Urban Life

Radiate Phoenix Meets at Switch and Talks Metro Light Rail

Radiate Phoenix, the downtown non-traditional networking group, held their May meeting last night at Switch on Central. The topic for the meeting was the Valley Metro Light Rail system.

Approximately 50 people gathered in the lounge area at 5:30 to discuss the past, present and future of the light rail system. As is usual, new and old friends chatted a bit, caught up on life/business and discussed the latest news effecting the downtown region.

Radiate co-founder, Claudia Bullmore of Sky Marketing, led the formal meeting. Attendees were asked to introduce themselves and talk about their personal light rail usage. Next, we were introduced to our two speakers for the evening... Nick Bastian, Raillife.com founder and Marty McNeil, MarCom director for Metro Light Rail.

Marty McNeil opened the discussion and described light rail as a trans-formative tool for the Valley linking people, development and future possibilities. She went on to describe the biggest lesson learned so far is that the system is far more popular than their optimistic predictions. McNeil said, "We felt the system would exceed our guarantees to the Federal Government by about 25%, but the actual numbers are over 45%." 

Next, Nick Bastian talked about his involvement. A couple years ago he started his quest to better understand how and why a light rail system could/would be used. "There wasn't much out there" he said. Thus, RailLife.com was created to explore and discuss life on the Light Rail. Today, RailLife.com offers visitors a plethora of information about happenings, dining, shopping and social events along the light rail system. As Nick says, "The Light Rail is like a 4th city within 3 others."

The conversation moved to an interactive format with attendees offering thoughts and questions. I particularly enjoyed Nancy Levinson's comments. Nancy is the director of PURL, an architect, urban planner and darn fine thinker. Nancy said, "We spend too much on an outdated transportation system (freeways) rather than the system of the future (mass transit such as light rail.)

Too much else was discussed to include in this brief post... a good reason to attend for yourself. All in all it was another great event bringing people, ideas and information together in a social mix. Thanks to Claudia Bullmore, the gang at DPJ and Switch for making this happen.

Gene Urban
The Urban Team at Realty Executives
602-234-5777
Follow us @geneurban

Radiate Phoenix meets at Switch and Talks Metro Light Rail

Just a quick reminder that the Radiate Phoenix meeting for May is tonight. Details are below:

Theme/Topic: Phoenix Metro Light Rail
Speakers: Nick Bastian with RailLife.com and Marty McNeil with METRO Light Rail.
Location: Switch Restaurant & Bakery... 2603 N Central Ave  Phoenix, AZ 85004 (next to Durant's)
Time:  5:30 - 7:30

For those not familiar with Radiate Phoenix: We are a group of people interested in , committed to, intrigued by, and passionate about the downtown Phoenix region. Some of us are professionals in industries ranging from architecture, design, real estate, public policy and much more. Others are residents who love and care about their community. We are not a stuff your business card in a strangers face networking group.

If you care or would like to care about the downtown Phoenix community and don't know where to start, come Radiate with us.

Gene Urban
The Urban Team at Realty Executives
602-234-5777

Search Results for Arizona Foreclosure, Bank-owned Homes, Condos, Land and more

We've received a few emails asking us to provide an easy way to search and find the bank-owned listings in Arizona. The search tool at the end of this email will provide you with up-to-date information on the available bank-owned homes in the Greater Phoenix market as well as some, but not all listings in other cities around the State of Arizona.

WHAT'S GOING ON IN THE REO/BANK-OWNED HOME MARKET?

Today, the bank owned market in the Greater Phoenix area is a wild animal. In just the past 4-6 weeks the market has taken a huge shift as Investors are buying everything they can. The nicer bank-owned homes are getting multiple offers and many are cash deals.

Buyers are finding they have to be quick and nimble to compete in this market. Hours can mean all the difference and what you think is a done deal may not be due to loop-holes the banks put in their contract addendum's.

The graph shows the trend for Pending listings in the city of Phoenix only.

For those who like definitions, "Pendings" are properties with accepted contracts and have been submitted to title and escrow company for processing.

As you can see the sales trend is way up. Based on current ARMLS stats, the rise is sales is continuing at a fervent pace. Our current pending count is nearly 14,000 with another 4500 contracts waiting for a few T's to crossed and I's to be dotted before they convert to Pending.

Predictably, the active (for sale) home inventory numbers have fallen. Last Fall we saw inventory levels in the low-to-mid 50,000's; Today the number is just a hair over 36,000 and bank owned homes account for only 5300 listings.

Those who think they have missed the boat, we don't think so. Most every analytic tool we use says a truck load of new bank-owned homes are riding into town. Unemployment and other factors are causing even more people to loose their homes. It's not pretty and a lot of people will need our love, support and help this summer so be kind our there.

Below is our bank owned home search tool. The initial view show the 20 MOST EXPENSIVE bank owned homes on the market. We show this view for two reasons... one... Foreclosures can happen to anyone, two... Someone with money can make a lot on some of these high end homes.

A recent sale happened where a home worth 4.5 million in 2006 sold for 1.55 million. After a few, mostly cosmetic, repairs were made, the home could go back on the market at 2.99 million.

Have fun, explore the market and let us know if you have any questions... you know we're here for you. We hope you have a great Memorial Day weekend. Have fun, play hard and love your kids.

Gene Urban
The Urban Team at Realty Executives
602-234-5777

Use the drop down menus to modify the search criteria. You can also save your searches
and even have the system email you when new bank-owned homes come to market.

REAL ESTATE UPDATE DOWNTOWN-CENTRAL PHOENIX 85013

We thought we'd take a look at real estate activity and trends in downtown-central Phoenix zip code 85013. The region is a mix of single family homes and Urban style homes. Several historic neighborhoods are found in this zip code including: Medlock Place, Pierson Place, Woodlea, Campus Vista and Yaple Park.

I'm a big fan of this region. It has loads of character with a variety of historic, mid-century and urban architecture. The Metro Light Rail is walking distance for many residents giving easy access to downtown and Tempe. The Clarendon Hotel has just gone through a significant remodel and their rooftop patio/bar is a local favorite.

The active listing inventory is a pretty even mix of single family and condo/urban style homes. The single family home market is selling well, unlike the condos. Our "distress-o-meter" for May 2009 puts the area as guarded but recovering.

Many factors are taking positive turns in the 85013 single family home market. The number of active listings is going down, the number of pending listings is rising, the months of supply has gone down markedly and the pending listings sales price is up a bit. Probably the most exciting information is that the number of bank-owned listing is falling...yeah! This is important since bank-owned homes depress prices.

The condo market is not doing so well. There are many properties such as Executive Tower, Hawthorn and Solaris that have a lot of units on the market. Those considering buying in these and other units should investigate the health of their HOA's.  See the Urban Life post on HOA's for more on this subject.

Our principle concern is the general Valley-wide rise in new foreclosures. In the last month, pre-foreclosure lletters were sent to about thirty 85013 residents while five homeowners lost their homes. If foreclosures continue to rise, expect housing prices in the area to continue to fall a bit, however, we don't expect significant price drops.

CONCLUSIONS: Buyers have a great opportunity to pick up a home at a very affordable price. In addition, we believe homes along the light rail and close to the developing downtown ASU campus will perform better than homes in many other areas of the Valley. As mentioned, use caution when buying a condo to ensure the HOA is in good shape and a significant special assessment doesn't surprise you in a few months.

Gene Urban
The Urban Team at Realty Exeuctives
602-234-5777

Urban Team Client, Milt Diriwachter, Gets Design Recognition

Our good friend and client, Milt Diriwachter, received some much deserved aclaim for his work on AZCentral and the Arizona Republic this past week.

Milt Diriwachter is not your boring, cookie-cutter designer. He loves color, contrast, exotic mixes and the unexpected.

The remarkable thing is each design is reflective of the homeowner, not Milt himself.  Sometimes he is subtle and refined, other times he is outrageous and zestful.

Just look at the difference between the home featured in the Republic this past week and the Mediterranean style design that made the cover of Phoenix Home & Garden in 2005.

We'll keep this post short and sweet... mostly just want to acknowledge and congratulate Milt on another fine performance in design art.

Milt Diriwachter
Statements Interiors
(480) 695-6582

Gene Urban & Ron Urban
The Urban Team at Realty Executives
602-234-5777

Rise in Greater Phoenix Foreclosures Not Being Talked About

Basically, I am an optimist, yet the realist in me feels a need to write this piece suggesting another wave of foreclosures in coming down the pike. Some beasts just don't want to die.

What prompted this post was a wave of news articles saying all is well in real estate-land while the foreclosure data feeds I follow disagree.  A fellow blogger, Dean Ouellette, made a similar discovery on his blog. So I thought I'd add to the mix.

In the past month over 7200 pre-foreclosure letters were sent to home owners in the Valley while 2643 homes completed the foreclosure process through trustee sale. These are pretty high numbers and appear to be rising. (I'll know for sure in 3-4 weeks when there is enough data to see a clearer picture.) Due to some market manipulation by the government, accurate foreclosure tracking has been difficult.

The good news is that foreclosures are selling briskly. In the last month the inventory of REO homes dropped from about 9200 to the mid-6000 range. 71% of the home sales in Phoenix were bank owned and similar numbers could be found throughout the local market. Even esteemed areas like Paradise Valley are seeing foreclosures account for 21% of their sales. Less popular areas like El Mirage saw 92% of their homes sales come from the bank owned inventory. 

Our concern about increased foreclosures is primarily home values. Banks don't care about neighborhood values and home buyers want the best deal possible. The result is bank owned homes sell for much less than privately held homes and depress values. Below is a graph demonstrating the effect of bank-owned homes on both the listing market and the sales market... pretty much speaks for itself. (Just click on the graph to see an enlarged image.)

The graph simply puts into pictures what was described above. Not too pretty is it.. unless you are thinking about buying a home.

For home buyers and investors, this is an inviting market. We won't talk about what this means to homeowners... no need to belabor the obvious.

Bottom line... The media is behind the eight ball once more and you are not. At least that makes me feel a bit better.

Best to you,

Gene Urban
The Urban Team at Realty Executives
602-234-5777

Phoenix 85006 Real Estate Update May 2009

Today well start of series of posts looking at downtown and central Phoenix real estate performance by zip code. Our market analysis will begin with 85006.

Zip Code 85006 is bounded by Thomas (N), Van Buren (S), 7th St (W) and 24th Street (E). The population is younger than average, 58% are renters and the median income is under $30,000 with 41% living at below established poverty levels.

The market distress graphs pretty much sum up the performance of the region... not doing too well. A large portion of the sales in April 2009 (83%) were bank owed homes. Likewise, the "for sale" inventory is dominated by bank-owned or soon to be such. Prices have plummeted, giving a struggling region of Phoenix even less stability. As little as two years ago, home values in 85006 were in the low $200,000 range while today $80,000 may be considered optimistic.  As of this writing there were 20 homes being offered at less than 50K and nearly 50 for under 100K.

So, what's the good news? Sales have been cconsistently rising in 2009 and prices are beginning to stabilize, if not outright rise. Pending sales, a strong indicator of market strength, have shown consistent upward numbers for over 6 months. In addition, the inventory in down to about 3.1 months... a very low number.

Our concern for the area is that most of the sales are probably investor owners. The likelihood for property improvements is low and the area is already distressed.

Investor owners may continue to do well in this area as prices suggest the potential for positive cash flow and some increase in values during the coming years. Since nearly 60% of the residents rent, a number many think will rise with the increase in area foreclosures, a good rental base is in place. Much of the area may be to distressed to attract the increasing ASU downtown population, yet some pockets may be viable. Investors shuld be aware of potential for rent rates to be on the decline due to competition and low-income demographics.

Postino Central... A New & Old Restaurant Tradition In Phoenix

I wanted to wait for the excitement to cool down before going to/writing about Postino Central. Not surprisingly, the excitement hasn't dropped a degree.

Postino Central has to be good... it took over the location of a true landmark, Katz Deli. It is not easy filling the shoes of a legend, yet Postino has done just that. Although nothing like it's predecessor, I believe Howard Welcher would be happy knowing the vibrancy Postino has created. Some of the neighbors are probably not so happy with the overflow parking Postino's popularity has created, yet the vibrancy likely offers more positives than negatives.

I arrived at lunch time to a packed place with several excited patrons waiting for a table on the patio. Yes, it does have a nice covered patio, with misters, where guests can enjoy themselves and the outdoors.

Inside is an open, lively dining room with a modern interpretation of "Deli." I clicked off a few pictures and soon met Tory, his name, not political affiliation. Tory showed me the menu and we briefly talked about what makes Postino work. He proved to be a great multi-tasker as we chatted, he took care of guests and we chatted some more.

Many things came together making the Postino experience. Atmosphere, value, community and humanity. The place offers many climates to dine... covered-misted patio, inside space with low tables, high tables, counter-style, busy areas and even a few intimate spots. I don't think they missed anything here.

The menu offers great variety without being indulgent...plus the prices won't wipeout your wallet. A variety of Bruchetta, served on a small wood plank, are a local favorite. Plus, a mix of healthy, creative salads and panini style sandwiches give variety and choice; They even have a kid's menu.

The wine and beer offerings are surprisingly European with several exclusive selections. I was happy to see Arizona's Four Peaks and Old Creek products on the list... buy local first. A nice touch is their to-go bottle discount... take $9.00 off the price.

Postino Central is getting rave reviews on Yelp and many other sites. Am I surprised? Not really, the Arcadia store set the tone and the new location simply offers us Central Phoenix folks a close-in option. A big thanks to the DeMarco's for giving us a sweet place to hang out and satisfy our cravings.

Postino Central
5144 N. Central Ave
Phoenix, AZ
602-274-5144

Postino is located a couple blocks north of the Central & Camelback Metro Light Rail. See Raillife.com for all your light rail news.

Greater Phoenix Real Estate Sales Stats are Encouraging... May 2009

I've been waiting for May 01 to arrive so I could jump on the ARMLS web site and take a look at the final real estate sales and listing figures for April 2009. I say final with a note that some changes usually come in at the beginning of the month... not enough to make much a difference though.

The April figures provide of good news. Sales continue to rise, inventory is falling. The graph shows sales activity as number of units sold.  As you can see, it has really jumped this year. We, the real estate community, were pretty darn pleased with the February numbers, started clapping whenthe March fugues came in and you'll see a lot of folks dancing this month. There is hope.

The blue line on the graph indicate the April units sold. Clearly we are in a strong sales cycle... I hope not too strong as I am not a big fan of big ups; They tend to produce big downs.  However, the down side of the market has been so bitter I believe the strong upswing is more correction than calamity.  I'm a huge roller-coaster fan but I prefer 6 Flags over the housing market.

I am equally encouraged by the number of properties in escrow; ARMLS calls these "Pendings". The pending count is a bit over 13,000 today. This is a huge number relative to the past year+. Some say it hasn't been this high since dinosaurs walked the planet. Anyway you look at it, most of us are happy to see the climb. Naturally, not all these Pendings will close escrow... some will fall out due to financing problems, inspection problems, banks failing to respond in a timely manner, and other circumstances. However, many will come through and the May sales figures are poised to bring hope to the market.

All this said, the market is still unsettled. The evil bank-owned homes are still dominating. Of the 8400+ properties sold in April, about 5500 were bank owned. If you like percentages the figure is 65%. The pending sales show bank owned homes account for over 60% of the transactions. As a side comment, these figures do not include transactions such as auctions and private sales done outside the Arizona Regional Multiple Listing Service.

The graph shows a number of things about the bank-owned sales market. Green is the number of properties sold, red in the time on market and don't look at the scary black line... it shows median sales price. I believe we'll see price and number of sales start to level out during the balance of Q2 and into Q3.

The supremacy of bank owned property sales is generally a good thing. We need to reduce the REO inventory before we'll see price stabilization. Speaking of price stabilization... we are seeing some stability in the under $200,000 market. However, the mid and luxury markets are still in the doldrums providing little data to forecast pricing trends.

That is all for this post. We'll follow up this month with some market studies of the downtown and central Phoenix regions. Hope you have a good weekend. I'm off to San Diego to say goodbye to my best friend's folks who pass on this week. They were both well over 90 and had an amazing life.