Gayle Henderson
M E T R O
Presents
P H O E N I X
2009 Metro Phoenix Economic Snapshot Mid-Year Update Recently I participated on a national audio conference. The four-member panel included National Vice Presidents of short sale/foreclosure operations in two major lending institutions, a real estate and mortgage research analyst and myself; moderated by a national mortgage newsletter editor. With my short sale expertise and dedication to helping homeowners avoid foreclosure, I am impressed with the strategies in place by these two major lenders. Their commitment to the short sale process is a shift to assist in stabilizing the local housing communities through short sales. I still hear statements that short sale and foreclosure are the same. Nothing could be further from the truth. Bottom line: the foreclosure is more costly to the homeowner, the community and the lender. A home that sells in a short sale triggers both a 1099 for the lender’s total loss and in many instances a deficiency judgment for the lender loss can be pursued as a collectible debt. Not all residential properties in Arizona on 2.5 acres or less, carry debt that escapes deficiency judgments. A lender’s loss in a short sale is proven, in the majority of cases, to be less than when it goes to foreclosure. The majority of short sales are in better condition and look like a normal sale except with a contingency that the seller’s lender approve the sale for less than the indebtedness, due to hardship. The foreclosure adds legal costs, eviction costs, cleanup costs, maintenance and carrying costs at an average of nearly six months or longer. At the end of the process with a trustee-authorized sale to the end buyer, a 1099 is still issued to the foreclosed owner and a deficiency judgment may still be enforceable all at a significantly higher cost (perhaps 30% or greater loss than at the short sale level). As we reflect, mid-year, on the state of the economy - nationally, regionally and locally, we see the combined efforts at all levels is critical to healing the housing crisis at neighborhood levels. I am pleasantly surprised when neighbors of a property facing foreclosure are hoping for a successful short sale. The public is now more aware that the short sale today may become the foreclosure in several months, devalued even more, with greater economic damage to the neighborhood. The distressed property sales define the current market. Each month nearly 80% of the sales represent REO (bank-owned) and short sales. 50% of the inventory is non-distressed and yet represents less than 20% of a single month’s sales. The brisk activity is truly under $300,000. And the challenge that faces the luxury market is squarely rooted in the statistics. Throughout the first seven months, sales over $400,000 represent less than 4% of total sales. To compete in today’s market, a Seller must be laser-perfect on list price demonstrating true value to the buyer who will not overpay for anything in today’s economy.
THE GAYLE HENDERSON GROUP ABR • CRS • GRI • e-Pro • CLHMS • CDPE RE/MAX Excalibur 8510 E. Shea Blvd. #100 • Scottsdale, AZ 85260
602.850.4335
gayle@AZMovingPlan.com AZAvoidForeclosureNow.com If your home is currently listed, this is not a solicitation for that listing.
2009 January - June Average Sales Price By City Glendale: $126,024 Phoenix: $116,750 Mesa: $159,694 Peoria: $190,949 Litchfield Park: $207,062 Gilbert: $226,160 Tempe: $222,620
M I D -Y E A R U P D AT E
Chandler: $237,766 Cave Creek: $365,692 Fountain Hills: $517,820 Scottsdale: $567,147 Carefree: $720,204 Paradise Valley: $1,695,616 Statistics gathered from ARMLS. All information deemed reliable but not guaranteed. (Single-Family Residences)
2009 January - June Sales Statistics By Community Community
Average Sales Price
Days On Market
List/Sell Price Ratio
# Closed
Ancala.........................................$1,032,083.................. 332...................88%...........................12 Bellasera.........................................$556,666.................. 217...................94%............................3 Boulders.......................................$1,410,000.................. 253...................75%............................5 DC Ranch...................................$1,176,515.................. 198...................91%...........................53 Desert Highlands........................$1,471,666 ................ 186...................90%............................9 Desert Mountain.........................$1,969,599.................. 220...................87%...........................30 Eagle Mountain.............................$648,217.................. 139...................90%...........................10 Estancia.......................................$1,964,142 ................ 354...................76%............................7 FireRock.......................................$1,423,195 ................ 335...................87%...........................20 Gainey Ranch............................$1,165,571.................. 246...................87%............................7 Grayhawk......................................$688,531.................. 134...................94%...........................45 Hidden Hills.....................................$444,233.................. 144...................94%............................6 Ironwood Village...........................$352,795.................. 168...................95%...........................21 Legend Trail....................................$464,491.................. 110...................94%...........................10 McCormick Ranch........................$491,249.................. 147...................93%...........................11 McDowell Mountain Ranch.........$534,114.................. 143...................94%...........................78 Mirabel........................................$1,254,135.................. 369...................89%...........................11 Scottsdale Mountain....................$686,515.................. 169...................92%...........................18 Scottsdale Ranch..........................$639,343.................. 156...................93%...........................22 Sincuidados...................................$867,500.................. 201...................93%............................4 Silverleaf......................................$2,860,043.................. 397...................86%...........................14 Stonegate......................................$545,492.................. 209...................95%...........................14 Terravita..........................................$532,111.................. 147...................91%...........................31 Troon North.....................................$796,563.................. 246...................89%...........................30 Troon Village..................................$778,386.................. 323...................95%...........................12 Whisper Rock..............................$1,970,000.................. 379...................87%............................3 Winfield...........................................$645,000.................. 238...................91%............................3 Statistics gathered from ARMLS. All information deemed reliable but not guaranteed. (Single-Family Residences)
Produced by Desert Lifestyle Publishing • 480.460.0996
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