What Does the Bottom of the Real Estate Market Look Like, Anyway?

If you look at the current real estate market statistics,  it sure looks like things are starting to turn around here in Phoenix.  Sales volume is up, equivalent to 2007 levels, and the inventory of homes on the market is down - about an 8 month supply.  Things look even rosier of you take the short sales out of the picture - those zombie listingsthat bloat the inventory levels - and you will see areas where homes are selling in a matter of days, often with multiple offers.  OK, so it's not all good news.  Prices are way down, 40% less than they were last year, with median homes prices about where they were in 2005.  But it looks like the … [Read more...]

Are Short Sales Worth It?…The Zombies of the Real Estate Market

Short sales are the most misunderstand real estate transaction out there.  A short sale, or "pre-foreclosure" sale occurs when the Seller is selling the home for less than what is owed to the bank, or banks, if there is a second mortgage on the property.  The transaction can only take place if the bank (or banks) approve the sale, and believe me, this makes for a very difficult transaction that can stretch out for many, many months. With the growing number of homeowners in financial distress, it is no surprise that the number of short sales on the market has increased dramatically.  There is even a cottage industry of companies to support … [Read more...]