The Aladin Group has come out with a new youtube blog series called “5 Things Your Realtor CAN’T Tell You!” Subscribe to their channel HERE! Check out Part 1 of 5 below! Enjoy!
This series will be very helpful for prospective buyers! There are some great questions that need to be asked but Realtors can’t legally or morally give the answers to.
Check out some other YouTube Videos of Properties for sale!
Here is a snapshot of sales from 2009 in Maricopa County, separating short sales, foreclosures and “regular” sales. Sales have increased by approximately 30% from 2008 to 2009. In 2010, short sales and foreclosures will continue to dominate the number of sales. In looking at the graph below, short sales picked up dramatically and were almost 1/4 of our sales in December. I expect the number of short sales to rise even more this year and make up perhaps half of all sales! Pricing has been flat the last several months but if the foreclosures and short sales continue to dominate the market, some areas have not seen the worst of it (whereas areas like Old Town Scottsale may continue to remain flat). I like to be positive and think 2008 was the worst of it!! 
| Total Sales | $1-$399,999 | $400,000+ | REO Sales | Short Sales | |
| Jan | 4,285 | 3,989 | 296 | 2,881 (67%) | 396 (9.2%) |
| Feb | 4,869 | 4,525 | 344 | 3,278 (67%) | 444 (9.1%) |
| March | 6,881 | 6,504 | 377 | 4,709 (68%) | 690 (10%) |
| April | 7,655 | 7,222 | 433 | 5,108 (66.7%) | 774 (10.1%) |
| May | 8,338 | 7,852 | 486 | 5,349 (64%) | 947 (11.45%) |
| June | 8,254 | 7,706 | 548 | 4,804 (58.2%) | 1,118 (13.5%) |
| July | 7,989 | 7,440 | 548 | 4,246 (53.1%) | 1,344 (16.8%) |
| Aug | 7,076 | 6,609 | 467 | 3,641 (51%) | 1,353 (19%) |
| Sept | 6,948 | 6,464 | 484 | 3,331 (48%) | 1,363 (19.6%) |
| Oct | 7,024 | 6,559 | 465 | 3,116 (44%) | 1,379 (19.6%) |
| Nov | 6,506 | 6,078 | 428 | 2,637 (41%) | 1,325 (20%) |
| Dec | 6,551 | 6,071 | 480 | 2,803 (43%) | 1,517 (23%) |
In 2010, expect short sales to be even more mainstreamed than 2009. What a change in 2009! According to the AZ Republic and real-estate analyst Mike Orr, “pending short sales, including all of the deals under contract, reached 9,343 in October, compared with 1,448 in January. Almost 40 percent of the homes currently for sale in the Phoenix area are properties homeowners are trying to sell to avoid foreclosure.”
Short Sales are expected to rise in 2010 while foreclosures are on the decline. The chart below shows a slight increase in short sales toward the end of 2009 while REO sales are slightly down.
|
July-09 |
Aug-09 |
Sep-09 |
Oct-09 |
Nov-09 |
|
|
Total Single Family Home Sales |
7,989 |
7,076 |
6,948 |
7,024 |
6,506 |
|
Less than $399,999 |
7,440 (93.1%) |
6,609 (93%) |
6,464 (93%) |
6,559 (93%) |
6,078 (93%) |
|
$400,000 and above |
548 |
467 |
484 |
465 |
428 |
|
REO sales and % of total sales |
4,246 (53.1%) |
3,641 (51%) |
3,331 (48%) |
3,116 (44%) |
2,637 (41%) |
|
Short Sales and % of total sales |
1,344 (16.8%) |
1,353 (19%) |
1,363 (19.6%) |
1,379 (19.6%) |
1,325 (20%) |
In terms of negotiations, most short sales are averaging less than 3 months to get a decision, whereas some banks will respond more quickly and others take even longer. The federal government has been incenting banks for over six months to close short sales, similar to the monies the banks were receiving for homes that were foreclosed.
As we enter this new year and an expected increase of distressed homes, we need to put our faith in the banks to help close more short sales and loan modifications. More short sales and less foreclosures will help our market rebound more quickly.
What is on the horizon for interest rates this year?
What will happen with home loan rates is probably the easiest prediction to make for 2010…they will move 
higher! The Federal Reserve’s Mortgage Backed Security purchasing program is set to expire in March of this year. We have already seen rates trend higher with the Fed’s reduced purchasing power in the market.
Even though rates are expected to move higher, they won’t necessarily do so in a predictable manner but instead will move in waves and continue to be extremely volatile (this is so much fun when this happens!). The anticipated range for rates is broad, with lows being around 5% and the highs reaching 6.5%. While rates are no longer at the historical lows of 2009, they are still incredibly low right now but they won’t be for long. If you are on the fence, act now or be prepared to pay a higher rate in the future.
By: Kelly Zitlow, Suburban Mortgage, BK #10123
Could there be “light at the end of the tunnel” when it comes to selling your home via short sale? If you do not qualify for a home loan modification, there is a chance the bank will provide a pre-approved short sale which will streamline the sale of your home. No more waiting months and months for a short sale decision! Could it be this easy? Expect to see more on this topic…
Read the full article “Treasury Releases Guidance for Making Home Affordable Short Sales.”
