Archive for March, 2009
Prescott Real Estate- You make money when you buy, not when you sell.
March 28th, 2009 categories: Home Buyers, Prescott Real Estate Trends
I’ve heard “you make money when you buy, not sell” many times over the years, and it never made as much sense as it does right now.
One of Warren Buffett’s most famous quotes, which is very relevant to today’s times is “To be cautious when others are greedy, and greedy when others are cautious”.
Many people are cautious right now even with prices having dropped anywhere from 30% to 50%. Bank owned properties currently account for 50% of closings in Prescott as of the end of February. Bottom line is, these are the market conditions in which many people have made fortunes. I’m not saying that waiting and watching is a bad thing, but like the boom, this bottom isn’t going to last forever either.
When you look at some of the most successful real estate investors, the decisions they make in the down times, not up times, are what set them apart from the crowd.
“Most of the biggest real estate fortunes were not made in good times, but in bad times like this” Barbara Corcoran reminds us in this talk with NBC.
In the 4-minute interview, Corcoran touches on the basics and the essentials of foreclosure investing,
- “Everyone who loses their shirt loses it somewhere else.”
- “Every big shark started small.”
- “The house on the corner sets the tone for the block.”
She also lends some personal perspective to rent rolls, the cost of losing a tenant, and finding a good business partner.
Banks are anxious to sell their foreclosed homes and that makes this an ideal time for savvy real estate investors.
When it comes down to it, those who buy & invest in Prescott Real Estate over the next few years will be looking pretty smart in 5-10 years.
If you have any questions about investing in today’s Real Estate market, call us at 928.778.4492 or e-mail at info@thehuffmangroup.com
| Discussion: 2 Comments »
Prescott Real Estate- Market Update March 27th, 2009
March 27th, 2009 categories: Market Update, Prescott Market Statistics, Real Estate News
Hello, and welcome to the weekly Real Estate market update for the City of Prescott.
The chart below covers properties that are site-built, single family residences in the City of Prescott. This update is a little different than what I normally do, I though it would be interesting to look back and compare some sales figures from 2005 to 2009.
|
Year |
Average Sales Price | Average # of sales per Month | Total # of sales for the year |
|---|---|---|---|
| 2005 | $314,107 | 236 | 2,829 |
| 2006 | $346,065 | 172 | 2,067 |
| 2007 | $338,506 | 154 | 1,845 |
| 2008 | $285,430 | 131 | 1,577 |
| 2009 Jan & Feb |
$220,786 | 91 | 182 |
| Year | Days on Market |
List price |
Average Price per Sq. Ft. |
|
2005 |
102 | 98.1% | $165.00 |
| 2006 | 124 | 96.9% | $183.00 |
| 2007 | 159 | 95.5% | $175.00 |
| 2008 | 165 | 94.5% | $148.00 |
| 2009 Jan & Feb |
162 | 92.1% | $113.00 |
In the month of February, 09, 50% of the homes that closed escrow were bank owned, and that is directly tied to the dramatic drop in price per sq. ft. Banks are extremely motivated sellers and slashing prices is the best way to move homes through the system. When price per sq. ft. begins to increase, it will be another indicator that more privately owned homes are closing escrow.
The information provided is courtesy of the Prescott Area Association of Realtor MLS. This information is deemed reliable but not guaranteed.
If you would like more information on the Prescott Real Estate market, please contact us at 928.778.4492 or e-mail us at info@thehuffmangroup.com
| Discussion: 2 Comments »
Prescott Neighborhoods - Grandview
March 26th, 2009 categories: Home Buyers, Prescott Neighborhoods
1812 Peaceful Mesa
Prescott, AZ
1,834 sq. ft.
2 bedrooms, 2 baths
Granite counter tops
Travertine Tile & hardwood flooring throughout.
MLS # 935057
Offered at $399,900
Virtual Tour
1812 Peaceful Mesa is a gorgeous property, and redefines a ”park like” setting. This property features a variety of large trees, granite bounders and several private patio areas. This home is great for entertaining, or simply enjoying a quiet summer afternoon. The interior has been remodeled featuring granite counter tops, travertine and hard wood flooring and a beautiful rock fireplace. Take the Virtual Tour to see the interior of this stunning home.
Grandview is located on the west side of Prescott, near Iron Springs Road and Williamson Valley Road.
This established neighborhood of 89 homes consists of newer as well as older homes, most homes are situated on half acre lots.
Grandview is close to shopping, medical services and 10 minutes from Prescott’s courthouse plaza.
For more information on this property, contact The Sherry Huffman Group at 928.778.4492 or e-mail info@thehuffmangroup.com
| Discussion: No Comments »
Prescott Real Estate - Market Update, March 18th, 2009
March 18th, 2009 categories: Market Update, Real Estate News
Hello, and welcome to the weekly Real Estate market update for the City of Prescott.
Absorption rates are a calculation of how long it will take for all the homes on the market to be sold, or absorbed at the current rate of sales.
| Price Range | Residential Properties On The Market | Home Sales Last Month | Absorption Rate # Of Months It Will Take To Sell |
|---|---|---|---|
| $300,000 and below | 352 | 15 | 23.4 Months |
| $300,001 to $500,000 | 338 | 11 | 30.7 Months |
| $500,001 to $800,000 | 209 | 6 | 34.8 Months |
| $800,001 to $100,000,000 | 72 | 0 | 72 Months |
| $100,000,001 and above | 73 | 0 | 72 Months |
| Totals | 1,044 | 36 | 29 Months |
Prescott Real Estate- Year to Date Sales Information
| Property Type | Listings For Sale |
Current Pending Sales |
Closed Sales Year To Date |
|---|---|---|---|
|
Single family Residential |
902 | 84 | 72 |
| Vacant Land |
1,415 | 13 | 22 |
| Condos & Town Homes & Patio Homes |
129 | 8 | 10 |
| Multi Family Properties |
23 | 0 | 2 |
| Commercial Properties |
203 | 3 | 3 |
| Business Opportunities |
10 | 0 | 0 |
Homes priced under $300,000 are leading in Prescott homes sales.
In the month of February, 50% of homes that closed escrow were bank owned properties.
The information provided is courtesy of the Prescott Area Association of Realtor MLS. This information is deemed reliable but not guaranteed.
If you would like more information on the Prescott Real Estate market, please contact us at 928.778.4492 or e-mail us at info@thehuffmangroup.com
| Discussion: No Comments »
Buying Prescott Real Estate- Is it better than renting?
March 4th, 2009 categories: Home Buyers, Real Estate News
Should I buy Real Estate in Prescott or continue renting?
If you are going to live in Prescott for less than 2 years, renting is better than buying. However, if you are planning to stay put for more than a few years, this may be the perfect time to purchase a home. A recent article in the Wall Street Journal confirmed that recet drops in values and interest rates have made owning more beneficial than renting.
According to Green Street Advisors, a Real Estate consultancy group based in Newport Beach, Calif, “over the past 18 years, after-tax mortgage payments averaged 26% more than rent payments”. In 2006, at the height of the housing bubble, mortgage payments reached as high as 66% more than rent payments. By the end of 2008, average monthly rent for the largest 50 metropolitan areas was $1,045, compared with after-tax mortgage payments of $1,300, assuming a rate of 5.5% on a 30 year fixed mortgage. That means mortgage payments averaged just 24% more than rent payments, the narrowest gap since 2001.
This gap is important to consider, but there are other reasons, fun reason to buy a home.
1. You own your own place! You can do whatever you want, whenever you want.
Choose your own paint colors, tear down a wall, remodel the bathroom, jump on the bed. You are the boss.
2. Long-term equity appreciation. It may not seem like it right now, but values and prices in Prescott will be going back up. Don’t look back in 2013 and think “I should have bought a house in 2009″.
3. Buy low, sell high. Today, we are at the “Buy low” part of life. I’m not a fortune teller, but in 2013, I’m predicting that prices in Prescott will be higher than they are today.
4. Stability. No landlord will ever tell you, “you have to move”. Coming home to a place that’s “Your Home” feels good.
5. You are paying your mortgage, not your landlord’s. If you’re going to be paying rent somewhere every month, you should get the tax benefits for it, and ultimately own the home that you are paying for.
There are many other reasons to own a home. If you would like to discuss your qualifications to purchase a home, please call us at 928.778.4492 or 928.533.6377. Or e-mail us at info@thehuffmangroup.com
| Discussion: No Comments »
Realtors Need a Stimulus Package!
March 3rd, 2009 categories: Beyond Real Estate
As a Realtor, a stimulus package from the government would be nice. If it’s good for AIG to receive billions, why not us? Imagine, all NAR (National Association of Realtors) members receiving a check from Uncle Sam for a million dollars because our industry has been hit by such a negative downturn. Those of us in Arizona would receive 1.5 million because our state has been hit the hardest.
Well, we know that’s not going to happen, so our only option is to put on our “big girl” or “big boy” panties on and create our own emotional stimulus package. Here’s my thoughts, and the great news is, it won’t cost the government a penny.
How many time have your heard “Attitude is Everything”, well, it is. Although we are on a rough road, feeling hopeless and complaining about the situation won’t help. We need to figure out how to stay positive, and work harder than ever knowing that there is light at the end of the tunnel. Check out www.happyrenews.com
Turn off the news. We as Realtors know better than anyone what’s going on out there, we don’t need Matt Lauer to confirm it over and over. I’m not saying to turn a blind eye to what’s happening in the world, just don’t over load yourself with negative media news. Be informed, not inundated.
Concentrate on what you’re grateful for. We all have things in our lives to be thankful for. Our families, kids, friends, pets, our health. We live in the greatest country in the world where possibilities are limitless if we are willing to work for them.
Make a gratitude list and read it daily.
Stay focused on solutions, and share them with other people. We are in the place where we need to think out of the box, come up with new ideas and not be afraid to try them. Through imagination and creation comes thoughts and actions that will help lead us to recovery.
Support your fellow Realtor. We are all in this together and need to support each other through it. A laugh and some kind words goes a long ways these days.
Optimisim, PASS IT ON. If you need a pep talk, call me. (928) 533-6377
| Discussion: 3 Comments »
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