About a month ago I received an e-mail from my broker asking if there were any agents with cash buyers for the Phoenix Metro area that would be willing to speak with an Inman News reporter. The reporter wanted to know who the cash buyers were, what the buying process was, and the details of their home purchase.

I responded to the reporters request citing two different scenarios that I had recently worked with involving cash buyers. The first was an investor that was going to purchase, rehab/renovate the home, then put it right back on the market to sell for a profit, the ”fix and flip” as we call it in the real estate business.

The second set of cash buyers I recently worked with were purchasing with an entirely different scenario in mind. They were a retired couple that lives in the midwest. They were seeking a 2nd home in a warm climate to use for 3-4 months a year when the winter weather back home is unbearable.  I asked my buyers if they would be willing to speak with the reporter and tell her about their home purchasing experience. They agreed and the relationship began.

I spoke and e-mailed back and forth with the reporter several times over the next few weeks. She conducted several phone interviews with my buyer clients as well.

Yesterday the story was published in Inman News. I requested permission from Inman to reprint their story on my blog. You can read the article in its entirety by clicking here: “Meet the Cash Buyers: Retirees find a 2nd home“

In an effort to keep my past, present, and future customers up to date on the Phoenix Residential Real Estate market, below are links to the Arizona Regional Multiple Listings Service (ARMLS) July reports. These reports contain the numbers thru the previous month.

The 1st report is the STAT report. It provides the most current market statistics.  It is published monthly in advance of other third party statistical publications that use dated numbers.

The 2^nd report is the ARMLS Pending Price Index™ (ARMLS PPI) report. This report predicts the direction of the market four months into the future based on pending sales in the MLS system.

The STAT and the ARMLS PPI reports are in a PDF format. I will write a monthly post with a link to these reports.  

Click the following link to access the July issue of  STAT 

Click the following link to access the July issue of  ARMLS PPI

FHA unveiled 3 policy changes today that they believe will boost their capital reserves.  They are as follows:

Click here to read the full press release.

The U.S.  Department of  Housing and Urban Development is asking for public comment on these changes.

When I moved here from the East Coast, I quickly found out that some of the “critters” in the Valley of the Sun differ significantly from the ones I was familiar with back East. Here is a practical guide to the different stings and bites, the symptoms, and how to treat them.

Mosquitoes are generally found near water (pools, lakes, birdbaths) and are attracted by bright colors and sweat. Bites result in stinging sensation followed by a small, red, itchy mound with a tiny puncture mark at the center.

West Nile virus is most often spread by mosquitoes. Mosquitoes become infected by biting birds that carry the virus. People can get West Nile virus when an infected mosquito bites them. This happens most often in the warm-weather months of spring, summer and early fall. You cannot get West Nile virus from another person or from your pet. July through October are prime months for this virus, be sure and apply your DEET spray for prevention. Symptoms can be rash, fever, headache, nausea, vomiting, diarrhea, loss of appetite, swollen glands, achiness, stiff neck, tremor or muscle jerks.

Fire Ants cause immediate pain and burning sensation is frequently experienced after a bite followed by swelling (up to ½ inch) and cloudy fluid in area of bite. Fire ants usually attack intruders and are commonly found in pastures, meadows, lawns and parks in southern states.

Bees and wasps are usually found near flowers, shrubs, picnic areas, or beaches. Immediate pain and rapid swelling occur following a sting. A few children have severe reactions, such as difficulty breathing and hives/swelling all over their body. 

Snake Bites Signs that indicate a poisonous snakebite include:

The bite consists of one or two distinct puncture wounds. Nonpoisonous snakes usually leave a series of small, shallow puncture wounds because they have teeth instead of fangs. The exception is the coral snake, which leaves a semicircular marking from its teeth. Because some poisonous snakes also have teeth, fang and teeth marks may be apparent. The presence of teeth marks does not rule out a poisonous bite, but the presence of fang marks always confirms a poisonous snakebite.

Characteristics of pit viper snakes:

• Large fangs; nonpoisonous snakes have small teeth.
• The two fangs of a poisonous snake are hollow and work like a hypodermic needle.
• Pupils resemble vertical slits.
• Presence of a pit. Pit vipers have a telltale pit between the eye and the mouth. The pit, a heat-sensing organ, makes it possible for the snake to accurately strike a warm-blooded victim, even if the snake cannot see the victim.
• A triangular or arrowhead shaped head.
• The rattlesnake often shakes its rattles as a warning. BUT NOT ALWAYS!

Action:

1. Airway 2. Breathing 3. Circulation 4. Call 911 

1. Move the patient away from the snake to prevent repeated bites
2. Have the patient lie down and keep him quiet.
3. Cut and suck methods are useless.
4. Keep the bitten extremity at the level of the heart.
5. Remove any rings, bracelets or other jewelry that could impede circulation if swelling occurs.
6. Clean the wound gently with alcohol, soap and water, hydrogen peroxide or other mild antiseptic.
7. Do not cool or chill or apply ice.
8. Do not attempt to tie any type of tourniquet or constricting bands.
9. Transport the patient as soon as possible to the hospital.

Scorpion Bites 
There are many species of scorpions found in Arizona but only one is potentially lethal. This is the bark scorpion. It is one of the smaller species being one to one and a half inches long. It prefers places dark and cool, wood piles, palm trees, decorative bark. The severity of the sting depends on the amount of venom injected but scorpion stings can be fatal. Ninety percent of all scorpion stings occur on the hands.The lethal scorpion is very slender and streamlined. It is straw-colored or nearly opaque, small, less than two inches long. Signs and symptoms of scorpion stings include:

1. Sharp pain at the site of the sting
2. Swelling that gradually spreads
3. Discoloration
4. Nausea and vomiting
5. Restlessness
6. Drooling
7. Poor coordination
8. Incontinence
9. Seizures

Treatment:

1. Apply ice to relieve the pain of the sting
2. Be sure the victim’s airway stays clear
3. Transport to a hospital. A specific antivenom is available.

Most insect bites are not dangerous and can cause small or large red, blister like lesions. These can be treated with over-the-counter Calamine lotion or Hydrocortisone 1% cream. Other options are to apply ice for 20 minutes or to apply firm, direct, steady pressure to the bite for 10 seconds. Antihistamines like Benadryl can also aid in the discomfort of the bites.

Most insect bites are itchy for several days and can last a few weeks. If you think you are having an allergic reaction such as severe pain, infection, swelling, skin is “hot to the touch” or you or your child is having trouble breathing, please contact 911 immediately.

Redflex Traffic System’s contract with the State of Arizona expires today. At 11:59pm the speed cameras on Arizona freeways will be turned off.

To read the full story, click on the following link. Freeway cameras set to turn off tonight – Phoenix Business Journal.

Maggie Clark with Equity Title provides a monthly update report with highlights and graphs for the Phoenix Residential Real Estate Market. Below is the text from her e-mail. Further down you can click on the link to see the graphs for major cities and areas.

Maggie wrote:

“Here are the Graphs through the end of June 2010. We have added arrows on every graph so you can easily see the changes from the month before. Please note that the Valley Wide graph represents all of the MLS. The table below just represents recording for new and re-sales for Maricopa County. Also, the market segment pie chart tells you the amount of distressed properties that are listed and being sold. ”

Highlights:

• Total listings are up by 1479 units from last month.
• Total sales for the month of June were down by 698 units over last month.
• Sales including new construction are down by 3.0% over last year June for Maricopa County.
• 93% of sales for the last month were under $400,000.
• 4.4 months of supply in the Valley. This may seem balanced but the high end market continues to be stagnant.
• There has been a major uptick in the number of Short Sales that have closed from 21.0% last month to 26% this last month.

 Please click on the following link to take you to the Graphs:

http://www.eta-az.net/marketing/Residential%20Market%20Update%20with%20graphs%20070110.pdf

Months of Supply by area are as follows:
East Valley 4.27
Northwest 3.83
Paradise Valley 10.20
Luxury $ 1,000,000 + 14.6
Southwest 3.51
Peoria and Glendale 3.45
Camelback Corridor 5.34
Cave Creek 6.35
Ahwatukee  4.86
Scottsdale 6.53
Apache Junction 3.63
Fountain Hills 7.69
Buckeye 3.33

I purchased my single family home in Fountain Hills, AZ in October 2004;  it was the beginning of the residential real estate “frenzy” in Arizona. In 2005, the peak in the market, if I had sold my home I should have been able to sell it for at least $160,000 more than I had paid for it the previous year.

In August 2008 I was considering selling my home.  At that time I was looking at making a much smaller profit, approximately $40,000-$50,000 more than I originally purchased the home for in 2004. I could not get my head around the fact that at the height of the market, I would have been able to sell my home for a profit of 3x’s that amount so I decided to stay put and see what direction the market would take.

Fast forward to almost 2 years later, July 2010.  I am considering moving again so I ran some preliminary numbers to see where things stand in my area.  If I look at ALL types of similar single family home CLOSED sales (not active or pending) including traditional sellers, short sales, and bank owned the expected outcome is not too pretty. Best case scenario is that I would break even after the costs associated with selling; realtor commissions, closing costs, etc. Worst case scenario, I would be taking a loss of approximately $20,000-$30,000.

I do not need to sell, but I would like to move. I am not upside down meaning I do not owe more to the bank than what my home is currently worth. If I decided to sell, I would not be selling “short” since I put a substantial amount down when I purchased my home. The hard reality in my case is that it would be a real loss of my personal money that I have invested in the home, not the banks.

So, I ran the numbers again for similar single family homes that were sold by traditional sellers only, not short sale or bank owned. The outcome was slightly better; best case scenario was breaking even. Worse case scenario was a personal loss of approximately $7k-$20k.

I have decided to stay put for now. I plan on re-evaluating the direction of the market again in 6 months and let you know how it looks then.

Fannie Mae updates policy and guidelines for appraisals. 

Read the full story here:  New guidelines for choosing appraisers, comps | Inman News.

I read a great article today from Inman News explaining why it is still necessary to have a home inspection even if the buyer is obtaining FHA financing and they are “inspecting” the property. 

Click on the following link to read the full story:

FHA inspections vs. home inspections | Inman News.

I received the online edition of the July Newsletter from the Town of Fountain Hills today. It contained an article, “A Few Fireworks Facts to Consider”, that got me thinking that some excerpts from the article would be good information to share with you before the upcoming 4th of July holiday.

ARS-36-1602 prohibits non-professional firework displays in the State of Arizona. Please keep the following statistics in mind: 

• On Independence Day in a typical year, far more fires are reported than on any other day, and fireworks account for half of those.
• In 2008, fireworks caused 22,500 fires. These fires resulted in $42 million property damage.
• In that same year, emergency rooms treated approximately 7,000 people for fireworks related injuries.
• Two of five people injured by fireworks were under the age of 15.
• The risk of fireworks injury was highest for teens between 15 and 19 and children 5 to 9 years of age.
• Sparklers, fountains, and novelties accounted for 32% of emergency room fireworks related visits.
• 84% of the fireworks injuries treated in emergency rooms involve fireworks that Federal regulations permit consumers to use.
•  The National Fire Protection Association strongly opposes any consumer use of fireworks.

Please be safe, enjoy your time with family and friends, and Happy 4th of  July!