Monday, August 26, 2013
Rocky Point James: Welcome to Rocky Point James - about me and my fav...
Rocky Point James: Welcome to Rocky Point James - about me and my fav...: Thanks for stopping by! - this blog is part of my information source about Rocky Point (Puerto Peñasco), Sonora, Mexico. Today's qui...
Tuesday, May 28, 2013
Market Report - May 2013
Report overview:
This report includes MLS data for the past 36 months in Maricopa County only as provided by the FlexMLS system. Please note that searches fluctuate daily when running these reports; these figures were obtained on 5/3/13.
A reminder that you need to meet with a real estate professional to see how statistics impact the area where you are considering selling or buying – blended statistics will not be as accurate as a more detailed report that your real estate professional can provide to help you with your decision making.
Closed Sales Report Analysis:
Sellers:
April did not follow the same pattern as the prior two years, as we saw an increase in the number of closed sales – an increase of nearly 7.5% over the month of March. The statistics show that we had 7,731 residential homes sell in April in Maricopa County. For sellers, this means that there are fewer homes remaining on the market and that buyers continue to be extremely active and successful.
Buyers:
For buyers, this mean that the shortage of inventory remains as an important factor in buying a home or investment property. Buyers should continue to carefully work with their real estate professional to understand the market AND how they can be competitive with the market demand and other buyers who may be in a financial position that is more appealing to the seller.
April saw the average sales price of a home in Maricopa County increase by 3% from $230,876 to $237,810; this is the highest average in the 36-month reporting period. Sellers need to remain diligent about pricing homes according to the current market and to understand how this increase impacts individual homes. Sellers are encouraged to spend time with their real estate professional to determine what is happening in their local market.
Buyers:
This stat is an indicator that buyers continue to pay more for homes than in the past 36 months. Educated and savvy buyers understand that a competitive market gives them fewer options for home choices, negotiating on price AND looking for concessions from a seller. Although this may vary from area to area AND from price range to price range, buyers need to make sure they are fully informed regarding the individual market in which they have an interest. This will give them the best chance of being competitive in the search for a home.
April saw an increase of 8.3% over the prior month. 1,767 homes left the market without selling. The lower this number, the better sellers are succeeding in selling their homes. This is the second month in a row that we have seen this number increase, so sellers should remain very focused on monitoring their local market to ensure that they are pricing homes and offering terms that are appealing to buyers. This number shows how many sellers “gave up” on offering their homes for sale to potential buyers.
Buyers:
For buyers, be aware that there are 1,767 fewer homes to consider. At a time when inventory continues to shrink, this means an even tighter market for buyers. Buyers can expect more competition and less room for negotiation on price and/or concessions from sellers. A shrinking market means that savvy buyers will understand that they need to be prepared to act quickly on available homes and now that the ability to get a “deal” on this inventory is more than likely not an option. Continue to watch this trend, as this, combined with price, days on market, and list to sales price ratio are an important indicator of what buyers need to do in order to be successful in closing on the home of their dreams.
Distressed Sales
of the debt in order to avoid foreclosure.
The market continues to shift, as we saw 76% of sales in the month of April classified as “non-distressed” sales. This is the highest this has been since this report was first generated several years ago. Bank-owned sales remained at 11% of closed sales, and short sales dropped from 15% to 13%. Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.
This report includes MLS data for the past 36 months in Maricopa County only as provided by the FlexMLS system. Please note that searches fluctuate daily when running these reports; these figures were obtained on 5/3/13.
A reminder that you need to meet with a real estate professional to see how statistics impact the area where you are considering selling or buying – blended statistics will not be as accurate as a more detailed report that your real estate professional can provide to help you with your decision making.
Total # of Closed Sales (36 Month Overview)
(click any graph for larger image)
(click any graph for larger image)
Closed Sales Report Analysis:
Sellers:
April did not follow the same pattern as the prior two years, as we saw an increase in the number of closed sales – an increase of nearly 7.5% over the month of March. The statistics show that we had 7,731 residential homes sell in April in Maricopa County. For sellers, this means that there are fewer homes remaining on the market and that buyers continue to be extremely active and successful.
Buyers:
For buyers, this mean that the shortage of inventory remains as an important factor in buying a home or investment property. Buyers should continue to carefully work with their real estate professional to understand the market AND how they can be competitive with the market demand and other buyers who may be in a financial position that is more appealing to the seller.
Average Sales Price (36 Month Overview)
Average Sales Price Analysis
Sellers:April saw the average sales price of a home in Maricopa County increase by 3% from $230,876 to $237,810; this is the highest average in the 36-month reporting period. Sellers need to remain diligent about pricing homes according to the current market and to understand how this increase impacts individual homes. Sellers are encouraged to spend time with their real estate professional to determine what is happening in their local market.
Buyers:
This stat is an indicator that buyers continue to pay more for homes than in the past 36 months. Educated and savvy buyers understand that a competitive market gives them fewer options for home choices, negotiating on price AND looking for concessions from a seller. Although this may vary from area to area AND from price range to price range, buyers need to make sure they are fully informed regarding the individual market in which they have an interest. This will give them the best chance of being competitive in the search for a home.
Monthly Expired and Cancelled Listings (36 Month Overview)
Expired & Cancelled Listing Analysis
Sellers:April saw an increase of 8.3% over the prior month. 1,767 homes left the market without selling. The lower this number, the better sellers are succeeding in selling their homes. This is the second month in a row that we have seen this number increase, so sellers should remain very focused on monitoring their local market to ensure that they are pricing homes and offering terms that are appealing to buyers. This number shows how many sellers “gave up” on offering their homes for sale to potential buyers.
Buyers:
For buyers, be aware that there are 1,767 fewer homes to consider. At a time when inventory continues to shrink, this means an even tighter market for buyers. Buyers can expect more competition and less room for negotiation on price and/or concessions from sellers. A shrinking market means that savvy buyers will understand that they need to be prepared to act quickly on available homes and now that the ability to get a “deal” on this inventory is more than likely not an option. Continue to watch this trend, as this, combined with price, days on market, and list to sales price ratio are an important indicator of what buyers need to do in order to be successful in closing on the home of their dreams.
Distressed Sales
Distressed Sales Analysis
A bank owned/foreclosure home is one that the seller no longer owns – it
has been taken over by the lender(s) who had a note on the home. Short
sales are homes where the seller is negotiating with the bank to
“forgive” a portionof the debt in order to avoid foreclosure.
The market continues to shift, as we saw 76% of sales in the month of April classified as “non-distressed” sales. This is the highest this has been since this report was first generated several years ago. Bank-owned sales remained at 11% of closed sales, and short sales dropped from 15% to 13%. Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.
Monday, May 13, 2013
"What Are Home Prices Doing?" - Thoughts from a Client Conversation
Spoiler Alert - skip to the bullet list below if you want the answer as I see it....
First, the background = I was speaking with a client yesterday May 12 (yes, I did see my Mom for Mother's Day, we went out Saturday since she had plans with my sister on Sunday); a buyer with over $500,000 in cash, which initially seems like a buyer outside the common challenges of finding and securing a reasonable property for their needs, right?
Bzzzzzzt! Thanks for playing, wrong, we have some lovely door prizes for you on the way out...
Like all humans, this one has some fears - some legitimate, some likely out of proportion to the realistic risk of a certain scenario. As we all do, one of these concerns is if today's "deal" will result in catastrophic loss in a handful of years or less. Since people have short memories, and fear and loss stick stronger than positives and windfalls, I run into this often in regards to the crash of real estate from 5 or 6 yrs ago.
In essence, will what they buy today "crash" and leave them upside down? This is the root of the question, and it has some validity at all price points - after all, if the house you buy today drops to 50% of what you paid for it, that can be viewed as a loss or at minimum a liability instead of an asset as it was intended. No one wants to put themselves in that position if it can be avoided.
So, onward to answering the question!...
I Believe House Prices Will Continue to Rise in My (and Most) Markets - Here's Why!
First - it is POSSIBLE and somewhat likely there will be a tapering off, even slight decline as interest rates go up and the "print all the money we need" strategy gets dialed back (let's not go there this blog). A natural market adjustment, that won't be permanent, and will be healthy in the long run - just like putting a cast on a broken limb seems artificially restrictive at first (because it is), then can be removed once the limb is healed or even somewhat stronger than before.
Second, it is within the realm of statistics that we MAY experience yet another catastrophic crash in real estate. I do NOT believe that is going to happen - we've learned from the last one, and many, many factors I won't go into here are set to prevent that. Nuff said. Now for the good stuff:
First, the background = I was speaking with a client yesterday May 12 (yes, I did see my Mom for Mother's Day, we went out Saturday since she had plans with my sister on Sunday); a buyer with over $500,000 in cash, which initially seems like a buyer outside the common challenges of finding and securing a reasonable property for their needs, right?
Bzzzzzzt! Thanks for playing, wrong, we have some lovely door prizes for you on the way out...
 |
| Survey says! Bzzzzt. |
In essence, will what they buy today "crash" and leave them upside down? This is the root of the question, and it has some validity at all price points - after all, if the house you buy today drops to 50% of what you paid for it, that can be viewed as a loss or at minimum a liability instead of an asset as it was intended. No one wants to put themselves in that position if it can be avoided.
So, onward to answering the question!...
 |
| What Are Home Prices Doing? |
First - it is POSSIBLE and somewhat likely there will be a tapering off, even slight decline as interest rates go up and the "print all the money we need" strategy gets dialed back (let's not go there this blog). A natural market adjustment, that won't be permanent, and will be healthy in the long run - just like putting a cast on a broken limb seems artificially restrictive at first (because it is), then can be removed once the limb is healed or even somewhat stronger than before.
Second, it is within the realm of statistics that we MAY experience yet another catastrophic crash in real estate. I do NOT believe that is going to happen - we've learned from the last one, and many, many factors I won't go into here are set to prevent that. Nuff said. Now for the good stuff:
- House affordability is at an all-time HIGH! - Interest rates are LOW, in fact, even if they DOUBLE they are among the lowest in recorded history. House prices are just now getting above replacement cost (the cost to build the same house on location), and have cleared the margin that new homes are on the market again for the first time in ~3-4 years.
- Major decline in distressed sales and foreclosures - 2012 saw the greater Phoenix market with about 40% of all sales in distressed (short, pre-foreclosure) position or lender-owned, first quarter 2013 has already dropped into the 30-35% range and that quantity is shrinking.
- Low inventory of homes for sale - People just haven't been listing their houses for sale, for many reasons. Supply and demand is pushing those that are for sale into higher price points, which in turn makes some of those previously unable to sell now in position to do so.
- Rise in price and demand of rentals - due to the previous crash, we have many renters that are far better qualified than historical tenants that can't buy yet, but will take better care of a property since they've been homeowners themselves. Again, a shortage creates a price increase yet yields higher returns, making this market the best time in the decade I've been in real estate to purchase a rental property and create wealth and cash flow.
 |
| Make it a great day! |
Wednesday, May 1, 2013
Seller Secrets: Your Next Step
Great introduction video about the house selling process! Whether this is your next smart choice or making the next investment decision, contact me today and we'll look at the options best matching your situation! - JM
http://youtu.be/tg51xCdSmug
http://youtu.be/tg51xCdSmug
Monday, April 29, 2013
Thinking of Investing in Mexico? Check THIS news out!
Thanks to RockyPoint360.com for the article; reprinting it as reference, source credit is to their site.
If you have questions on how this recent change may benefit your real estate investment strategy, please contact me today, I'd love to help you buy in one of my favorite places! - James @jamesmcrealtor
If you have questions on how this recent change may benefit your real estate investment strategy, please contact me today, I'd love to help you buy in one of my favorite places! - James @jamesmcrealtor
 |
| Rocky Point is a great investment only a few hours from Phoenix! |
Reforms to Bank Trust law should have tremendous impact for Puerto Peñasco!
April 23, 2013 | Filed under: News
|
Opportunity for foreigners to acquire property directly!
By Architect Plinio Rivero Lavin
Today, April 23, 2013 the Mexican House of
Representatives approved reforms that would allow foreigners to own RESIDENTIAL
properties within border and coastal zones, thereby modifying Article 27 of the
Mexican Constitution. This will impact the present prohibition of foreigners
holding direct ownership of properties within an area of 100 KM from the
border, and 50 KM from the coast, which up until now was only possible through
a bank trust, or Fideicomiso. It was reported that the modification
will be available provided that foreigners use the property ONLY for
residential purposes. Other purposes not included within the reform include
that of: commercial, agricultural, industrial, or any other form of direct or
indirect economic use. **Important to note: Currently, bank trust law is
still in effect as this measure still has to be approved by the Senate and then
passed by States in order to change article within Constitution: “The measure,
which passed 356-119 in the Chamber of Deputies, still needs approval from the
Senate and a majority of the country’s 32 state legislatures to become law.” AP Mexico
While the opportunity for foreigners to acquire
property directly will provide judicial certainty for property owners, the
reforms now face approval from the Senate of the Republic, and defining of
legal steps for application of the law for foreigners who already hold bank
trusts to property within these zones, but definitely, these Reforms to Bank
Trust law should have a tremendous impact on Rocky Point!
Translation: SKR
Taken from RockyPoint360.com April 25, 2013
Tuesday, April 23, 2013
"How's the Real Estate Market?" - A Loaded Question
Loaded or no, most people can find some guidance with statistics of sales and listings. Here's a quick breakdown of the Arizona Regional Multiple Listing Service Numbers through the first quarter of 2013.
Report Overview
This report includes MLS data for the past 36 months in Maricopa County only as provided by the FlexMLS system. Please note that searches fluctuate daily when running these reports; these figures were obtained on 4/5/13.
A reminder that you need to meet with a real estate professional to see how statistics impact the area where you are considering selling or buying – blended statistics will not be as accurate as a more detailed report that your real estate professional can provide to help you with your decision making.
Average Days on Market (36 month overview)
Average Days on Market:
REO, SHORT SALE & NON-DISTRESSED SALES COMPARISON
MARCH 2013
Distressed Sales Analysis:
Report Overview
This report includes MLS data for the past 36 months in Maricopa County only as provided by the FlexMLS system. Please note that searches fluctuate daily when running these reports; these figures were obtained on 4/5/13.
A reminder that you need to meet with a real estate professional to see how statistics impact the area where you are considering selling or buying – blended statistics will not be as accurate as a more detailed report that your real estate professional can provide to help you with your decision making.
Total # of Pending Sales (36 month overview)
Pending Sales Analysis:
Pending Sales Analysis:
Sellers:
Pending sales in March increased by 10% over the month of February for a
total of 6,823 homes moving to under contract or pending status.
Sellers should continue to monitor these numbers to determine what type
of activity there should be on their homes as we move into the spring
months.
Buyers:
This stat is an indicator that buyer activity continues to remain very high – this is normal market activity for the month of March when compared to the prior two years. Educated and savvy buyers understand that a competitive market gives them fewer options for home choices, negotiating on price AND looking for concessions from a seller. Although this may vary from area to area AND from price range to price range, buyers need to make sure they are fully informed as to the individual market in which they have an interest. This will give them the best chance of being competitive in the search for a home.
Buyers:
This stat is an indicator that buyer activity continues to remain very high – this is normal market activity for the month of March when compared to the prior two years. Educated and savvy buyers understand that a competitive market gives them fewer options for home choices, negotiating on price AND looking for concessions from a seller. Although this may vary from area to area AND from price range to price range, buyers need to make sure they are fully informed as to the individual market in which they have an interest. This will give them the best chance of being competitive in the search for a home.
Average Days on Market (36 month overview)
Average Days on Market:
Sellers:
The month of March saw the average days on market decrease from 71 to 69 days. Considering we were at 139 days a few years ago, there is no doubt the current market continues to have an impact on how quickly homes are selling.
Well-priced homes continue to go under contract within a very short period of time. If a home isn’t selling in today’s market, there is no doubt that it is because
buyers see the price as being too high.
Buyers
Inventory continues to move quickly. As a result, buyers need to be aware that competition for great homes continues to remain very high, especially in the lower price ranges. The importance of having a reliable lender AND real estate professional to guide you through this process has never been more important.
The month of March saw the average days on market decrease from 71 to 69 days. Considering we were at 139 days a few years ago, there is no doubt the current market continues to have an impact on how quickly homes are selling.
Well-priced homes continue to go under contract within a very short period of time. If a home isn’t selling in today’s market, there is no doubt that it is because
buyers see the price as being too high.
Buyers
Inventory continues to move quickly. As a result, buyers need to be aware that competition for great homes continues to remain very high, especially in the lower price ranges. The importance of having a reliable lender AND real estate professional to guide you through this process has never been more important.
Average Sales Price (36 month overview)
Average Sales Price Analysis:
Average Sales Price Analysis:
Sellers:
March saw the average sales price of a home in Maricopa County increase by 2.2% from $225,803 to $230,876; this is the highest average in the 36-month reporting period but it does follow the same pattern for the month of March in the prior two years. Sellers need to remain diligent about pricing homes according to the current market and not be tempted to overprice because they see prices on the increase. Just because the average sales price remains high does not mean that sellers are automatically getting more for their homes. Sellers are encouraged to spend time with their real estate professional to determine what is happening in their local market.
Buyers:
For buyers, it remains very important to be aware of this shift in the price of homes. Just a little over one year ago, the average sales price was $158,517. We have seen a 22.7% increase just since March of 2012. As prices remain high, buyers may find it more and more difficult to find a home that is affordable. Interest rates remain low, so buyers still have the edge in financing options. More than ever, you need to work with your real estate professional to make sure you have the best possible information regarding the market value of homes and to carefully monitor this trend to see how it will impact the availability, pricing, and terms associated with purchasing a home.
March saw the average sales price of a home in Maricopa County increase by 2.2% from $225,803 to $230,876; this is the highest average in the 36-month reporting period but it does follow the same pattern for the month of March in the prior two years. Sellers need to remain diligent about pricing homes according to the current market and not be tempted to overprice because they see prices on the increase. Just because the average sales price remains high does not mean that sellers are automatically getting more for their homes. Sellers are encouraged to spend time with their real estate professional to determine what is happening in their local market.
Buyers:
For buyers, it remains very important to be aware of this shift in the price of homes. Just a little over one year ago, the average sales price was $158,517. We have seen a 22.7% increase just since March of 2012. As prices remain high, buyers may find it more and more difficult to find a home that is affordable. Interest rates remain low, so buyers still have the edge in financing options. More than ever, you need to work with your real estate professional to make sure you have the best possible information regarding the market value of homes and to carefully monitor this trend to see how it will impact the availability, pricing, and terms associated with purchasing a home.
REO, SHORT SALE & NON-DISTRESSED SALES COMPARISON
MARCH 2013
Distressed Sales Analysis:
A bank owned/foreclosure home is one that the seller no longer owns –
it has been taken over by the lender(s) who had a note on the home.
Short sales are homes where the seller is negotiating with the bank to
“forgive” a portion of the debt in order to avoid foreclosure.
The market continues to shift, as we saw 74% of sales in the month of March classified as “non-distressed” sales. This is the highest this has been since this report was first generated several years ago. Bank-owned sales saw a decrease from 13% to 11%, and short sales remained steady at 15% of all sales that closed last month. Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.
The market continues to shift, as we saw 74% of sales in the month of March classified as “non-distressed” sales. This is the highest this has been since this report was first generated several years ago. Bank-owned sales saw a decrease from 13% to 11%, and short sales remained steady at 15% of all sales that closed last month. Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.
As always, I appreciate helping you, your referrals, and answering your questions - even the "loaded" ones! - James
Tuesday, January 8, 2013
CFLs - I don't get it...
I previewed a house today, and the kitchen was dark. The living room had a "cold" feeling to it, and the bedrooms seemed like mini-warehouses. A "quick" walkthrough took a few minutes longer to do because I had to wait for the lights to come up in each room instead of instantly, so initially I wasn't even sure the house had power.
What's that? No, this isn't a house from the early 80s with godawful tube lights in the kitchen and lacking ceiling pre-wires - this is a two-to-three year old building redone with all CFLs.
Didn't we learn 20 years ago that FLUORESCENT lights are not the most "homey"?! They're cold, they have to "warm up", they're hazardous when they break, they hummed, they felt like a work building, and the fixtures were fugly as sin.
Fast forward to today, where "CFL" stands for "compact" - so we can erase one of my beefs above (the fixtures aren't giant tube mostrosities because of the "C"). Maybe two, some of them don't seem to hum. Bonus, there are some cool color options out there, I grant you that. Otherwise, I don't get it.
I'm all for saving the planet, and I understand that conservation techniques may be more complicated. I don't get how adding hazardous materials and more than quadrupling the price for a bulb that may last longer (I say may as I've had to replace three of the damn things in less than a year, so the savings are still WAY offset by expense) is worth saving some electricity generation.
Anyway, my two cents - what's your experience with CFL's? Are you hoarding regular bulbs, holding out for better CFL technology, going LED..?
 |
| Marketing BS or Earth-saver? |
What's that? No, this isn't a house from the early 80s with godawful tube lights in the kitchen and lacking ceiling pre-wires - this is a two-to-three year old building redone with all CFLs.
Didn't we learn 20 years ago that FLUORESCENT lights are not the most "homey"?! They're cold, they have to "warm up", they're hazardous when they break, they hummed, they felt like a work building, and the fixtures were fugly as sin.
Fast forward to today, where "CFL" stands for "compact" - so we can erase one of my beefs above (the fixtures aren't giant tube mostrosities because of the "C"). Maybe two, some of them don't seem to hum. Bonus, there are some cool color options out there, I grant you that. Otherwise, I don't get it.
I'm all for saving the planet, and I understand that conservation techniques may be more complicated. I don't get how adding hazardous materials and more than quadrupling the price for a bulb that may last longer (I say may as I've had to replace three of the damn things in less than a year, so the savings are still WAY offset by expense) is worth saving some electricity generation.
Anyway, my two cents - what's your experience with CFL's? Are you hoarding regular bulbs, holding out for better CFL technology, going LED..?
Saturday, January 5, 2013
Let This be "Lucky 2013" for Us All! :)
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