What does the typical seller accept for price on their home?

 

A client of mine, recently  asked me a great question; they asked me “How much a seller is willing to sell their home for, less than asking price?” To start the answer… there is no typical seller….

Every person selling their home has a different reason for selling; every person selling their home is in a different financial position.

The more important question is to ask What are the market and the market conditions telling you about where homes are selling?

· you need to consider the purchase price of the home you’re looking at

· the neighborhood the home is in

· as well as the sellers and what did they purchase the home for and was it financed

These items together will give a little better idea of where to start with your offer; and what the seller is likely to accept.

 

I still wish I had a crystal ball….

Market update for June

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Here is the Market update for June.  Have a great day, Irene

Market Update – May

Talk Fusion Studio UTC.
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If you read the real estate news in your newspaper, any day now you will be reading that the real estate market has turned!   UP for a change. 

The right numbers are positive and the right numbers are negative….what I mean is the Sales prices are up.

 Really good news is that the percent of sales to list price is  98.3%.    The “make a low ball offer” period is over.  The lender owned homes are selling with multiple offers, almost to the point of bidding wars.   The number of “conventional seller owned” homes are up.

The right negative numbers are for inventory. The number of lender owned and distressed properties is way down.   Our inventory is very low, actually 47% lower than it was first quarter last year! With a total number close to 13,000.  April’s closings were 8400 The month supply is rated at about 1.5 months !    There are 20,500 sales shown as pending and Active with Contingencies. 

The Active Adult 55+ market presently has 2131 homes for sale with 898 sold in April, another 920 pending  and a current supply of 2.3 months.

These numbers are being repeated in select cities across the country, not just the Phoenix Valley of the Sun. 

To make things even better in the real estate world, the interest rates for the conventional 30 year mortgage  are hovering around the 4% level.

 

The Phoenix area 55+ Community Housing Report

Happy Senior Couple Outside Cooking on A Summer Barbecue

Real estate sales in Phoenix and the 55+ Active Adult Community sales see-saw into

a  seller’s market at last.

A lot is being said by the Realtors and is about to be said by the media regarding the surge in home sales and lack of inventory in Phoenix, creating a seller’s market and an increase in home prices.  

The 55+ Active Adult market is not far behind.   Because of the more conservative  nature of the buyers the availability of distressed properties is lower.   The recent numbers are showing that today’s 55+ market has 2 ½ months supply of homes vs. just less than 2 months for the all over valley market.

Total Active listings of 55+ Active Adult homes on the market = 2,648
Total Listings closed in March of Active Adult homes =  1,056
Leaving a 2 ½ month supply of homes for sale.

Right now on the 10th of April there are 917 homes in the Active Adult Communities scheduled to close in April, so we may presume we will close again in the 1,000+ range.

The distressed property numbers show 75 active listings that are bank owned and 71 that are short sales.   That is 5.4% of the total number of active listings, as compared to  Phoenix home listings which show distressed properties as 17% of the total active listings. This is in alignment with the more conservative investing nature of the 55+ buyers.

Phoenix Real Estate Market Report – What’s happening now!

The Phoenix housing market is changing once again.  Last month there were 8,867 homes that sold in our MLS.  There are just shy of 14,000 properties on the market a this very moment.  Divide the sold’s into the current listings and you can see we have less than a 2 month supply of homes available.  A normal market is considered 5-7 months supply.

If you have trouble viewing this video, please click here…. Phoenix Real Estate Market Report 

Arizona Regional MLS 2011 Stats

Best friendsIt is a pleasure to be able to share some positive real estate statistics as we begin 2012. Although our main interest area, Active Adults, is not featured in the statistics gathering, it is closely related.  The indications are that selling your home in 2012 will be faster and ever so slightly more profitable.  That is encouraging as many of our clients have delayed their retirement move to Arizona based on the lagging prices and sales all over the country.  We should be seeing sold signs planted with the spring flowers!

Click here to read the Arizona Regional MLS report

April 2011 Market Conditions

Here is the April 2011 Market update from my broker at John Hall & Associates, Jim Sexton.

Is the New Home market picking up?

new-construction

The Arizona Republic today has an article about Signs of Life in the new construction home market.  Reading through the article the only real “news” is that the New Home Builders are buying up land again.  The article mentioned the amount of $90 million purchased recently.   This lets me know that the builders are seeing and expecting more home sales.

Hopefully they are correct, and the trend of confidence in the housing market continues.

Home prices seem to be stabilizing

After several years of home prices dropping, the stats are starting to look encouraging.  As you can see from the 2009 Average Sales Price per Square Foot on a monthly average and the start of 2010’s numbers.  Home sales prices are showing signs of stabilizing.  This chart takes into the average, single family homes, condos, manufactured homes, and all areas of the Valley.  This average price per square foot is not reflective of each individual neighborhood.

avg-sales-price-per-sqft

Taking a broader look at a bit more data …

The Arizona Regional Multiple Listing Service Home Sales Report for the county for the month of April (the most current data available as of today);

The data for single family home sales shows us that the largest number of home sales was in the 100,000 to 160,000 price range with 2,111 sales.  (total sales for single family homes in the month of April was 6,718)

There are strong sales numbers up to 400,000 with a jump in buyers at the 200-250,000 price as well.

financing-type1

Looking at the same data at the bottom of the page check out the  financing type.   Most buyers are either using FHA loan or cash to purchase.

Taking this into consideration, and what I  have been hearing from others in the filed.  We still have lots of investors buying up the inventory. We also have lots of primary home buyers as well.

The investors were expected to be the first to jump into the market.  They have been buying up inventory for quite a while now.   It is I believe the primary home buyers purchasing that is stabilizing our prices.

Market Review of 2009

Well the numbers are not yet in for December, and they won’t be for a couple of weeks.  I have access to great statistics, they compile the numbers daily, weekly and monthly, and I get to share the details with you.

I started by checking out many, many different charts to look for what I believe is the best representation of our market currently and over this past year.  This chart, shows the annual appreciation based on monthly sales price per square foot.  I have 2002 and 2003 on this chart to show what a ‘normal’ year appreciation looked like.  In 2004, and 2005 we saw huge appreciation that is not typical of a normal market and then in 2006, 2007, and 2008 we saw the bubble pop.

Back in about April we started to see changes, the number of homes being purchased increased, the inventory started reducing, and the plummeting price drops slowed.  In a ‘normal’ market there is around a 6% increase to value each year.   In April we hit the low of 44% loss and as I write this we are sitting on average across the entire valley 12% loss.

OK so when your looking at losses, none are going to be good news.  But the dramatic change from earlier this year indicates to me, that we are moving toward  a normalized market.

Let me say again, that this is an over view of the entire Valley of the Sun, each smaller area may tell a different story and usually does

average-appreciation-comparison

Part of the story that needs to be told is the market by price.  A look at inventory broken down by price tells a great story.  In a ‘normal’ market there is about 6 months (180 days) worth of inventory.  Less and you have sellers market, more and you have a buyers market.

What is interesting is we have all 3 happening at the same time.  A price point of  $300-400k is our ‘normal’ market with about 6 months of inventory.  Prices higher are in the buyers market and lower are in a sellers market.

So depending on the price point you are purchasing in, you may find yourself in a bidding war, and some sales prices over asking.

inventory-by-price-6-month-marked