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Wednesday, October 12, 2005

Phoenix Area May Be Peaking

Just spoke with my real estate agent this morning (who is still having a hard time believing we finally closed!) about the general housing outlook in Phoenix. There are currently over 18,000 active listings in the MLS. A few weeks ago, there were 15,000. Time on market is also increasing. In other words, the seller's market is disappearing here, so be careful when buying properties in this area. Also, beware of comps - any high comps you find might be from the peak of the market.

I should also mention that her husband is a principle at www.buyazforeclosures.com, a company that buys and resells foreclosures. His business is picking up after being down for about 8 months, so more foreclosures are happening.

Opportunities are starting to present themselves to those who can see them. Remember: you make your money when you buy, not when you sell!

In other news, I called my bank to check on the status of the wire transfer and was told their computers were down. They will call me back when they are up.

4 comments:

Anonymous said...

Hi Shaun,

Yes I've seen an increase in calls from people in foreclosure. This could be the beginning of a foreclosure wave! Or at least a redistribution of wealth!

Cheers!
Tom
"D"igital Breakfast

Mike said...

I'm seeing the same thing here in Vegas. Homes in my neighborhood have suddenly stopped selling. Three homes with the same floorplan I have have been on the market now for over 90 days, and their price spread from lowest to highest is $60K.

We're looking at moving back to Sacramento, CA and while doing some research in the MLS on recent sales in the zip code we want to move back to, I found the following information that lends more credence to this trend:

Homes sold in the past 1 year: 645
Homes sold in the past 6 months: 294
Homes sold in the past 3 months: 35!!

Which means that home sales in that zip code have dropped 84% over the past 90 days.

(I know this area well - the homes were built in the 1950's, and most are just under 1,000 square feet. Recent home sales in the area show a 990 square foot home in this neighborhood selling for $373,000. That's so out of line with the median income numbers for the area, that it's not even funny.)

Anyway, the point of all of this is that there does seem to be a slowdown taking place, with multiple cities in the western region of the US showing strong signs of it.

~Mike

Anonymous said...

I concur. I started investing in RE in 2004 and I listed one of my properties based on comps that sold for 2x what I paid in weeks just a few months earlier, but reception to my listing is lukewarm. I think this is the VERY BEGINNING of the cool down and while the smart investors can still make money for certian, it's not as easy as it was 18 months ago. I made a ton of money on one property and all I did was buy it and let it sit (although of course that wasn't my intent).

I'm interested on anyone's pick on what market thay would hit next. I'm looking at KC and

On a seperate note, I was reading about your closing adventure and I wonder if you could answer a queation for me. Is a seller actually REQUIRED to give a buyer three days beyond COE if their lender prevents a timely closing or is that only if you plan on keeping the earnest money. E-mail me at psfunkytek@yahoo.com if you know the answer because it seems like with every transaction, no matter how well everything goes, the lender has some reason to not be ready by COE and they leave everyone wondering "didn't you realize that was a problem before now"?

Shaun said...

Anon - The three day notice of failing to meet the COE date is specified in the new Arizona Realtor sales contract, which is used for my sale, so in that sense, it is required. If your contract does not specify it, you do not have to give the notice.

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