I’m hosting two great open houses this weekend and I’d love for you to come by or please share this post with your friends.

The days are cooling off ever so slightly and this is a great way to get an in-person feel for these two lovely homes.

1) 1821 East Rose Lane, Phoenix 85016. Saturday from from 1pm to 3pm.

There is a neighborhood hidden east of SR-51, walking distance to Granada Park, the Biltmore, with views of Piestewa Peak. I drive past these stately homes on the way to running the Arizona Canal in the morning. The way the streets are configured it is difficult to get back there unless you are meant to be there. As such, the homes are protected from harassing cut-through traffic and other distractions. This is a wonderful and sprawling 2,566 square foot home in the heart of this neighborhood, on Rose Lane. At $398,000, this home is priced aggressively for the neighborhood.

Check out the MLS listing here. Check out the map here.

2) 311 W Glenrosa Ave., Phoenix 85013. Sunday from 11am to 1pm.

This expertly updated ranch in CenPho is walking distance from Light Rail and convenient to all the CenPho attractions. You can walk to Lux, Pane Bianco, Copper Star and all the shopping on 7th. That’s heaven! You should see the upgrades: triple-pane Pella windows in the living room, a block addition to the master bedroom, with bath and a lush back yard. This 2br/2ba home is a great first home at only $155,000, its roomy and move-in ready.

Check out the MLS listing here. Check out the map here.

If you can’t make these times and you would like to get a private showing,  give me a call at 602-456-9388.

There is a neighborhood hidden east of SR-51, walking distance to Granada Park, the Biltmore, with views of Piestewa Peak. I drive past these stately homes on the way to running the Arizona Canal in the morning. The way the streets are configured it is difficult to get back there unless you are meant to be back there. As such, the homes are protected from harassing cut-through traffic and other property-damaging influences.

I’m honored to be listing a wonderful and sprawling 2,566 square foot home in the heart of this neighborhood, on Rose Lane. At $398,000, this home is priced aggressively for the neighborhood.

Have a look at the home and check out the MLS listing here. Then give me a call at 602-456-9388 if you would like to see the property in person.

I just like to share with you one of my sources of information regarding the market. This little video clip is from my broker, Jim Sexton, who is describing what is happening in the market. Despite talk of a “double dip” (of which I am skeptical), Jim points to a couple interesting points:

1) Foreclosure notices (banks telling people they are going to lose their house) are down 10% from August.

2) The number of active foreclosure notices is lower than its been since April of last year (about 39,000) county-wide.

3) About 71% of bank-owned properties are in MLS in one form or fashion. In other words, we may be on a path to start clearing the market.

Have a look at what Jim has to say and feel free to give me a call at 602-456-9388 if you have any questions.

I have been inundated over the last week with conflicting market news.

The Wall Street Journal saw the Case-Schiller Index and feared a possible double-dip. The best quote from that article tells the story of why people are waiting to buy: they are nervous from hearing bad news, feeding a self-fulfilling prophesy. “You’ve got a whole bunch of people who are sitting, waiting in the wings to get into house buying because they know it’s cheap, they know interest rates are low, they know it’s a highly subsidized investment,” said Wellesley College economist Karl Case, who developed the house-price index with Yale University economist Robert Shiller. “If they stay out because they’ve become a little bit more nervous, it can mean the whole market moves.”

But at the same time, AZ Central is reporting that people are doing a better job keeping up with their mortgage payments. Fewer people locally and nationally are behind at least 60 days on their mortgage payments. Certainly this is a precursor to a stabilizing in the market.

Then I turn around again and my broker, Jim Sexton is pointing to lower prices in July, partially due to the very small number of “normal” sales (non-foreclosure, non-short sale) in August.  As my real estate mentor, Leif Swanson, likes to also point out, the huge number of super-cheap, cash-only condos that sold recently have dragged prices down, to0.

So, what is one to believe? For me, it all comes down to a couple simple, but true facts.

1) People hear bad news about the economy and they are holding off on that big decision until they feel more confident that their job will be there 6 months from now. This too shall pass –specifically once we get about a month of improving jobs numbers.

2) A home is not the stock market, as pointed out in this great article. If you need a home, these are the lowest prices in a quarter century and the lowest interest rates in 40 years. Don’t buy a home because you think you will make a killing tomorrow. Buy because you need a place to live and it is better to pay yourself to live there than a landlord.

One of the things that I like about being a real estate agent is the tough code of ethics.

It is true that some agents play fast and loose with this. I’ve had one particular agent here in town (who was later profiled on “3 on Your Side”), whose repair contractors painted over termite damage and did not do the work promised in the contract. This guy had so many foreclosed homes on his roles, that he could not handle the details.

Anyway, the Real Estate Commission governs how an agent advertises themselves and even what incentives they can give clients.

This is all there to protect the home sellers and home buyers from people who know the rules of the road better than they do. Nobody wants to be taken advantage of by an agent. Buying a home is too big a deal.

So, I’m happy to see that the state (due to federal initiative) now requires mortgage brokers to be licensed. One of my broker friends was complaining earlier this year that she needed to take the test and be licensed. But she agree with why.

Check out this article in the Republic for more. This article actually gives me hope for our future housing market here in AZ.

Some really interesting points:

• “So far, 4,336 people have applied to be loan originators in Arizona and 2,413 licenses have been issued.”
• “Licensing advocates tried four times over a decade to get lawmakers to pass the new requirements.” So, there is our legislature again, protecting the home buyer!
• “Arizona ranks among the top 10 states for mortgage-fraud cases, according to the FBI.”

There was this very interesting article about “Vultures”, those investors who buy up very cheap property and fix them up. This article centered on the Phoenix market.

On its face, vultures are a bad thing. They are doing well because somebody lost their home to foreclosure. One could argue that if too many of them are just doing fix n flips, then they will just drive the market back upward needlessly (and possibly flood the market with bad renovations).

The other perspective is that, just as in the wild, they are part of ….. (wait for it) …..the circle of life.

So, you have this home that was on the market in 2007 for $300,000. In the process of foreclosure, it was beat up and damaged. It was sold to a vulture for $100,000. They come in and fix it up at a cost of about $30,000.

As the article points out, many vultures are fixing and sitting, rather than fixing and flipping. This can be a stabilizing thing. If they fix and flip at $150,000 that can be good if (1) they did a good job at the renovation and (2) some family gets a like-new home. Its much better for the neighborhood than a home sitting empty.

But it is equally good if they fix the property and get somebody in to it for the long term. This means they are not driving prices recklessly upward. It also means some stability in the neighborhood. It all depends on who they rent to, I guess.

It all moves us back to a stable market.

I think you will see more of this going on, even in the condo market.

Well, you decide if you think it is good or not. I don’t think this story is over, though.

Earlier this week, I posted a quick note about how the Arizona Republic took a national report and drew some sweeping conclusions about the Arizona market. Their headline sent many people to their phone, computers or social networking spaces to comment in fear that the Phoenix market was about to tumble all over again.

See how this AP story takes the same story and concludes completely different news:

“Yet over the past year, while home prices rose 7.2 percent in Phoenix, they ticked up only 1.2 percent in the Miami and fell 6.5 percent in Las Vegas. Part of the reason is that Phoenix has a healthier job market than the other two cities. Its metro area had an 8.7 percent unemployment rate in May, one point lower than the national average.”

They still predict nation-wide drops in prices due to the end of the tax credit and a slow economic recovery. But at least they recognize the difference in cities.

To which I say, if you are thinking of buying, now is still a great time. If you want to wait for this predicted price drop, any savings could be eliminated by interest rate increases. As I said in the last post, home buying is not the stock market. You are not day trading here.

If you buy generally when prices are low, and sell generally when prices are high, you will be in good shape. Buy now at incredibly low prices and interest rates. Purchase modestly. Have a home that makes you happy and expect to live in it for a few years. That’s the simple model.

Here is this week’s updated list of the best deals in the ‘hood.

1) This expertly updated ranch in CenPho (now only $149,500) is walking distance from Light Rail and convenient to all the CenPho attractions. You can walk to Lux, Pane Bianco, Copper Star and all the shopping on 7th. That’s heaven!

You should see the upgrades: triple-pane Pella windows in the living room, a block addition to the master bedroom, with bath and a lush back yard. This 2br/2ba home is a great first home, its roomy and move-in ready.

2) 2-Bedroom, 1.75-Bath Easy Livin’ Condo. You’ve heard me rant about this little 1950s complex. It is shady, inexpensive, picturesque and built as sturdy as a fallout shelter. This 1,100 square foot place came on the market last week at $41,500. I’ve not seen many people look at it. It does not help that the carpet needs to be ripped out and replaced (what were those people eating?). But I think this price should come down in to the high $30s. I’d rip out the carpet for that price!

3) 1-Bedroom, 1-Bath Starter Condo. OK, there is a theme here, I know. But these places are so inexpensive, it blows my mind. They are listing this one, at 846 square feet, at $31,000. I’m telling you right now, I think this place should go for about $3,000 less. It is HUD-owned, so they have a different bidding process. I can help you with that. But if this is your first property, you can’t beat the price. Your monthly costs would be less than $500, assuming you are paying a loan back to your uncle Albert. (You are not likely to get a home loan for this low, so these are cash deals only.)

Call me at 602-456-9388 for more information.

The Arizona Republic reported this morning that housing prices are due to drop again by 10%; such that they could be cheaper next summer than they are today.

Now, I can’t read tea leaves any more than Lady GaGa would be seen wearing a polyester polo shirt from WalMart.

But there are parts of this story that you should, you know, take with a grain of salt the size of a BP oil spill.

Here is why:

#1. Using nation-wide statistics and applying them to Phoenix is like saying that the average elevation in Phoenix is 3,000 feet because that is the national average. (Note: I don’t know if there actually is a national elevation average, but you get my point.)

#2. This is not the first time that I’ve seen this narrative from the Arizona Republic. In fact, you can pretty much count on seeing an article in the next couple weeks hinting at how there might be a rebound. You know, when I was younger I had a friend who’s dog got so excited every time we came over he could not decide whether to run around or eat his food. So, he spent a half an hour trying to do both. Kinda reminds me of this.

#3. They cite Mike Orr of the Cromford Report, whom I respect as an analyst, saying that prices will go down in August. I think that is probably true. But did you notice how they jump from Mike’s very local and specific analysis of one month ahead, to Moody’s very speculative analysis of next year’s prices in other cities?

#4. CenPho is not Vegas. While I work all over the valley, you know that I spend most of my time on historic neighborhoods in the central corridor. I am not seeing the same trends here that you see elsewhere. CenPho is marked by people who want to get out of the suburbs and experience a more diverse and interactive lifestyle. The price of fuel will continue to go up and people are preparing for that and choosing to live closer to work. So, this article should not lump every community together.

#5. The article says that 13% of mortgages nation-wide are late by one payment. That may be true. I don’t know. But they don’t discount how many of those folks will find work by next year and they present a worst case scenario.  I don’t know about you, but when I’m making decisions, I want to know a range of likely outcomes.

So, I don’t know what will happen 6 months from now any more than these folks do. But what I can see is that more people are calling me every day wanting to find a house. They recognize that prices are still historically low, rates are under 5% in most cases and houses are not staying on the market very long.

On thing to keep in mind: buying a house is not like playing the stock market. Don’t buy if you just want to sell tomorrow. Buy because you need a place to live and you want to build equity over time.

If you think you will stay in Phoenix for the next three years, then I would definitely feel confident that you can buy something now and probably be able to sell such that you “pay yourself rent.” Prices are so low now that the likelihood of prices going up is much greater than what Chicken Little is telling us.

There has been a lot of talk recently about how short sales are getting closed with greater success. The data is mixed on that.

On the whole: if you are buying a home on and considering making an offer on a short sale, talk with me first. The speed of your closing depends on who is selling, who is lending and what paperwork they have completed already. It is best to build a strategy around approaching the sale.

Now, on to the data.

Below is the standard market distress dashboard put out the the Cromford Report. On the left, you see active listing; those that are still on the market. On the left you see that 44% percent of the market that are short sales (“pre-foreclosures”). The average sale price is $84.64 per square foot.

On the right you see what is actually closing and at how much. Only 24% of closings are short sales and they are averaging $81.74 per square foot.

I find it interesting that some folks think short sales are such a great deal, but notice that foreclosed properties are actually cheaper. Yep, they are harder to find, but I’ve noticed something in my clients: while we are waiting for the short sale to close, they many times see a foreclosed property that they would rather have.

So, bear with me a little more as I geek out on the speed at which short sales are selling, and the price. See the chart below and compare today’s information with the column for last year. The active listings, and sales per month are all up. In the case of sales, they are double. Look further down the chart and see that the sold price per square foot is actually down from last year.

So, what is happening here? Well, the listing agents who are listing the short sales are getting better at negotiating the banks’ processes. The banks are getting better at clearing the short sales and they are more likely to negotiate a lower price. Even the time needed to close (days on market) has come down.

All of this points to one conclusion: short sales are worth the risk if your agent (me, hopefully) can get a good sense of the players in the deal and whether they are likely to close on time. I can help you with this analysis. Call me at 602-456-9388.