Statistics
What Happened to the 1st Time Home Buyer?
Thursday, July 8th, 2010 | Investment, Real Estate, Statistics, The Economy | No Comments
The big news about first time home buyers was that the government had extended the time for the $8,000 tax credit. Unfortunately, in the small print was that the extension was only for contracts that were in process of closing. So the buyer who didn’t purchase before the deadline are not going to see any tax credits. This was also true for the move up $6,500 credit.
Can you guess what happened to the 1st time home buyer market? The 1st time buyer market share dropped from 48.2% to 42.0%. Current buyers rose from 33.5% to 39.5%. Investors were just about flat at 18.3%.
In the Phoenix market the only significant change in the sale of residential real estate is that pending sales are down 17% from last month and 18% from last year. There is a drop in demand which brings our market to stable supply and demand. The median price for a home is $127,000 with the average price at $181,643.
These are current up to date statistics from the Cromford Report.
If after you look at the numbers you ask yourself “so what does that mean?” The market is showing only a slight decrease. If it continues then you can expect thing to go poorly. But the change is so slight that you can be somewhat encouraged. The market has to stop going down before it can go up.
We Have More Than a Year of Short Sales
Monday, December 7th, 2009 | Investment, Money, Real Estate, Statistics | No Comments
The Cromford reports that the ARMLS (Arizona Regional Multiple Listing Service – Servicing the greater Phoenix area) has 14,688 properties listed as short sale listings.
It also reports 12,162 as “Sales per Year.”
If you are looking for a home to purchase and have the time, looking specifically at short sale properties could be a good place to find your new home.
The bank owned foreclosure homes are going much faster and frequently have multiple offers.
This Year’s Monthly Active Listings and Sales Price in Peoria
Saturday, October 3rd, 2009 | Investment, Real Estate, Statistics, The Economy | No Comments
This Year’s Monthly Active Listings and Median Sales Price in Peoria Arizona.
Active Listings Median Price
Jan. 1584 $180,000
Feb. 1586 $184,669
March 1580 $165,625
April 1422 $172,750
May 1231 $169,314
June 1119 $170,000
July 1015 $166,000
August 1030 $166,000
Sept. 1018 $165,000
Does it look like in March prices hit bottom and have stabilized? The inventory has been steadily declining by more than 30%. What does it mean? In today’s market, no one knows! Will things change if the tax credit isn’t extended? Are the banks intentionally holding back inventory to stop price decline? One thing that is certain, its not the best time to sell? Well, if you are moving up it might be a great time to acquire your trophy home. If your job is secure. This looks like a good year for gamblers and a very uncomfortable year for the timid.
Thank you Cromford Report.
What’s Happening in the Peoria Market Today
Thursday, October 1st, 2009 | Money, Real Estate, Statistics | No Comments
Here are a few statistics on what is happening in the Peoria Arizona market.
Normal Sales Pre-Forclosed Bank Owned
Peoria Active Listings 41.67% 44.8% 13.53%
Monthly Sales 27.91% 25.58% 46.51%
$/SF Listings $153.23 $87.29 $89.50
$/SF Sales $103.08 $88.29 $75.37
Days on Market 174 127 115
The sales to inventory shows there is 3.6 months of inventory. The market is considered a buyer’s market when the inventory is at least a 6 month inventory. These statistics are provided by “The Cromford Report.” They are the most up to the minute information providers I have been able to find.
You Missed the Buyer’s Market in Phoenix
Saturday, July 18th, 2009 | Investment, Real Estate, Statistics | No Comments
Here is a three minute video showing what is happening in the volatile real estate market in the Phoenix area.
This is the fastest change that I have ever seen. Good up to date stastics to verify my assumption.
Click here to see a video of “You missed the market in Phoenix”
Here is a great place for great financial information
Friday, May 16th, 2008 | Investment, Money, Real Estate, Safety, Statistics, The Economy | No Comments
If you have read some of my earlier posts you probably asked yourself where do I get some of the data I use. As an example, the statistics in the article “Why haven’t your mutual funds made you rich.” I found on the net. I gave Crestmont their credit and even linked their web site on this post.
I was back there again today and was amazed at some of the great stuff these folks have compiled. Using their information and by adding in costs and inflation, I came up with the realization that the money I put in mutual funds in 1997 has generated NO wealth for me in more than ten years!
I admit that some of the information at their site is a little deep. But they have some great graphs that help a lot. One place I looked today was the volatility of the market and another great chart was “Interest rates and inflation.” Now that was an eye opener!
Most of us think we are so busy that we don’t have time to do any research. We don’t pay any real attention to our IRA or 401k. We think that the professionals are doing a better job than we can. We just glance at the numbers when we get in our quarterly report. Most of us don’t know where to start even if we were interested. That is one of the reasons I have this blog. If I find something I want to share it.
While you are watching “Dancing with the stars,” go to Crestmont – http://www.crestmontresearch.com/ and have a look around during the commercials. As an older person I want to make sure I put my money where it is safe and work HARD for ME!
Cheryl moved her retirement funds into cash last November. She is just getting back into mutual funds and missed a 25% drop in the value of her nest egg. The real estate market has some exciting places where I can meet and exceed my financial needs. I feel this is the most exciting time to invest in the last 30 years. “Buy low sell high!”
Home-price data has its flaws
Thursday, May 8th, 2008 | Money, Real Estate, Statistics, The Economy | No Comments
Phil found another gem of an article on the news you hear and see every day!
Top officials with the National Association of Realtors and Standard & Poor’s, which issues the S&P/Case-Shiller Home Price Index, agreed this week their monthly reports are giving imprecise readings of price changes at all levels — national, state and regional — due to rare market conditions that are skewing survey results.
Why Haven’t Your Mutual Funds Made You Rich?
Monday, April 7th, 2008 | Investment, Money, Real Estate, Statistics | 3 Comments
I hear, just like most of you, that you can put your money in a good mutual fund and watch it grow at 12% a year. The only thing about that is I have never really seen that happen to me. Then as I looked around I noticed that I didn’t see it happen to many others either. So, as inquisitive as I can be sometimes, I started looking around.
I went to a New York Life presentation where they said that the average net gain for a mutual fund investor was less that 3% if you adjusted for inflation. New York Life probably wants the numbers to look like their investments were better. So I doubted their entire premise. But me being me, I started looking for verifying reliable information. Wow! Did I find a great place to see that actual numbers. Here is the link –
1997 – 2007 – 5%,
1998 – 2007 – 3%,
1999 – 2007 – 1%,
2000 – 2007 – 0%,
2001 – 2007 – 4%,
2002 – 2007 – 8%,
2003 – 2007 – 11%,
2004 – 2007 – 9%,
2005 – 2007 – 10%,
2006 – 2007 – 13%.
Since only one year average was at or above 12%, why expect 12%? The years from 1986 – 1995 gave a 9% annual return. Not only that, but INFLATION, FEES and TAXES are not figured in the calculations! This really isn’t a BAD investment if your employer matches your deposits. But it sure isn’t the “safe retirement” fund that I hear touted by all the gurus.
9% annual return
25% of the 9% for state and fed tax -2.25%
3.5% inflation and fees
9% – 2.25 – 3.5 = 3.25% annual return cash in pocket
Let’s figure you put $3,000 year away which means that with 3.25% return that year’s deposit gives $3,097.50. Using the same calculation multiply it by the 20 years $3,000 in and 20 years out, $4,195. Even if you do some significant compounding, the net – net is not going to provide a wonderful quality of life because the annual returns are just too low.
If you are like most of us, your mutual funds just took a significant decrease in value since December 2007. You are probably looking and another very low return year at best. Maybe you might want to get a little more proactive with the money that is supposed to keep you in your later years.
Finally Some Good Phoenix Real Estate News!!!
Thursday, March 27th, 2008 | Investment, Money, Real Estate, Statistics | 1 Comment
Existing-home sales climbed unexpectedly in February, as home buyers took advantage of low interest rates, falling home prices and foreclosure bargains.
The uptick in resales ended multiple-month losing streaks both nationally and in metro Phoenix and is prompting speculation that the housing market is close to hitting bottom.
National figures for February show U.S. resales climbed 2.9 percent from January, according to the National Association of Realtors. Valley existing-home sales climbed 10 percent in February, according to figures released earlier this month from realty studies in the Morrison School at Arizona State University.
Ideas to Keep Your Home
Saturday, March 22nd, 2008 | Investment, Money, Statistics, The Economy | 3 Comments
If you are struggling with your financial situation, especially with your monthly mortgage and other fixed expenses, here are a few ideas that might help.
There was some statistics that were recently published saying the the average American is living on 110% of his income. Most of us have listened to so many commercials that we feel we need a lot more that we actually do need to survive. The “Get it now and pay later” attitude is prevalent in much of our society. Things like how to do a budget is rarely tough in our education system. So basically, we are ignorant in important financial matters and can use a little guidance.
Fortunately, we live a society that has unlimited ways of overcoming economic challenges. The proof is the exponential rise of millionaires attaining wealth in our country. This article will give a few bandages to help stop the financial blood loss. These band aids may not all fit every need or even be convenient. They are designed to slow or stop the digging of a larger financial hole. Then we can address some longer term solutions to get on a strong financial path.
First things first – track your money! Many of us, especially those of us spending more than we make, spend a lot of money in areas that we shouldn’t be spending. Things like fast food, cigarettes, alcohol, sodas, movies, and a host of other non-essential expenses burn our money at an enormous rate. Write down the absolute essential expenses and try to minimize each expense. Vegetables, fruits, dried beans, rice and pastas are cheap food. A good sized serving of beans costs about $.25, rolled oats are even less when you buy in bulk. That cost beats the fast food value meals and the food is better for you. We have been sold the story that we deserve to have it better. So we have the tendency to spend money on a lot of things could be used in much better ways.
After we become for efficient with our money and are not as ready to squander what we get, it is now time to bring in some more cash! Could you use an additional $6,000 per year? Take in a boarder!. A roommate can be a pretty inconvenient alternative, but $6,000 of $500 per month is a lot of cash to most of us.
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