I wrote last week about how the market inventory is shrinking, and that an increasing number of homes are short sales.

Ironically, the average days that a house sits on the market is actually going down dramatically this year. See the graph below.

That tells you that people are making offers faster and short selling banks are getting answers quicker than last year.

If you are thinking to short sell, now is the best time since the crash started.

I want to tell you how I work to get them closed. If you’ve been thinking to short sell, the following could save you some greenbacks.

Many agents work with large law firms that charge you a huge retainer to represent you to the bank short selling the property. In my experience, these firms are not necessarily any faster at getting them closed. In fact I represented buyers who waited 4 months for the firm’s negotiator to get an agreement letter from a bank, only to find that they lost the agreement letter for a month. The deal fell apart due to this.

I’m sure most attorneys are working hard. But I think some are taking on too many clients, or are promising too much.

Here is how I work.

First, if you are thinking to short sell, I refer you to the Law Offices of Roberta Voss (602-697-0730). She won’t represent you as a negotiator to the bank. But she will sit with you for a reasonable fee and make certain you understand the short sale process from the legal perspective. (Whatever you do, don’t skip that talk with an attorney.)

Second, I work directly with either Old Republic Title or Chicago Title, both of whom have dedicated short sale teams that communicate with the bank directly. Why is this such a big deal? Well, because, first, they charge you nothing, zilch, nada! Second, because they are on the phones with the banks all the time, they can get heard above the din.

Third, I use social networks, text networks, QR codes and mobile websites to make certain everybody sees your home.

There is a lot to think about with short sales. If you are thinking to take this step, please give me a call first at 602-456-9388.

What is Condo Chaos you ask? Condo Chaos is only the most exciting thing to happen to Phoenix since the last exciting thing! Come check it out and get an amazingly low price on the condo of your dreams this weekend only! Condo Chaos, CONDO CHAOS, CONDO CHAOS!!!

(Turn off used car salesman speech here.)

OK, that’s better.

I just want to keep you informed about the incredibly low prices of condos in the Central Phoenix and surrounding areas. We already know the housing market isn’t the greatest, but that just means it’s a buyer’s market and you have the opportunity to snag some amazingly awesome prices!

I just want to make sure you know that if there ever were a time to buy, this is it. In fact, since the condo market is the weakest sector of the housing market, the price of condos is lower than low. But just how low is the price of a condo though…

Well, according to the latest data (see below), there are currently 2,156 condo listings across Maricopa county with an average list price of $167,890.  (Remember, this is an average of
the entire county so it includes those multi-million
dollar condos in the Scottsdale and Biltmore area.)

Now you want to know something that will knock your socks off? The average closing price of CenPho condos last year were almost half the price at $84,341! How amazing is this price? All the amenities of a great condo – location, style, and feel – for an incredibly low price.

Living in the Central Phoenix area has never been more affordable. Not only do you get a smokin’ deal, you get to live in an amazing place full of life and excitement.

If you would like help finding the perfect condo, I am here for you! I will make sure you get the best condo during the Condo Chaos madness!

(I think that was the largest number of exclamation points I’ve ever put in a blog post. I need to rest. I think I’m getting the vapors.)

(Click the images below for larger view)

County-wide 2010

County-wide 2011

Central Phoenix 2010

Central Phoenix 2011

So when you are looking to buy a home, how much do you think you need for a down payment? 5%? 10%? What about 20%?

I get people saying to me all the time, “I can’t buy because I don’t have 20% down.” But its not true!

I want to find the news reporters who keep this myth alive, dress them in Lady Gaga’s meat dress and introduce them to a pack of coyotes.

The reality is that with a high enough credit score, you could qualify for a loan where you only need to pay 3% down!

How amazing is that? A new home with only 3% down!

But what about all this talk of 20% down to qualify?

It’s all nonsense. Period. End of story. Jeannie Bolger, Senior Loan Officer with Nova Home Loans, believes the 20% down payment myth stems from misinformation and everyone wanting to give advice without actually doing the research.

(By the way. I love Jeannie. She is great. She gets people qualified and works hard throughout the process.)

So how can you qualify for the 3% loan? To begin, the loan is backed by FannieMae/Freddie Mac (aka, the guv’mt). According to Bolger, to qualify you need at least a 680 credit score. Keep in mind this is only a minimum and is not a guarantee.

Having a lower credit score doesn’t hinder you, in fact, if you have a credit score of 640 you could qualify for a loan with paying 3.5% down!

Don’t get me wrong, paying more as a down payment is great if you can afford it because it can save you money on interest rates. Plus, paying 20% down allows the home buyer to waive the mortgage insurance premiums.

This is an amazing opportunity for people to take advantage of and should not be passed up. With interest rates near (or under) 5% and homes at their rock-bottom prices, now is the best time in over 40 years to buy a home.

So snap up those short sales or foreclosures with an incredibly low down payment and give me a call today to help you find the perfect home!

Short sales. Foreclosures. The media will tell you how bad it is.

I’ll tell you, this is a market of opportunity.

But if you are going to take advantage of this opportunity, you need to understand the pros and cons of short sales.

Why? Because short sales are becoming an increasing proportion of the market.

Why? Because the market is turning around.

Sound counter intuitive? It is, I agree.

The number of short sales has increased as a portion of the entire market because the number of foreclosed properties is shrinking.

With the number of foreclosures drastically shrinking in the Phoenix real estate market and the rapid increase of short sales, those looking to buy will be forced to wait unless they decide TODAY to buy (not literally today, but in the near, and I mean very near, future).

Check out the graphs, below. In the first one you can see those two pies. Notice that the one of the left represents active listings. See the light blue area? Those are “pre-foreclosures” or “short sales.” The red area is lender owned property and the dark blue represents normal sales.

So, look at the right hand pie. These are monthly sales –those that actually close. The red area is much larger because the foreclosed properties actually close.

With the increased number of short sales on the market, a homebuyer waits an average of 3-6 months before closing the deal, and only 40% of transactions actually close.

So, what is the trade off? Not much, really. You can see the bar graph below the pies showing that prices for foreclosed homes are lower than short sales. Problem: there are fewer of them to look at.

Am I saying not to even look at short sales? Nope. Just know what the risks are. If you need to close in a hurry, don’t look at short sales. If you have a longer time horizon, then this can be a great way to find some incredible deals.

Check out the graph further below to see how the number of short sales versus foreclosed properties has changed over the course of the year.

Then give me a call and let’s talk about how I can help you.

The Phoenix Business Journal recently praised Phoenix for boasting “one of the nation’s top clean economies” in the nation. It seems they would be better off praising Warren Buffet for getting a part time job at McDonalds.

What I mean is why is Phoenix only ranked 20^th? This beautiful city is ranked behind other cities such as New York, Chicago, Washington, and Philadelphia. And the last I checked we are one of the sunniest cities in the nation.

Want to know something even more pitiful? Phoenix added only 4,000 jobs between 2003 and 2009, ranking it 34^th in the nation.

34^TH!?!

I realize I shouldn’t be so negative since Phoenix does boast almost 23,000 jobs in the clean job sector.  Any job is a good job, right?

But I still can’t get over the fact that this is a far cry from what it should be given our prime location for clean renewable energy. In fact, the Phoenix area has the potential to power the entire state with solar energy. Not only that, but clean renewable energy brings high-paying jobs and can help stabilize our local economy and the Phoenix real estate market! This is a no-brainer and we need to take advantage of our amazing location.

Granted there have been large energy companies taking root in the Phoenix area, First Solar Inc. and Suntech Power Holdings, but it seems to be the economy that is holding other companies back.

I have a friend at a large employee placement firm who is telling me that they are placing many new employees in Arizona as renewable energy jobs are created. But, he says, we could be moving so much faster if we can just get over the economic hurdle.

“When the capital markets get going, you’re going to see the market really take off,” said Steve Zylstra, president and CEO of the Arizona Technology Council.

Until then, write your legislator and tell them we want solar jobs today!

If you build it (out), they will come.

There were two really interesting historical perspective articles this week from the Arizona Republic. One article is about how our spread outward was driven by a constant “boosterism” by all who came here. The other article is about what early city leaders hoped for our city.

There was always a tension between building up and building out. It seems that building out won, for now.

The desire to live miles from the city in suburban living can take a toll on residents, I mean come on, there is only so much drive-time radio you can stand during your daily 2 hours in traffic to get to your job.

Instead, residents and home buyers are rediscovering the city and want to move to where historic meets modern (that’s central Phoenix for those who haven’t caught on).

With so many historic homes in the central Phoenix area at such great prices, buyers are scooping up amazing deals in incredible neighborhoods that are full of life and history. In other words, Phoenicians are looking for new life in an old home.

Data indicates that the CenPho zip codes have dropped less in home value and are returning to normal more quickly than other parts of the valley.

Since the population of the Valley of the Sun has increased at a mind-boggling pace (24% since 2000), the only way to keep up was with tract housing that had less character, and we all know how important character is in a home.

But what central Phoenix is experiencing is exciting – new restaurants and nightlife hot spots are popping up. Residents are taking notice and it is only a matter of time before central Phoenix becomes the place to be!

Ever heard of John Henry Peirce, or just John Peirce?

Ever been in the FQ Story historic neighborhood and noticed the patinad copper chimney caps or window dressings that appear on houses now and again?

These are works designed specifically for the homes in this neighborhood, inspired by Spanish artist Antoni Gaudí.

The artist, you’ve probably never heard of. But he represents one of the many reasons that I love CenPho: whether you love Gaudi-influenced art, or not. You won’t find this anywhere else in Phoenix, maybe all of Arizona.

The window frame under the gable is a Peirce.

I don’t particularly go out of my way for Gaudi works. Although I’m a fan of Brian Froud‘s work with Jim Henson, whom I think borrows a little from Gaudí.

Regardless of my taste, these pieces are an incredibly unique contribution to downtown Phoenix. We have John Peirce and his son Clifton Peirce to thank for it.

Clifton was actually the one formally schooled in the arts. But after returning from Spain in the 1980s and retelling of his visit to Gaudí’s master works, his father was hooked. Together they returned to Barcelona 5 times over the next decade. According to Clifton, “My father had every book there ever was on Gaudí.

Peirce, the senior became an artist at the age of 56 and kept it up until his death in 2011.

Casa Batlló

But together, they tried to bring a little Gaudí home with them. They went in to the business of making tiles that fit together in to elaborate Gaudí-esque ceilings. Gaudí put these ceilings together, like this one at the Casa Batlló, using woven straw and plaster.

The Peirce version, as seen in the photo below, is done with more modern materials, but is basically the same principle.

You can probably guess that these were a product that appealed to a very, very niche market. So, the business sputtered.

Calming ceiling waves in the living room.

What came next was what you can see now on the houses of neighbors, and especially on the Peirce residence.

See below for a whole stream of pictures from my visit to the home today. I was saddened to learn that the family is having an estate sale tomorrow, Saturday and Sunday from 6am to 2pm at 914 West Willetta. The future of the home is unknown, but I certainly hope that we can find a way to preserve this little treasure, which I am guessing few would appreciate until long after the owners are gone.

John Peirce left us a message through his art; a little whisper that you can hear only in FQ Story, if you stop to listen. He and Clifton respected what was unique about this historic neighborhood and added to it in a subtle and unique way.

For that, I thank Mr. Peirce and Mr. Peirce.

I can only hope that 60 years from now historic property buffs will say that FQ Story is known for its John Henry Peirce influence.

The underside of the artists outdoor work space.

More of the outdoor work space.

Mr. Peirce made a special urn for his wife, who passed years ago.

A piece between the Peirce home and the neighbor’s house.

Tea lights or tree lights?

Who DOESN’T want a dragon on the front of their house!

Following on the heals of yesterday’s post about the market, I want to point to this article in the Republic in which it is pointed out that:

1) the Case-Shiller index (which I often decry as being inaccurate for our market) often lags local data and overstates market declines, and

2) Chicago has surpassed Phoenix as a foreclosure market. So, as we’ve been saying, the number of foreclosures is going down quickly here.

But here is the money quote: “Careful calculations show the once-scary shadow inventory in Phoenix is no longer as large as many thought, and what remains can effectively be cleared out in about a year.”

What does this mean? It means that your ability to buy an uber-cheap home is slipping away. Call me for more information: 602-456-9388.