What do Harvey and Irma mean for you and having your new home built?

As Irma heads to Florida, Houston is in the early stages of picking up the wet pieces and trying to look forward to sunshine filled and dry days.  

One area that is affected nationwide after a disaster like major Hurricanes is building supplies.

Building time frames will get longer in Arizona, and other states not affected by Harvey and Irma.   

Suppliers prioritize their materials to those locations hit hardest. (and it is mandated by the government that they do)  Builders in other areas and states have delays in their construction due to lack of materials.  This also means that the builders don’t require as many employees to just hang around and wait to swing their hammer.  The combination of lack of materials and fewer on hand workers result in delayed construction build times.  

If you are already contracted with a builder for your new home, plan on your closing date being pushed out.  If you are about to have a builder start your home, and they previously informed you of a 5-7 month build time.  That just got extended to 7-9 months.  

The builder purchase contract has a clause to allow them up to 2 years to get your home built.  Now they don’t want to take that long, but they have the right to.  That clause exists for times like these.

Many of the construction workers will leave states where they have resided and move temporarily to the areas that have been ravaged by nature.  Creating another challenge of not enough construction workers available when the supplies are once again readily available.  

Our prayers and donations are directed to helping so many recover from unimaginable loss.  

 

Market Update – May

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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.

 

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

REO/Short Sale/Normal – What’s really selling in the Phoenix area housing market

I was looking through the charts and statistics and came across these 2.  They offer an interesting view on what homes are selling, and how much of our housing market is really about the foreclosures.

From the chart below you can see that steadily for the past 6 months the REO (bank owned properties) are about 15% of the active listings. The Short is for short sale listings running at about 35% and Normal, is a regular buyer and seller no bank involved is still 50% of the homes on the market.

active-listings

Compare the above chart with this one and you can see REO (bank owned property) sales dominate. Currently about 45%, down from 55% of all the sales are REO’s.

Normal transactions having 35% of the sales (back in Nov what was thought to be the end of the home buyer tax credit and people were looking to make the home purchase happen and not mess with the banks)

The Short Sales have increased from 15 to 23%.

monthly-sales

What does all that tell me, a few things?

1.       Bank owned homes sill offer the best value

2.        Banks are starting to approve short sales.  (it sure has taken a long time)

3.       With more short sale approvals, fewer homes are going to foreclosure

4.       And there is nothing like a home that has been loved and taken care of