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Crisis Or Opportunity - The Truth About The Arizona Real Estate Market

Crisis Or Opportunity - The Truth About The Arizona Real Estate Market

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Published by Greg W Sheldon
Hi friends. Usually I am promoting someone else’s products. But today I am promoting my new eBook on Real Estate Marketing in the 21st Century. I wrote this book, because I am in the real estate business myself. In fact, everyday, I help people who are losing their home to the foreclosure. This is my book on how to get your real estate business to market the most effective way. In the book are the exact strategies I used to help 100's of families a month. Thanks and I hope you enjoy the book. You can find it as the link in this article.
Hi friends. Usually I am promoting someone else’s products. But today I am promoting my new eBook on Real Estate Marketing in the 21st Century. I wrote this book, because I am in the real estate business myself. In fact, everyday, I help people who are losing their home to the foreclosure. This is my book on how to get your real estate business to market the most effective way. In the book are the exact strategies I used to help 100's of families a month. Thanks and I hope you enjoy the book. You can find it as the link in this article.

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Published by: Greg W Sheldon on Jan 31, 2012
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 ==== ====Hi friends. Usually I am promoting someone else’s products. But today I am promoting my neweBook on Real Estate Marketing in the 21st Century. I wrote this book, because I am in the realestate business myself. In fact, everyday, I help people who are losing their home to theforeclosure. This is my book on how to get your real estate business to market the most effectiveway. In the book are the exact strategies I used to help 100's of families a month. Thanks and Ihope you enjoy the book. You can find it as the link below.www.amazon.com/dp/B006ZCC50A ==== ====The present real estate market is acting just as it should on the heels of the greatest real estateboom in the last 40 years. There is a long way to fall to get back to "normal". This falling back intoa normal market, coupled with the contraction of the sub-prime mortgage market has the realestate consumer, and many homeowners in a state of fear. The various media continue to depicta very grim picture of the markets in general without distinguishing between the national marketand local markets, such as the Arizona real estate market, with factors unique in the ways ofpopulation growth and investor activity. I have seen numerous articles referring to the sub-primedebacle as a global crisis. That may be taking it just a bit too far. The truth is, there is no geopolitical significance to recent events in the U.S. real estate market andthe sub-prime crisis. To rise to a level of significance, an event -- economic, political, or military --must result in a decisive change in the international system, or at least, a fundamental change inthe behavior of a nation. The Japanese banking crisis of the early 1990s was a geopoliticallysignificant event. Japan, the second-largest economy in the world, changed its behavior inimportant ways, leaving room for China to move into the niche Japan had previously owned as theworld's export dynamo. On the other hand, the dot-com meltdown was not geopoliticallysignificant. The U.S. economy had been expanding for about nine years, a remarkably long time,and was due for a recession. Inefficiencies had become rampant in the system, nowhere more sothan in the dot-com bubble. That sector was demolished and life went on. In contrast to real estate holdings, the dot-com companies often consisted of no real property, noreal chattel, and in many cases very little intellectual property. It really was a bubble. There wasvirtually, (pun intended), no substance to many of the companies unsuspecting investors weredumping money into as those stocks rallied and later collapsed. There was nothing left of thosecompanies in the aftermath because there was nothing to them when they were raising moneythrough their publicly offered stocks. So, just like when you blew bubbles as a little kid, when thebubble popped, there was absolutely nothing left. Not so with real estate, which by definition, isreal property. There is no real estate bubble! Real estate ownership in the United Statescontinues to be coveted the world over and local markets will thrive with the Arizona Real Estatemarket leading the way, as the country's leader in percent population growth, through the year2030. As for the sub-prime "crisis", we have to take a look at the bigger picture of the national real estatemarket. To begin with, remember that mortgage delinquency problems affect only people with
 
outstanding loans, and more than one out of three homeowners own their properties debt-free. Ofthose who have mortgages, approximately 20% are sub-prime. 14.5% of those are delinquent.Sub-prime loans in default make up only about 2.9% of the entire mortgage market. Now, considerthat only 2/3 of homeowners have a mortgage, and the total percentage of homeowners in defaulton their sub-prime loans stands at around 1.9%. The remaining two-thirds of all homeowners withactive mortgage prime loans that are 30 days past due or more constitute just 2.6% of all loansnationwide. In other words, among mortgages made to borrowers with good credit at application,97.4% are continuing to be paid on time. As for the record jumps in new foreclosure filings, again, you've got to look closely at the harddata. In 34 states, the rate of new foreclosures actually decreased. In most other states, theincreases were minor -- except in the California, Florida, Nevada, and Arizona real estate markets.These increases were attributable in part to investors walking away from condos, second homes,and rental houses they bought during the boom years. Doug Duncan, chief economist for the Mortgage Bankers Association, says that without theforeclosure spikes in those states, "we would have seen a nationwide drop in the rate offoreclosure filings." In Nevada, for instance, non-owner-occupied (investor) loans accounted for32% of all serious delinquencies and new foreclosure actions. In Florida, the investor share ofserious delinquencies was 25%; in Arizona, 26%; and in California, 21%. That compares with arate of 13% for the rest of the country. This makes for some great buys for the savvy Arizona realestate investor in the area of short sales, foreclosures, and wholesale properties. Bottom line: Those nasty foreclosure and delinquency rates you're hearing about are for real. Butthey're highly concentrated among loan types, local and regional economies, and investors whogot their foot caught in the door at the end of the "boom" and are just walking away from thosepoorly performing properties. Most of those investors still have homes to live in, maybe more thanone. In the wake of the boom years, we now have a high inventory of homes on the market, Investorsand speculators who quickly bought up homes dumped them just as quickly back on the market inhopes of a fast return. The frenzy of investors purchasing homes put pressure on inventories anddrove prices up, further increasing investor activity. Then, as if all at once, many of thoseinvestors put their properties on the market, creating an imbalance in the reverse direction. Withso many homes on the market, prices began to stall and then fell. Prices will continue to fall untildemand chews up excess inventories. With investors no longer a big part of housing demand, primary homeowners are slowly chippingaway at the existing inventory. The Las Vegas housing market will rebound in March 2008,according to the largest and most respected appraisal firm locally. The main contributing factor tothe sooner than later rebound of this southwestern city is a growing population and thriving localeconomy. Arizona and Nevada are expected to lead the country in percentage population growth for the next20-25 years. The population of Arizona is expected to approximately double during that time so wecan expect a strong housing demand going forward. Normal inventory levels for Phoenix realestate are about 6-8 months. Current inventory is about 10-12 months. So, we are not far above"normal" inventories in Phoenix. There are, however, outlying cities in this large metropolis that
 
have inventories in excess of 1 year. Queen Creek real estate inventory is the worst withapproximately a 2-3 year surplus of homes on the market, mostly due to the large percentage ofnew homes purchased by investors and then quickly flipped back onto the resale market. Surpriseand Peoria real estate markets have a 1-2 year inventory for largely the same reason. We arealready seeing some Scottsdale real estate and Paradise Valley real estate prices increase invalue. Billions of dollars are being poured into the local economy in the way of commercialdevelopment from the downtown area to Northeast Phoenix and Scottsdale. The demand for Arizona homes will remain strong in years ahead as new populations create theneed. The demand for housing across our great nation will remain strong as this next generationof young debutantes steps onto the home buying stage. Interest rates are still at historic lows andthe lending institutions will continue to offer creative financing options. Sure, some hedge fundslost the air in their tires, but financing sub-prime loans is a high stakes game for the super rich andis not of geopolitical significance. They will find other ways to lend their billions for huge profits inthe wake of this sub-prime debacle. Let's not be gripped in the fear created by reports from allmedia types trying to "make news". Let's face it, the real numbers are not that bloody exciting.Ask yourself, is this an Arizona real estate crisis, or the perfect time to buy an affordable Arizonahome? Proper timing and negotiating techniques make all the difference in the current Arizona realestate market. When choosing an Arizona realtor, trust the expertise and experience of EquityAlliance Properties. For up to date Arizona real estate market research, contact Robert Hand at 480.206.8133 or go tohttp://www.equityallianceproperties.com I attended Wichita State University from 1979 through 1983 majoring in Chemistry. Enlisted theU.S. Navy in June of 1983, specializing in intelligence gathering and dissemination and tacticaloperations. Served onboard the U.S.S. W.S. Sims FF-1059 through April of 1987 working inElectronics Warfare in the Combat Information Center. Attended the University of the State ofNew York, majoring in Electronics Technologies while on Active duty. After 4 years of active duty,continued service for 2 more years in the U.S. Naval Reserves through June of 1989. With an interest in real estate since I was just a young lad, I decided to get my real estate licensein 1995, prompted by the allure of investment opportunities in this fast growing city I had foundmyself surrounded in. For years I helped others invest in their dream homes or make smart gainsin the properties they bought and sold. I also helped my colleagues who came to this country towork from overseas find a home for their families.  Article Source:http://EzineArticles.com/?expert=Logan_Walker 

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