Phoenix area Real Estat Market

[andviv]

I would like to get some feedback about the current situation of the Phoenix RE market.

I heard yesterday in the news the comments of an "expert" who said PHX is in the early rebound stages. That caused me to think about this... well, that and this other thread http://www.thefastlanetomillions.com/real-estate-residential/18478-realtor-phoenix.html

I'm interested on what areas are nice to live (mid-upper class)
Which are great to own rentals? (close to work areas, malls, factories, public trans, etc)

Please keep in mind I know NOTHING about phx, other that I'd love to live in Scottsdale, based on what I've seen during the get-togethers.

Thanks.

 

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[SteveO]

Are you thinking of relocating?

 

[andviv]

How did you guess?

Yes, in the next 6 to 12 month.

 

[AroundTheWorld]

Really? Wow!

 

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[Runum]

Wow, that's news!:icon_super: Good luck Andres.

 

[andviv]

well, we are just starting to explore possibilities.

 

[Runum]

Be sure and give DFW a thought. It would be cool to have another fellow fastlaner around here.

 

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[SteveO]

Sorry Runum, we are collecting fastlaners here. :smxB:

 

[Runum]

Sorry Runum, we are collecting fastlaners here. :smxB:

Maybe we can have a shopping cart race to settle it.:fastlane:

 

[andviv]

yeah, that's the issue... many of the cool people are already there... RealOG is working hard on that marketing campaign.. and SteveO and Bio need more players in their softball team, I'm sure. MJ may need a driver for that Orange monster, who knows...

Anyway, back top topic... how's the market?

How many McMansions can I buy in Scottsdale with the ten bucks I have in my pocket?

 

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[RealOG]

Andviv, if you are looking for a place to live - Scottsdale is where you want to be. Me, SteveO, Biophase all live there. Seems to be the best combination of schools, entertainment, and neighbors. I guess a lot of it depends on where you work and how far you are willing to commute.

The market is extremely depressed still, but aggressively priced opportunities are getting snapped up quick. I saw two condos priced at $85k and $70k in an older historic complex sell very quickly, which cashflow at that price. At the height they were worth $200k+.

This one is still listed for sale. There is an offer in to the bank already so they are only accepting backup offers:
Cheapo Price, Great Location

If I pick you up at the airport we (and anyone else interested) can spend some time driving some Scottsdale areas.

 

[andviv]

If I pick you up at the airport we (and anyone else interested) can spend some time driving some Scottsdale areas.

YES, please!!!!

 

[biophase]

What price range are you looking at?

 

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[andviv]

What is available in the 100's? 200's? (sorry, don't know enough about that market yet, that's why I posted here)

 

[imirza]

NODs are through the roof in the Phoenix area. Over 400 NODs being sent out every day. Thats twice more than last year. If this trend continues, foreclosures in the Phoenix area will be double last years. Prices will continue to decrease. Phoenix prices are already back to 2003 levels. An increasing number of people are walking away from their homes. Rates are low and many try to refinance and they get an appraisal done and realize the home they bought for $400k in 2005 is now only worth $250k. What incentive do they have to keep that home especially if their mortgage balance is 350-400k ? The higher end market is also being hit badly. Plenty of million dollar mansions in Scottsdale in foreclosure. People making $100k a yr finally realize they can't afford $1,000,000 homes And unemployment keeps going up. Phoenix as a whole is overly dependent on construction, real estate and finance. The economy here is not very diversified which makes it worse.

OK so that was the bad news. That being said there are lots of deals out there. You just need to spot the great deals from the value traps. Just because a house is selling for 50% below what it was selling for in 2005-06, does not make it a good buy. If you are buying a home to live in, find a good area and assume you are going to have to hold it for at least 5 yrs. And buy it sufficiently below current market value to protect you from further price declines.

There are plenty of great cash flow properties available. Saw these townhouses for $20k which can be rented for $700/month. These properties were selling for $100-120k in 2005-06. My friend bought 3. I am figuring out how to get them financed since conventional financing requires a minimum 40k loan amount in most cases. Houses in west Phoenix can be bought for under $50k and rented for $800/month. Obviously the best cashflow is in the not so good areas or even the ghetto parts of town. The best parts of town will have less cash flow but better chances of future appreciation.

There are great opportunities with bank owned homes. Once a home is on the market for 120 days or more, banks can get very eager. There is this bank owned home listed for $429k. Some friends offered $350k. Bank countered to $400k. Now they are down to $370k. Another week or so and they will probably accept that $350k offer. Make offers on a bunch of homes at 20-30% below asking price ( which in most cases is also fair market value). If atleast one gets accepted, you have a home at 20-30% below market value and a margin of safety built in, incase prices fall further (which they will).

 

[SteveO]

A friend of mine that sells new homes told me that they are beginning to sell rapidly again. Perhaps it was an aborration or simply that prices have dropped so low. I found that to be encouraging. This kind of information will lead any presented data.

 

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[biophase]

What is available in the 100's? 200's? (sorry, don't know enough about that market yet, that's why I posted here)

Are you looking for a condo, townhome or sfr? Do you want to live in scottsdale?

There are many nice neighborhoods with homes under $100k. But in the Scottsdale area you will only find older condos right now for under $100k.

 

[CMCarlin]

Not to try to de-rail this thread entirely, but my wife and I were looking into relocating to the Tucson, AZ area. Can anyone provide feedback about the general state of that area? Crime, Poverty, RE values, Rental Values, Local Commerce, Jobs, Anything that one would need to evaluate in order to make a good decision on moving a 4 person family to the area.

 

[andviv]

Are you looking for a condo, townhome or sfr? Do you want to live in scottsdale?

I prefer a condo or townhome, to minimize the amount of maintenance needed.
Yes, I'd like to live in scottsdale, but there may be other areas that I don't know about yet. That's why I created the thread with a general perspective of PHX.

There are many nice neighborhoods with homes under $100k. But in the Scottsdale area you will only find older condos right now for under $100k.

What nice neighborhoods do you have in mind?

 

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[bflbob]

Not to try to de-rail this thread entirely, but my wife and I were looking into relocating to the Tucson, AZ area. Can anyone provide feedback about the general state of that area? Crime, Poverty, RE values, Rental Values, Local Commerce, Jobs, Anything that one would need to evaluate in order to make a good decision on moving a 4 person family to the area.

Try sending a PM to CharmedAngel. She spent several years in Tucson in the RE business.

 

[Charmed Angel]

Not to try to de-rail this thread entirely, but my wife and I were looking into relocating to the Tucson, AZ area. Can anyone provide feedback about the general state of that area? Crime, Poverty, RE values, Rental Values, Local Commerce, Jobs, Anything that one would need to evaluate in order to make a good decision on moving a 4 person family to the area.

I haven't been working that area for about a year now but, I can tell you what I knew a year ago.
First, you'll be best looking to live in the north, north east, east, north west, and south east (but not too far south). These are the safer/nicer areas. There is a decent amount of break-ins closer to downtown. There's a lot of drug trafficking in the south.

Real estate values are a little bit lower than Phoenix, and the rental values are a little low, but it is a small city with not many big jobs. Most of your renters work retail and don't make much. On the other hand the University of AZ is there and that tends to bring in a lot of students and the rents in the area around the U of A run about 400-500 per room.

I can't tell you anything about the schools other than the north east area seems to have a decent school dist. from what I've heard.

I hope this helps, if you would like to know more you can shoot me a PM.

 

[biophase]

I prefer a condo or townhome, to minimize the amount of maintenance needed.
Yes, I'd like to live in scottsdale, but there may be other areas that I don't know about yet. That's why I created the thread with a general perspective of PHX.

What nice neighborhoods do you have in mind?

You can find homes in Chandler, Peoria, Avondale, Litchfield Park, Glendale under 100k in nice neighborhoods easily. I don't have any specific community in mind, I just see them in passing and note them into my memory. It really all depends on what section you want to live in.

In Scottsdale you can get a 2br 2ba condo in new modern buildings for $100-$150k. The condos near my home are around $120k but they are older, but in a desirable area.

There's just too many to choose from.

 

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[Jonleehacker]

The condos near my home are around $120k but they are older, but in a desirable area.

What would a place like that rent for?