Phoenix AZ | Scottsdale AZ Real Estate

Today, we have entered into what I call the 'Perfect Storm' of Real estate where many factors have come together to cause this crisis that appears to have no end. 

We had House approved legislation providing help to struggling homeowners and more importantly liquidity to the lending giants Fannie Mae and Freddie Mac which was expected to renew confidence today on Wall Street. It has not!

In fact, we have now watched Fixed rate mortgage soar today to their highest level in 1 year.

Most disturbingly,

The National Association of Realtors said existing sales resumed their decline in June after a slight rebound in May. The NAR Existing home sales declined by 2.6 percent in June, well beyond the 1 percent drop economists had forecast.

This is, how shall I say it, not upbeat news;

Typically, as home prices decline, sales will actually rise. (due to the cheaper bargain basement prices). This did not happen! and is is very shocking. And can only mean a likely a precursor to further and steeper declines in home prices or no sales.  

It does not take more than having Internet access, network television or delivery of the Sunday newspaper to be aware of the fact that Real Estate is going through a difficult time here in Greater Phoenix and the surrounding towns of Scottsdale, Fountain Hills, Tempe, Peroia, Glendale, Mesa and many other cities in Arizona and unfortunately accross many parts of the Country.

As real estate professionals, we cannot control the market. However, often have the task of being the bearer of bad news. And too often, people like to shoot the messenger. 

If your clients, friends and family ask.  Do the difficult and be honest.

If they need to sell. Lower the price to where it needs to be. If they cannot sell, Re-Fi while rates are low enough to make a difference and payment and before credit lending standards become possibly more strict.

They will not love to hear it. However, they will thank you later.

James Wexler , Wexzilla-  Please don't shoot , I am just the messenger

House Approves Homeowners Stimulus package just moments ago.   

The Bill designed to help more than "400,000 strapped homeowners avoid foreclosure and preventing the collapse of troubled mortgage companies Fannie Mae and Freddie Mac".

The resounding vote helped solidify stability in the financial markets and specifically the stocks of Fannie Mae and FreddieMac

The now House approved lesgislation is on track to pass the Senate and become law within days.

I applaude the President for his support.

Most importantly,

As Secretary of Treasury , Henry Paulson said ,  "portions of this bill are orders of magnitude more important to turning the corner on the housing correction and supporting our markets and our economy"

Congratulations to the  House of Representatives for not making this a Republicans or Democratic issue.           

This is an American issue and a potential crisis that needs to be averted.

President Bush dropped his opposition Wednesday to a broad housing stimulus package aimed at bolstering the sagging economy. 

Just hours before the vote by the House of Representatives , President Bush said he will not Veto the Housing Stimulus Package that is aimed primarly at what some saw as a bailout for neighborhoods hit hardest by foreclosures.

The House was expected to vote on the bill Wednesday, and it could become law as early as this week

"Bush had objected to the neighborhood grants, which would be for buying and fixing up foreclosed properties, saying that they were aimed at helping bankers and lenders, not homeowners who are in trouble"

It was a dramatic split for Bush and congressional Republicans, many of whom are angrily opposed to the housing legislation, which they call a handout for irresponsible homeowners and unscrupulous lenders

In my opinion, this is a great move by the President.

In areas surrounding Phoenix, Tempe, Mesa, Peoria and other parts of the east valley communites are in dire need of support.

I hear the Republicans desire not to use the dreaded "bailout'.

There is a moral , ethical (not financial)  responsibility by Government to make all efforts to avert a national crisis and a recession.  

Please share your thoughts, Democrats, Republicans and all of us concerned Americans.

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James Wexler  , Wexzilla  - Phoenix | Scottsdale Real Estate Blog

Home prices dropped 4.8% in may down from May of 2007 according to a government report released earlier today.

 The report issued by the Office of Federal Housing Enterprise Oversight (OFHEO) also says prices, on a seasonally adjusted basis, "fell 0.3 percent from April to May.

The index is down almost 5 percent from its peak in April of last year."

The OFHEO is also the governement agency that oversees the government-sponsored mortgage-finance companies Fannie Mae and Freddie Mac.

The reason I mention the Fannie Mae and Freddie Mac relationship is that those 2 company's stock has traded upward on Wall Street in spite of its troubles and this news .

In my humble opinion, I do not think we are completely out of the woods. However, the fact that Wall Sreet sees that the worst is out there in front of us can only be interpreted as a ray of light in cloudy (real estate price drop news) days.

Please share your opinion; especially, other areas of the country which may not have experienced the same price drops as we see here in Greater Phoenix.

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James Wexler - Wexzilla - your voice for all things Phoenix | Scottsdale Real Estate

480.221.8080

Many buyers are writing contracts to purchase homes or Real Estate that is being offered as  'short-sales' .  Standard practice is to have earnest checks (or a copy of) attached to the offer.

However, in the case of many , short-sales, as we have discussed in the past, they are not yet "approved" short-sales by the bank who hold the deed of trust to the subject property. Thus, should earnest money be deposited in escrow to bind the contract.

Let me give you an example.

Mr & Mrs. Buyer make an offer to a seller who is representing his home as a short-sale.

The seller, happy to receive an offer, accepts. Thus, a meeting of the minds has been reached between the parties. Thus, escrow should be opened immediately and earnest money deposited. Right? wrong!

In the case of a 'short-sales' in which the bank has not yet approved the 'short-sales' and issued the necessary pre-approval through an "Agreement Notice " escrow does not need to be opened and earnest monies do not need to be deposited.

In fact, from what I understand, there are Title companies who are charging if escrow is opened and the bank does not accept the offer.

and so you are aware, the AAR (Arizona Association of Realtors) is in the process of coming out with a 'short-sales' addendum which will spell out and clarify many of the issues surrounding 'short-sales' to protect both buyers and sellers.

However, ... AAR's revised  'Short Sale Addenda'  will not be out until August 1^st.

Short sales are not like standard transactions.

Be careful, have your realtor check for an "agreement of sale" so you know best how to proceed with offers, seller acceptances, title and earnest monies.

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Copyright © 2008 By James Wexler, All Rights Reserved. *Short Sale contracts and Earnest money?*

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

just hours ago, the nations 4th largest bank , Wachovia is leaving the wholesale mortgage lending business , .."Beginning July 25, 

(Wachovia) will no longer offer mortgages through brokers"             

This is a crushing blow to the mortgage business as Wachovia joins BankAmerica as 2 of the nations alrgest banks to no longer offer loans through brokers.

Both companies will still offer loans through in-hous mortgae lenders and loan officers.

The question that is being raised is the fate of mortgage brokers?

With increased scrutiny on compliance and the lower costs able to be offered in-house,

will all banks eventually go the way of National City mortgage, Bank America and now Wachovia ???

...and no longer offer their lines to 3rd party mortgage brokers?

I firmly believe that industry professional in the mortgage business serve an undeniable value and service that in-hous bank officers cannot and that they are needed by the public.

However, the question are being raised about the future landscape of mortgage lending.

I would love to hear your thoughts and opinions.

 James Wexler , - Wexzilla Phoenix | Scottsdale Real Estate Blog

Yes, I am guilty. I spend a lot (sometimes too much) time on-line chatting, Twittering (tweeting) , posting, commenting and reading real estate blogs. Most informative, many quite funny.

I have compiled a list of remarks made to realtors and remarks made by realtors.

I don't know if you notice this lately (jay leno monologues) ,

However, I am starting to fell like my friends who are attorneys who have to listen to lawyer jokes at cocktail parties.

Yes, this is a real list not a David Letterman 'Top 10' list.

Enjoy.

• I can see your point but you are still full of crap
• I am already visualizing the duct tape over your mouth
• If I throw a stick will you leave
• Can I trade this job for what's behind door #1
• I feel like a teacher, underpaid and on vacation from June through August

If anyone has other funny (self-depracting to our profession) please add.

Hey, If you cant make fun of yourself than I am taking myslef way too seriously. :

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- james wexler , a.k.a Wexzilla ~ Phoenix Scottsdale  Real Estate Rants, Ravings and musings

Craig Anderson of the Arizona Republic reported that the ARMLS (Arizona Regional Multiple listing service) lost/cancelled more than 20% of its memberships as dues were due July 1st. 

Bob Bemis, the CEO of the ARMLS noted that it is going on nationwide where National Assocation of Realtors expects to lose more than 150,000 agents.

However, the loss of agents is particular large in the Phoenix Valley due to the steep decline in housing.

The key factor, simply, is that agents are leaving the business; There is too little money to be made for all but the most savvy and (usually) experienced professionals.

This exodus from a profession that most realtors love is always unfortunate. However, the industry grew so quickly, with such small barriers to entry, that like all growth periods there needed to be a slow-down to a normal ratio of agents to buyers/sellers.

I have been fortunate during this down-turn to keep my head above water. However, I have to admit, it was frustrating to have to write a check for even as little as $264.  

I wish all my fellow agents nothing but success and I hope you all were able to simle while writing your multiple listing service (MLS) dues.

Have a great and profitable week!

A just released report stated that "Federal Reserve officials argued at the closed door meeting last month that" ...

FED banking officials saw "Rate Hikes Coming Soon!"                          

At the June Meeting, The Federal Reserve Board voted to keep interest rates the same. The first time in 7 meetings and since the fall of last year that interest rates were not cut.

However, several "members said the Fed had aggressively cut rates to 2% to guard against downside risks to growth and now that these risks had "diminished". "

Other FED officials said financial conditions were still too fragile and borrowing costs were higher for consumers than before the Fed starting cutting rates last fall.

The FED officials who make interest rate policy are clearly divided !

I beleive that we need rates to remain level and let the rate cuts take effect.

However, I am concerned that rates will be going higher with banking instability and Fannie Mae and Freddie Mac at a crossroads.

What do you think?

• Interest Rates Higher ?
• Interest Rates Lower ?
• Interest Rates remain level ?

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Copyright © 2008 By James Wexler, All Rights Reserved. *Poll : Are Interest Rates Up or Down on Jan 1st ?*

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

Fountain Hills is a wonderful community, with some of the most majestic views and landscape in all of Arizona.

The town of Fountain Hills,  known for its peaceful, resort lifestyle has seen some of the best home value growth in the last 5 years.

One of the main results of its quiet, and less over-developed character is that home prices have remained quite stable during this downturn.

However, I am concerned that this may be changing.

Developer, Ellman Companies, has planned 1,450 home lots on land purchased from the State.

Considering the fact that there there are roughly only 22,000 residents in Fountain Hills, ...

no matter how you cut it, this is a lot of homes.

First of all, I love growth. I love development. It creates jobs, supports communities, builds business and creates wealth.

However , the glut and over supply of homes is what is most ailing our housing market. More and more homes can only mean one thing. More supply, less demand and less home value.

More specific to towns like Fountain Hills, more homes, means a private community becomes a mini-city with homes on top of homes. More homes, more residents, means traffic, on the roads and off, in restaurant and on the golf course. Much of what has given this town its great character may in part be lost.

Remember, growth is good (for the most part) ; and, I really love Fountain Hills. I have family who live in town.

However, I has seen large building growth hurt many quaint towns that have previously resisted.

Whether you agree or disagree....

If you live in Fountain Hills, go to the planning and zoning meeting and share your thoughts.

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Copyright © 2008 By James Wexler, All Rights Reserved. *Fountain Hills - Small AZ Town  - Big Home development!*

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