Comments on: The Real Estate Market is Improving – See The Numbers

By: JR041283

JR041283 — Fri, 15 Jan 2010 17:21:45 +0000

Thanks for the input. I will this in mind. Best Regards.

By: Bob Blackman

Bob Blackman — Sat, 12 Dec 2009 15:09:59 +0000

I suspect that there a thousands of foreclosed or abandoned properties that are just not on the market. We are looking for a codo and each one we inspect seems to have a bunch of empty adjoining properties, papers glued on the doors and windows – but not for sale. I would assume the banks are holding them back for fear of dumping the market. We have a foreclosed house on our street – but not for sale. BOB

By: DJ

DJ — Thu, 10 Dec 2009 03:07:02 +0000

Will…I am a bit bearish and its because I have yet to see any economic drivers that would lead me to believe that the Phoenix real estate market will continue to improve moving forward.
Perhaps it’s a self fulfilling prophecy.

Are there great deals out there? Absolutely.
See Colangelo/Wigwam deal.
Caveat Emptor.

By: Bill

Bill — Wed, 09 Dec 2009 04:28:49 +0000

Hi Will,

A hint on how much shadow inventory is out there is the filings of NOD (notice of default) with the banks. The shareholders need to know this so there is no way the banks can cover up the shadow inventory – for long. I am aware there is a growing epidemic of defaults the last few months. Defaults are not “for sale”…yet.

By: Will Daly

Will Daly — Tue, 08 Dec 2009 03:29:06 +0000

DJ – I thought I was pretty clear that this data is not urban condo specific but about the Phoenix real estate market in general. And you are right, there is no crystal ball but look at the data. Things are better. Can they get worse? Sure. Can they get better? Sure. You seem to think that things are going to get worse. I believe that some buildings are still at risk while others seem to have recovered….at least for the moment. What eventually happens (and when it happens) to Century Plaza, 44 Monroe, Centerpoint, the remaining units at Summit at Copper Square and to a much lesser degree buildings like X Wine Lofts will impact other high rise condos in Phoenix, Scottsdale and Tempe. I do NOT expect high rise condo prices to jump higher in the near future. I do believe that some condos in some buildings are currently at the bottom or very near it. IF this is true and IF interest rates are on the verge of heading up then now is a good time to buy (again depending on the condo and depending on the building). Having said that, I truly do not believe that the bottom can be predicted but instead will be recognized only after it has already passed.

By: Will Daly

Will Daly — Tue, 08 Dec 2009 03:15:32 +0000

Bill – Does anyone know the answer to your question? I doubt it…I sure don’t.

By: DJ

DJ — Sun, 06 Dec 2009 23:26:10 +0000

How is this blog post relevant to the space in which you operate?
You specialize in the high rise/loft niche.
What, in this article, suggests that high rise/loft properties are improving and/or have already “hit bottom.”

Nobody has a crystal ball but have you factored in the fact that the commercial real estate market is suffering. The streets are littered with “For Lease” signs, the unemployment rate is the highest it’s been in decades, and vacancy rates are increasing. As a result of these factors, many commercial property owners are falling behind on their mortgage payments.

I don’t believe the “sky is falling” but that has to be taken into consideration when determining if we have seen the proverbial “bottom of the market.”

By: Will Daly

Will Daly — Fri, 04 Dec 2009 19:04:42 +0000

Brandon – Thanks for your input. I don’t doubt that current unfriendly conditions does discourage many people from putting their property on the market for sale. I can also argue that many buyers are staying out of the market for the same reason. So, who really knows why listings are so low. However, sales are up, way up, so I don’t think that it is fair to say that the main reason listings are low is because only crazy people are listing their homes for sale

Also, I wholeheartedly agree that condo financing, or the lack thereof, is a real problem. This blog addressed the real estate market as a whole and NOT the condo market specifically. We are hoping to compile numbers, similar in format to those shared in this blog post, but specifically for the condo market soon. Stay tuned. Again, thanks for your participation. W

By: Stellamary

Stellamary — Fri, 04 Dec 2009 10:50:10 +0000

The Real Estate business is the main cause for the recession in the past fiscal year.so the money blast is to be removed for the betterment of the financial process.Earth has the source towards the space for the human.The apportionment in the real estate business process collapsed this Earth.

By: brandon adamson

brandon adamson — Thu, 03 Dec 2009 20:01:46 +0000

The reason there are so few listings is BECAUSE the market is so bad. No one in their right mind would sell right now unless they absolutely had to.

The problem is that the urban condos that are good deals are not “financeable.” Tons of cheap places for sale at Biltmore Square, Landmark, etc. Good luck finding a bank who will do a loan on one of those properties. The issue isn’t whether prices are going to get lower. What’s preventing people from buying is that in most cases it is simply not possible to buy low priced condos in the current market unless you are paying cash.

Half the urban condo communities in the valley probably don’t meet Fannie Mae and Freddie Mac’s new owner occupancy requirements, and even fewer are FHA approved. Once one gets around to looking at the condo communities that one could realistically expect to obtain a loan on(Regency House, Executive Towers, etc) the bargains start disappearing.

Also, the 8,000 tax credit is fueling a good portion of the buying, creating an artificial mini recovery. When the tax credit expires in June, I would expect things to retrogress a bit.