Urban Life

Luxury & Mid Price Homes Starting to Sell in Central Phoenix

September home sales in Central Phoenix zip codes 85012 and 85013 indicate home sales in the $500,000+ market are on the rise.

For quite some time the mid to luxury home market has been the pits. ARMLS sales figures from last May and June showed just one sale each month when the price tag was over $500,000 while under $500K properties accounted for 53 sales during the same time period.

July and August saw a slight rise with 3 out of 20 sales (July) and 2 of 15 (August) sales in the higher price range. However, September saw much better numbers.

Of the twenty-one September home sales in 85012 & 85013, four properties went for more than half-a-million clams. At first I didn't think this was all that different until I looked at the percentage of total sales. May and June stats show sales in the above 500K range at 3.77% of total sales while September figures rocked in at 19%... that's a big gain by most standards.

I believe the upswing is due to jumbo loan availability. For most of 2009 it was very difficult, almost impossible, to get a loan for over the conforming standard of $417,000.The hedge funds and investors that traditionally backed the higher loans were off licking their wounds.

However, we are now seeing a slow trickle of investors putting their toes in the Jumbo loan pool. Our friends Lisa Sahughnessy at Desert Heritage Mortgage and Judy Giel of MetLife Home Loans both announced new jumbo loan programs a couple of months ago.

The bottom line is that we are seeing a sales rise in the mid to luxury market and it's not just Central Phoenix; Scottsdale numbers are rising as well. This is good news for the real estate market as it shows a bit of stability moving upwards through the market. If you couldn't get a loan for a more expensive home last winter or spring, you may want to try again... you may be pleasantly surprised with both the rates and what you can buy for your money.

That is all for this Monday in Paradise.

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

Real Estate Market Update for 85003 in Downtown Phoneix

Greetings Urban Life fans. Today we'd like to give a little update on 85003 in downtown Phoenix, AZ. The 85003 zip code is a fun one if you like diversity and urban living. It is bounded by the salt river (s), Thomas (n), 7th Ave. (w) and Central Ave. (e).

The region includes much commercial development as well as a variety of housing. The southern area has seen less updating and improvement with subdivisions like Montgomery much very low priced housing. To the north we have several top historic neighborhoods including Medlock Place, Roosevelt and Willo. Added to the mix are a number of condo developments including the popular Portland Place, Orpheum Lofts, 44 Monroe and Tapestry on Central.

The real estate market data for 85003 is pretty difficult to interpret due to the diversity of housing and the effect a remodel can have on home values. In general we are seeing the price per square foot on the SFH market rising. Supply has fallen from a high of 18 months in April to a low of about 4 months in July. We like to see supply in the 4-6 month range... it indicates a more balanced market.

The condo market is still soft in this region, however, as prices have fallen a buyer market is being found. We still advise caution with the condo market. Recent changes in Fannie Mae lending requirements on condos have made financing and future resale more problematic.

Conclusions: We are big fans of the downtown sector for many reasons and the historic districts of 85003 are a big part. There are some very sweet homes here and many home buyers are taking advantage of the deals REOs and short sales offer.

We also like the growth potential of the city core with ASU's commitment to the area and a fairly diverse employment market. As with all purchases, due diligence is a must... especially with historic properties and condos.

If you would like to see what is currently being offered in 85003, we've included a dedicated search tool for your convenience below. Just so you know, the search show both resale and rentals in 85003. Click on the map to open the search tool, then click on search button to put in your specific criteria. We hope you have fun.

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

Real Estate Update Phoenix Arizona 85004. Home & Condo sales, news & info

It's been a while since we've posted information about the real estate happenings in Phoenix zip code 85004. For those who don't know, 85004 is a downtown Phoenix zip code bounded by Thomas (N), the Salt River (S), Central Ave (W) and 7th St. (E).

85004 is home to much of what makes downtown so exciting and fun including the ASU Downtown Campus, Chase Field, US Airways Center, The Phoenix Convention Center, Phoenix Art Museum,  CityScape, The Herburger and more. Some of our favorite "eats" spots are here to including: Matt's Big Breakfast, Pizzaria Bianco, Majerle's, Switch, Hanny's and Sen's. It is the heart of soul of First Friday, home to a bevy of local events and on the light rail line. It is no wonder a lot of people love this area.

Real Estate in the region is a mix of single family homes, condos and lofts. Prices are all over the place with multi-million dollars homes in Los Olivos & Alvarado and sub-100K places in the southern region. Condo/Townhouses dominate the sales and inventory with projects such as Artisan, Tapestry, and Summit at Copper Square. 

The Summit at Copper Square has been in the news lately as a notice of foreclosure was recently filed. According to a July 13,2009 article in the Phoenix Business Journal, only 55% of the 165 units have been sold and a sizable mechanics lien, 3.1 million dollars, has been filed against the property and individual condo owners. Since mechanics liens are generally not forgiven with a foreclosure and follow the property, sales in the development could be both difficult and perilous.

There is both good and bad news on the real estate front; let's start with the good. Bank owned homes do not dominate the single family home inventory. The past few months sales have gobbled up many of the REO homes. Of the current active single family homes, none are bank owned or short sales. In addition, the notices of default are very low for this area of town.

The condo/townhouse/loft market is not in such good shape. We see a number of bank-owned units on the market and a lot of short sales. Prices have fallen considerably making the likelihood of more foreclosures probable in the coming months. However, the lower prices have made the region much more affordable and we are seeing condo sales on the rise, especially in Artisan Village. 

Most of the closed transactions for June & July 2009 were in the sub-$200K range. Higher priced properties still have not found a market and we do not expect much change during Q3 and probably Q4.

The Bottom Line:  We expect sales in the under $250,000 range to dominate all sales. The single family home market looks pretty stable and homes in the bottom end may see some valuation in the next 6-8 months. We believe the condo/townhouse/loft market will continue to be soft with more price reductions, especially in the more expensive units. We strongly advise caution if you are exploring a purchase in the Summit at Copper Square. If I were buying there, I'd hire an attorney to review documents and offer counsel... that comes from a full-time Realtor. 

I believe the region has huge upside potential. ASU is expanding their campus and enrollment; Despite a tough market, CityScape looks to have substantial leases in place; The new convention center is booking larger groups than ever possible, thus bringing out-of-state dollars to the City. In addition, Light Rail provides easy access to the city-core and ridership numbers are far above projection. We like the long term potential of downtown Phoenix!

Thanks for being a loyal reader of Urban Life and we hope this information has been helpful. If you need specific information about the downtown real estate market, please feel free to contact us.

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

Click Here to Read Past Commentary on 85004

Information is deemed reliable but not guaranteed. Data was collected from ARMLS. Although we like to think ourselves knowledgable, our opinions are just that, opinions and may or may not be prove correct. 

Phoenix Real Estate & Market Update for 85028

It's time we focus on the Phoenix real estate market. Sometimes I get caught up with social and political happenings. Not today though we will take a look at home sales and the real estate market in Phoenix's 85028 zip code. This update is for July, 2009.

For those of you who read our blog regularly, you know I am a big fan of the 85028 region. The Phoenix Mountain Preserve borders to the south and provides a host of outdoor activities with its mountains and 17 miles of trails. The area is central to most every part of town... Scottsdale is a few miles to the east and the 51 freeway makes short work of getting downtown or to the airport. Shopping in the area is good with Costco, Trader Joes, and PV mall just minutes away as well as a bevy of good restaurants and other retailers.

I like the homes in this area as well. Most are a bit older and have charm... not your row after row of look-a-like stucco shelters. There are horse properties, luxury homes, mid-century moderns, rach style and much  more.

Real estate wise, the 85028 region is doing better than many parts of town. The distress meter, provided by the good folks at the Cromford Report, is moving towards the green. This meter points out the affect of bank-owned homes on the market. As you can imagine, most of the Greater Phoenix market is deeply in the red; not 85028 though.

Lender owned homes currently comprise only 7% of active single family home inventory and these foreclosed properties accounted for only 31% of the sales this past month. As you may know, lender-owned properties have accounted for over 80% of the sales valley-wide this past quarter according to ARMLS figures. This stat is very important since bank owned homes generally drive down market value.

OTHER GOOD NEWS FOR THE 85028 AREA:

• The number of active listings has been falling each month. This is a good thing indeed.
• Pending listing (those in escrow) has risen dramatically. Yeah!!
• The days on market (how long a home has been for sale) is falling.
• Luxury home prices are holding stronger than expected. There were two luxury homes in the mountain preserve area that sold for prices above 2005 values according to ARMLS.
• Overall sales numbers are up from a year ago.
• Trustee sales have not spiked upward. (See graph below)

THE NOT SO GOOD NEWS:

• Home prices are still falling... just not as quickly as last year and Q1 2009.  
• Preforeclosures are on the rise. We've been seeing a steady 5% rise in homes being offered as short sales.
• Foreclosures are on the rise as well.

The graph to the right indicates letters of default (sent when a homeowner is behind on his/her payment) have gone up a bit... the green line.

Conclusions:  85028 appears to be outperforming much of the general Phoenix market. Most of the sales are in the under $300K range; nothing too surprising there. Watch the letter of default notices as they are a strong indicator of future foreclosures and soft home prices.

HOME BUYERS: There are some good deals still available. A number of the properties are short sales, so you may have to be patient. Bank owned homes are much easier to buy, however, many of the normal sellers are pricing competitively these days.

HOME SELLERS: The bank owned homes have really affected home values everywhere. The annual median price is just 66% of the peak value a few years ago. Try to be realistic about market value in today's market. In most cases, the price a home sold for 6 months ago has nothing to do with today's values. Remember, unless you have a cash buyer, you'll be constrained by the appraisal value.

Thanks for reading Urban Life and look for upcoming reports on the downtown and central Phoenix real estate markets. If you would like to search for homes in 85028 or all of Phoenix, simple click on the highlighted text.

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

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

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.

What's Happening with 85014 Real Estate, Home Prices & Foreclosures

Today we'll take a look at the real estate market in Phoenix's 85014 zip code. We'll be giving you a snap shot of the area and our take on homes & condo prices. In addition we'll look at the effect foreclosures are having on real estate values.

85014 is located in an area locals call Central Phoenix. The map will give you an idea where it is located.

The area is generally home to a younger population with the higher age numbers falling into the 20-40 range.

A variety of schools serve the area. Brophy and Xavier generally top the list for fine academics and the Madison Schools (Rose & Park) are well considered. 

Locals have a number of fine restaurants to enjoy. I'm a fan of Lola's Tapas, Richardson's, Christo's and Two Hippies. 

The area supports a broad residential real estate mix with single family homes (SFH), condos/townhouses/patio homes (Condos in our analysis), apartments and small rental properties.

Both home and condo prices have been highly affected by the foreclosure market. 24 of the 33 homes sold in 2009 and 13 of the 19 condos were either foreclosure properties or short sales. In other words, 69% of the sales in 2009 were due to foreclosure or near foreclosure... this is a bit higher than County average. As we have said many times, foreclosures drive down home values due to aggressive pricing strategies.

Below is a chart showing the asking price (in $/sq.ft.) of privately owned homes and bank owned properties. The difference is dramatic. The average bank owned property is priced at $120/sq.ft. less than the average non-bank owned home. WOW!   It's no wonder the bank owned homes are first to sell.

In most of our downtown and central Phoenix research we see the SFH market out performing the condo sector. In 85014 both home types are facing the same difficulty. Inventory levels are to high: 11months for SFH and nearly two years for condos.

Most of the condo trouble is centered around afew properties with Citi on Camelback (Citi) topping the charts. Citi has, as of this post, 30 units on the market with 24 being foreclosure or short sales. The good news is sales in the complex are brisk indicating they may have found a bottom price point.

Our Conclusions: 85014 is pretty ripe for first time home owners and investors to swoop in for a deal. If you are trying to sell a personal residence, condo or home, you may want to take a serious look at the competition with regard to pricing; it's a jungle out there. I do not expect to see prices stabilize until inventory numbers start approaching 8 months and foreclosures drop to under 30% of the sales. The graph below from citi-data.com pretty much sums it up. 

Gene Urban
The Urban Team at Realty Executives
602-234-5777
www.urbanteamaz.com  (our web site)
www.greatinvestmenthomesaz.com (our first time real estate investors site)

Additional recent Phoenix real estate market and home value analysis can be found on Urban Life at:

85012
85020
Phoenix (Overall)

Real Estate Market Update For 85020 in North Central Phoenix

Today we offer a real estate update for 85020 in Phoenix's North Central corridor. We've scoured the ARMLS numbers, crunched some data on our statistics web site and have a lot of information for you.

Like most of the Valley, 85020 is seeing brisk sales of mostly bank owned properties. Bank owned single family homes dominated with 60% of the 2009 sales. The condo market was a reverse with 60% not being banked owned properties.

The graph below provides an idea of the market trends in 85020. The market hit its high in late 2005, early 2006, held pretty steady until mid 2008 and fell back to near 2004 prices. This is a pretty common price trend for much of central Phoenix and many other areas. 

The prices started to stabilize in late 2008. The March numbers confirm the steady median price at $150,000. Sixty-one percent of the single family home sales in March were REO and suggests the banks, Fannie, Freddie and others have found a bottom line price buyers seem to like. Most sellers are generally getting 94% of their asking price, so some negotiation is still possible.

Good news is found in the number of new foreclosures coming on market. The current active listings show only 20% are bank owned properties (SFH) and 23% (condos & townhouses.) This is down from the last quarter of 2008. In addition, the trustee sales (when a home is taken back by the lender's trustee) seem to be falling slightly. We'll be keeping an eye on these numbers as they have a strong affect on home prices.

If you are a person, verses a bank, selling your home may take a while. The days on market figures are rising a bit and there is much competition. Today, there are 215 single family homes and 149 condos for sale through ARMLS. Last month 26 homes and 12 condos were sold. These statistics suggest a 9-10 month inventory. Ideally, we like to see inventories in the 6 month range. If you are priced above $500,000, patience is your friend. (I feel like a fortune cookie saying that.) We're simply not seeing many sales for the higher priced homes anywhere in the Valley unless they are screaming deals.

In conclusion, 85020 is following much of the Phoenix market. Lower price homes appear to have found some bottom strength. Homes in the higher price range, $350,000 and above, will likely linger on the market for a while. It's just hard to beat some of the foreclosure deals out there.  Real estate investors and first time home buyers will find a number of opportunities in 85020 with over 50 SFH offered at under $100,000.

Below is a home search tool showing the available properties in 85020. The initial view displays the 20 lowest priced homes.You can refine the search to find what interestes you.  Note: You can search for bank owned homes on this site too.

If you have questions or would like our opinion on your home's current value, we are happy to help. Just toss us an email or give a call.  Best to you,

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

The data provided is deemed accurate and is provided by ARMLS and Reality, Inc.

REAL ESTATE NEWS & UPDATE FOR ZIPCODE 85012 IN PHOENIX, AZ

It's time to get back to some real estate updates and news for the Central and North Central Phoenix corridor. It tough to stay focused on the real estate issues when so much is happening in Downtown Phoenix.

Today, let's focus on the 85012 zip code. This is one of those skinny/tall regions bounded by Glendale to the North, Thomas to the South, Central Ave to the West and 7th Ave to the East. If the area were a picture it would be a vivid mix of media. There are wildly beautiful homes, some pretty trashy ones, and a lot of personality. Some of my favorite restaurants such as Maizies and Lola's Tapas are in the area and part of it is on the Light Rail line.

The region has about 3550 homes in its 2.1 square miles and a bit over 6300 people live and play there.  Real estate is a mix of mostly single family homes with multi-housing and some condo/townhouse projects.

The single-family home market seems to be settling down in 85012. Prices are still a little squishy but there aren't a lot of foreclosures beating up the prices. Of the current active listings only 2 of the 44 are REO's. According to ARMLS figures, 24 homes sold in 2008 and 9 of them happened in November and December. We've seen a lot more activity in the past few months in the central corridor so this just follows the pattern.

The condo/townhouse market is another story. Much as been written and said about the troubles at the Landmark Towers and they are perched on Central Avenue in 85012.  All the sales stats on the condo market are highly influenced by this apartment to condo conversion project.

The data is pretty amazing here; Of the 65 active listings, 39 are at Landmark; There are 26 bank owned condos on the market and 20 are at Landmark; There are 8 short sales being attempted and 5 are at Landmark.  All I can say is if you are looking to buy at Landmark, do your due diligence with great care.

Below is our cool little real estate search tool pointed at the real estate opportunities in 85012. The map shows 20 of the active listings and you can manipulate it to show you everything. It's fun, so go ahead and play. If you click on a property icons, the full search engine will open up and give you lots more info and search abilities.

Our Conclusions:  The single family home market seems pretty stable, sales are on the rise, days on market are falling... both good economic factors and there are some sweet deals out there. I'd be careful with a condo, especially Landmark.  As always in this market, be cautious, do your homework, hire a veteran agent who represents only you and work for a good deal.

Thanks for the visit,

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

http://www.linkedin.com/in/theurbanteam

BANK OWNED HOMES DOMINATE THE 85004 SINGLE FAMILY HOME SALES

Homes buyers seem to be catching on to the real deals out there with bank owned homes. If you saw the news piece by Melissa Blasius, click here, you already know that bank owned homes comprise approximately 1/4 of the listings but account for about 50% of the sales. This statistic is even more pronounced in the 85004 zip code.

85004 is a downtown Phoenix zip code with a mix of trendy urban-style condos, historic neighborhoods and other areas not so noteworthy. Condo/Loft developments such as Tapestry, Summit at Copper Square, McKinley Condos and such have dominated much of the real estate conversation. However, there is a new player who is winning the sales game... banks.

This Fall, September to mid-December, seven of the eight single family homes to sell in 85004 were bank owned homes. That seems to be an amazingly high number until you dig a bit deeper. The bank owned homes are highly affordable. Of the current "for sale" inventory on ARMLS, half is bank owned and all of these homes fall into the lowest price range.

We've been saying for some time now that there are some sweet deals out there that will make a lot of home buyers merry... not a bad thing during the holidays. Add to the great prices are truly fantastic mortgage rates. Yeah... some good news during this holiday season. Maybe Santa will be bringing a well priced home into your life.

Gene Urban
Santa's Helper
The Urban Team at Realty Executives