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.

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!

OK, folks. You’ve seen my critique recently of the Arizona Republic’s negative Nancy routine around real estate. Only recently have they admitted that the sky is not about to collapse on us like a giant chalupa.

So, the Biz Journal is starting to change its tune, too. A recent Phoenix Business Journal blog discussed the idea that the Phoenix real estate market is starting to stage a comeback.

But unlike a late inning rally, this comeback will take years before things return to normal with some experts saying 2013 or even 2014. So says Michael Orr of my favorite real estate stats table, The Cromford Report.

So what does this mean for you? Well, if you have the money, this is the time to pounce on available real estate. Many experts agree that the worst is behind us in terms of low housing prices and that they can only increase.

Scott Golba, a local real estate manager tells us that “This is not the time to go out and buy one home. It’s time to buy two or three homes.”

You got that emphasis, right? Buy two or more!

This will be a two-fold benefit for investors, as so many people are unable to put down the necessary payment to buy a house and instead opt to rent. This is positive cash-flow into a buyer’s pocket that can easily pay for a majority, if not more, than the cost of the home over a period of time.

So, give me a call and I can answer all of your questions regarding the housing market in Phoenix. I can help you find the home of your dreams or the home that meets your investment plans. 602.456.9388

Hey, all.

You may recall that my clients Seth and Ben are selling their 1,274 sqft. home with the 3.6kW of solar panels and lots of energy saving goodies. See here.

Well, the price has just dropped! You will want to see this. Now at $139,000.

It is an amazing house. The solar panels mean that you pay about $50 per month (average) for APS power and about $50 per month for the lease on the solar panels.

Solar City, the company that leased the panels to them two years ago covers them with a warranty and will fix them if anything goes wrong for the life of the lease (now 13 years).

Please let me know if you’d like to see this house. 602-456-9388

It is perfect as a rental near ASU, too!

If you are new to this blog you may not know that I am a HUGE fan of my condo complex. This property was built in the 1950s, was an apartment building until 2004, when it “went condo”. It is a great example mid-century modern architecture and the units are big –especially for the price.

This 2br/1.75 bath, 1,106 sqft unit is going for $42,000. Less than the price of many cars these days!

So, it stands to reason that I get excited about the idea of helping owner-occupants purchase these incredible units. I don’t represent this seller, but I can help you grab this unit. Note: they go pretty quickly!

Give me a call at 602-456-9388.

If you want a little history, check out this blog post about the renovation of the house that also sits on the property.

Here are some more photos.

It costs upwards of $30,000 to put solar panels on your house.

Or, you can just buy a house with solar panels on it already and save gobs on your electric bill.

This 3br/2ba home, for sale at only $149,000 has 3.6 kW of solar panels on the roof. What does this mean? It means that the owners, Ben and Seth, pay less than $100 per month for electricity –even in the summer.

They have a lease for the panels from Solar City, which were installed in 2009. That means that about $50 per month goes to pay the lease and “much less than” $50 per month, according to Seth, goes to pay the connection fees that APS requires for back-up power. (You know, for the 5 days that its cloudy in AZ.) See the listing for more details.

So, as the cost of electricity goes up for everybody else at over 6% per year, yours will probably increase at somewhere closer to 2%.

It also means that they are constantly off-setting CO2 emissions, just by being there. Since being installed in May of 2009, these panels have generated 13,308.00 kWh, or $2,395 worth of electricity. Their system has offset 17,048 lbs of CO2, or the equivalent of 8.1 mature trees.

Better still, this is a really beautiful home in Tempe, close to freeway access and shopping.

Ben and Seth did a wonderful job on the property, with water-saving desert landscaping, energy efficient windows, sky lighting via energy efficient solar tubes, a new kitchen and tile throughout.

This house presents an interesting example of a trend in Arizona. Many homes now have had solar panels installed through up-front purchase or a lease programs. Many of these are on the market –but a large percentage are $1 million+ homes!

This solar home is well within reach for the average buyer. And that means that the buyer, benefits directly and financially from whatever the seller installed. In some cases, the buyer takes on the lease for the solar panels, so be certain to talk with your lender about that. In those cases, the lease costs are relatively low, as are the electric payments. In this case, the buyer is taking on a lease for about $50 per month, but the total cost of electricity is lower than the average home, even when you combine the APS payments and the solar panel lease.

By installing solar tubes in the kitchen and the bathrooms, they also cut down on the amount of electricity needed to heat and cool the home.

This property is worth a look. It is bright, neat, well presented, in a great neighborhood and, in a way, pays for itself with the sun’s energy!

Learn more by clicking the pictures, clicking here or calling me at 602-456-9388.

I’m helping a friend list this charming 1925 bungalow in the Coronado neighborhood. This porch is perfect for hanging out and enjoying the morning, reading the paper, iPad, Kindle, Nook, or whatever readin medium you prefer.

Click on the picture below to see the listing.

This is a 4 bedroom, 2 bath, 1,600 square foot brick home that is walking distance to restaurants all along 7th St. It is a quick hop on the freeways and a short bike ride to light rail. The kitchen is roomy and there is space to move around.

Call me at 602-456-9388 with questions.

Well, it’s been a long time in the making, but I’ve got a new website.

Now you can:

1) Find more information about Get Your PHX events.

2) More blog posts, news and analysis.

3) Log on and instantly to search the real estate market in the entire valley. There is sooooo much more power in this website!

4) Access pre-made searches for everything from historic homes to those super-cheap condos around town.

Let me elaborate on #3.

On my previous site you could see some searches, but only the criteria that I create for you. Click on “Search the Entire Valley” and you will be able to define your own searches!

I’m even opening up the blog to contributors who want to share thoughts ideas and experiences about how they “Get Their PHX”. So, have a look. Poke around.

Send me your thoughts!

Cheers,

Ken

Every so often some incredibly inexpensive properties come open at my condo complex here in CenPho.

See here for three of them. Two are 1br, 1ba and one is a totally renovated 2br, 1.75ba.

The reality of most condos is that you probably won’t be able to get financing for them. However, if you are in the market to pay cash, or can work out a private loan with a family member, the world is your oyster.

The $55,000 property would cost $260 to live in per month in HOA fees (which covers water, exterior maintenance and structural insurance).

Figure you borrowed money at 5% from a family member, and you can get a 2br/1.75ba, 1,100 square foot condo for about $560 per month. The 1br/1ba units would be as low as $343 per month under those conditions.

Oh, and by the way, I think that $55,000 price tag is too high. I would work to lower that.

My condo complex is shady, retro, built like a tank, with a groovy pool and a huge back yard where you can harvest pecans, dates or figs.

I’d really love to see some more owner-occupants here. Investors are great, but I would love to see us preserve the balance between investors and owner-occupants.

So, if you have any questions, please give me a call. I don’t represent these listings, but I can help you grab them before they are gone. 602-456-9388.