The Tucson Association of Realtors has released the Residential Sales Statistics for April. The $8,000 tax credit for first time buyers really had its intended effect: number of homes sold was up 31% from April 2009. Buyers needed to be in escrow by April 30 to get this tax credit, and will need to close by June 30, so the strong numbers will continue for a few more months. What happens then, no one knows for sure.
The tax credit also helped stabilize home prices. Average sale price was $199,986, which is 4% higher than April 2009. At $159,000, the median home price is 2% lower than last April, but almost 1% more than in March 2010.
FHA financing, with allows loans up to $316,000, accounted for 30% of the sales. Conventional financing (not insured by FHA or VA) was 31% of the sales. A whopping 27% of buyers paid cash. So many of my buyers who wanted to buy their first home this spring were been beaten out by investors who paid cash for foreclosed and otherwise distressed properties. Most of these houses that sold for cash would not qualify for financing because they are in terrible condition. The fixer upper bargains that can be bought with cash are astounding. Houses priced under $100,000 that are move-in ready are rare.
Eighty-six percent of the sales were under $300,000. Hmm, do you think the $316,000 limit on FHA loans has anything to do with that?
The easiest place to sell a house was in zip codes 85706, 85714 and 85741, where over 38% of the houses on the market sold last month. These areas are in South Tucson. In the Tucson metro area, the lowest rate of turnover was in Northeast Tucson zip codes 85749 and 85750, Central Tucson west of First Ave (85705) and the West Foothills (85718). In these zip codes, fewer than 13% of the active listings sold. Rural areas are struggling even more. In all the Tucson MLS, 19% of the active listings sold, or 1,227 sales out of 6,603 listings.
Saturday, May 15, 2010
Wednesday, May 12, 2010
834 S Lehigh Drive
What an opportunity for you. This three bedroom, two bath home is in good condition at a bargain price. Solid adobe construction and located in a quiet neighborhood near Park Mall. The sunny and spacious oak kitchen has plenty of storage, with more cabinets in the laundry room, right next to the built-in desk. The kitchen is open to the dining area, which has a sliding door leading out to the covered patio.
Just enough lawn to provide an oasis. Bougainvillea, orange tree and shade trees on irrigation.
New ceiling fans and light fixtures.
Ceramic tile everywhere but the bedrooms. Upgraded shower and tub surrounds. Half of the roof was replaced in 2007. Gas heat and evaporative cooler. The air conditioner was installed in 2006.
Close to Palo Verde Park with its walking path, numerous playing fields, play ground and picnic tables. Hey, isn't that snow on the Catalinas spectacular?
This fine home sold for the unbelievably low price of $133,000 in September 2010.
Sunday, May 9, 2010
FlexMLS
Last Monday, Tucson Association of Realtors switched us to a new Multiple Listing Service software provider, called FlexMLS. Chaos has ensued. Nobody, not even the people at tech support, can explain how to do the simplest things. It took three days for me to do a comparative market analysis on my most recent listing. See the delightful 10660 E Rusty Spur Drive, posted below. I had to scribble all over my listing presentation because the new system does not display the information we need. I used to be able to prepare a listing presentation in about four hours, and it would look great. FlexMLS needs a lot of improvement.
If you were receiving auto-prospecting listings from me by e-mail, and they abruptly ceased on Monday, this is the reason. Unlike previous switches to new MLS systems, this time, our prospect searches were not carried over to the new system, so I need to enter them all over again. I'm running as fast as I can.
If you were receiving auto-prospecting listings from me by e-mail, and they abruptly ceased on Monday, this is the reason. Unlike previous switches to new MLS systems, this time, our prospect searches were not carried over to the new system, so I need to enter them all over again. I'm running as fast as I can.
Friday, April 23, 2010
I've Moved to Keller Williams. Or Did KW Move to Me?
On March 9, the agents of Realty Executives Southern Arizona, where I had happily worked for five years, were told that the owner had done a year of research and decided that Realty Executives was not the franchise he wanted to own, and henceforth his company would be affiliated with Keller Williams Realty. This was stunning news to all involved.
At the time, Keller Williams was virtually unknown in Tucson. However, it is the third largest real estate company in the United States, behind Coldwell Banker and Century 21. According to REAL Trends 500 Report, from 2008 to 2009, Keller Williams Realty gained 6% in number of transactions, 35% in number of offices, and 19% in number of agents, while all the other national realty estate companies lost market share in those areas. Coldwell Banker's transactions declined 32%, they lost 18% of their offices and 25% of their agents in that one year. The numbers for Realty Executives were -32%, -35% and -32%. I had no idea. Realty Executives had steadily been gaining market share in Tucson for the past five years.
The same day that Keller Williams Southern Arizona was born, Realty Executives International opened a new office on Oracle Road. About 70 agents from the old Realty Executives are now with the new Realty Executives. Of the 317 agents that were with the old Realty Executives on March 10, at least 234 have moved to Keller Williams Southern Arizona. I am one of them. I still have my sweet office overlooking River Road, and I still get to work with the wonderful mentors I've come to admire and appreciate over the past five years.
Keller Williams's business model is more agent-centric than that of any other real estate company. The agents make decisions about company management through the Agent Leadership Council, which is open to the top 20% of the company's agents. Yesterday I went to a meeting to learn more about the ALC so I can decide whether I want to participate this year.
We agents are receiving lots of training, and will be eligible for profit sharing. While of course the company wants its agents to be profitable and successful, success is defined by our quality of life. This is quite different from the usual emphasis of working harder to make more money.
But this isn't all about the agents. Of course, we agents need to give superior customer service in order to have successful businesses and the rewarding lives that successful businesses can fund. For the past two years, Keller Williams Realty has won the J. D. Power award for Highest Overall Satisfaction for Home Buyers.
So, I invite you to join me on this journey. Keller Williams intends to be the leading real estate company in Southern Arizona within three years. Can you help? Who do you know who is thinking of buying or selling a house? Please let me know, and you can be assured that as usual, I will treat his or her real estate transaction as if it were my own.
At the time, Keller Williams was virtually unknown in Tucson. However, it is the third largest real estate company in the United States, behind Coldwell Banker and Century 21. According to REAL Trends 500 Report, from 2008 to 2009, Keller Williams Realty gained 6% in number of transactions, 35% in number of offices, and 19% in number of agents, while all the other national realty estate companies lost market share in those areas. Coldwell Banker's transactions declined 32%, they lost 18% of their offices and 25% of their agents in that one year. The numbers for Realty Executives were -32%, -35% and -32%. I had no idea. Realty Executives had steadily been gaining market share in Tucson for the past five years.
The same day that Keller Williams Southern Arizona was born, Realty Executives International opened a new office on Oracle Road. About 70 agents from the old Realty Executives are now with the new Realty Executives. Of the 317 agents that were with the old Realty Executives on March 10, at least 234 have moved to Keller Williams Southern Arizona. I am one of them. I still have my sweet office overlooking River Road, and I still get to work with the wonderful mentors I've come to admire and appreciate over the past five years.
Keller Williams's business model is more agent-centric than that of any other real estate company. The agents make decisions about company management through the Agent Leadership Council, which is open to the top 20% of the company's agents. Yesterday I went to a meeting to learn more about the ALC so I can decide whether I want to participate this year.
We agents are receiving lots of training, and will be eligible for profit sharing. While of course the company wants its agents to be profitable and successful, success is defined by our quality of life. This is quite different from the usual emphasis of working harder to make more money.
But this isn't all about the agents. Of course, we agents need to give superior customer service in order to have successful businesses and the rewarding lives that successful businesses can fund. For the past two years, Keller Williams Realty has won the J. D. Power award for Highest Overall Satisfaction for Home Buyers.
So, I invite you to join me on this journey. Keller Williams intends to be the leading real estate company in Southern Arizona within three years. Can you help? Who do you know who is thinking of buying or selling a house? Please let me know, and you can be assured that as usual, I will treat his or her real estate transaction as if it were my own.
Saturday, March 20, 2010
Daisies
African daisies, a warm spring day, the song of a mocking bird. I feel sorry for anyone who isn't in Tucson today.
Sunbeam has spring fever, too.
Mortgage Rates Could Spike When Government Subsidy Ends This Month
This is by Alan J. Heavens in the Philadelphia Inquirer.
As the spring real estate season kicks in and the tax credit deadline for sale agreements approaches, the government is ending a program that has kept interest rates low and housing-affordability levels high for months.
On March 31, the Federal Reserve will stop buying mortgage-backed securities from Fannie Mae and Freddie Mac, returning control of interest rates to private investors.
For months, industry observers have predicted that once government supports are removed, interest rates will rise quickly, pushing many of the first-time buyers critical to housing’s recovery out of the market.
In late summer and fall 2009, lured by fixed 30-year mortgage rates under 5% and the first $8,000 tax credit, which expired Nov. 30, first-timers pushed sales of previously owned homes to the highest levels in at least three years, reducing record inventories and braking price declines.
That tax credit was renewed Nov. 5 and expanded to buyers who had not purchased a property in five years, although the credit for repeat buyers is $6,500. The second credit expires April 30, is unlikely to be renewed, and remains the engine moving buyers.
As the date for the Fed pullout approaches, analysts now generally agree that an immediate rate spike is no longer the likely result. “We think there will be a significant increase in private demand for mortgage-backed securities to take the place of the Fed,” said David Berson, chief economist at PMI Group in Walnut Creek, Calif. Not enough to offset the Fed’s departure, he said, with rates possibly increasing a quarter of a percentage point, “but a significant one.”
On the other hand, said Holland, Pa.-based economist Joel L. Naroff, low rates are not sustainable, and “the only way to get the market to stand on its own is to get people to become realistic again about prices and rates.” Rates will likely rise, but “the level will still be historically low,” Naroff said.
When rates do rise, likely by year’s end, it won’t be because of the Fed’s action, but “natural macroeconomic forces” like a recovering economy and the high budget deficit, said Lawrence Yun, National Association of Realtors chief economist.
Many Fed officials have emphasized that “high unemployment and tame inflation warrant a continued promise to hold rates very low for a long time,” said Peter Buchsbaum, of Arlington Capital Mortgage in Horsham, Pa.
As the spring real estate season kicks in and the tax credit deadline for sale agreements approaches, the government is ending a program that has kept interest rates low and housing-affordability levels high for months.
On March 31, the Federal Reserve will stop buying mortgage-backed securities from Fannie Mae and Freddie Mac, returning control of interest rates to private investors.
For months, industry observers have predicted that once government supports are removed, interest rates will rise quickly, pushing many of the first-time buyers critical to housing’s recovery out of the market.
In late summer and fall 2009, lured by fixed 30-year mortgage rates under 5% and the first $8,000 tax credit, which expired Nov. 30, first-timers pushed sales of previously owned homes to the highest levels in at least three years, reducing record inventories and braking price declines.
That tax credit was renewed Nov. 5 and expanded to buyers who had not purchased a property in five years, although the credit for repeat buyers is $6,500. The second credit expires April 30, is unlikely to be renewed, and remains the engine moving buyers.
As the date for the Fed pullout approaches, analysts now generally agree that an immediate rate spike is no longer the likely result. “We think there will be a significant increase in private demand for mortgage-backed securities to take the place of the Fed,” said David Berson, chief economist at PMI Group in Walnut Creek, Calif. Not enough to offset the Fed’s departure, he said, with rates possibly increasing a quarter of a percentage point, “but a significant one.”
On the other hand, said Holland, Pa.-based economist Joel L. Naroff, low rates are not sustainable, and “the only way to get the market to stand on its own is to get people to become realistic again about prices and rates.” Rates will likely rise, but “the level will still be historically low,” Naroff said.
When rates do rise, likely by year’s end, it won’t be because of the Fed’s action, but “natural macroeconomic forces” like a recovering economy and the high budget deficit, said Lawrence Yun, National Association of Realtors chief economist.
Many Fed officials have emphasized that “high unemployment and tame inflation warrant a continued promise to hold rates very low for a long time,” said Peter Buchsbaum, of Arlington Capital Mortgage in Horsham, Pa.
Tuesday, February 9, 2010
January Residential Sales Statistics
The Tucson Association of Realtors has released the Residential Sales Statistics for January.
Average sales price was the same as in December, and at $201,219, was 2.37% lower than than January 2009. Median sale price was $160,000, which is 3.9% more than in December, and 1.84% less than January 2009.
With 6,618 active listings and 712 sales in January, we have a nine month supply of listings. This is the highest supply we have seen in months. The high inventory can be explained by the 2,424 new listings that came on the market last month, a 35% increase from the previous January. Fortunately, last month also saw a 16% increase in units sold compared to a year ago.
An interesting new table was added to the statistics this month. On page 2, you can see the percentage of active listings that sold in January, arranged by zip code. The highest inventory reduction was southeast of Irvington and I-19 in 85706, where 27% of the listings sold. Unfortunately, 20 of the 34 sales, or 59% were bank-owned houses, meaning the previous owner lost the house to foreclosure. The second highest inventory reduction was southwest of Irvington and I-19 in 85746, where 22% of the listings sold, with 17 out of 30, or 57% of the sales being foreclosures.
I was shocked to find that ever-popular 85719 along Campbell Avenue had the lowest rate of inventory reduction, with only 6 out of 171 listings, or 3.5% sold last month.
As usual, most of the demand is for houses priced under $250,000. With 4,975 listings and 543 sales in this price range, we have a nine month supply.
In the $250,000 to $500,000 range, we have 1,788 listings and 140 sales, for a 13 month inventory.
A 35 month supply plagues owners of homes priced over $500,000, with 1,010 listings and only 29 sales in January
Average sales price was the same as in December, and at $201,219, was 2.37% lower than than January 2009. Median sale price was $160,000, which is 3.9% more than in December, and 1.84% less than January 2009.
With 6,618 active listings and 712 sales in January, we have a nine month supply of listings. This is the highest supply we have seen in months. The high inventory can be explained by the 2,424 new listings that came on the market last month, a 35% increase from the previous January. Fortunately, last month also saw a 16% increase in units sold compared to a year ago.
An interesting new table was added to the statistics this month. On page 2, you can see the percentage of active listings that sold in January, arranged by zip code. The highest inventory reduction was southeast of Irvington and I-19 in 85706, where 27% of the listings sold. Unfortunately, 20 of the 34 sales, or 59% were bank-owned houses, meaning the previous owner lost the house to foreclosure. The second highest inventory reduction was southwest of Irvington and I-19 in 85746, where 22% of the listings sold, with 17 out of 30, or 57% of the sales being foreclosures.
I was shocked to find that ever-popular 85719 along Campbell Avenue had the lowest rate of inventory reduction, with only 6 out of 171 listings, or 3.5% sold last month.
As usual, most of the demand is for houses priced under $250,000. With 4,975 listings and 543 sales in this price range, we have a nine month supply.
In the $250,000 to $500,000 range, we have 1,788 listings and 140 sales, for a 13 month inventory.
A 35 month supply plagues owners of homes priced over $500,000, with 1,010 listings and only 29 sales in January
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