Phoenix Real Estate Market Keeps Tanking (Chandler, Gilbert: mortgage approval, refinance, locations)

[Captain Bill]

Originally Posted by JoeC

So is demanding that a buyer legally commit to a purchase before knowing how much of the purchase a bank is willing to write a mortgage for.

I see it differently.
The buyer has choices. The buyer, with a good agent, will have a good idea of the market value and can write an offer leaving out the sellers demand, but offering something of value to the seller. It's a matter of knowing how to negotiate in different markets.

When an offer is made in this market at a price where it may not appraise, it can cost the buyer in unnecessary fees, and the seller lost marketing time.

By the seller saying in advance that they will not lower the price for a low appraisal it can save the buyer money if they are not prepared to pay the difference in the agreed on and appraised price.

[Captain Bill]

Originally Posted by JoeC

Then that would be NET profit. Generally, gross profits are the total monies made, before expenses/payroll/overhead are subtracted.

Net profit is the money you can bank.

And now, back to your regularly scheduled program...

My point is that articles like that make it appear, to people who don't know better, that the entire amount is profit. What may appear to be a hundred thousand dollar profit may be a twenty thousand dollar profit ---or a loss.

No one can know unless they know all the numbers, including overhead attributable to the project.

[JoeC]

Originally Posted by Captain Bill

My point is that articles like that make it appear, to people who don't know better, that the entire amount is profit. What may appear to be a hundred thousand dollar profit may be a twenty thousand dollar profit ---or a loss.

No one can know unless they know all the numbers, including overhead attributable to the project.

Understood.
Sorry - didn't mean to be a wiseass about it...

[Captain Bill]

Originally Posted by JoeC

Understood.
Sorry - didn't mean to be a wiseass about it...

No problem, I didn't take offense. Just wanted to clarify.

[miran]

An article in the Globe and Mail in Canada about the Phoenix real estate...

In hard-hit cities like Phoenix, the home market rises - The Globe and Mail

[sunluv]

One wonders where this week's severe US/Euro/Asia fallout, accompanied by various political ramifications, leads in regards to the dynamics within this summer/fall's Phoenix real estate season. As well as to those of other areas of the country:

BBC News - Weak US job figures for May hit markets

Bill Clinton Undercuts Barack Obama in Wisconsin - Ron Bonjean (usnews.com)

[cignalife]

Are the final May #'s out on Cromford yet?

[sh9730]

SO, this thread hasnt been touched in awhile - and since most said they preferred to just update this one - here goes.

Noticing a SIGNIFICANT increase in inventory down here in Casa Grande over the last month - using my standard zip code search for CG on Capn Bill's site, we had been as low as 65 SFR for sale here in CG about 6 weeks ago or so. Today that number is 92! Again, what Im noticing is that asking prices have skyrocketing from an average of 50.00 per SF to near 70.00 per SF. I think at that level the ROI for investors is more difficult and the regular buyers either cant (financing etc) or wont pay that much, at least not as quickly as they were a couple months ago...so sales have slowed.

Now, in context that number of 92 is still about 30% of what it was 18 months ago - but it definetely is going up each day a bit now.

The overall valley inventory though slightly higher, does not have to increased to the degree that CG has, at least so far.

We ll see where it goes from here....

[Ponderosa]

Originally Posted by sh9730

SO, this thread hasnt been touched in awhile - and since most said they preferred to just update this one - here goes.

Noticing a SIGNIFICANT increase in inventory down here in Casa Grande over the last month - using my standard zip code search for CG on Capn Bill's site, we had been as low as 65 SFR for sale here in CG about 6 weeks ago or so. Today that number is 92! Again, what Im noticing is that asking prices have skyrocketing from an average of 50.00 per SF to near 70.00 per SF. I think at that level the ROI for investors is more difficult and the regular buyers either cant (financing etc) or wont pay that much, at least not as quickly as they were a couple months ago...so sales have slowed.

Now, in context that number of 92 is still about 30% of what it was 18 months ago - but it definetely is going up each day a bit now.

The overall valley inventory though slightly higher, does not have to increased to the degree that CG has, at least so far.

We ll see where it goes from here....

The party's over before most of the guests arrived. Look for prices to drop 10% on average by the end of the year if Europe can't get its act together.

The lone bright spot I see is that they are building houses like crazy again. I was driving down Cotton Ln in Goodyear and it looks like an entire block is under construction over by Target. I heard that homebuilders are building homes to rent. Maybe that explains the construction boom.

[Guitarmaan]

I'm seeing a fair few lower end homes being relisted with price reductions....

Just sayin'

Originally Posted by Ponderosa

The party's over before most of the guests arrived. Look for prices to drop 10% on average by the end of the year if Europe can't get its act together.

How does Europe affect Phoenix prices? I'm curious, currently being in Europe.