Bill Olmstead Team

Good Evening!

 This last Tuesday, (October 11), I spent a full day in a Real Estate Seminar focusing on Phoenix market trends, and hearing from the BIG banks (Chase, Wells Fargo, Bank of America, and Citi) on their view of the market, short sales, and foreclosures.

 It was an excellent seminar and I want to share with you the important take-aways that I learned:

1.  Market stabilization— Phoenix does not fit the National #’s. We have had almost 7 months now of stabilization in the Great Phoenix area. Prices have remained relatively consistent, while our inventory has continued to decline each month. Michael Orr of the Cromford Report (Phoenix guru on market statistics), projects price increases in the next 12-18 months. The interest rates, lack of inventory, and the appeal that the Phoenix area has from outside investors.
2. Only 11% of the current inventory on the market is foreclosed properties (from the height of over 40%)
3. Multiple offers on properties— All 800 of us in the room raised our hand when asked if it’s hard to get a buyer a house in today’s market. We are all experiencing multiple bids on properties—even short sales are moving very quickly!
4. AZ used to be #3 in the nation for foreclosures, we are now at #27 and are expected to continue to rise. Very good news for our economy and specifically the housing market.
5. Success rates on short sales are up from around 4% in 2008 to 65% now in 2011.
6. What the big banks are saying?? (Bank of America, Wells Fargo, Chase, and Citi)
   1. Shadow inventory—it doesn’t exist—unless a bank gets a property back after foreclosure that has a hefty tax lien, fix-up, or the house is in serious need of repair, homes are hitting the market very quickly after they foreclose.  
   2. Short Sales have become much more streamlined, and banks are working with many individuals on the closing of these sales…Key question the bank wants to know is—what is the hardship?
   3. Borrower outreach—if you are in a distressed situation, banks are offering incentives to some homeowners—make sure to open your mail to see if this offer is being extended to you.

 Be informed, make educated decisions, and as always, don’t hesitate to contact us for up to date market information. We are an excellent resource for our local Phoenix Real Estate Market.  

 Have a great weekend!

 Bill