FEATURED STORIES
- Mike Bodeen Joins HomeSmart International
- Phoenix Metro Home Sales Report (PDF)
- ARMLS Pending Price Index
- Valley Pending Foreclosure Numbers
- North Scottsdale Home Sales Report
- North Scottsdale Home Sales by Zip Code
- Experience Scottsdale Events Coming Up
- 10 tips to Staging Your House for Sale
- Real Estate Cyber Tips (Link)
- Current Mortgage Interest Rates
- About Your Mortgage Credit – Important Info
Mike Bodeen Joins HomeSmart International
As most of you know, I’ve been with Realty Executives for a long time, as in 13 years. It’s been a great company to be associated with and I’ve made many friends within the company.
Realty Executives has been one of the top producing companies in the country and is ranked #11 for closed sales nationally. And just last month I received a letter from the new President of the company congratulating me as being one of the top 250 agents in Realty Executives – out of 1300.
So Mike, why change? Why change now?
Obviously, I can’t go into depth about all my reasons in this newsletter, but suffice to say it is a good time for a change which I’ve been sensing for awhile. HomeSmart is on the cutting edge electronically, and with great efficiency. It’s a paperless company which means that all paperwork must be digitized before I turn it in and all paperwork I receive is in an electronic format. All my listings and transactions are online. We understand the need to be relevant technologically, while being able to provide full property exposure. And by the way, HomeSmart is the 19th top producing firm by sales sides in the country and 26th in the country by dollar volume.
The owner of the company, Matt Widdows, is a relatively young man with a strong vision for the company and our industry. The broker Trudy Moore used to be the broker for Realty Executives. She is sharp, personable and well respected. It has potentially one of the most dynamic networking firms in the valley with almost 4000 agents – three times the amount we have at Realty Execs.
In my research, I sought out professionals from within the company and without. I also spoke with others in related fields including the mortgage and title industries. There has not been one negative word that I’ve heard about HomeSmart to date.
So effective this past December 15th, I relocated down the hall from where I’m at now at the Desert Ridge Corporate Center, though it’s Suite 140 instead. I will also make use of our Scottsdale office located at the NE corner of Shea and Hayden. We have 9 offices valley wide and I have 24/7 access to each one. If you’re thinking about stopping by to say “hi” just give a call ahead of time.
My contact #’s remain the same. 602-689-3100 is my mobile. Mike@MikeBodeen.com or Mike@NorthScottsdale.com is my e-mail.
PHOENIX METRO HOME SALES REPORT
Courtesy of the Arizona Regional Multiple Listing Service
Excerpted from STAT
The following online report is the new STAT format that we began using last month and which I’ll be using for future E-Newsletters. These stats, along with the data of the Cromford reports are well done and accurately report the most current numbers we have for Valley home sales. Remember, these stats are macro in nature but they can show us market trends.
SALES Month over Month
Monthly Sales in December were 8,401, a 23.8% increase over November’s 6,786. This complements an upward sales trend for the whole fourth quarter. The highest sales for 2010 of 9,280 occurred in June.
This month over month gain coupled with the fourth quarter trend demonstrates a metric clearly moving in the right direction, after a pattern for 2010 characterized by a “one step forward and two steps back” phenomenon. The December Sales figure ends the year as a 45.12% increase compared to the January figure (5,789) at the start of the year.
SALES Year over Year
December’s 8,401 Sales total represents a 9.7% increase over 2009′s December Sales figure of 7,657. In addition, it is the second largest November to December monthly gain (23.8%) of the decade, just below the November to December gain (24.98%) in 2008. ARMLS
NEW INVENTORY
December New Inventory (9,443) declined 13.9% or 1,526 listings from November’s 10,969. This month’s New Inventory figure follows a steady decline started in September. This is in line with a pattern of November to December declines in New Inventory experienced every December since 2001. New Inventory added to the market in 2010 was 148,968, 1.17% increase over the same figure for 2009, but well below the figures for 2006, 2007 and 2008 (173,363, 165,615, and 162,181 respectively). New Inventory added to the Total Inventory each month is an important factor in the supply and demand balance, as greater supplies support a Buyer’s market and exert downward pressure on pricing.
TOTAL INVENTORY
Total Inventory declined 2,890 listings in December to 42,463, a 6.37% decline from November. Total inventory remained flat during 2010 with an average of 43,088 per month.
MONTHS SUPPLY OF INVENTORY (MSI)
MSI for December declined to 5.05, representing the first drop below 6 months since June, and a positive step toward a balanced market. A Seller’s market is typically defined as a months supply of inventory in the 4-5 month range, while a Buyer’s market is described as a 6 month or greater supply. While MSI is a barometer of overall market health, it may not represent an accurate picture of inventory supply in specific market niches. The December decline from 6.68 to 5.05 months is a drop of 1.63 months or 24.4%. While this is a very positive metric, a quick glance at the historic new listing and sold data shows that new listings rise significantly from December to January each year, and sales significantly fall from December to January each year. Thus next month’s inventory rise coupled with fewer sales, could cause the MSI to rise again.
NEW LIST PRICES
Both the median and average List Prices added to the market continued downward in December. Median List Price dropped 3.2% to $118,000 from November’s $121,900. Likewise the average List Price declined 7.5% to $191,000 from November’s $206,400.
SALES PRICES
December’s Median Sales Price was $110,200, a 4.2% decline from November, and a 12.9% decline from December 2009. The median value represents the midpoint in a market where there are as many sales above that value as below. Great housing affordability in the Valley was fueled by the declining median price trend line in 2010. The average Sales Price for December rose $1,400 to $160,400, a .9% gain over November, but 9.7% decrease from December 2009. ARMLS
THE PENDING PRICE INDEX™
The ARMLS Pending Price Index is a predictive tool unique to ARMLS which forecasts Median and Average Sales Prices for the coming three months based on the pending sales data in MLS.
The PPI’s predictive accuracy naturally declines the further into the future it goes, as the number of transactions in the forecast lessens. The actual Median Sales Price for December was $110,200, which was 4.17% below the December figure predicted in November. The Average Sales Price for December was $160,400, or 1.47% below the December Average predicted in November. While the actual numbers may deviate from predicted values, the forecast value for the direction of market pricing remains true.
The three month prediction for Median Sales Price for January, February and March are $115,000, $112,000 and $110,000 respectively, indicating continuing downward pricing pressures well into the first quarter. Likewise, Average Sales Price predictions follow a similar downward forecast for January, February and March of $159,400, $158,200, and $145,800 respectively.
Downward pricing pressure in the Valley is influenced by the large, steady supply of homes (42,463) and the disproportionate percentage (69.6%) of Distressed Sales relative to the Total Sales.
Click here to view this entire report in a PDF
DECEMBER PENDING FORECLOSURES UNCHANGED
The Valley’s Pending foreclosure market remained virtually the same as last month. The number of Pending foreclosures (41,057) decreased 19% compared to December 2009 (50444). This statistic is one of the more important keys to understand when the reversal of our market begins to take shape.
NORTH SCOTTSDALE SALES REPORT
Whereas much of the Valley sales market remains stuck in miry clay, North Scottsdale showed a much more upbeat turn in its market conditions from its December numbers.
North Scottsdale’s home sales rose 13% in December compared to a year earlier. It took 5 less days to sell a North Scottsdale home compared to one year ago (161 vs 166 days).
Good news also is the drop in inventory across the board. Only 85266 zip code didn’t lose inventory, but remained the same. North Scottsdale now stands at a Monthly Absorption Rate of 6.5, down from 10. That is a HUGE and welcome drop. I expect that will move up with February’s reporting as it historically does.
North Scottsdale’s median price dropped to $400,000 compared with $460,000 for December of 2009, but the median price per square foot (PPS) dropped only 3%. The PPS is a more accurate way of determining appreciation.
All zip codes in North Scottsdale increased median value, except 85259 (-8%), and 85266 (-6%). See Table Summary below.
Sales increased from 301 a year earlier to 340 this December, which is a 13% gain.
Considering everything, I’ll take this upbeat North Scottsdale report in a heart beat.
NORTH SCOTTSDALE SALES SUMMARY
(Listings compare this month with last month
and Sales compare December 2010 vs. December 2009)
|
Current Listings:
|
Sales:
|
Ave. Sales Price:
|
|
| 85254 |
323 (-9%)
|
77 (+30%)
|
$310,000 (+10%)
|
| 85255 |
683 (-6%)
|
86 (+32%)
|
$546,000 (-01%)
|
| 85258 |
215 (-1%)
|
22 (-8%)
|
$361,000 (+03%)
|
| 85259 |
292 (-5%)
|
35 (-17%)
|
$595,000 (+29%)
|
| 85260 |
221 (-8%)
|
44 (+19%)
|
$289,000 (-06%)
|
| 85262 |
533 (NC)
|
44 (-14%)
|
$550,000 (-04%)
|
| 85266 |
240 (-10%)
|
33 (+22%)
|
$550,000 (+21%)
|
Bored? In Scottsdale? In Winter? Check your pulse then these upcoming events…
In Scottsdale, January rings in more than an exciting New Year – it also ushers in a special event season that’s chock-full of art festivals, professional sports competitions, collector car auctions and more. Highlights of the coming season include the Scottsdale Celebration of Fine Art(Jan. 15 – March 27), Barrett-Jackson Collector Car Auction (Jan. 17-23), Waste Management Phoenix Open (Jan.31 – Feb. 6), and Cactus League Spring Training (Feb. 25 – March 26), starring the 2010 World Champion San Francisco Giants at Scottsdale Stadium and the Colorado Rockies and Arizona Diamondbacks in their new headquarters at Salt River Fields at Talking Stick. For a Full lineup of events Control + Click the link below
Upcoming Scottsdale Winter Events – Control + Click here
10 Tips to Staging Your House for Sale
Want to sell your home? Get out the bucket, mop and Mr. Clean. The key to making a positive first impression is simple, said Sandra Rinomato, host of HGTV’s popular “Property Virgins” show.
“Get it clean, clean, clean,” said Rinomato. “If your house isn’t clean, it instantly sends up negative thoughts that the home is not well maintained. If your house is spotless, you’re ahead of the game,” she said.
But don’t stop there, advised Rinomato. To increase your chances of making a sale, “stage” the house to make it as attractive as possible. Until recently, “Staging meant pulling out all the stops-setting the dining table with your best china and crystal, arranging flowers, lighting candles,” she said. “Now we take the minimalist approach. Basically, you want to strip the house to its bare essentials, depersonalize it so potential buyers can superimpose themselves and their lifestyle on the house.”
Rinomato offered the following tips for staging a home:
1. Visit model homes and examine shelter magazines for inexpensive decorating ideas. Always keep in mind you are not decorating for yourself but for the general public.
2. Start with the outside. Give the house a fresh coat of paint, add shiny hardware to the front door and plant a few flowers to send a subliminal message the house is loved and well cared for.
3. Declutter every room to make it look larger. Get rid of family pictures, trophies and knickknacks. Closets and drawers should be no more than 30% full.
4. Invest in eco-friendly but bright lights. Open the drapes or remove them completely. “Light, bright rooms give the impression this is a happy place-and everyone wants to move into a happy place,” said Rinomato.
5. Feature only a few pieces of furniture with mainstream appeal. Pull pieces away from walls to make rooms look bigger.
6. Make sure a room’s primary use is obvious. A bedroom should look like a bedroom, not an office, hobby center or gym.
7. Bedrooms and kitchens are difficult to stage because they are in daily use, but make the effort. Clear everything off the counters and nightstands, roll up the rugs and hide the laundry hamper. Buff the cabinets with car wax and clean under the sinks. Invest in pristine white bed linens and towels.
8. Minimize the “pet effect.” Remove food bowls and litter boxes to the utility room. Deodorize thoroughly.
9. Organize the utility room and garage. Hang up the bicycles, roll up the hose. Renting a storage locker is worth the cost if it helps you sell faster and for a higher price.
10. Once your house is staged, invite your friends or Realtor over and walk them through to get an objective opinion.
Compliments of RISMEDIA March 19th 2010
Real Estate Cyber Tricks
In a recent Consumer Reports survey about everyday annoyances, with 10 being “annoys you tremendously,” respondents rated the failure to get a human being on a customer service line an 8.6, second only to hidden fees (8.9) and more irritating than spam e-mail (7.5) and inaccurate meteorologists (4.3), which was at the bottom of the list. Check out a free service that puts you in control of your time on this issue, plus other great cyber tricks and tips at: http://www.recyber.com/cybertips/r6011
Valley Mortgage Rates Improve
Currently for Phoenix, Arizona (as of 1/15/2011)
30 Year Fixed Rate: 4.75% (5.75% Jumbo)
5/1 Arm: 3.75% (Fixed for 5 Years than adjusts)
4.0% Jumbo Financing (7/1 Arm – with 25% Down)
15 Year Fixed Rate: 4.00%
Important Consumer Mortgage Information
- The Facts Your Credit Score – A Must Read
- Buying a Home After Foreclosure
- Fannie Mae “Know Your Options” Website up and Running
Know ANYONE who is Struggling with their Mortgage?
Do you know anyone who is struggling with their mortgage and needs counsel – without cost or obligation? Please give them my name and number. As a holder of the CDPE (Certified Distressed Property Expert) designation, the SFR (Short Sale and Foreclosure Resource) Certification and everyday practical knowledge of handling them, I can help. All interviews are confidential. There are strong consequences if folks just walk away from their mortgage. Call Mike Bodeen at 602-689-3100 for more info.
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