Jay Shaver

Market Update 2/11/12

Market Notes February 11, 2012:  Active listing have fallen to an all time low this last week, now standing at just 209 available homes in the area, down from 225 the week previous, and down from the 250, which is the previous 3 month average. Those active listings are listed at an average of $63.19 per square foot. Homes pending close of escrow jumped by nearly 10% and now stand at 268, and 31 homes closed escrow last week, closing at an average of $49.25 per square foot, and bring this year sales total now to 209. Maricopa has deservedly been identified, by most area home shoppers, as the place to be in the Phoenix Valley. The relative newness of the community, the small town feel, the security of a small town, the proximity to the Phoenix area, the well planned out subdivisions, The up coming attractions and amenities, and last but certainly not least, the low home values, have all combined to attract not only primary residence buyers but many second home buyers as well. Just this last week, another new addition to our community was announced, as construction will begin in June on a biomass plant in Maricopa that will produce enough electricity to power 20,000 homes, and will be the first “green” facility built in the area. The economic development council of Maricopa has made concerted efforts to attract green industries to the area, and this facility may be the impetus needed to attract others. The new biomass facility is just one of many “coming attractions” which include the College of Central Arizona, the Banner Health Summit, the new Maricopa City Hall, and the new Ak Chin Entertainment complex which will be a 126,000 square foot entertainment complex featuring movie theaters, bowling alleys, shops, restaurants, arcades, and an out door ampi theater. So it’s not difficult to see why Maricopa has garnered the bulk of the real estate activity in the Valley, and with that being said, now is the time to help you secure your place in the sun. I have many buyers say that they have waited too long, but that is just not the case, there is plenty of time left to take advantage of this housing market. Have values risen in the last year? Yes, but historically these current home values are still considered very low, and as the economy recovers and expansion continues, today’s current home value will equate to tomorrows equity, but don’t drag your feet too much longer. I believe 2012 will be one our final transition years into a more stable housing market. There is still some distressed inventory to work through – there is still 201 AWC short sales, meaning distressed homes with at least one offer submitted to the bank and historically 50% of those will wind up in foreclosure. Secondly, nearly 50% of the foreclosure homes have been postponed in the last 120 days, primarily die to deed issues, but we can still expect those homes to eventually emerge back on the market, so there is time left, but the window is closing. If you are currently in the market trying to secure that primary or secondary residence, I would be happy to help, just call or email me anytime.

Nationally, a bill proposed by Senator Menendez may be one of the more common sense approaches to the national housing crisis. A proposed bill from Sen. Bob Menendez, D-N.J., would allow underwater borrowers to reduce their loan principal through a federal shared-mortgage-appreciation program. The Senate bill announced Thursday would give lenders a stake in the equity of the home, receiving a fixed share of the increase in home value when later sold or refinanced. The shared-appreciation modifications would go through two "pilot programs" for two years at the Federal Housing Administration and the Federal Housing Finance Agency. The bill only applies to loans backed by the FHA or securitized by Fannie Mae or Freddie Mac. It's not known when the bill will reach the Senate floor, according to a spokeswoman in Menendez's office.

"When you owe more than your house is worth through no fault of your own, relief can be hard to come by," Menendez said in a news release. "My bill aims to break this cycle by giving homeowners the relief they are looking for by working with banks to find acceptable solutions for everyone."

Homeowners in the program would reduce their mortgage principal to 95% of the home's reassessed value, as determined by an independent appraiser. The principal would lower to its new value by a third each year for three years, as long as the homeowner makes payments. The lender would get a fixed share in the equity of the home depending on how much they reduce the principal, with a maximum of 50%. Capital improvements later made to the home do not apply. Only primary residences would qualify. The bill also places no underwater limit for homeowners. Reducing principle is the only real way to help underwater homeowners, and this is the first bill to actually address that issue. We will see where it goes.

Published Saturday, February 11, 2012 7:45 AM by Jay Shaver