Thursday, September 27, 2012

Distressed Property Report - September 2012

Distressed Property Report - September 2012

Gathering intelligence on Short Sales and Foreclosures is now easier with the
Distressed Property Report. This report contains three interactive maps: short sales,
foreclosures and a map of all distressed properties. Each map is a snapshot of the active
distressed property aggregated by ZIP Code.
The August 2012 Distressed Property Report can be found here.

There are no "from" and "to" dates on the Distressed Property Report because the data is
Active properties in the system on the day the report is published.
The "Percentage of Actives" shows what percentage of Active listings are distressed
in each ZIP Code. Each map is displayed below:

Clicking a dot on any map will display more information (example).
 Just like a Google Map, the maps below can be zoomed, panned and moved.
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Short Sales as of 09/27/2012:

Foreclosures as of 09/27/2012:

All Distressed Properties (Short Sales and Foreclosures) as of 09/27/2012:

Friday, September 21, 2012

Should you Rent or Buy a Home in 2012

Should you Rent or Buy a Home in 2012?

Should you Rent or Buy a Home? Last year at this time I wrote about weather you "should Rent or Buy a Home" (see blog below) Here is the Update One year later. It is cheaper to pay rent on a single family home or pay a mortgage on a single family home? Rental rates have gone up so, yes Buy if you can.
This article compares the average monthly rent paid for a rental compared to how much the mortgage payment might be to purchase an average priced single family home in greater Phoenix area.

The average single family Home rental rate is $1,850 and average single family purchase price is now $218,000.00 as of September 1, 2012 for Greater Phoenix. (This information is available from Arizona Regional Multiple Listing Service, Inc.) (2100Sqft. Home, 3-4 Bedrooms, 2-3 baths, with 2 car garage, with or without a pool.)

Now, if we look at a FHA 3.5% down loan, fixed rate of 3.259% for 30yrs at a purchase price of $218,000 the monthly payment with principle, interest and mortgage insurance (M.I.P.), would be $1094. Granted, we have to consider taxes and homeowners insurance; additional cost of 285.00 to $1094.00 = $1,379.00 That’s a savings of $471.00 per month, and a total savings of $5,652.00 per year. What could you do with an extra $5,652.00 per year? Now how do you feel about “Should you Rent or Buy a Single Family Home?”

One benefit of owning is tax deductions. If a home owner itemizes on their federal tax return they may take a tax deduction for the annual mortgage interest paid and annual property taxes paid.

Possible Tax deduction for above scenario

$6,829.00 mortgage interest paid first year on loan, plus $2616.00 in property taxes paid the first year=$9,445.00 x 25% federal tax rate=$2,361.25 tax deduction.

(The actual tax rate will vary according to the owner’s income and is only an estimate for this scenario.)
$2,361.25 may be deducted from federal taxes.
$2,361.25 divided by twelve months is $196.77
$1,182.23 Effective monthly mortgage payment if owner itemizes and able to take deductions.
                 $1,379-196.77 = 1,182.23


$667.77 Less than paying $1,850.00 in rent.
You can also think of it this way over 5 years of paying rent $1850 x 60 months = $111,000 and you own nothing.

Where as $111,000 is used towards Home Ownership



Should you Rent or Buy a Home?

While there are many reasons to rent or buy; this article compares the average monthly rental amount paid for a single family home in Greater Phoenix compared to the amount of a monthly mortgage payment using a scenario to purchase the average priced single family home in Greater Phoenix. If analyzed only by the amount of the monthly payment buying trumps renting in the example given.

If you’re thinking about buying or renting, please call me for more information.

"Opening The Door To Opportunity and Your Future Home..."

Thank you
Joseph D'Ambrosio
Joseph D'Ambrosio Cell: 623-810-4824
Executive Sales Associate
Keller Williams Integrity First Realty

Phoenix Metro Area Market Report for September 2012

Market Report for September 2012
Here is the Market Report for the period ending August 2012. For a more thorough understanding of how the market is shifting and how this affects you, please give me a call and we can discuss it in more detail.

(click on any picture for a larger image)
Closed Sales Report Analysis:


As is typical in the month of August, we saw a slight increase in the number of sales last month, increasing by 6.2% over the prior month. The statistics show that we had 6,713 residential homes sell in the month of August in Maricopa County. It will be important to watch this trend over the next few months to see if we are following the same patterns of the prior two years that are analyzed in this report.

For buyers, this means that competition for homes still remains very high. We continue to see homes continuing to sell well above list price AND cash buyers being the ultimate winners in the bidding war, especially when homes are priced below $200,000. Buyers should continue to carefully work with me to understand the market AND how they can compete with the market demand and other buyers who may be in a financial position that is more appealing to the seller.

Distressed Sales Analysis:

The market continues to shift, as we saw 56.7% of sales in the month of August classified as “non-distressed” sales. This is the highest number in the 36 month reporting period. Bank-owned sales dropped from 14.1% to 13%, and short sales increased from 29.6% to 30.3%. Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.

Average Sales Price Analysis:

The trend of a lower average sales price continued in the month of August, dropping by 3.5%. However, this follows the trends for the month of August in the prior two years. The month of August showed a decrease in the average sales price from $204,057 to $196,857; this remains the 5th highest average price in the 36-month reporting period. Sellers should continue to watch this trend as they are pricing homes in today’s market. It is now more important than ever that sellers continue to price according to the market and understand how the current market will apply to your individual area and/or home. It will also be important to monitor the impact this trend begins to have on appraisals and finding qualified buyers at these higher prices.
For buyers, it is absolutely critical to be aware of this shift in the price of homes. This decrease does not necessarily mean that buyers have more buying power than they did in the prior month – it could simply mean that higher-priced homes are not moving as quickly over the summer months. There is no doubt that the low inventory has created competition for the current inventory, and that this high demand is impacting prices. More than ever, you need to work with me to make sure you have the best possible information regarding the market value of homes and to carefully monitor this trend to see how it will impact the availability, pricing, and terms associated with purchasing a home.
List to Sales Price Ratio Analysis:


From March to June, we saw this ratio steadily increasing and then a drop in July. August saw this number rebound and become the 2nd highest number in the 36-month reporting period –to 97.98%. This is the ratio a seller receives when selling his/her home as compared to the price where the home was. The higher the number, the closer the final sales price is to the listing price. With the competitive nature of the market, this ratio still remains very high, and in homes priced under $150,000, we are seeing this ratio remain ABOVE 100% -- that means buyers in those price ranges, on average, are paying MORE for a house than the list price of the home. Continue to watch this trend, as it will continue to impact how homes should be priced in the current market in order to appeal to the buyers.

Buyers need to pay attention. As this average moves closer to 100%, on lower priced/highly desirable properties, buyers are discovering more and more in the lower price ranges that they may have to pay above list price AND they are competing with investors who are bringing cash to the transaction. Since a home must appraise in order to obtain a loan, underwriters are still looking very closely at prices and making sure that homes are selling at or below market value.
This could mean that investors have an advantage if they are willing to pay higher than the list price. Call me to help you understand the competitiveness of the list price of the home you are wanting to purchase. You also need to be aware of the interest and sales activity in the area where you are wanting to buy and how the offer you are making competes with the market AND with trends relative to the price where homes are selling in the areas you have an interest.

The numbers above represent the entire Phoenix MLS.
Would you like to know what is happening in your neighborhood?
Would you like to know the value of your home?
Do you need help deciding whether to sell or not or would you like to know if now is the right time to buy?

I would be very happy to get you that information. Just let me know.
Joseph D'Ambrosio
Executive Sales Associate
Keller Williams Integrity First Realty
18940 N. Pima Road Ste 100
Scottsdale, AZ, 85255
Cell: 623-810-4824