Saturday, May 28, 2011

Phoenix Housing- Shadow Market Inventory nearly 100,000 homes - What Buyers are doing now

The Shadow Market inventory are homes that are either in foreclosure or the homeowner is behind on their mortgage payments, showing signs hat these properties could eventually join the supply of homes offered by lenders for sale at a deep discount.But the Phoenix, AZ region is actually in much better shape than other parts of the U.S. hit hard by foreclosures, according to new analysis from a national real-estate group.Based on the region's long-term sales rate over the past 10 years, the number of homes in the shadows is about as many as would sell in a year. Thus, the firm calls it a 12month supply.

That puts the Valley in better shape than many similar markets.Based on their local 10-year average sales rates, according to Burns Real Estate's estimates:

- Orlando has a 23-month supply of shadow inventory
- the Bay Area, (in CA) has a 20-month supply
- Sacramento, CA has a 16-month supply

- Las Vegas has a 14-month supply

Homes are selling at foreclosure auctions at record-setting paces, with more than 1,300 sold in Maricopa County last month.The number of foreclosure and normal resale homes on the Arizona Multiple Listing Service is a five-month supply, based on the long-term rate of sales. These homes, because they're already listed,aren't part of the shadow inventory.So, Phoenix's combined supply of homes, including shadow inventory and current i nventory, should take 17 months to sell.

With the increase of Investment buyers: Many whom pay cash, helps to stablize the market.  A cash buyer owns a house free and clear and is less likely to walk away.
Many homeowners who abandoned their homes during the crash did so because they lost little in the process, forfeiting only their small down-payments.

"Shadow inventory isn't a big problem looming for the ( metro) Phoenix market," said real-estate analyst Tom Ruff with Information Market. "The numbers have to be put in perspective. When you look at everything that's going on with home sales in Phoenix, you see that shadow inventory isn't something to worry about."

How will Home Values be impacted?
In early 2009, after seeing mortgages fail in historic numbers, lenders tried to resell a record supply of foreclosure homes in the Phoenix area, all at once.Buyers saw the supply was huge and kept their offers low, believing there were even more homes to come. The region's median home price, already battered by two years of downturn and recession, sank to 2003's level.
What buyers are doing now - and what they expect to happen soon - is key to the direction of any market. The area's supply of homes for sale continues to shrink, even as more foreclosure homes are listed or put up for auction, metro Phoenix's shadow inventory now doesn't appear large enough to prompt a waiting game for buyers.

Last spring, some analysts estimated the Valley had 18 months of shadow inventory looming over its housing market.New estimates of a smaller supply could mean metro Phoenix's housing market is poised to recover sooner than other areas" ( Metro) Phoenix has seen an overcorrection in prices" said housing analyst John Burns. "There are vacancies and shadow inventory. But now is the most affordable time to buy in my lifetime."He said the number of pending foreclosures in Maricopa County is falling rapidly because new foreclosure filings are down and lenders are clearing out more of their foreclosure backlogs.  Inventory is low, homes are selling fast in the Phoenix, AZ real estate market.

Tuesday, May 3, 2011

Arizona Golf Club Memberships prices being slashed

Arizona Golf Clubs all over Arizona, from Superstition Mountain in Gold Canyon to Seven Canyons in Sedona, have been hurt by the economy and Country-club exit lists that are years-long as members choose to cut their discretionary spending and live without memberships that cost from $500 to more than $1,000 in monthly fees, plus other charges for carts,lockers, shoe-shining, food and drinks. But the economic fallout is especially noticeable in Scottsdale, the pinnacle of the Valley's sprawling golf landscape of close to 200 courses. There are just too many golf courses for the metropolitan Phoenix market, said Roger Garrett, an Insight Land and Investments partner who has sold golf courses for 25 years."This is about the low-water mark I've ever seen," he said.   Scottsdale's Sanctuary Golf Course was sold in the past month to Phil Mickelson and his agent, Steve Loy, for $2.2 million, a price far below its value of five years ago, Garrett said. Brad Klein, a GolfWeek magazine editor, said the problem at Phoenix and Scottsdale golf clubs is that real-estate development subsidizes the golf operations.

When members take over the golf cub from the real-estate developer, they are forced to cut operating costs or tax themselves to maintain the courses at a high level, he said."There is a statement in the industry that the third owner makes the money," Klein said.The third owner buys a course for $4 million that costs $20 million to build and $4 million to operate annually, he said.

Meanwhile, the value of memberships decline with the real-estate values."That's capitalism," said Klein, a retired political-science professor. "A golf-club membership is a commodity. It has no inherent value."

Membership fees that have been cut:
The Country Club at DC Ranch reduced its golf-membership cost to $75,000 from $135,000 in 2009 and has since gone to a market-based pricing system, with the average membership selling for $37,000.


The Boulders Club has non-equity memberships as low as $45,000, down from $55,000 two years ago, with monthly fees of $561.

Terravita Golf Club lowered its non-equitymembership fee a few weeks ago to $25,000 from $40,000, said Steve Mallory, Terravita's golf director.

Read more:
http://www.kathleeninarizona.com/archive_details.php?arch=1120

About Kathleen Mazzocco

My photo
Scottsdale, AZ, United States
Kathleen has worked with a variety of clients and employees from across and outside of the country, and this has given her a firm grasp of all the details that need to be considered when buying a home in Scottsdale, Anthem, or other areas of Phoenix, Arizona. Kathleen is a AZ Corporate Relocation Professional, and Buyer's Agent. She doesn't just help you find the home you want, she also insures that you're settling in well and that you have all the information you need in order to enjoy the highest-quality lifestyle Arizona has to offer. Begin your plan moving to Arizona with Kathleen today. It's a buyer's market right now, so there are great opportunities for you to land the home of your dreams for much less than you ever imagined possible. Acquiring property foreclosures, short sales, and bank owned homes are ways you can save in today's market. As Certified Distressed Professional she can negotiate the best possible price and terms for you. Please browse through Kathleen's website and let Kathleen Mazzocco help you come home to Arizona,search the newest home listings at www.KathleenInAZ.com.