Arizona housing market seems to be doing very well lately. Investors begin to take advantages of opportunities this market has to offer.

"Crystal Properties Holdings Inc. (PINKSHEETS: CPHG) Board of Directors has approved the issuance of offers for bank and other financial institution owned real estate in Arizona and California, in addition to Nevada" MarketWatch reported today.

Last Tuesday, National Association of Realtors announced in its press release "The largest sales gain during the third quarter was in Arizona, up 28.3 percent from the second quarter..."

Are you wondering why the housing market seems getting much better in the last several months? I'll tell you one good reason: bargain price.

You may not believe that a number of lender owned properties in Phoenix are selling below its price level twenty years ago. The homes listed below are real examples:

Phoenix Homes for Sale - Updated 11-21-2008
(Click here for availability after 11/21/08)

To view cheap lender owned properties for sale in Arizona, please visit www.Arizona-Bank-Owned-Homes.com . Thousands of lender owned properties updated almost instantly. Contact Kellson Team for your Arizona real estate needs.

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Arizona Existing Home Sales Top Nation

A number of real estate good news for Arizona housing market has been reported by local and national agencies in the last few weeks. The number of existing home sales has been improving consistently in the last few months. Arizona housing market also leads the nation in term of sales gain.

In its latest quarterly survey released on 11/18/2008, National Association of Realtors (NAR) reports: The largest sales gain during the third quarter was in Arizona, up 28.3 percent from the second quarter, followed by California which rose 28.1 percent and Nevada, up 26.2 percent.

The numbers are quite impressive compared to home sales in different regions across the nation. According to the survey, existing home sales rose 13.1 percent in the West, 2.7 percent in the Midwest, 1.6 percent in the Northeast, and only 1.4 percent in the South.

Existing home sales in Maricopa and Pinal counties rose sharply since last June. Arizona Regional Multiple Listing Service (ARMLS) reports 5,725 home sales in August, 6,166 home sales in September and 5,389 home sales in October. Only 3,457 homes were sold in October last year. When compared to the same month a year ago, home sales were up 31.4% in September, 79.5% in August and 55.9% in October.

Sharp decline in median home price is the main reason making housing more affordable and probably the number one reason driving sales in Phoenix and other cities in Arizona. Housing price index for Phoenix dropped 64 points to 144.83 for August from 208.84 a year ago, according to S&P/Case-Shiller Home Price Indices. ARMLS reported median home price for October was $164,000 and that was down 30.2 percent from a year ago. Phoenix median home price was $128,500 for October, down 43.4 percent year-over-year.

Phoenix median home price falls below its 2003 level of $131,950. Median price of Phoenix bank owned homes was $99,700 for October and well below 2000 median price level. Last month, bank owned homes in Phoenix accounted for 49% of total existing home sales. "Of the resale home sales reported through ARMLS for the month of October 2008, 43% of the listings were noted as “Lender Owned”, Ultimate Information Systems reported.

Homes selling below $100,000 in Phoenix, Avondale, Maricopa, Queen Creek are numerous. Investors have been able to find investment homes with positive cash flows. Buying is cheaper than renting in many cases. Lenders selling their REOs far below market value. These are the main reasons making Arizona housing market a rebound leader.

We are entering the Absorbtion phase of the Arizona housing cycle, in my opinion. Investors should be making most profit through investing during this phase.

Kellson Team offers free MLS search for Arizona real estate listings and LIVE search for Arizona bank owned homes without registration requirement. We also provide fast email and/or telephone support. Contact Kellson Team for question or comments.

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PHOENIX REAL ESTATE: SHOULD I BUY OR RENT?

Real estate have been changing dramatically in the last several months since short sales and bank owned sales dominated the residential real estate market in greater Phoenix.

The number of bank owned homes (REOs) sold last month accounted for 49% of total sales in Phoenix, 50% in Glendale, 58% in Avondale, 62% in Tolleson and 64% in Buckeye. Median bank owned home price dropped to the level of 2003 (read my previous blog for details).

Now, some of you may ask: shoud I buy or rent? The right answer depends on wheather you qualify for a loan or not. If you're qualified for a 90% financing (with 10% down), you may find that buying is cheaper than renting in many cases.

Let me elaborate a bit more on my point. This afternoon, I previewed 3 bank owned homes in Avondale. They all have 3 bedrooms, 2.5 bathrooms, and asking price below $90,000. These homes have a living area of 1295 square feet and lot size approximate 4000 square feet (built in 2002). I also check rents in the area for 3bed/2bath rentals and found no rental homes offer for less than $850 per month. (see rental homes available in Avondale).

If you borrow 90% of $90,000 and pay 7% interest rate (30-year fixed program), your monthly principle and interest payment would be below $540 per month. Adding $120/month for tax and insurance will make you PITI approximate $660/month. Also, think about all the benefits of owning a home.

Investing in bank owned homes that give you positive cash flow every month is not a bad idea at all. With price dropped more than 60% within the last two years, many bank owned homes become "hot deals" for many investors and first time home buyers.

If you want to view bank owned homes in greater Phoenix, please follow the link below. Kellson Team offers live search for bank owned homes with full details.

http://activerain.com/groups/arizonareos

Please contact me should you have any question.

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PHOENIX MEDIAN HOME PRICE: Oct 2000 - Oct 2008

It's quite interesting for me to look at Phoenix median home price in the past 8 years. The data obtained from ARMLS.Flexmls.com (as of 11/01/2008) from Oct. 2000 to Oct. 2008 may be a surprise for many Arizona investors and residents.

Here is what I found: Phoenix median home price today (Oct 2008) is well below 2003 level. October median home price was $128,500 and it was 131,950 five years ago. What happened in the last 12 months was unbelievable: Phoenix median home price dropped 43.4 percent.

Month Median Price Oct 2000 $ 113,750 Oct 2001 $ 119,900 Oct 2002 $ 128,125 Oct 2003 $ 131,950 Oct 2004 $ 150,000 Oct 2005 $ 225,000 Oct 2006 $ 230,000 Oct 2007 $ 226,925 Oct 2008 $ 128,500

The sharp decline in home price is obviously the outcome of our Nation's financial crisis. Last month, bank owned (REO) sales in Phoenix accounted for 49% of total sales. REO median home price was $99,700.

Lenders are under pressure to sell their re-posessed homes (REOs), so they lower the price as much as they can. Builders failed to compete with lenders in term of price because most builders can not offer a price below the building cost. This creates opportunities for first time home buyers and investors to enter REO market. To view bank owned homes in Phoenix and other cities, please visit:

http://activerain.com/groups/arizonareos

The chart below speaks clearly that Phoenix real estate market in the mean time is irrational. Since 2003, billions of dollars have been putting into Phoenix's construction, developments and renovations. We all expect these economic added values to make positive impact on home price, but in reality, it did not.

The biggest barrier that stops many new home buyers from entering Phoenix residential real estate market right now is their financing qualification. Many potential buyers think it's too difficult to find a zero down financing program in this market. That's right, but it does not mean you can not find it. If you need further assistnace, please contact Kellson Team at www.kellson.com and we'll happy to assist you.

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Phoenix Bank owned homes (REOs) - Market updates for Oct 2008

Greater Phoenix residential real estate market is currently dominated by bank owned homes or lender owned properties (aka REOs). More and more bank owned homes in Phoenix-Mesa? metro area have been sold at very attractive prices. Median price of REOs is significantly lower than the overall sale price in most cities. In this report, we only look at 14 major cities in Phoenix-Mesa? metro area (see table below).

Three cities with highest percentage of REO Sales

Buckeye, Tolleson and Avondale are three cities in our list with most REO sales. Total 137 homes sold in Buckeye, 88 of them, or 64%, are bank-owned homes. Percentage of REO sales in Tolleson is 62%. Avondale has 90 bank owned homes sold or 58 percent of total sales.

Phoenix has the lowest REOs median home price

Total 1,274 homes were sold in October and 624 of them, or 49%, are bank owned homes. Median price of Phoenix REOs is $99,700. It was $185,000 a year ago.

Median price vs. REOs price

REOs median price in Tempe , Scottsdale , Phoenix and Chandler are less than 80% of their overall median price. For example, Tempe overall median price is $223,000 while REOs median price is $138,000. Phoenix and Chandler both have REO price at 22% below their overall median price.

REOs Statistic Table for October 2008

This table shows you details about home sales, REO sales and their median prices. Last update: 11/01/2008

This table shows you details about home sales, REO sales and their median prices.
Last update: 11/01/2008