Archive for October, 2010
Average Sales Price Per Sq Ft Arizona Cities
Average Monthly Sales Price Per Square Foot
October 18, 2010
Anthem – $94.33
Apache Junction – $70.12
Avondale – $57.12
Buckeye – $56.59
Casa Grande – $48.45
Cave Creek – $131.90
Chandler – $97.45
El Mirage – $45.44
Fountain Hills – $141.15
Gilbert – $91.05
Glendale – $70.60
Gold Canyon – $97.60
Goodyear – $71.54
Laveen – $56.28
Litchfield – $84.30
Maricopa – $48.51
Mesa – $79.73
Paradise Valley – $246.77
Peoria – $77.53
Phoenix – $80.43
Queen Creek – $56.74
Scottsdale – $159.83
Sun City – $68.60
Sun City West – $96.72
Sun Lakes – $110.17
Surprise – $66.78
Tempe – $100.02
Tolleson – $49.91
Source: Cromford Report
Real Estate Analysis and Forecast
By: Maria Hass
Full-Time Realtor
For the monthly period ending October 17, we are currently recording a sales $/SF across all areas and types of $83.17 averaged for all areas and types – down 1.5% from $84.39 on September 17. We hit a low point of $81.96 on October 11 and bounced back up a little in the following week. Our forecast range was $80.56 to $83.84 and prices have stayed within that range since September 20.
Today the pending listings for all areas & types show an average list $/SF of $86.66. This statistic has shown a general upward trend since mid September and suggests that we will see some improvement in pricing over the next month. Our mid-point forecast for the average monthly sales $/SF on November 16 is currently $84.04, which is 1.1% above today’s actual reading of $83.17, and we have a 91% confidence that it will fall within ± 2% of this mid point, i.e. in the range $82.36 to $85.72. The actual price change we see will depend very much on the mix between lender owned, short-sales, pre-foreclosures and normal sales which has seen some large fluctuations in recent months. In particular, short sales have lost market share to REOs. At the same time REOs and normal sales have seen their average sales price fall while short sales have edged upwards.
Today’s market offers opportunities for investors who are looking to buy and hold. Significant sales of homes are coming from foreign investors or out of state and local investors who find the value in today’s distressed real estate market. Many short sale or lender owned properties could easily turn into a positive cashflow for investors buying a home to rent. Rental market remained strong and in some areas have appreciated as many people leave their homes due to foreclosure or short sale. If you have cash or significant reserves, investing in real estate offers great opportunity than the unpredictable stock market.
*Information taken from Cromford Report
Who Benefits From a Foreclosure Freeze?
By Maria Hass
On Saturday, Oct. 9, The Arizona Republic reported that Bank of America is postponing its processing of foreclosures until further investigation of their foreclosure process is obtained.
My earlier understanding was that this foreclosure freeze applied only to states that use a judicial process to foreclose on a home. However, recent reports mentioned that Bank of America is halting foreclosure processing in all 50 states. As a result, the recovery of the housing market will be delayed, as there is a huge inventory of pending foreclosures.
It seems that Bank of America’s decision to freeze foreclosures will protect their interests more than anything else. BofA would not like to see a huge legal case ahead of them if it’s found the bank did not comply with required and proper foreclosure procedures.
BofA’s move does not help homeowners who have already left their homes and signed a long-term lease. It slows down the housing recovery by stockpiling foreclosed homes and dumping them either slowly or at once.
The only way we could see this housing market turn around is if Bank of America and other banks consider a mortgage amnesty by reducing homeowners’ principal mortgage amounts. If this happens, people will not be upside-down on their homes and they will be able to afford their payments. Short sales and foreclosures will slow to a near halt and a healthy housing market reflecting strong price appreciation will result.
For the full Arizona Republic article, please go to: http://www.azcentral.com/arizonarepublic/news/articles/2010/10/09/20101009bank-of-america-stops-foreclosure-sales.html.