Yesterday morning I started my day with a cup of coffee sitting on the patio reading the AZ Republic’s front page article “Promising Trends in Home Sales”. I wondered how it compared with my clients that I am showing short sales and some foreclosures in the Ahwatukee, Chandler, Gilbert, Mesa and Tempe area.

The just of the article indicates the April numbers are positive & May is continuing that trend:

1. The number of home sales continue to be near record highs
2. Foreclosures didn’t dominate sales
3. Homes purchased by investors dropped
4. More buyers purchased with the intend to occupy the home vs. renting or fixing & flipping
5. The federal tax credits for home buyers helped

1.  I have worked with 12 clients; 3 sellers, 8 buyers and 1 renter
2. Of the sellers; 2 were short sales and 1 from Sun Lakes had to sell for medical reasons
3. Both of the short sale sellers had their homes rented and lost their renters
4. One is in a Pre-foreclosure with the foreclosure date set for next month
5. Of the 8 buyers; 2 are Canadian, 2 are 1^st time home buyers, 2 out of state buyers looking for a primary residence moving her because of their work and 2 others who previously had lost a home either from a short sale or foreclosure. All of these homes were in Ahwatukee, Chandler, Gilbert, Mesa &Tempe, not the far out areas of Maricopa or Queen Creek.
6. The renter is in the process of losing her home of 8 yrs to foreclosure after being laid off 3 time in the last 2 yrs.

Short Sale home purchased by my Canadian buyers

Do I see a trend here? Yes, people are still hurting (5 out of 12 were involved in a short sale or foreclosure) but they are also figuring out ways to get back into a home via renting back from a relative who buys the home.  The sun is still attracting buyers from out of state/country. We might see a lull with first time home buyers because many of them tried to get under the 4/30/10 tax credit deadline. We saw this same lull in Dec 2009 after the 11/30/09 deadline that got extended.

In the near future (late May and June), I have appointments already set to show out of state buyers coming from Seattle, Chicago, and British Columbia, & Alberta, Canada. The volume of calling activity from local buyers has been increasing as well. It’s interesting that more of my callers are asking about Ahwatukee, Chandler, Gilbert, Mesa & Tempe not the hardest hit foreclosure and short sale areas of Maricopa and Queen Creek.

While nobody can predict the future. I can tell you:

1. Interest rates continue to be at historical lows. What direction do you think they are headed?  
2. The supply side of homes has been trending down.  The day’s inventory (# of days it would take to sell all of the active homes on the market) has dropped from 417 days 2 yrs ago, 203 days last May, 165 on 2/23/10 to 159 today.
3. As the supply decreases, what typically happens to the price?
4. For those that say, “But wait for all of the “Phantom Inventory” to be thrown on the market”, I ask how long have you been hearing that? I have been hearing about it for over a year.
5. I believe about 15 months ago the banks got their act together and determined it was to their best interest not to foreclose and to try to work with the financially hard hit short sale sellers. 

If you are looking to sell your home or buy a new home, I invite you to contact me or search the complete MLS. I’m experienced and knowledgeable about homes for sale in Ahwatukee, Chandler, Gilbert, Mesa & Tempe, Arizona as well as the surrounding areas.