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.

What Happened to the 1st Time Home Buyer? is a post from: George Brunton Team

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.

We Have More Than a Year of Short Sales is a post from: George Brunton Team

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.

This Year’s Monthly Active Listings and Sales Price in Peoria is a post from: George Brunton Team

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.

What’s Happening in the Peoria Market Today is a post from: George Brunton Team

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”

You Missed the Buyer’s Market in Phoenix is a post from: George Brunton Team

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!”

Here is a great place for great financial information is a post from: George Brunton Team

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.

MarketWatch Ariticle

Home-price data has its flaws is a post from: George Brunton Team

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 – (www.CrestmontResearch.com) – You will need to take your time when you go there. This site has more facts put into graphs than you might expect and they don’t seem to have an agenda. My favorite graph is at http://www.crestmontresearch.com/content/Matrix%20Options.htm.

I chose the “Stock Index Only” chart to give the benefit of the doubt to those claims of 12% return. Looking at the last 10 years the average stock market increase is no where near 12%. The unique way the graph is designed you can see what the annual return for money deposited from a given year until 2007. The money you deposited in the stock market from 1996 until 2007 returned 7% annually,

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.

Why Haven’t Your Mutual Funds Made You Rich? is a post from: George Brunton Team

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.

The Article

Finally Some Good Phoenix Real Estate News!!! is a post from: George Brunton Team

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.

Ideas to Keep Your Home is a post from: George Brunton Team