Phoenix AZ | Scottsdale AZ Real Estate

Do I want to invest in Real Estate ? How do I do it? And how do I do it with diversification in mind?

One way to invest in Real Estate , now that the market has declined, is with stocks, or a basket of stocks in the US Stock markets.

Now , I am not a stock broker , or licensed expert and I don't work for, or am compensated in any way by any of the companies listed herein.

A good friend of mine, who is a Senior Vice President at Merrill Lynch told me today that the home builder stocks have been down overall more than 50%, hitting their lowest level in some times around the 10^th of March.

These home builder stocks (some are Phoenix, Scottsdale, Arizona based) have rebounded along with the recent interest rate cuts.

I like to follow the stocks below as one indicator of the housing market, new construction, inventory levels, homes sales, buyer traffic, etc..

Click here are some of the names of publicly traded Homebuilder stocks and their New York Stock Exchange traded symbols.

                             ****these are not recommendations to invest. ******

Can a lot of homes for sale in the same neighborhood or same street ever be a good thing??

Sometimes, Yes! Let me explain....

Earlier this morning, I was showing a client a home for sale in Paradise Valley; a wonderful and exclusive township adjacent Scottsdale.

This home was everything the client wanted including a resort style backyard gorgeous views of Camelback Mountain sitting on a Golf Course lot.

However, as we drove the street, the Buyer noticed and commented about the number of homes with for-sale signs in front expressing reticence and an amount of concern. I shared with him that in certain areas, this is not always a bad thing.

Click here to find out why.

thanks and let me know if you have areas in your towns that share the same characteristics.

Despite the news, which generally, considers the Real Estate market Dead! beyond resuscitation.

I would contend that it is ailing, a little sick if you will.

What it needs is some Chicken Soup!

Where can we find a recipe , some tips, that will improve the housing market health in Greater Phoenix and Maricopa County.

Here are some ingredients.

• Remember why you buy a home first - place to live and raise your family, place to live and raise your family, place to live and raise your family
• Lower interest rates - lower interest rates seem to be inevitable and should boost housing as people can buy he same house for less

click here for more ingredients to the 'hopefully',  not so secret recipe

thanks and please send in your helpful tips, we cannot have too many cooks in this kitchen!!

There are a variety of Real Estate terms like, HUD, REO, Dual Agency, SPDS (seller disclosure), Pre-Foreclusure and countless others, .

Short Sale seems to be the phrase du jour .... And I am always asked,

What does a ' Short Sale ' in Real Estate mean ??

Simply put, a real estate Short Sale means the lender is accepting a lesser amount as a payoff than the total amount of the loan due.

Why??? ....Well, a seller has an opportunity to sell the house, possibly salvage credit (seller still cannot have late payments) , and potentially avoid bankruptcy, ....

And, the lender, removes the mortgage from their portfolio, writes off the loss, and avoids a trustee sale for a lesser amount or possibly does not have to take ownership in their REO (Real Estate Bank Owned) inventory (is not, though for many is fast becoming a business model)

Here's what is typically required for either sellers or buyers who hope to get their Short Sale offer accepted. (a streamlined list & explanation) for your Short Sale process.

A quick post for my fellow real estate professionals in Arizona;  

as well as home buyers and home sellers who may be in escrow and should be aware of the AAR (AZ Association of Realtors) legal opinion on...

‘Appraisal Contingency' and how it buyer & seller rights, time frames and earnest monies.

Please note, this opinion pertains only to the AAR Purchase Contract  used in Arizona.

Neither the AAR or myslef is offering any opinion in other states.

However, I encourage all Real Estate Agents and Brokers to examine rules in their respective states.

In the past there has been some confusion on whether or not,

according to AAR Purchase Contract .....  as it pertains to cash buyers,

Can Cash Buyers ** cancel a contract if the home fails to appraise for the purchase price anytime during the escrow period??

In essence,

does the appraisal for sales price contingency runs the life of the contract??

According to the newsletter this month from AAR,  This is NOT TRUE!

"Cash buyers can only cancel a contract within the inspection period, if a home fails to appraise.

Lines 59-61 (of the AAR Purchase Contract) only apply if financing is involved.

I hope this helps! and Good luck to all of you!

~ james wexler

Associate Broker

Coldwell Banker

Increasing competition, tightening profit margin, access to consumer lending has forced new home builders , smaller Scottsdale area builders, to the larger new York stock exchange public builders to rethink and take a sharper pencil to their costs to find profits (or minimize losses).

How are the Home builders constructing homes cheaper and in theory better quality ? 

The layman's language is Build my Phoenix area home with the same quality, functionally, and safety, with modern materials for less.

The industry term is what is known as "Value Engineering" and is presenting a unique opportunity to the Pheonix area buyer.

What is it ?

Value Engineering , as it relates to Home building, is an analysis of the cost of building home and how one can reduce cost and provide an equal product at lower cost.

Primarily, this is done in 2 main areas. ( Click here to find out how ) ...

We are in , how shall I say it, an ‘Interesting' time in the Real Estate and new home building real estate market. Especially, here in Metro Phoenix and the familiar towns of Tempe, Mesa, Glendale and Scottsdale.

Real Estate Industry analysts have thrown around the term, the Perfect Storm" reflecting the convergence of the following market conditions, declines in home prices, high existing inventory levels, lower housing sales and reduced access to credit (lenders capital).

The previous reasons, along with high level of short sales, foreclosures and REO (bank owned homes) are all contributing to a market decline with what some are saying not end in sight.

However, I say there is a light at the end of the tunnel and if you are prudent , credit worthy, and want to realize the American Dream, this could be a ‘Pot of Gold at the End of a Rainbow'. Here's why ?

Affordability is well in-line with historical numbers; especially here in Arizona. And although, affordability along with lower access to credit may not yet be enough to stimulate a quick recovery, thereby helping sellers,....

 affordability and the inventory are providing an opportunity for home buyers.

Look closely at Homebuilder's inventory, and REO / Bank owned Real Estate to find an opportunity that fits your needs , wants desires and is within your budget to find a quiet point in the eye of the housing market storm.

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Copyright © 2008 By James Wexler, All Rights Reserved. *the Perfect Storm for Phoenix Real Estate*

Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs.

Lenders love Phoenix, Arizona (lenders also love California and Nevada). All states that have some of the highest foreclosure rates in the country.... But why ?? ....

Here is one important reason when it comes to Short Sale or Foreclosure that every buyer should know.

The concept, simplified, is what's called , Mortgage Theory vs. Deed of Trust Theory.

Most states, use traditional mortgages, which translated from its French origin literally means , "a promise upon death" or a "death pledge". (scary , huh ?)...

Keep in mind, I am not an attorney and there are variations, other rules and regulations that need to be understood, and interpreted on both of the above if you are preparing for a short sale or going through either of any type of foreclosure.

However, this is a boiled down version for a quick definition.

Mortgage theory is generally better for the borrower, worse for the lender, as it has to do with the Foreclosure process. When the borrower does not make timely mortgage payments, the lender invokes an ‘acceleration' clause and calls the note due. However, the borrower has options. Borrower can file for bankruptcy delaying the foreclosure proceedings or they can remain in the property and await a "Judical" foreclosure; a process where the lender files suit to foreclose on the lien and order the property sold. This is costly, takes time, and a lot of money to the lender (lost mortgage payment, court costs, etc.) Further, in this process, the borrower has 6 months to redeem the property from the mortgage foreclosure sale.

Areas like Phoenix and the whole State of Arizona practice what is called Deed of Trust theory.

(click for rest of article  Deed of Trust theory explained ! )

First, what do I mean by spyders ??

There are Wall Street public investments in a specific sector of the economy such as biotech, oil, Home Builders etc, called SPDR's; industry insiders call Spyders traded on the American Stock exchange.

The SPDR (spyder) for the Home Builders is traded under the symbol XHB and this investment seeks to replicate as closely as possible the performance of an index derived from the homebuilding segment of the economy. Homebuilder stocks

Holdings include Home Builders, and suppliers, manufactures, Contractors and other key players in the real estate and housing industry. A few of the stock holdings include, DR Horton , Home Depot, KB Home, Pulte, and NVR (construction for homebuilders) ...

What can XHB tell us about the housing market?

Well, XHB hit a low of $15.22 in early January. XHB is now trading at just under $19; up more than 20%+.

The fact that we have seen some rebound from this low can possibly be interpreted as a positive for the struggling sector; Wall Street may be thinking that the worst is behind us (checking my crystal ball).

By the way , I am not an investment professional! I am not recommending buying XHB or any specific New Home Builder Stock.

However, it is worth considering that if so many people, mutual funds, hedge funds, private investors are willing to invest into XHB , are buying the home builder stocks, and its reflective stocks and the overall economic picture for the homebuilding sector and have a renewed outlook in housing, maybe its time for us to look past the negative headlines and be positive or (dare I say) encouraged,?? about real estate again. Finally!

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Copyright © 2008 By James Wexler, All Rights Reserved. *What Spyders can tell us about a Real Estate turnaround !!*

Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs.

6 Signs of a Housing Market Pickup (for Phoenix area Real Estate)

1. Price Reductions - New Home Builders are and dropping prices throughout the East Valley and West Valley towns of Peoria, Surprise and Glendale.
2. Traffic - reports from New Home Builders and Broker offices indicate traffic picking up in the last couple months with more buyers in new home models, office phone calls from for-sale sign, open house traffic, -
3. Supply - although, nationally, more than 10 months supply, and more than 1 year here in Metro Phoenix, supply has diminished somewhat
4. Rising Apartment Rents - as rents go up ,and interest rates continue to decline, renters will start inquiring if it is cheaper to buy
5. Fewer/Reduced builder concessions - in most areas, home builders are still offering compelling incentives- it seems, the days of 6% buyer credits, free pools and even cars may be a thing of the past
6. Real Estate Agents showing houses - agents throughout the East and West Valley are reporting that activity of Real Estate Agents showing homes per use of MLS lockboxes is up in recent months

Take away the deflating news headlines.

Take away the doom and gloom water cooler talk of Foreclosures and Short Sales.

There are shining lights of optimism and promise for the real estate market.

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Copyright © 2008 By James Wexler, All Rights Reserved. *6 Signs of a Housing Pickup in Metro Phoenix Real Estate*

Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs.