Comments on: How Does Price Range Affect Inventory in the Phoenix Housing Market? http://hereinphoenix.com/2009/06/17/how-does-price-range-affect-inventory-in-the-phoenix-housing-market/ This Realtor Gal KNOWS Phoenix Real Estate! Tue, 24 Jan 2012 02:45:09 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Derekp http://hereinphoenix.com/2009/06/17/how-does-price-range-affect-inventory-in-the-phoenix-housing-market/comment-page-1/#comment-25 Derekp Thu, 25 Jun 2009 00:28:31 +0000 http://hereinphoenix.com/?p=302#comment-25 I think i've seen this somewhere before…but it's not bad at all I think i’ve seen this somewhere before…but it’s not bad at all

]]> By: April http://hereinphoenix.com/2009/06/17/how-does-price-range-affect-inventory-in-the-phoenix-housing-market/comment-page-1/#comment-22 April Tue, 23 Jun 2009 22:19:33 +0000 http://hereinphoenix.com/?p=302#comment-22 Pretty good post. I just found your site and wanted to say that I have really enjoyed reading your posts. Anyway I'll be subscribing to your feed and I hope you post again soon! Pretty good post. I just found your site and wanted to say
that I have really enjoyed reading your posts. Anyway
I’ll be subscribing to your feed and I hope you post again soon!

]]> By: The Realtor Gal http://hereinphoenix.com/2009/06/17/how-does-price-range-affect-inventory-in-the-phoenix-housing-market/comment-page-1/#comment-21 The Realtor Gal Sun, 21 Jun 2009 15:24:02 +0000 http://hereinphoenix.com/?p=302#comment-21 Good questions...I work with banks every day and a lot of what they do defies logic. There are two things I know for sure: Banks are motivated solely by their bottom line so they do what is best for the bank, AND most banks, especially the big ones, are woefully understaffed so their systems are inefficient and ineffective. There are plenty of examples of stories like those you describe that occur simply because no one was watching. When I go out with a Buyer to look for homes, it is very clear that the market has contracted over the last few months, especially for homes priced below $250K. The reality supports the statistics. Most experts do expect that foreclosure listings will increase over the next few months as the foreclosure moratorium was lifted recently, but honestly, there is so much demand for these REO's that it will take a huge influx to swing the market around. REOS account for 60% of sales in Phoenix but only 13% of the current inventory...because they are only on the market for a few days before being snapped up. Clearly there is room for a lot more REO listings. For example, there are currently 2805 Notice of Trustee Sales recorded for Gilbert. If everyone of those went on the market tomorrow as an REO, we would still only have a 6.3 months supply of homes on the market in Gilbert - which is a balanced market where neither the Seller or Buyer have the advantage. Many factors affect the timing of foreclosures. I have worked on short sales where the Trustee Sale was postponed numerous times as we worked through the short sale process. Bankruptcies, personal situations, many things can trigger a postponement of the Trustee Sale. Only a small percentage of homes are sold at the Trustee Sale, the remainder of which go back to the bank. At that point, there are more issues that need to be resolved before that home can be sold. The home must be vacated, title must be cleared. Typically these homes are not sold by the bank directly but by a third party asset manager so that assignment must be made. And all this happens within understaffed departments. I am sure the market will continue to correct itself as time goes on. The law of supply and demand is pretty powerful. I look forward to the day when banks are not involved in so many of our real estate transactions. I will need a lot less Excederin! Good questions…I work with banks every day and a lot of what they do defies logic. There are two things I know for sure: Banks are motivated solely by their bottom line so they do what is best for the bank, AND most banks, especially the big ones, are woefully understaffed so their systems are inefficient and ineffective. There are plenty of examples of stories like those you describe that occur simply because no one was watching.

When I go out with a Buyer to look for homes, it is very clear that the market has contracted over the last few months, especially for homes priced below $250K. The reality supports the statistics. Most experts do expect that foreclosure listings will increase over the next few months as the foreclosure moratorium was lifted recently, but honestly, there is so much demand for these REO’s that it will take a huge influx to swing the market around. REOS account for 60% of sales in Phoenix but only 13% of the current inventory…because they are only on the market for a few days before being snapped up. Clearly there is room for a lot more REO listings. For example, there are currently 2805 Notice of Trustee Sales recorded for Gilbert. If everyone of those went on the market tomorrow as an REO, we would still only have a 6.3 months supply of homes on the market in Gilbert – which is a balanced market where neither the Seller or Buyer have the advantage.

Many factors affect the timing of foreclosures. I have worked on short sales where the Trustee Sale was postponed numerous times as we worked through the short sale process. Bankruptcies, personal situations, many things can trigger a postponement of the Trustee Sale. Only a small percentage of homes are sold at the Trustee Sale, the remainder of which go back to the bank. At that point, there are more issues that need to be resolved before that home can be sold. The home must be vacated, title must be cleared. Typically these homes are not sold by the bank directly but by a third party asset manager so that assignment must be made. And all this happens within understaffed departments.

I am sure the market will continue to correct itself as time goes on. The law of supply and demand is pretty powerful. I look forward to the day when banks are not involved in so many of our real estate transactions. I will need a lot less Excederin!

]]> By: Glen Fullmer http://hereinphoenix.com/2009/06/17/how-does-price-range-affect-inventory-in-the-phoenix-housing-market/comment-page-1/#comment-20 Glen Fullmer Sun, 21 Jun 2009 03:38:16 +0000 http://hereinphoenix.com/?p=302#comment-20 Hi Kristin, I read your blog about Buyers market. Perhaps your numbers need to be augmented with numbers of houses which are FSBO and also those that are REO but not listed yet by the banks. I have notice that a lot of banks, Wells Fargo is one, are not even foreclosing on some houses. I am not sure why, but there is one I know about in Gilbert that it took the bank 2 years to foreclose after payments were stopped. I know of a couple in Ahwatukee that have even gone through the foreclosure sale and are not yet listed. Weird. Is it because they have too much inventory? Glen Hi Kristin,

I read your blog about Buyers market. Perhaps your numbers need to be augmented with numbers of houses which are FSBO and also those that are REO but not listed yet by the banks. I have notice that a lot of banks, Wells Fargo is one, are not even foreclosing on some houses. I am not sure why, but there is one I know about in Gilbert that it took the bank 2 years to foreclose after payments were stopped. I know of a couple in Ahwatukee that have even gone through the foreclosure sale and are not yet listed. Weird. Is it because they have too much inventory?

Glen

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