Valleywide, all dwellings

Actives: 56,541

Unsold: 51,099

Under Contract in the Last 30 Days: 5,442 (10% of actives)

Valleywide, single family dwellings

Actives: 46,429

Unsold: 41,706

Under Contract in the Last 30 Days: 4,723 (10% of actives)

Valleywide, luxury homes

Actives: 3,309

Unsold: 3,152

Under Contract in the Last 30 Days: 157 (5% of actives)

East Valley, all dwellings

Actives: 19,562

Unsold: 17,439

Under Contract in the Last 30 Days: 2,123 (11% of actives)

Analysis

Although there are no major market changes to report again this week, that’s not necessarily bad news.  The number of homes under contract valleywide increased again this week, and the percentage of homes under contract held at 10%.  Ideally of course, sellers would benefit more if the Phoenix housing inventory were to actually decrease.  And it looked as though the inventory was headed down during our Phoenix MLS Housing Inventory Update on March 3, 2008, but apparently it was a brief trend.

Looking at this from another angle, however, buyers can benefit from the increasing inventory and therefore sellers’ increasing frustration.  If you’re thinking about buying in the next year, don’t miss out on the advantages of a market like this: still favorable mortgage rates, recent drop in median home sales price, nearly 10.4 months of housing inventory…

Valleywide, all dwellings

Actives: 56,290

Unsold: 50,924

Under Contract in the Last 30 Days: 5,366 (10% of actives)

Valleywide, single family dwellings

Actives: 46,244

Unsold: 41,600

Under Contract in the Last 30 Days: 4,644 (10% of actives)

Valleywide, luxury homes

Actives: 3,305

Unsold: 3,148

Under Contract in the Last 30 Days: 157 (5% of actives)

East Valley, all dwellings

Actives: 19,477

Unsold: 17,341

Under Contract in the Last 30 Days: 2,136 (11% of actives)

Analysis

As you probably noticed, there’s a lot of the same news to report this week as there was last week.  It was positive news, though, so we’ll take “more of the same” in this case.  To show you what we mean by “positive,” this week the number of homes for sale in the Greater Phoenix Area is up by a mere .05%, while the number of homes under contract is up by 3.8%.

Notable still is the greater percentage of Phoenix East Valley homes selling compared to the percentage of Valleywide homes selling.  An impressive 11% of East Valley homes are under contract this week!  If you look back at the Phoenix real estate market since October 2007, you’ll find that East Valley homes have been going under contract at a comparable or greater rate than the rest of the Valley.  Looking for more information on which areas within Phoenix are selling faster?  Or on which areas have seen the greatest increase in appreciation?  FOR THIS INFORMATION AND MORE, CONTACT The Hill Group TODAY!

Valleywide, all dwellings

Actives: 55,989

Unsold: 50,818

Under Contract in the Last 30 Days: 5,171 (9% of actives)

Valleywide, single family dwellings

Actives: 46,000

Unsold: 41,550

Under Contract in the Last 30 Days: 4,450 (10% of actives)

Valleywide, luxury homes

Actives: 3,277

Unsold: 3,130

Under Contract in the Last 30 Days: 147 (4% of actives)

East Valley, all dwellings

Actives: 19,455

Unsold: 17,418

Under Contract in the Last 30 Days: 2,037 (10% of actives)

Analysis

The number of active homes for sale in the Phoenix area did rise since last week, but so did the number of homes under contract.  So, if there’s a silver lining to this news, it’s that the number of homes under contract increased by a greater percentage than the number of active homes for sale did.

The number of homes selling week-to-week throughout Phoenix does seem to be on a generally upward slope.  In fact, since the beginning of the year, the percentage of homes under contract out of the total number of homes for sale has increased from 5% to 9%.  Buyer activity is slowly increasing, while listing activity is slowly leveling off.

Valleywide, all dwellings

Actives: 55,690

Unsold: 50,911

Under Contract in the Last 30 Days: 4,779 (9% of actives)

Valleywide, single family dwellings

Actives: 45,708

Unsold: 41,598

Under Contract in the Last 30 Days: 4,110 (9% of actives)

Valleywide, luxury homes

Actives: 3,253

Unsold: 3,119

Under Contract in the Last 30 Days: 134 (4% of actives)

East Valley, all dwellings

Actives: 19,366

Unsold: 17,494

Under Contract in the Last 30 Days: 1,872 (10% of actives)

Analysis

Headed in a new direction, the active Phoenix housing inventory has actually decreased since last week.  Can you believe it?  Believe it!  Going along with that trend, the number of unsold listings decreased as well.

Not only did the total number of active listings across Phoenix decrease, the number of active listings also decreased in the micro-markets that we track, which include Single Family Homes, Luxury Homes, and East Valley Homes.  More exciting signs of a market trying to normalize!

The person who was to become St. Patrick, the patron saint of Ireland, was born in Wales about AD 385.  His given name was Maewyn, and he almost didn’t get the job of bishop of Ireland because he lacked the required scholarship.

Far from being a saint, until he was 16, he considered himself a pagan.  At that age, he was sold into slavery by a group of Irish marauders that raided his village.  During his captivity, he became closer to God.

He escaped from slavery after six years and went to Gaul where he studied in the monastery under St. Germain, bishop of Auxerre for a period of twelve years.  During his training he became aware that his calling was to convert the pagans to Christianity.

His wishes were to return to Ireland, to convert the native pagans to Christianity.  But his superiors instead appointed St. Palladius.  But two years later, Palladius transferred to Scotland.  Patrick, having adopted that Christian name earlier, was then appointed as second bishop to Ireland.

Patrick was quite successful at winning converts.  And this fact upset the Celtic Druids.  Patrick was arrested several times, but escaped each time.  He traveled throughout Ireland, establishing monasteries across the country.  He also set up schools and churches which would aid him in his conversion of the Irish country to Christianity.

His mission in Ireland lasted for thirty years.  After that time, Patrick retired to County Down.  He died on March 17 in AD 461.  That day has been commemorated as St. Patrick’s Day ever since.

Much Irish folklore surrounds St. Patrick’s Day.  Not much of it is actually substantiated.

Some of this lore includes the belief that Patrick raised people from the dead.  He also is said to have given a sermon from a hilltop that drove all the snakes from Ireland.  Of course, no snakes were ever native to Ireland, and some people think this is a metaphor for the conversion of the pagans.  Though originally a Catholic holy day, St. Patrick’s Day has evolved into more of a secular holiday.

One traditional icon of the day is the shamrock.  And this stems from a more bona fide Irish tale that tells how Patrick used the three-leafed shamrock to explain the Trinity.  He used it in his sermons to represent how the Father, the Son, and the Holy Spirit could all exist as separate elements of the same entity.  His followers adopted the custom of wearing a shamrock on his feast day.

The St. Patrick’s Day custom came to America in 1737.  That was the first year St. Patrick’s Day was publicly celebrated in this country, in Boston. 

Today, people celebrate the day with parades, wearing of the green, and drinking beer.  One reason St. Patrick’s Day might have become so popular is that it takes place just a few days before the first day of spring.  One might say it has become the first green of spring.

1.  Tax breaks.  The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, as well as some of the costs involved in buying your home.

2.  Gains.  Over last five years (1998-2002) national home prices have increased at an average of 5.4 percent annually.  And while there’s no guarantee of appreciation, a 2001 study by the National Association of REALTORS® found that the typical homeowner has approximately $50,000 of unrealized gain in a home.

3.  Equity.  Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4.  Savings.  Building equity in your home is a ready-made savings plan.  And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5.  Predictability.  Unlike rent, your mortgage payments don’t go up over the years so your housing costs may actually decline as you own the home longer.  However, keep in mind that property taxes and insurance costs will rise.

6.  Freedom.  Homeowners can paint their walls yellow.  The home is yours.  You can decorate any way you want and be able to benefit from your investment for as long as you own the home.

7.  Stability.  Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Have you read the TIME magazine article, “Ignore the Headlines” yet?  We ask, because on this blog we’ve been collecting data and cases for why you should buy in 2008.  We’ve discussed down payment assistance programs still in place to help low and moderate income homebuyers, the window of opportunity available in a buyer’s market like the one we’re in right now, and recent studies that identified Phoenix as one of the 10 best real estate markets in which to buy

Dan Kadlec with TIME magazine must have been reading our blog all along (or gathering his own independently researched data),  because his article also recognizes the advantage that buyers have right now.  In doing so, he makes an important observation that we have yet to cover.  Many buyers or want-to-be-buyers are thinking that they can time the real estate market for the perfect entry point.  Unfortunately, as Jim Svinth, the chief economist at Lending Tree, points out, “The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher.”  Kadlec then demonstrates with a simple two-possibility scenario that waiting for the real estate market to hit bottom may save you money on your final sales price, but lose you money because of inevitably rising mortgage rates.  In his example, the gamble simply does not pay off.

If you’ve already realized the benefits of homeownership, and are financially ready to purchase a home, ignore the headlines (except here, of course), start working with a Phoenix area REALTOR, and make the smart move today!

According to a press release issued by AmeriDream on February 28, 2008, United States District Court Judge Paul L. Friedman made an oral statement earlier that day confirming his original injunction to prevent a HUD regulation banning down payment assistance programs.  When issuing the injunction back in October of 2007, Judge Friedman stated the Department of Housing and Urban Development’s regulation lacked a “reasoned analysis” and was based on “flimsy support.”  Although Judge Friedman has not made his final ruling on the matter, which he was expected to do on or before February 29, 2008, his injunction will remain in place until that ruling is issued.  For more information about how down payment assistance programs like Ameridream help low and moderate income individuals and families purchase their own homes, read our post titled ”How AmeriDream’s Down Payment Assistance Program is Helping the Real Estate Market.”

If you’re going to list your home in this market, you know that you’re going to need more than a sign in your front yard and granite countertops.  Selling for top dollar in a real estate market with lots of inventory like here in the Greater Phoenix Area means having a competitive edge or two that sets your home apart from the others.  In Get Your Home Ready to Sell, Part 1, we talked about why sellers benefit from working with a Realtor.  In Part 2, we’re going to talk about going green so that you can sell your house for more green.

The second competitive edge you will need is a number of upgrades or features that your neighbors may not all have.  Try making your house more environmentally friendly.  Why?  With energy costs rising every year, buyers are becoming more sensitive to a home’s energy efficiency.  In fact, according to The 2007 NAR Profile of Buyers Home Feature Preferences, 92% of all home buyers consider energy efficiency at least somewhat important in their decision to purchase a particular home, and 46% of all home buyers rank energy efficiency as very important.

Hopefully after reading the words “environmentally friendly” and “energy efficiency,” you haven’t started conjuring up images of bulky solar panels and compost piles in your backyard.  Going green can mean replacing your major appliances with those that have been approved by the EPA’s “Energy Star” program, or it can mean implementing indoor water conservation measures.  There are a wide range of energe efficient upgrades that you can make to your home.  Before you make any, you should consult with your Realtor as to which will actually help your home sell faster given your local market conditions.

The best news about going green is that green homes can appeal to homebuyers at all different income levels.  Lower-income buyers need to be taught about energy-efficient mortgages and long-term energy savings, while higher-income buyers respond well to improved indoor air quality and environmental conservation.  Although, more and more buyers are asking about all of these issues.

One of those issues that most buyers would be interested in learning about is an energy-efficient mortgage.  EEM’s allow buyers to buy more home than they could traditionally afford - either through a 2% stretch, which adds future energy savings to income to qualify buyers for 2% more debt, or through flexible loan-to-value ratios, which allows buyers to finance up to 100% of the home’s value.  The FHA, VA, Fannie Mae, and Freddie Mac all sponsor EEM’s for homes that have been certified as energy efficient by an accredited energy rating system.  To be referred to a green lender who offers energy-efficient mortgages, ask your Realtor.

In order to certify your home as energy efficient, hire an energy rater.  There are various energy ratings that an energy rater can use, but one of the most widely used is the Home Energy Rating System (HERS).  The HERS method rates a home on a scale of 0 to 100 by comparing it to a computer model of the same house built to the specifications of the U.S. Department of Energy’s Model Energy Code (www.energycodes.gov).  A score of 80 indicates that the house meets the Model Code.  A score of 86 or higher indicates that the house can be certified as an EPA Energy Star home.

In the end, though, most home buyers are still interested in their bottom line.  Expect to provide real statistics and numbers to show the value of your green upgrades.  If you’re getting your house ready to sell and thinking about going green, work with your Realtor to determine the upgrades that will garner you the highest return on investment and make you the next home to sell in your neighborhood!  Once you’ve decided to go green, you’ll need another competitive edge.  Read about it in Get Your Home Ready to Sell, Part 3.

If you’re going to list your home in this market, you know that you’re going to need more than a sign in your front yard and granite countertops.  Selling for top dollar in a real estate market with lots of inventory like here in the Greater Phoenix Area means having a competitive edge or two that sets your home apart from the others.

The first competitive edge you will need is working with an experienced Phoenix area Realtor.  If you already know why you need to work with a Realtor, feel free to skip to Part 2 of this mini-series.

Statistics show that 88% of sellers in 2006 sold their home with a Realtor, but why should you?  An experienced Realtor should be an expert in your local real estate market.  You pay a doctor because he/she knows how to get you through a cold, you pay a Realtor because he/she knows how to get you through a tough market.  A Realtor listing your home will gather feedback from buyers and other Realtors who have seen your home so that you’re kept up-to-date with the public’s opinion of your home.  A Realtor listing your home will advertise your home in its best light, by inundating the market with objective data about your property: from local community information to utility prices to upgrades your property has (hopefully green upgrades, but we’ll talk about that next).  A Realtor listing your home will help to negotiate the best possible terms for you.  Remember, there are many terms to negotiate when selling a house, including but not limited to price.  Other important factors are the buyer’s financing, earnest deposit, date of possession, repairs, and personal property that will convey with the home.  Lastly, a Realtor listing your home has made a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public.  With a Realtor, you know you can expect honest and ethical treatment in all transaction-related matters.

Once you’ve decided to work with a Realtor, you’ll need another competitive edge.  Read about it in Get Your Home Ready to Sell, Part 2: Go Green.

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