In times of economic depression there are still some bright spots out there for the Metro Phoenix Area.  At the annual SRP Economic Forecast, reports were showing that Arizona is in the top ten states for job creation on a per capita basis.   “Although the Arizona recover is tepid at best, every key indicator is expected to improve in 2012 as compared to 2011, including jobs, incomes, sales and even housing,” said Professor Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P Carey School of Business.

The state of Arizona lost approximately 324,000 jobs from 2007 to 2010. In 2011 only about 20% of these jobs have been restored, but Arizona did move from number 49 among states for job creation back in 2010 to the top ten growth state currently.

Twenty five percent of existing home sales were foreclosures,  another 29%  short sales, and 40% are being bought up by investors (meaning the owners won’t be living in the home.)  On the other side foreclosure rates and housing prices are appearing to becoming more stable.  Depending of a bunch of factors including population and job growth, we could see a full housing recovery in less than five years.

The apartment market is also doing well, as many people have had to switch to renting due to the weak economy and tighter mortgage guidelines, they may not have any other choice.  Vacant commercial spaces have also sparked more interest in companies moving to the Metro Phoenix area as an alternative to California’s pricey rates.

While the U.S. Economy remains troubled, there are opportunities for economic growth here in Arizona.  No one can predict the future but we can look at history repeating itself and stay positive that things will get better.

Site References

http://knowledge.wpcarey.asu.edu/article.cfm?aid=1114

http://www.bizjournals.com/phoenix/news/2011/09/08/srp-economic-forecast-paints-a.html

Looking to buy while the market is down?  Now is the time to buy.  Here in the Metro Phoenix Area prices are on the rise and the numbers of homes for sale are dropping dramatically from the last couple years.  As of January 2012, we are looking about 18,849 homes currently on the market.  While the number of homes is dropping, the number of buyers is staying steady.  There is estimated to be 30,000 – 35,000 home buyers looking at any given time, meaning there are not enough homes available for the number of buyers in the market.

In late 2007 early 2008 there were nearly 50,000 homes for sale on the market with a medium asking price of $267,000.  One year ago the medium asking price is $139,900 with about 32,000 homes on the market.  As of January 2012, the median asking price has increased to $177,200 and there are less then 19,000 homes on the market, you do the math.

What happens when there are more buyers than homes for sale?? 

Let’s look at an Example…

Let’s say there is a particular home for sale that is close to Arizona State University Campus that is in great condition and has 5 bedrooms and 2 baths and is priced reasonably for today’s market.  This would be a perfect home for an investor looking to rent out to college students as an income property.  In today’s market there will be more then one investor looking to buy this property.  This means there will be multiple people putting offers on the home.  When there are multiple offers a multiple offer situation will be created.   When there is a multiple offer situation, your realtor will come back to you and ask for your highest and best offer creating a bidding war with the other investors putting offers on the property.  If these investors really want the property they will raise their offer to win the bid.

What is the Result…?

This is raising the prices of homes all over the Valley.  If the inventory stays low and the number of people looking for homes stays higher, this will keep pushing home values back up as demand rises.

Why Buy Now?

No one can predict the market, but as trends are showing you will miss out on these historically low home prices.  Now is the time to find the perfect home for you, whether it be for an investment,  your first home or your starting a family and looking for something larger.

Are you ready to purchase a home? Whether you’re looking for Denver CO luxury condos or a modest starter home in the country, one thing you will have to determine is if you want to obtain your mortgage loan through a mortgage broker or through a bank loan. To help with making this decision, it is important to gain a better understanding of the pros and cons that both options have to offer.

Getting a Loan Through a Bank

When getting a mortgage loan through a bank, credit union or other lending institution, the entire loan will originate from one lending institution. While that institution may have several different types of loans to select from and many employees may be involved in the loan process, the entire loan is handled through just one institution.

Working with a Mortgage Broker

If you choose to obtain a loan through a mortgage broker, you will gain access to the mortgage loan options that are available through a variety of different lending institutions. This is because the mortgage broker does not work for any particular lender. Rather, the broker has forged relationships with dozens of institutions and he uses these relationships to find the best deal to suit your needs. When hiring a mortgage broker, you will have to pay a fee for his services. If the mortgage broker is able to find a better deal than you could find on your own or if the mortgage broker helps you save time, however, this cost may be worthwhile.

Mortgage Broker vs. Bank – Which is Better for You?

For those who do not have the time to compare a variety of different lender options or for those who are uncomfortable with understanding mortgage loans, hiring a mortgage broker a help to reduce stress and confusion. This is also true for those who have poor credit, as finding a loan through a lending institution may be difficult without the help of a broker. When meeting with a loan officer at a bank or other lending institution, you will find that there is no incentive for that person to approve your loan. In fact, if your credit is poor, the loan officer has no reason to take a risk in order to approve your loan. A good mortgage broker, on the other hand, can find a loan for just about anyone with any type of credit. After all, the broker’s income is dependent upon finding a lender on your behalf.

In short, if your credit is solid and if you are comfortable with exploring the mortgage loan options that are available to you, working directly with a lending institution is probably the way to go. If you have poor credit, if you are uncomfortable with comparing loan options or if you simply don’t have time to shop around, hiring a mortgage broker may be the way to go.

About The Author – Brian Kincade specializes in Colorado luxury condos, including Landmark Condominiums Greenwood Village, and is broker of The Home Cart team in Denver, CO.

Have you ever wondered why your house isn’t selling? There are lots of factors that lead to why your home may not be getting the right traction. 6 times out of 10, you’re not selling because your home isn’t priced correctly. A strong portion of the remaining 40% is curb appeal. Traditionally, curb appeal means that your house looks good when someone drives up to it. These days, you have two shots at curb appeal. Most people look online for their home. If you don’t capture them with a nice picture of your home (the online curb appeal), then you’ve lost your chance to wow them with your house.
I see lots of bad photos, but I could only laugh when I saw this one. The agent wants to sell your house so badly, that he didn’t have time to get out of his car to take a nice picture of your house. And then to top it off, he couldn’t even at least crop the photo to remove his car from the shot! It’s too bad it would be unethical to mail this photo to the home owner.

Hiring a real estate agent can feel like a daunting task. After all, a quick look in the phone book will likely show that there are many real estate agents in your area to select from. Fortunately, with the help of a few simple questions, you can easily and quickly narrow down your choices. Whether you’re looking at new homes in Tempe or Washington DC condominiums, here is a look at 10 questions you should be sure to ask potential agents at your first interview.

How Many Active Clients Do You Assist at One Time?

While you should certainly expect your real estate agent to have other clients, you don’t want to select someone who has overextended himself by taking on too many clients. After all, the more clients the agent has, the less time he has to spend on taking care of your needs.

What Type of Marketing Strategies Will You Use?

At the very minimum, each real estate agent you interview should have a well-defined marketing plan to explain to you. Ideally, you should hire an agent who will take full advantage of the vast array of technology that is available. By listening to each agent’s marketing plan, you will be better able to determine which one will be the most likely to help you get your home sold quickly.

How Will My Home Be Presented on the Internet?

With more than 80 percent of home buyers conducting online searches to help them find a home, you certainly want to hire a real estate agent who will fully tap into the power of the Internet.

How Often Do You Sell Homes for the List Price?

If you are selling your home, you want to choose a real estate agent with a high rate of selling homes at or near the list price.

How Successful are You with Negotiations?

Whether you are selling your home or buying a home, hiring a real estate agent with solid negotiation skills is essential. Either way, you want an agent who will help you get the best deal possible.

How Do You Manage Your Contracts?

Whether buying or selling a home, there will be a significant amount of paperwork involved in the process. Therefore, you want to hire a real estate agent who has a clear method in place for keeping all of the paperwork in proper order.

Are You a Full Time Real Estate Agent?

Believe it or not, many people “dabble” in real estate while still maintaining a full or part-time job somewhere else. Obviously, a person who does not devote full-time hours to real estate will not have the knowledge or experience necessary to handle your needs. Furthermore, getting in touch with your agent will be quite difficult if she has a day job where she’s not allowed to answer phone calls.

What Type of Services Do You Provide?

While some real estate agents focus only on selling or buying homes, others will assist with staging the home, with taking pictures or handling other tasks. Even if the agent doesn’t do these things herself, you should hire someone who has the connections necessary to get these other tasks accomplished.

What Types of Communication are Available?

Ideally, you want to select a real estate agent who has many different communication options available and who has extended office hours that allow you to get in touch when necessary.

Do You Have Any Vacations or Other Upcoming Absences Planned?

Asking the agent about upcoming vacations is a fair question. After all, you want to be sure he will beavailable over the next couple months in order to meet your needs. Or, if the agent will be going away for a few days, he should provide you with information about the agent who will be handling your contract while he is away.

About The Author – Kevin Koitz is a Washington DC native and specializes in Bethesda homes for sale.

It’s no surprise that Arizona is one of the leaders when it comes to foreclosures. We’ve always been behind California and Michigan, fighting with Nevada and Florida for the bronze medal in numbers. If they’re not beating up on real estate on the front page of the Arizona Republic, then they give it to us in the business section. Sometimes it feels like you can’t walk your dog 50 feet in your neighborhood without bumping into a bank owned sign.