Snapshot - November 2009
Phoenix foreclosures comprise 30.8% of all real estate listings in the metropolitan area. Foreclosure listings are comprised of REO property (bank owned) and short sales. REO property used to be the majority of active listings in the foreclosure arena. However, bank owned properties have been on a decline for most of 2009. They are being replaced by short sales because more distressed homeowners are seeing short sales as a better alternative to foreclosure.
 The chart indicates 12,539 foreclosure listings in the Phoenix real estate market to begin November 2009. Since there are 32,351 total listings in the Phoenix market (seen in my last post), foreclosure listings make up almost 39% of all listings in the area. Of that 39%, 35.2% (4,417) are REO listings and 64.8% (8,122) are short sales. There are several reasons for the decline in REO property listings over the last year:
- the federally mandated foreclosure moratorium
- banks for selling more properties in bulk to large-scale investors
- banks are taking chunks of foreclosure properties and turning them into rentals
- more properties are being sold at public-type auctions
Homeowners are increasingly seeing short sales as a viable alternative to foreclosure. Although the short sale process can take between three and five months to complete, buyers in the Phoenix area real estate market are paying much more attention to short sales. The percentage of completed short sale transactions continues to grow each month in the Phoenix area.
Days on Market for Phoenix Foreclosures
 Foreclosure listings have been on the market for an average of 80 days less than their counterparts -- "normal" listings -- during 2009. The second chart indicates that current foreclosure-type listings have been on the market for 105 days, while normal listings have been on the market for 182 days. The obvious reason is the difference in price between two categories of listings. REO property and short sales are always priced much lower than normal sales making them much more attractive to home buyers.
It can also be seen by the chart that overall days on the market has been steadily trending downwards for Phoenix area foreclosures. However, if we were to isolate REO properties we would find that the average sold home would be on the market for less than 60 days. The longer selling cycle for short sales is what keeps the foreclosure "days on the market" higher.
Short sale your home
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Homes for sale in Phoenix increase slightly to begin November 2009MLS listings in the Phoenix area were up slightly for the second consecutive month to begin November 2009 (highlighted in orange). This is a contrast to the previous nine months when active homes on the market dropped a whopping 23,500 properties from 54,538 in December 2008 to 30,995 in September 2009 (highlighted in yellow). There are currently 32,351 active residential listings in the Phoenix area real estate market. This includes both "normal" and foreclosure homes for sale. 
This slight increase in homes for sale will do little to impact the demand in our current real estate market, especially for foreclosures. The Phoenix real estate market has averaged about 8,700 home sales in the six-month period from April through September 2009. Phoenix home sales for October are expected to be right around 8,300 properties. Much of this demand in Phoenix is due to affordable home pricing and the $8,000 tax credit. The $8,000 tax credit is currently set to expire at the end of this month, but the federal government is evaluating extending it into 2010.
Phoenix Area ForeclosuresThe number of Metro Phoenix foreclosures increased to begin November 2009. The total increase was about 550 homes. This includes both real estate short sales and REO property (bank owned homes). Look for the number of foreclosures to increase further as short sales continue to be increasingly popular and banks have inventory they have yet to release. The chart indicates approximately 38% of all active homes for sale over the last six months have consisted of foreclosure-properties (highlighted in blue).  My next post will look deeper into the foreclosure market and compare the number of short sales versus the number of bank owned properties currently for sale in the Phoenix real estate market.
Learn about the short sale process
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Welcome to another in a series of video tours brought to you by ValleyWideHomes.com and Metro Phoenix Homes LLC. Today's tour focuses on Maricopa Homes for Sale and brings us to the subdivision of Tortosa in the Town of Maricopa. Maricopa is approximately 30 miles south of Phoenix Sky Harbor Airport, but only 20 miles south of the Phoenix Township of Ahwatukee, Arizona.
Maricopa rapidly changed from a rich agricultural area to vibrant and exciting new city with master planned communities. On average, there were just under 700 active homes for sale in Maricopa during each month of 2009. Maricopa calls itself "a city with something for everyone and opportunities for all where a handshake is still honored, community involvement is welcomed, and a small town feel is ever present."
The subdivision of Tortosa is heralded by a dramatic entryway as well as several common areas with large and expansive views. Today we will be visiting a home for sale in the subdivision of Tortosa that first became available in November of 2009.
Built by Shea Homes in 2006, this home sits on an a corner lot that's just over one quarter acre. If you're interested in more information about this Maricopa home for sale -- contact information will be provided at the end of the video as well as in this blog. This house has 2,787 square feet with three bedrooms three full bathrooms a living room, family room, a three-way fireplace, dining room and a two-car garage. But there's MORE. Watch the video and learn about the three bonus rooms. Let's have a look at this Maricopa home for sale in Tortosa...
Learn about the Real Estate Short Sale Process
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