Urban Life

Urban Team's Downtown Phoenix Real Estate Site Has A New Look

The web site gnomes have been very busy lately changing the theme and updating our downtown and north central real estate, home information and search site, UrbanConnectionRealty.com. 

We've been using the StudioPress Agent theme for a whiile and just updated to the latest version. It has amazing navigation tools and everyone tells us it is much easier to get to articles on the real estate subjects they care about. The best comment so far is that the new design is better than a bag of fritos.

We've added a completely new section to the site about short sales in downtown and north central Phoenix. We've collected the most asked short sale questions and written artlces to provide in-depth answers.  Here is a direct link to the short sale page with links to the answers:

Short Sale Help, Information in Downtown and North Central Phoenix AZ

In addition to the short sale section, we are continuing our journey through the 35 historic districts in downtown and midtown Phoenix. This project has turned to to be incredibly fun. We've been researching historic archieves, walking Fred the Dog though neighborhoods and taking some real quality time. Our goal is to provide new insight in these special pieces of Phoenix history rather do a cut and paste rehash of someone elses work. Here is a link to the landing page for the historic district and info section of the site:

Historic Phoenix Homes Arizona

Wow, this post got longer than intended. We hope you like the new look and ease of navigation on the UrbanConnectionRealty.com site. If you have comments or want us to add something, leave us a comment on the site. We love your input.

Best to all,

The Urban Team at Realty Executives
7600 N. 16th Street, Suite 100
Phoenix, AZ 85020
602-234-5777
602-486-4839 (text)
Gene@UrbanTeamAZ.com

April Real Estate Market News and Information Greater Phoenix

Our good friend Sarah Moran from Equity Title just sent the real estate market news and update for April 2011.

I like Sarah's approach to performing real estate market analysis and home price projections. Like me, she is based in supply and demand therory and she includes social connectors when possible. This report is a broad one with real estate market information Phoenix, Scottsdale, Mesa, Gelendale, Tempe and most other cities in the Greater Phoenix region. Thus, it is supply and demand based as social consideration such as job growth is too regional to be use when painting with a broad brush.

That said, here is the real estate market news for April 2011 provided by Equity Title and Sarah Moran:

Hello!

Here is the Market Update through the end of March 2011. Please note that the Valley Wide graph represents all of the MLS. The table below that graph just represents recordings for new and re-sales for Maricopa County.

Good News: Total active listings have dropped by another 2883 units over the beginning of last month. As of yesterday, we sit at 36,883 Actives, which is the lowest amount in April for the last two years! Good news for sales, too: Sales are up to 9135 for the last 30 days, as of yesterday. We are currently sitting at a 3.8 months of supply.Traditionally, 3.8 months of supply is considered a Balanced Market! Wow!

Distressed Market Pie Chart: This chart shows you the percentage of distressed properties that are being listed and sold. Short Sales currently represent 20% of the Closings and 38% of the active Listings for a 8.3 Months of Supply ~ This has dropped from the 9.8 months of supply we had in February. Distressed Sales (Short Sales and REOs combined) accounted for 66% of the total sales for March.

Closings are Increasing: There were 9118 closings in March 2011 vs. 8657 closings in March 2010 ~ which equates to a 5% increase over last year (even without the Tax Credit)! 

Reality Check: The Median Sold Price for Maricopa County for March 2011 was $120,100. In March 2006, the Median Sold Price was $260,000! In March 2000, the Median Sold Price was $132,000. Use this at your listing appointments to help explain what has happened to our market and get realistic list prices!

We currently sit at a 3.8 months of supply in the valley. This may seem balanced but the high-end market continues to be stagnant. In the entire MLS, only 88 properties sold for $1+ million for the month of March. An astounding 94% of the closed MLS Sales for March were less than $400,000!

Please click on the link below to take you to the Graphs. You can save/print/email them from there! Use these with all of your clients, SOI and Open Houses! Everyone wants to know what is happening in Real Estate - Be the authority!! Remember that you can always go to www.eta-az.com and click on Market Update for this info as well!

 

CLICK HERE FOR CURRENT GRAPHS

 

MONTHS OF SUPPLY

East Valley: 3.7

NorthWest: 3.6

Paradise Valley: 15.8

Luxury ($1mil+): 15.8 (WOW! This has dropped drastically!)

Southwest: 3.4

Peoria/Glendale: 4.5

Camelback Corridor: 5.0

Cave Creek: 6.4

Ahwatukee: 3.9

Scottsdale: 6.1

Apache Junction: 2.6

Fountain Hills: 4.4

Buckeye: 3.1

Desert Ridge & Tatum Corridor: 3.3

 

44 Monroe Close to Opening Doors For Condo Sales

44 Monroe, the condo towers in the heart of downtown Phoenix are getting very close to opening their doors for new condo sales.

We've been writing update articles on our downtown real estate site, www.UrbanConnectionRealty.com, for a bit now and we are getting excited.

I drove down to 44 Monroe this afternoon to see how the updated lobby is coming. The lobby and model homes are currently under construction as they prepare to open the building for condo sales.

As you can see by the picture, the lobby is pretty torn up. I was told they are about a month away from completion on this phase of the project and that the model homes should be done within two weeks.

If you would like to be put on our 44 Monroe news and update list, just toss us an email at 44Monroe@UrbanConnectionRealty.com and we will send our our weekly project updates.

Best to you,

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

44 Monroe Is Making Its Comeback This Fall

We just announced on our sister site the newest info and news about 44 Monroe in downtown Phoenix. The short story is that you'll be able to buy a condo at 44 Monroe sooner than later... probably by the end of Ocober if all goes as planned.

Check out the full story on our downtown real estate site as we discusss:

44 Monroe Condos For Sale Fall 2010

Best to you,

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

A Great Real Estate Story and Proof Why FHA Loans Can Be Frustrating

A friend forwarded this wonderful story about someone trying to get an FHA loan. You will laugh and clap your hands to the response a savvy real estate attorney gave to the FHA. 

THE STORY:

Part of rebuilding  New Orleans caused residents often to be challenged with the task of tracing home titles back potentially hundreds of years.. With a community rich with history stretching back over two centuries, houses have been passed along through generations of family, sometimes making it quite difficult to establish ownership. Here's a great letter an attorney wrote to the FHA on behalf of a client:

A New Orleans lawyer sought an FHA loan for a client. He was told the loan would be granted if he could prove satisfactory title to a parcel of property being offered as collateral. The title to the property dated back to 1803, which took the lawyer three months to track down. After sending the information to the FHA, he received the following reply.
(Actual reply from FHA):

"Upon review of your letter adjoining your client's loan application, we note that the request is supported by an Abstract of Title. While we compliment the able manner in which you have prepared and presented the application, we must point out that you have only cleared title to the proposed collateral property back to 1803. Before final approval can be accorded, it will be necessary to clear the title back to its origin."

Annoyed, the lawyer responded as follows:

Your letter regarding title in Case No.189156 has been received. I note that you wish to have title extended further than the 206 years covered by the present application. I was unaware that any educated person in this country, particularly those working in the property area, would not know that  Louisiana was purchased by the United States from  France in 1803, the year of origin identified in our application.

For the edification of uninformed FHA bureaucrats, the title to the land prior to U.S. ownership was obtained from France, which had acquired it by Right of Conquest from  Spain. The land came into the possession of Spain by Right of Discovery made in the year 1492 by a sea captain named Christopher Columbus, who had been granted the privilege of seeking a new route to India by the Spanish monarch, Queen Isabella. The good Queen Isabella, being a pious woman and almost as careful about titles as the FHA, took the precaution of securing the blessing of the Pope before she sold her jewels to finance Columbus's expedition...Now the Pope, as I'm sure you may know, is the emissary of Jesus Christ, the Son of God, and God, it is commonly accepted, created this world. Therefore, I believe it is safe to presume that God also made that part of the world called Louisiana . God, therefore, would be the owner of origin and His origins date back to before the beginning of time, the world as we know it, and the FHA. I hope you find God's original claim to be satisfactory.Now, may we have our damn loan?"

The loan was immediately approved.

Hope you enjoyed this one. Make me feel much better about attorneys.

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

Tips and Cautions When Buying A New Home

I was asked a question on Trulia.com today I felt worth sharing with our readers on Urban LIfe. The subject was rights when buying a home from a new home builder. I’ll post the actual question below and provide our thoughts about the subject and how to protect yourself when buying a new home from a home builder.

The Question Posted on Trulia.com:

Two weeks after signing to purchase a new home from Pulte I was told that I was losing my job here in Arizona or move to California to keep my job. With the unemployment rate of 9.6% in Arizona I had no choice but to take the offer and move. I contacted Pulte and cancelled the purchase agreement. I had no time to finish up with the approval process so figured it would be no big deal I'd be able to get our deposit back. We had not been approved anyway. Now Pulte says I got approved and will not refund our deposit of $3,000. I have requested the approval documentation but Pulte has not provided it. After sending a certified letter demanding our deposit back or proof of approval, we received a letter stating Pulte may retain any Deposits up to the maximum amount permitted by law due to cancellation or default. So, they keep our whole deposit?

The Problem:

Home buyers, like most everyone, are living in a time of uncertainty and change. Lots of people are facing job loss and other economic insecurity. Here we have a fine example of how the economy changed a home buyers circumstances and he thought the home builder would understand return his deposit.

The problem here is we are dealing with a contract between two parties and the language of the contract can determine the outcome rather than what may be perceived as the socially right thing to do.

Our advise to this home buyer, since he as working directly with the builder and did not have his own Realtor, is to have the contract reviewed by an attorney and move forward once his rights are determined. If he has a background in contract law, he may be able to do this on his own, yet professional representation is the optimal course.

How To Protect Yourself When Buying A New Home From A Home Builder:

Don’t buy a new build home without representation!  That is the simple answer. However, the problem is few people do this when buying a home from a home builder. The normal scenario is as follows:

A couple take a weekend drive and find a new home project and stop to take a look. A nice sales person takes them on a tour, they fall in love with one of the models and that day or a few days later they sign a contract and put down a deposit. Often they believe the sale person is representing their interests. However, in most cases, the sales representative works for the home builder and has an agency relationship with them... not the home buyer.

Our constant recommendation is to never ever buy a home without having your own own representation. This can be a seasoned Realtor with lots of new home experience or a qualified attorney. This is true whether it is a new home or one on the resale market.

If you buy without representation, as with the person quoted above, you are on your own. Home builders have contracts drawn up by their attorneys and often emphasize protections for the home builder verses the home buyer. If you have your own representation, the contract can be amended to offer you extra protections.

In addition, a good Realtor will read the contract with you and help clarify your rights and responsibilities under the contract.  Understanding your obligations, in advance of a problem or emergency, can help you determine how best to get your deposit back and cancel the contract.

BIG NOTE HERE: Never ever go into a hew home project without your agent. If you can’t help yourself, tell the sales agent at the project that you have a realtor and secure, in writing, confirmation they understand you are represented. Home builders often have you sign a “welcome to our project” that precludes you, the home buyer, from using your own agent. We have seen lots of home builders enforce this stipulation... really!!

Hope this helps a bit and protects people buying a new home from a home builders. A little care upfront can keep nightmare real estate transaction from happening to you.

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

Home and Real Estate Values News 85032

Today we are looking at real estate and home values in Phoenix zip code 85032. The map to the right shows the boundaries of 85032 in north Phoenix. The area has much to offer with affordable housing, close proximity to the 51 and 101 freeways, and  Paradise Valley Schools. Plus there is excellent neighborhood shopping with Costco, Frys, Trader Joes, PV Mall and Desert Ridge too.

85032, like so many areas is seeing an increase in homes sold by short sale and a decrease in the number of bank owned homes. Current stats show nearly 1/2 of the homes for sale are short sales and only 18% are bank owned. In general, short sales help keep values a bit higher as lenders like to see the homes sell at or close to market value. (For more info on short sales, visit our short sale information site.)

Much of the data suggests some stability in 85032 home prices and values. Below are several important figures:

• Months of Supply = 3.3. This figure has been dropping each month. 3-4 months of supply is a healthy number.
• Days on Market for Sold Homes = 81. Days on market is the time it took to sell the home. In May 2009 this number was 106 so it seems homes are selling a little faster today.
• Number of Listings = 350. The number of homes for sale has remained pretty constant for some time now… another sign of stability.
• Pending Sales = 120. Pending sales have also been fairly consistent.

Overall, it appears that home values in 85032 have stopped the free-fall we saw in 2009. Short sales are dominating the offering and they seem to be getting easier. Bank of America has streamlined their systems as have other lenders. In addition, the number of successful loan modifications is rising, keeping homeowners in their homes.

We believe 85032 will continue to be a strong area of interest for first time home buyers and investors since median home prices are in the $120,000 range. That said, the large inventory of short sales and bank owned homes will likely keep the region from seeing an increase in values during 2010. The graphs to the right shows the influence of short sales and bank owned homes on prices and it is not a positive trend.

If you are thinking about buying a home in 85032, do your homework and buy the best quality for the money. Make sure and have a professional inspection and do not overpay.

If you would like to see what is for sale in 85032, take a look at the info below. The data comes directly from the Arizona MLS system and is updated several times per day. If you have questions about the area or a specific home, drop us a line and we’d be happy to get you answers.

Click on any home to open a window that will show all the homes for sale in 85032

Why Do Short Sales Take So Long To Close

We are often asked why it takes so long to close a short sale, especially since the banks and Government say they have streamlined the process. Below are a few of the many reasons we’ve discovered as the Urban Team has ventured into helping people through the short sale process.

Secondary Financing: 

Many homeowners have more than one loan on their property. Since the primary lender is taking a loss, they are reluctant to give much, if anything, to the second lien holder. Often this is not acceptable to the investor in second position and they draw a line in the sand and become uncooperative.

A common scenario is the secondary lender wants a settlement of 10% of the loan amount. Let’s say the loan was for $40,000, then they want $4000.00. The problem is many primary lenders cap the amount the will offer the lender in 2nd position at $1000.00 - $2000.00. The result is a battle of wills. PMI, something we will be discussing in a moment, can effect the outcome of the battle as well.

Homeowner’s Credit Report:

Lenders are now checking homeowner credit reports. If the report shows the borrower is current on most everything except the mortgage, some lenders are pushing him/her to sign a promissory note for the shortfall. Most reasonable people aren’t too keen on signing away their future simply to avoid foreclosure and a take bigger ding on their credit report.

PMI Insurance:

PMI is often the biggest hurdle to overcome and the hardest to anticipate or even be aware. Let’s start with what PMI is and how it effects the negotiations.

PMI is an insurance policy lenders take out when borrowers offer less than a 20% down payment. The PMI insurance kicks in when the loan goes into default and is taken back by trustee sale or judicial foreclosure.

Let’s look at a common example of how PMI is used by the lender. A homeowner buys a house but only has enough money to put 10% down. The lender takes out a PMI policy on the other 10% and the borrower pays the insurance premium.

So, how does this effect a short sale? There are three major factors to consider.

1. PMI insurers like to see borrowers sign promissory notes because it reduces their payout to the lender. The promissory note is credited against the shortfall. Thus, they push the lenders to require the homeowner to sign a promissory note because it reduces their liability. 
2. PMI insurers can put off a payout by not accepting the short sale and forcing a foreclosure. Since, they earn money on their investments, PMI insurers like to keep it as long as they can and forcing a foreclosure can put off the payment for several more months. In their minds this just makes good business sense.
3. The third problem is a bit complex. Let’s say a second lien holder has a PMI policy that will payout 10% of their loss and the lender in first position is offering a 5% payout. Let’s do the math… if they refuse to accept the 5% offer and kill the short sale they will get a 10% payout from the PMI insurance company. What would you do? You’d probably refuse the offer and hold out for 10% or let the property go to foreclosure and take the 10% a few months down the line.

So, now you have a better sense of why lenders are reluctant to suck it up and agree to the short sale. To most lenders it is simply a matter of looking at the bottom line and deciding what direction provides the best outcome to them.

If you would like more information about short sales, we’ve put together a wed site dedicated to providing short sale information. Simply go to www.short-sale-phoenix.com and take a look.

Best to you,

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

One Lexington is the Place to Buy a Condo in Midtown Phoenix AZ

We just started our series on One Lexington, the great condo development in mid-town Phoenix. The series One Lexington will be posted on our downtown real estate site UrbanConnnectionRealty.com. 

Rather than rewrite the post, we will simply direct you to the article that looks at the general features of One Lexington and offers pictures of the 3 different 2 bedroom floorplans being offered in the $240,000 to $325,000 range.

In our humble opinion, One Lexington is the most viable condo project downtown Phoenix has seen in years. The pricing, features, location, parking, proximity to light rail and outstanding ownership make it an outstanding.

If you would like to take a look at the project and the many models they have, just give us a call or use the form at the end of the article on UrbanConnection.

Best to you,

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

Other posts about One Lexington in downtown Phoenix, AZ

http://urbanconnectionrealty.com/2010/04/realty-executives-meets-at-one-lexington-in-downtown-phoenix/

http://urbanconnectionrealty.com/2010/04/one-lexington-hoa-fees/

http://urbanconnectionrealty.com/2010/04/buy-a-two-bedroom-condo-at-one-lexington-in-downtown-phoenix/

http://urbanconnectionrealty.com/2010/04/one-lexington-has-affordable-one-bedroom-condos/

http://urbanconnectionrealty.com/2010/03/one-lexington-in-midtown-phoenix-meets-downtowns-radiate-phx/

http://www.urbanlifeblog.com/2010/04/one-lexington-offers-great-1-bedroom-condos-in-downtown-phoenix.html

http://www.urbanlifeblog.com/2010/04/one-lexington-is-the-place-to-buy-a-condo-in-midtown-phoenix-az.html

Radiate Phx Meets One Lexington in Downtown Phoenix

The gang at Radiate Phx gathered on the 12th floor of One Lexington to enjoy the views, conversation, wine and introduction to One Lexington… a project I believe to be the most exciting, desirable and sustainable condo/lot development in downtown/midtown Phoenix. Finally, I get to be ecstatic about a project.

Let’s talk a bit about the meeting and then I’ll talk about One Lexington itself. The evening began with the usual talk time with friends new and old. Catrina Knoebl, Radiate’s helmsperson, kicked things off and welcomed Carol Johnson from the City of Phoenix who talked about how the Urban Form project is moving forward. Next up was Rob McDonald, the President of McDonald Development… the new owners of One Lexington.

I really like Rob McDonald. Though he calls Vancouver Canada home, his family's roots are from Atlanta, GA. He is a warm engaging man who is both excited and commited to offer Phoenix the most viable condo project in years. He spoke about the reason for choosing to buy the building, the partners gathered to make it work and the project itself.

One Lexington offers 145 units in 1,2 and 3 bedroom floor plans plus penthouse units and 15,000 square feet of commercial on the first floor.  The floor plans are well thought and feel quite gracious and welcoming.

McDonald talked about the excellent quality of the buildings and his commitment to use American made products in the build out as well as local contractors and vendors. The unit we were in had winsome finishes including wood floors, tasty tile backsplashes, clean-lined cabinets and other niceties.

Based on the 20 or so purchase reservations already submitted, I am not the only one who feels this is an incredible opportunity.

The Radiate Phx evening ended with more conversation and tours of the various models.  As a realtor, I found this venue very exciting, a welcome addition to the community and a great place to Radiate Phx. Special thanks to Catrina and her husband Chris for putting this night together.

Gene Urban
The Urban Team
602-234-5777

PS… If you would like to see One Lexington, the Urban Team would be over the top delighted to meet you there and represent you if you want to purchase a place. Remeber, if you don't bring your own agent to a new-build project you will be represented by the builder's agent... not the best way to keep well protected.