Arizona Real Estate Informer

Happy Independence Day!

We're taking this week off, because, well, we can.   

Have a wonderful Independence Day!!!

Posting Error

We apparently had another blog's postings posted on AZREInformer today.   Thank you to the hundreds who brought this to our attention.  The mistake has been corrected.   We apologize for any confusion.

Downtown project 'too damn tall'

For many, the proposed $30 million Presidio Terrace condominium project is a test of whether the City Council will support high-density residential development Downtown or bow to neighborhood critics.  More...

New Posting Time

Publishers Note:   Due to the constantly increasing number of resources from which we obtain our articles, and our desire to provide the most up-to-date information available, we are changing our daily posting completion time from 10 am MST to Noon MST.  Thus, all daily postings will be completed by Noon MST, Monday-Friday, holidays excepted.

EDITORIAL: 9,000 Condo Conversions, 1,000+ Single Family Specs, Speculation

Here are some things worth considering.  Since last July, the Business and Real Estate Weekly has reported almost 9,000 apartment units that have been bought for the purpose of converting them to condos.  Unlike homebuilders who build homes only after they are put under contract and who despise spec homes sitting on their tracts, condo conversions are all immediate specs.  That means that in the last 7 months, there basically have been almost 9,000 specs purchased for resale.  Read Article

EDITORIAL: Pictures are worth a thousand...buyers?

While perusing the Multiple Listing System today, I couldn't help but notice how many home listings don't have pictures, or how many have just one.   And very often the one picture appears to have been taken at 45 miles per hour, at night, while a semi was parked in front of the house.   I make fun of it because it's laughable...to a point.

In the Internet age, having listing pictures is a crucial element when trying to sell a home.   Speak with anyone who uses the web to look for homes - about 85% of the public, studies have shown -  and they will tell you they skip over the listings without pictures.  Why?  People are visual by nature.  We pick our spouses, cars, clothes, hair styles, and many other things including homes by how they appeal to us, for the most part, visually.   No visual image, no sale.

Many good listing agents out there won't even consider listing a home without immediately placing the pictures into MLS - filling all six available slots in MLS with various photos, not just one.   And it won't be taken from atop the nearest mountain.   Good agents take care to take good photographs, when the sun is in the right place, and using a flash when necessary.

Why is immediacy so important?   MLS changed its system last year to allow listings to be sent out several times per day, not just late at night or early morning.  Thus, your beautiful home, priced right, remodeled, might get sent out around the world on it's one and only voyage without a photo, and thus never be seen by the myriad of buyers looking for a home just like it.

The moral of the story here is to hire an agent that understands the value of quality photography, and it's relationship to selling your home.   Remember, you don't get a second chance to make a first impression.

EDITORIAL: Number of homes sold continues to decline

The number of homes sold, according to statistics from the Arizona Regional Multiple Listing Service, has been declining since August.

August 2005:   10,013

September 2005: 9,180

October 2005: 8,003

November 2005: 7,315

December 2005: 6,542

January 2006 (as of Jan. 15th): 2,298

Expectedly, when the number of sold homes decreases, the number of homes available on the market increases.  As of this writing, there are currently 27,154 listings in the "active" status on MLS, a sharp increase from this time in 2005.

What does this mean?   It means that sellers have ceded control of the housing market to buyers, and buyers are becoming more patient and methodical in their searches.  This is great for buyers, and bad news for sellers hoping to cash in on last year's boom.   Does this spell doom and gloom?   In my opinion, no.   This is simply that market getting back to "normal."

It is unlikely that we will have any kind of bubble burst here for a few reasons.  The population of Arizona continues to grow, as does the economy.  Our housing market was considered under-priced for many years, and caught up quite a bit last year.  Owning a property is not like owning a stock.  Stocks can go to zero in a few hours based on panic selling.  Properties are illiquid and tough to move in a hurry, thus commanding more emotional stability.   Further, though property prices can decrease in value, they are unlikely to ever go to zero like Enron or other burst stock bubbles.  Every property is inherently worth something, since there is a finite amount of it.

If you are a buyer, enjoy this time since economic conditions indicate that people still are moving here in droves, and the inventory will fluctuate.   If you are a seller, it is critical to make your home as sale-able as possible, price it correctly, and be patient.

-David B. Roney