January-June 2010 Average Sales Price By City Glendale: $133,694
M E T R O
P H O E N I X
Phoenix: $148,161 As a proud Valley resident, I am pleased to specialize my real estate craft in this community. Turn to me for market facts and statistics, questions about buying or selling, or for “in-the-know” referrals for local goods and services!
Mesa: $166,238 Peoria: $182,312 Litchfield Park: $206,415
WHY WORK WITH ME? Buyers and sellers in today’s challenging market need an experienced, knowledgeable REALTOR now more than ever before. Choosing the wrong agent can make or break your entire transaction. Choosing an agent that excels in the industry, has your best interests at heart and can serve as a trusted advisor for you is critical. YOU CAN HAVE CONFIDENCE IN MY EXPERTISE How do you know a REALTOR is up-to-date with the latest skills necessary in the industry? I believe in continuing education to keep up with today’s Real Estate trends and have completed my CRS (Certified Residential Specialist), GRI (Graduate of Realtors Institute), ABR (Accredited Buyers Representative) and my CDPE (Certified Distressed Property Expert) designations so that I can more effectively represent you, my client. HOW IS WORKING WITH ME A BENEFIT TO YOU? I believe in empowering my clients with INFORMATION. I will be available to answer all of your questions in a timely and informed manner, drawing on all of my resources. I will listen to all of your needs and objectives and work with you to meet that goal. I also offer a “LOVE it or leave it GUARANTEE!” Contact me to hear more about it! PROFESSIONAL ASSOCIATIONS • Active Arizona Real Estate License • Active member of the National Association of REALTORS®, Arizona Association of REALTORS®, and Scottsdale Area Association of REALTORS® • Board Member of the Fountain Hills Chamber of Commerce • Member of the Fountain Hills Noon Kiwanis. • Member of StarPower Systems; a top producing real estate agent training network
Tempe: $210,123 Gilbert: $212,772 Chandler: $223,088 Cave Creek: $369,248 Fountain Hills: $519,651 Scottsdale: $552,027 Carefree: $769,102
Paradise Valley: $1,458,505
Statistics gathered from ARMLS. All information deemed reliable but not guaranteed. (Single-Family Residences)
January-June 2010 Sales Statistics By Zip Code Zip Code
Average Sales Price
Days On Market
List/Sell Price Ratio
M I D -Y E A R U P D AT E
# Closed
85004..............................................$261,750.................. 124...................87%............................5 85008................................................$85,625................... 60....................98%..........................191 85013..............................................$176,457................... 74....................96%..........................112 85016..............................................$226,612................... 72....................93%..........................194 85018..............................................$437,363.................. 107...................93%..........................242 85032..............................................$145,523................... 70....................97%..........................498 85044..............................................$243,196.................. 109...................96%..........................243 85086..............................................$233,633................... 82....................98%..........................736 85087..............................................$213,614................... 94....................98%..........................124 85205..............................................$152,987................... 83....................96%..........................332 85212..............................................$173,641................... 76....................99%..........................302 85226..............................................$226,326................... 73....................97%..........................239 85248..............................................$294,031.................. 102...................95%..........................393 85251..............................................$286,054................... 75....................91%..........................112 85253...........................................$1,463,107.................. 214...................89%..........................172 85254..............................................$313,744................... 92....................96%..........................376 85255..............................................$728,373.................. 121...................93%..........................512 85257..............................................$171,129................... 78....................97%..........................177 85258..............................................$515,006.................. 138...................92%..........................151 85260..............................................$443,988.................. 112...................87%..........................206 85266..............................................$654,688.................. 151...................93%..........................190
602.400.0250 Direct Lisa@MyHassleFreeListings.com RE/MAX Sun Properties 16704 E. Avenue of the Fountains #101 • Fountain Hills, AZ 85268
www.MyHassleFreeListings.com If your home is currently listed, this is not a solicitation for that listing.
85282..............................................$167,100................... 74....................96%..........................210 85283..............................................$175,629................... 80....................95%..........................154 85284..............................................$371,892................... 89....................96%..........................121 85296..............................................$195,481................... 69....................98%..........................500 85326................................................$93,736................... 69....................99%..........................971 85340..............................................$206,415................... 85....................97%..........................364 Statistics gathered from ARMLS. All information deemed reliable but not guaranteed. (Single-Family Residences)
Produced by Desert Lifestyle Publishing • 480.460.0996 • www.DesertLifestyle.net
Economic Forecast Rain or Shine?
Local Housing Market
Who’s Buying & What’s Selling
Recession Recovery: Steady or Sporadic?
R E S I D E N T I A L R E A L E S TAT E HOME VALUES The topic of current home values is enough to make any homeowner cringe. The Metro Phoenix area has experienced a 52% decrease in home values from its high in June 2006. In fact, figures from the Federal Housing Finance Agency show that home values in the last year dropped more in Arizona than in any other state. Maricopa and Pinal counties, which make up Metro Phoenix, saw a decrease of 17.6% over the last year. When compared to the national index of a 3.1% decline in home values, it’s clear that our area, once appreciating at a record pace, has suffered. Now onto the good news. Within the past year, we’ve seen record sales activity particularly in the lower-price-point properties. Many of those listings experienced multiple offers and sales above list price. We are now seeing stabilization and price appreciation in the lower-end home market, and now even a tapering off of price declines in the luxury market. Jay Butler, ASU real estate professor said, “A year ago, people found a lot of inexpensive homes available, either through foreclosures, short sales, whatever. These have been sort of cleaned up, so we’re moving up the ladder of home prices.” Recently the Arizona State University-Repeat Sales Index marked the second consecutive month in which the index posted a gain rather than a decline. The home price index had been falling for the past three years, but showed a 2.7% gain instead. Median sales prices for single-family homes have risen each month during the first half of 2010 (see the chart “January – June 2010 Sales Statistics”). Home values are certainly moving in the right direction. The luxury market, which typically lags behind the lower-end market, is now showing small signs of improvement. With higher consumer confidence, improvement with our national economy and wealthy individuals unaffected by unemployment steadily moving off the sidelines, the luxury market is beginning to see a change for the better.
G E N E R A L E C O N O M I C S N A P S H OT RAIN OR SHINE? again. We should see about a 2.5% Just as a meteorologist predicts weather increase in consumer spending this year. 2010 Economic Forecasts patterns, economists use data and indicators to Modest, but at least it’s positive. Adding to determine the state of our economy. So, as far as our economy goes, what can we expect for the remainder of 2010: Rain or shine? While opinions vary among experts, the common consensus appears to be a forecast for partly sunny skies with a chance of showers. As beaten and battered as many of us feel today, it’s encouraging to note that the US economy is in a better position today than a year or even two years ago. While the gains we’ve experienced have been gradual and incremental, they are solid enough that they should prove to be real and durable. THE SUNNY SIDE Arguably the most critical component of our recovery is employment and we’ve seen a pickup in not only employment, but also income. Job losses have slowed considerably and employers are beginning to add to their workforce, albeit slowly. Further, hourly wages have increased by 3.5% since August 2007. The Labor Department released a job openings report for April which shows the number of jobs advertised at 3.1 million – the most openings since December 2008. Here in the Phoenix area, more employers are planning to hire workers in the third quarter than are planning to lay off, according to a Manpower Employment Outlook survey. That makes three consecutive quarters with a planned net gain in local employment. The economic recovery is gaining strength from the biggest rise in construction spending in a decade and the 10th straight month of expansion for manufacturers. Also helping to drive the growth is business spending and the need to replenish lean inventories. Exports are expected to return to prerecession levels, as we’ve seen an expansion by more than 14% in 2010, the fastest pace since 1988. Sales to Canada, Mexico and Asia will recover more quickly; while exports to Europe will climb slower due to the financial turmoil in that part of the world. Also playing a role in our recovery: Rising consumer confidence. The Conference Board Consumer Confidence Index has increased in recent months. As of press time, the Index now stands at 63.3. The monthly index is creeping up from the low of 55 during the financial crisis to the prerecession mark of nearly 100. Consumers are beginning to make purchases
the positive trend, Americans’ debt levels and savings are improving and household net worth is up over last year. Things are moving in the right direction.
Gross Domestic Product........................... 3.3% Nonfarm Payroll Employment (change in millions)................................... 1.3 Unemployment Rate............................... 9.6% S&P 500 Index Price (year end)................ 1225 Personal Consumption............................ 2.6% Business Capital Investment Growth........ 3.0% Housing Starts (millions)............................ 0.7 New Home Sales (millions)......................... 0.4 Existing Home Sales (millions).................... 5.3 State & Local Govt. Spending..................-1.4%
CLOUDY WITH A CHANCE OF RAIN While positive employment trends may show a sign for recovery, the fact that so many Americans are still out of work is a continual drag on the recovery. Some experts believe it will take until late 2012 to recover the jobs lost in this recession and until 2014 to return to a more normal 5-6% unemployment rate. With millions out of work, we can’t expect consumer spending to increase to prerecession levels Source: SIFMA’s (Securities Industry and Financial Markets anytime soon. Association) Mid-Year 2010 Economic Outlook. Secondly, until credit availability for consumers as well as businesses loosens up, it’ll be difficult for our economy to momentum? Low interest rates, attractive home grow. Small business employees account for nearly prices and rising consumer confidence should half of all jobs in the US. Until businesses are able play a role in continued home sales for the to secure needed financing, there may be a delay remainder of 2010. in further hiring and expenditures. WILDCARDS The volatile stock market, the European financial crisis, SB 1070….these are all issues looming with uncertainty that may or may not drag us into a “double-dip” recession or affect our recovery. As we near the end of the year, we’ll have a better idea as to the impact or non-impact of these issues. INTEREST RATES & THE TAX CREDIT Mortgage interest rates are still at amazingly low levels. At the beginning of the year, the Fed was purchasing mortgage-backed securities, which kept rates low. When that program ended, there was speculation that we’d see a spike in rates. However, just the opposite has occurred. Interest rates have fallen as the European financial turmoil has boosted international demand for US government securities. The First-Time Homebuyer Tax Credit and Existing Homebuyer Tax Credit introduced in 2009 and extended into 2010 has done just what it was designed to do: Stimulate home sales. Nationally as well as locally, buyers came out in force to take advantage of the generous government program. Now that the incentive is gone, can the housing market sustain its
THE ECONOMIC RECOVERY: SPEEDY OR SPORADIC? Researchers for the Federal Reserve Bank of San Francisco are predicting that the recovery from this recession will be faster than after previous recessions. John C. Williams, director of research at the Federal Reserve Bank, believes that the increase in home, car and retail sales point to a fast recovery. “I see no signs of a double dip. The economy continues to gain momentum, and consumer spending and business investment continue to improve,” Williams said. On the other hand, Federal Reserve Chairman Ben Bernanke predicts a slow economic recovery and said that interest rates will likely rise even before employment rises. “Even though technically we’ll be in recovery and the economy will be growing, unemployment will still be high for a while and that means that a lot of people will be under financial stress,” Bernanke explained. So the forecast moving forward for the remainder of 2010 as partly sunny with a chance of showers depicts an economy that’s forging ahead and showing improvement; but there are still several indicators that could send a little rain on the parade before we make it to bright and sunny skies once again.
Information gathered from The Cromford Report, a local real estate research firm, shows that homes in the $1M - $1.5M market now sit at a 22-month supply vs. a 52-month supply in April 2009 and a 93-month supply in December 2008. Need some more good news? Real estate is cyclical. Even with the recent steep drop in prices, most Arizona homes are worth almost double today than what they were worth in 1991. Can we expect home prices to double again? Consider this: Home prices have been doubling approximately every 12-15 years over the last 100 years. Population growth projections for the Metro Phoenix area call for over 55,000 new homes each year for the next 10 years to satisfy demand. (See the chart “Metro Phoenix Population and Housing Needs Forecast”.) The desirable Valley of the Sun will be a destination for new homeowners for decades to come. DISTRESSED PROPERTIES For the past 18-24 months, we couldn’t discuss our local housing market without the topic of bank-owned or foreclosure properties. These distressed properties have become an unwelcome, stable part of our housing landscape and have had an impact on supply & demand, and home values in every part of the Valley and in every price point. Today, the amount of sales we’re seeing from foreclosures is falling at a steady rate. Foreclosure sales have dominated the mix, with short sales and “normal” (considered neither a short sale nor foreclosure) sales lagging behind. The peak for foreclosure resales was 66.2% in March 2009. We’re now seeing foreclosure sales around 33%. “It appears foreclosures may have finally made their downward turn,” said Tom Ruff, analyst for The Information Market. Lenders have increasingly steered distressed homeowners into foreclosure alternatives such as loan modifications and short sales.
Metro Phoenix Population & Housing Needs Forecast
2010 2020 2030 Population........................ 4,388,536................... 5,766,480.....................7,453,910 Annual % growth.................. 3.0%........................... 2.8%.............................2.6% Change over decade............................................. 1,377,944.....................1,687,430 New units each year................................................55,120......................... 67,480 Source: U of A, Elliott D. Pollack & Company. New units each year based on 2.5 persons per household.
WHO’S BUYING AND WHAT’S SELLING? The government tax credit deadline helped to fuel purchases of homes under the $150,000 mark, many by first-time homebuyers. Now, in the latter part of 2010, there is a smaller percentage of homes selling in the lower price ranges. Earlier in the year, investors made up a large amount of home purchasers, now it appears that there are more long-term buyers vs. speculative buyers. Today, more buyers are financing their homes with long-term mortgages and with the intent of living in them. There has also been a shift in out-of-state buyers. Canadians represent the dominate group of buyers, dethroning Californians after many years. California did come in second however, with Washington state third. Midwesterners continue to purchase heavily in the Valley as well. WHAT’S IN STORE FOR OUR HOUSING MARKET? The health of our market depends mainly on employment and the local job market. Secondly, there needs to be marked improvement with housing markets across the nation, as many would-be Valley homebuyers need to sell their homes before they can migrate here. Also, the possibility of future foreclosures flooding the market, particularly with the expectation of millions of ARMs resetting in 2011 causing a new wave of distressed borrowers, may have an impact. If current trends continue, we’ll see modest but steady price appreciation, and more homes selling via short sales and non-distressed sales. With what experts call the official “bottoming out” of our market in April of 2009, every gain and each success since then is building confidence among consumers – which is exactly what our market needs to get back on track.
Top 10 Fastest Growing U.S. Counties 1. Kendall County, IL (Chicago)..........................92.1% 6. Forsyth County, GA (Atlanta).........................77.4% 2. Pinal County, AZ (Phoenix)................. 89.7% 7. Lincoln County, SD (Sioux Falls).................... 70.7% 3. Rockwall County, TX (Dallas).........................88.9% 8. Paulding County, GA (Atlanta).......................67.4% 4. Flagler County, FL (Jacksonville)....................83.9% 9. Williamson County, TX (Austin)......................64.3% 5. Loudon County, VA (Washington, D.C.)..........77.6% 10. Douglas County, CO (Denver).......................64.0% Source: US Census Bureau
January - June 2010 Sales Statistics
Housing Affordability Index
Single-Family Homes | Metro Phoenix
Greater Phoenix Area
Median Sales Price Avg. Days on Market Number of Sales January............... $129,900....................................86.................................. 4,855 February.............. $131,000 ...................................95.................................. 5,440 March.................. $135,589 ...................................96.................................. 7,440 April.................... $135,838 ...................................93.................................. 7,774 May..................... $137,990 ...................................92.................................. 7,679 June.................... $135,000....................................95.................................. 7,885 Source: ARMLS. Information is deemed reliable but not guaranteed. Data maintained by ARMLS may not reflect all real estate activity in the market.
69.5 2000 Q1
49.3 2005 Q2
26.6 2006 Q3
33.2 2007 Q3
65.3 2008 Q2
83.6 2009 Q2
81.9 2010 Q1
Source: NAHB Housing Opportunity Index
Yearly Market Comparison
Jan-June 2009 vs. Jan-June 2010 | Single-Family Homes
NUMBER OF SOLD LISTINGS 2009 2010 Diff Chg January....... 4,230.........4,853.......... 623...........14.7% February...... 4,849.........5,432.......... 583...........12.0% March.......... 6,827.........7,437.......... 610...........8.9% April............ 7,601.........7,766.......... 165...........2.2% May............. 8,161.........7,662.......... -499.........-6.1% June............ 8,154.........4,724.......... -3,430......-42.1%
DOLLAR VOLUME OF SOLD LISTINGS 2009 2010 Diff Chg $ 777,731,941.............$ 911,304,246............ 133,572,305.............17.1% $ 859,187,212.............$ 1,013,402,466......... 154,215,254.............17.9% $ 1,100,011,643..........$ 1,412,236,023......... 312,224,380.............28.3% $ 1,227,951,267..........$ 1,421,144,753......... 193,193,486.............15.7% $ 1,367,855,390..........$ 1,443,694,329......... 75,838,939...............5.5% $ 1,440,058,524..........$ 939,545,285............ -500,513,239............-34.8%
MEDIAN SALE PRICE 2009 2010 Diff Chg 130,000............129,900........-100...........-0.1% 127,000............131,000........4,000.........3.1% 120,000............135,700........15,700.......13.1% 117,500............135,950........18,450.......15.7% 121,500............137,900........16,400.......13.5% 130,000............137,000........7,000.........5.4%
Source: ARMLS. Information is deemed reliable but not guaranteed. Data maintained by ARMLS may not reflect all real estate activity in the market.
R E S I D E N T I A L R E A L E S TAT E HOME VALUES The topic of current home values is enough to make any homeowner cringe. The Metro Phoenix area has experienced a 52% decrease in home values from its high in June 2006. In fact, figures from the Federal Housing Finance Agency show that home values in the last year dropped more in Arizona than in any other state. Maricopa and Pinal counties, which make up Metro Phoenix, saw a decrease of 17.6% over the last year. When compared to the national index of a 3.1% decline in home values, it’s clear that our area, once appreciating at a record pace, has suffered. Now onto the good news. Within the past year, we’ve seen record sales activity particularly in the lower-price-point properties. Many of those listings experienced multiple offers and sales above list price. We are now seeing stabilization and price appreciation in the lower-end home market, and now even a tapering off of price declines in the luxury market. Jay Butler, ASU real estate professor said, “A year ago, people found a lot of inexpensive homes available, either through foreclosures, short sales, whatever. These have been sort of cleaned up, so we’re moving up the ladder of home prices.” Recently the Arizona State University-Repeat Sales Index marked the second consecutive month in which the index posted a gain rather than a decline. The home price index had been falling for the past three years, but showed a 2.7% gain instead. Median sales prices for single-family homes have risen each month during the first half of 2010 (see the chart “January – June 2010 Sales Statistics”). Home values are certainly moving in the right direction. The luxury market, which typically lags behind the lower-end market, is now showing small signs of improvement. With higher consumer confidence, improvement with our national economy and wealthy individuals unaffected by unemployment steadily moving off the sidelines, the luxury market is beginning to see a change for the better.
G E N E R A L E C O N O M I C S N A P S H OT RAIN OR SHINE? again. We should see about a 2.5% Just as a meteorologist predicts weather increase in consumer spending this year. 2010 Economic Forecasts patterns, economists use data and indicators to Modest, but at least it’s positive. Adding to determine the state of our economy. So, as far as our economy goes, what can we expect for the remainder of 2010: Rain or shine? While opinions vary among experts, the common consensus appears to be a forecast for partly sunny skies with a chance of showers. As beaten and battered as many of us feel today, it’s encouraging to note that the US economy is in a better position today than a year or even two years ago. While the gains we’ve experienced have been gradual and incremental, they are solid enough that they should prove to be real and durable. THE SUNNY SIDE Arguably the most critical component of our recovery is employment and we’ve seen a pickup in not only employment, but also income. Job losses have slowed considerably and employers are beginning to add to their workforce, albeit slowly. Further, hourly wages have increased by 3.5% since August 2007. The Labor Department released a job openings report for April which shows the number of jobs advertised at 3.1 million – the most openings since December 2008. Here in the Phoenix area, more employers are planning to hire workers in the third quarter than are planning to lay off, according to a Manpower Employment Outlook survey. That makes three consecutive quarters with a planned net gain in local employment. The economic recovery is gaining strength from the biggest rise in construction spending in a decade and the 10th straight month of expansion for manufacturers. Also helping to drive the growth is business spending and the need to replenish lean inventories. Exports are expected to return to prerecession levels, as we’ve seen an expansion by more than 14% in 2010, the fastest pace since 1988. Sales to Canada, Mexico and Asia will recover more quickly; while exports to Europe will climb slower due to the financial turmoil in that part of the world. Also playing a role in our recovery: Rising consumer confidence. The Conference Board Consumer Confidence Index has increased in recent months. As of press time, the Index now stands at 63.3. The monthly index is creeping up from the low of 55 during the financial crisis to the prerecession mark of nearly 100. Consumers are beginning to make purchases
the positive trend, Americans’ debt levels and savings are improving and household net worth is up over last year. Things are moving in the right direction.
Gross Domestic Product........................... 3.3% Nonfarm Payroll Employment (change in millions)................................... 1.3 Unemployment Rate............................... 9.6% S&P 500 Index Price (year end)................ 1225 Personal Consumption............................ 2.6% Business Capital Investment Growth........ 3.0% Housing Starts (millions)............................ 0.7 New Home Sales (millions)......................... 0.4 Existing Home Sales (millions).................... 5.3 State & Local Govt. Spending..................-1.4%
CLOUDY WITH A CHANCE OF RAIN While positive employment trends may show a sign for recovery, the fact that so many Americans are still out of work is a continual drag on the recovery. Some experts believe it will take until late 2012 to recover the jobs lost in this recession and until 2014 to return to a more normal 5-6% unemployment rate. With millions out of work, we can’t expect consumer spending to increase to prerecession levels Source: SIFMA’s (Securities Industry and Financial Markets anytime soon. Association) Mid-Year 2010 Economic Outlook. Secondly, until credit availability for consumers as well as businesses loosens up, it’ll be difficult for our economy to momentum? Low interest rates, attractive home grow. Small business employees account for nearly prices and rising consumer confidence should half of all jobs in the US. Until businesses are able play a role in continued home sales for the to secure needed financing, there may be a delay remainder of 2010. in further hiring and expenditures. WILDCARDS The volatile stock market, the European financial crisis, SB 1070….these are all issues looming with uncertainty that may or may not drag us into a “double-dip” recession or affect our recovery. As we near the end of the year, we’ll have a better idea as to the impact or non-impact of these issues. INTEREST RATES & THE TAX CREDIT Mortgage interest rates are still at amazingly low levels. At the beginning of the year, the Fed was purchasing mortgage-backed securities, which kept rates low. When that program ended, there was speculation that we’d see a spike in rates. However, just the opposite has occurred. Interest rates have fallen as the European financial turmoil has boosted international demand for US government securities. The First-Time Homebuyer Tax Credit and Existing Homebuyer Tax Credit introduced in 2009 and extended into 2010 has done just what it was designed to do: Stimulate home sales. Nationally as well as locally, buyers came out in force to take advantage of the generous government program. Now that the incentive is gone, can the housing market sustain its
THE ECONOMIC RECOVERY: SPEEDY OR SPORADIC? Researchers for the Federal Reserve Bank of San Francisco are predicting that the recovery from this recession will be faster than after previous recessions. John C. Williams, director of research at the Federal Reserve Bank, believes that the increase in home, car and retail sales point to a fast recovery. “I see no signs of a double dip. The economy continues to gain momentum, and consumer spending and business investment continue to improve,” Williams said. On the other hand, Federal Reserve Chairman Ben Bernanke predicts a slow economic recovery and said that interest rates will likely rise even before employment rises. “Even though technically we’ll be in recovery and the economy will be growing, unemployment will still be high for a while and that means that a lot of people will be under financial stress,” Bernanke explained. So the forecast moving forward for the remainder of 2010 as partly sunny with a chance of showers depicts an economy that’s forging ahead and showing improvement; but there are still several indicators that could send a little rain on the parade before we make it to bright and sunny skies once again.
Information gathered from The Cromford Report, a local real estate research firm, shows that homes in the $1M - $1.5M market now sit at a 22-month supply vs. a 52-month supply in April 2009 and a 93-month supply in December 2008. Need some more good news? Real estate is cyclical. Even with the recent steep drop in prices, most Arizona homes are worth almost double today than what they were worth in 1991. Can we expect home prices to double again? Consider this: Home prices have been doubling approximately every 12-15 years over the last 100 years. Population growth projections for the Metro Phoenix area call for over 55,000 new homes each year for the next 10 years to satisfy demand. (See the chart “Metro Phoenix Population and Housing Needs Forecast”.) The desirable Valley of the Sun will be a destination for new homeowners for decades to come. DISTRESSED PROPERTIES For the past 18-24 months, we couldn’t discuss our local housing market without the topic of bank-owned or foreclosure properties. These distressed properties have become an unwelcome, stable part of our housing landscape and have had an impact on supply & demand, and home values in every part of the Valley and in every price point. Today, the amount of sales we’re seeing from foreclosures is falling at a steady rate. Foreclosure sales have dominated the mix, with short sales and “normal” (considered neither a short sale nor foreclosure) sales lagging behind. The peak for foreclosure resales was 66.2% in March 2009. We’re now seeing foreclosure sales around 33%. “It appears foreclosures may have finally made their downward turn,” said Tom Ruff, analyst for The Information Market. Lenders have increasingly steered distressed homeowners into foreclosure alternatives such as loan modifications and short sales.
Metro Phoenix Population & Housing Needs Forecast
2010 2020 2030 Population........................ 4,388,536................... 5,766,480.....................7,453,910 Annual % growth.................. 3.0%........................... 2.8%.............................2.6% Change over decade............................................. 1,377,944.....................1,687,430 New units each year................................................55,120......................... 67,480 Source: U of A, Elliott D. Pollack & Company. New units each year based on 2.5 persons per household.
WHO’S BUYING AND WHAT’S SELLING? The government tax credit deadline helped to fuel purchases of homes under the $150,000 mark, many by first-time homebuyers. Now, in the latter part of 2010, there is a smaller percentage of homes selling in the lower price ranges. Earlier in the year, investors made up a large amount of home purchasers, now it appears that there are more long-term buyers vs. speculative buyers. Today, more buyers are financing their homes with long-term mortgages and with the intent of living in them. There has also been a shift in out-of-state buyers. Canadians represent the dominate group of buyers, dethroning Californians after many years. California did come in second however, with Washington state third. Midwesterners continue to purchase heavily in the Valley as well. WHAT’S IN STORE FOR OUR HOUSING MARKET? The health of our market depends mainly on employment and the local job market. Secondly, there needs to be marked improvement with housing markets across the nation, as many would-be Valley homebuyers need to sell their homes before they can migrate here. Also, the possibility of future foreclosures flooding the market, particularly with the expectation of millions of ARMs resetting in 2011 causing a new wave of distressed borrowers, may have an impact. If current trends continue, we’ll see modest but steady price appreciation, and more homes selling via short sales and non-distressed sales. With what experts call the official “bottoming out” of our market in April of 2009, every gain and each success since then is building confidence among consumers – which is exactly what our market needs to get back on track.
Top 10 Fastest Growing U.S. Counties 1. Kendall County, IL (Chicago)..........................92.1% 6. Forsyth County, GA (Atlanta).........................77.4% 2. Pinal County, AZ (Phoenix)................. 89.7% 7. Lincoln County, SD (Sioux Falls).................... 70.7% 3. Rockwall County, TX (Dallas).........................88.9% 8. Paulding County, GA (Atlanta).......................67.4% 4. Flagler County, FL (Jacksonville)....................83.9% 9. Williamson County, TX (Austin)......................64.3% 5. Loudon County, VA (Washington, D.C.)..........77.6% 10. Douglas County, CO (Denver).......................64.0% Source: US Census Bureau
January - June 2010 Sales Statistics
Housing Affordability Index
Single-Family Homes | Metro Phoenix
Greater Phoenix Area
Median Sales Price Avg. Days on Market Number of Sales January............... $129,900....................................86.................................. 4,855 February.............. $131,000 ...................................95.................................. 5,440 March.................. $135,589 ...................................96.................................. 7,440 April.................... $135,838 ...................................93.................................. 7,774 May..................... $137,990 ...................................92.................................. 7,679 June.................... $135,000....................................95.................................. 7,885 Source: ARMLS. Information is deemed reliable but not guaranteed. Data maintained by ARMLS may not reflect all real estate activity in the market.
69.5 2000 Q1
49.3 2005 Q2
26.6 2006 Q3
33.2 2007 Q3
65.3 2008 Q2
83.6 2009 Q2
81.9 2010 Q1
Source: NAHB Housing Opportunity Index
Yearly Market Comparison
Jan-June 2009 vs. Jan-June 2010 | Single-Family Homes
NUMBER OF SOLD LISTINGS 2009 2010 Diff Chg January....... 4,230.........4,853.......... 623...........14.7% February...... 4,849.........5,432.......... 583...........12.0% March.......... 6,827.........7,437.......... 610...........8.9% April............ 7,601.........7,766.......... 165...........2.2% May............. 8,161.........7,662.......... -499.........-6.1% June............ 8,154.........4,724.......... -3,430......-42.1%
DOLLAR VOLUME OF SOLD LISTINGS 2009 2010 Diff Chg $ 777,731,941.............$ 911,304,246............ 133,572,305.............17.1% $ 859,187,212.............$ 1,013,402,466......... 154,215,254.............17.9% $ 1,100,011,643..........$ 1,412,236,023......... 312,224,380.............28.3% $ 1,227,951,267..........$ 1,421,144,753......... 193,193,486.............15.7% $ 1,367,855,390..........$ 1,443,694,329......... 75,838,939...............5.5% $ 1,440,058,524..........$ 939,545,285............ -500,513,239............-34.8%
MEDIAN SALE PRICE 2009 2010 Diff Chg 130,000............129,900........-100...........-0.1% 127,000............131,000........4,000.........3.1% 120,000............135,700........15,700.......13.1% 117,500............135,950........18,450.......15.7% 121,500............137,900........16,400.......13.5% 130,000............137,000........7,000.........5.4%
Source: ARMLS. Information is deemed reliable but not guaranteed. Data maintained by ARMLS may not reflect all real estate activity in the market.
Paula Young With over 30 years in the real estate industry, I have had the opportunity to sharpen my skills and knowledge, and offer a combination of expertise and experience that is so critical to achieve the results we all want. For your success is my success. Many of my years in the industry have been spent in the Seattle area. I started as a realtor and broker then decided I wanted to learn more about the financing of real estate and worked in the mortgage lending industry for several years and achieved a position of branch manager of one of U.S. Banks largest mortgage divisions. I moved to the beautiful Phoenix area nearly a decade ago planning to retire from a wonderful career but that was short lived. I love real estate and being of service gives me great satisfaction. As Arizona is a highly desirable destination, I have had the opportunity to work with many fellow Washingtonians to find the community and home that fit their lifestyle. It would be an honor to help you find the home of your dreams, or a second home or perhaps just a great investment. I believe that one of the best tools I can offer my clients is information. Metro Phoenix Economic Snapshot 2010 has been developed to familiarize you with the Phoenix marketplace and the many opportunities that now exist in real estate. The Phoenix/Scottsdale area will continue to be in demand for decades to come. Let me help you make one of the smartest and successful purchases, perhaps, in your lifetime! Give me a call today!
M E T R O
P H O E N I X
January-June 2010 Average Sales Price By City CITY SINGLE-FAMILY CONDOS & RESIDENCES ONLY PATIO HOMES ONLY Glendale......................................... $133,694...............................$49,195 Phoenix............................................ $148,161...............................$89,072 Mesa................................................ $166,238...............................$78,934 Peoria.............................................. $182,312.............................$104,789 Litchfield Park.................................. $206,415.............................$104,405 Tempe.............................................. $210,123.............................$136,788 Gilbert............................................ “$212,772...............................$92,996 Chandler......................................... $223,088...............................$81,064 Cave Creek.................................... $369,248.............................$160,146 Fountain Hills................................... $519,651.............................$231,546 Scottsdale....................................... $552,027.............................$197,244 Carefree.......................................... $769,102.............................$367,880 Paradise Valley............................ $1,458,505.............................$261,904
M I D -Y E A R U P D AT E
Statistics gathered from ARMLS. All information is deemed reliable but not guaranteed.
Testimonials “Paula is a quality, caring person and will give you excellent service when buying or selling real estate. She will find what you want whether it be a home or investment property. Her motto is to give the highest level of customer satisfaction, and she certainly delivers.” — Marlene and Alan Lomax, Bellevue “Paula Young is the agent you want to be working for you in selling or buying your home. Being an agent in the Seattle area myself, I have referred many buyers to her. She does a great job of listening to her buyer’s needs and takes the time to help them get what they really want. Personally I hired her to list my second home in the Phoenix area and had it sold in an amazing amount of time.” — Dawn Sullivan, John L. Scott Real Estate “I have dealt with Paula on several transactions in the Phoenix area. She has always been very professional and provided superior service and knowledge. I would highly recommend her to anyone looking to purchase in the Phoenix area.” — Michael and Cyndee Bassie, Kirkland “I am happy to recommend Paula Young to anyone who is seeking to purchase real estate. Paula helped me find the perfect home. She proved to be highly professional and very organized. Paula continued to be extremely helpful throughout the negotiations and the entire closing process. In addition to being extremely knowledgeable, she demonstrated great attention to all the details to ensure that the sale and closing proceeded smoothly. She is bright, energetic and made the real estate search very enjoyable. I heartily recommend her without reservation.” — Keith VanVelkinburgh, Christy Sports LLC
Paula Young
ReMax Sun Properties Direct: 602.478.6546 Fax: 480.816.1022 youngpaula@aol.com www.paulayoungproperties.com All agent referrals will be honored. If your home is currently listed, this is not a solicitation for that listing.
“When I first came to Arizona, I took it upon myself to search the valley to find a home. After a week of diligent searching I found myself making an offer on a townhouse in Fountain Hills that Paula told me about during our initial conversation. Not only is she an expert in knowing her demographical area but, the needs and desires that will best fit your home expectations as well.” — Gregg Anderson, Absolute Mortgage “Thanks to Paula’s bulldog attitude we now have our dream retirement home. She listened to our likes and observed our lifestyle. Putting the two together, she walked us into our wonderful home. She has a real talent for finding the right home or investment for her clientele.” — Mike and Bea Cannon “Paula Young has the integrity and commitment to get the job done. Coming from out of state to purchase my retirement home was stressful. Paula was available the entire time, and definitely went beyond her duty seeing the task through. Paula had my best interest at heart and new excellent resources to accomplish any concerns. I value Paula as a committed realtor and have recommend her to my family and friends.” — Linda Gray, Seattle
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