Mini mega market update summary

The IPX Team of over 120 dedicated professionals can help you earn 8% to 12% + Cash-on-cash returns during the rental period and in excess of 25% total returns in 18 to 36 months.

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©Investment Property Experts

Online websites such as Zillow and Trulia????• Computer models, such as Zillow and Trulia CANNOT replace

hands-on research ESPECIALLY in markets that have had a high volume of distressed sales.

• People in the business NEVER use these sites

DETERMINING PROPERTY VALUES

IPX Team• 2 full time appraisers IN HOUSE and our IPX Data Team:

Turn-Key Real Estate Investment Services…All Under One Roof!

DATA ANALYSTTina Tamboer

• 19 years of experience in the Phoenix real estate market

• Specializes in custom statistics, analysis and supply/demand influences

DATA EXPERTTom Ruff

• 29 years of experience with Arizona real estate data

• Specializes in data integrity, research and analysis

• Expert on the Phoenix foreclosure market

STATISTICIANMichael Orr

• ASU Director of the W.P. Carey Center for Real Estate Theory and Practice

• Founder and creator of The Cromford Report, an unbiased analytical tool for understanding Phoenix real estate trends

• Oxford graduate and mathematician


Among the markets Faber pointed to were Atlanta, Phoenix and Miami. He said investors could earn a rental yield of 8%t per year and buy homes in the south of the U.S. at 40% to 50% discount to construction costs.

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Turn-Key Investment Services . . . All Under One Roof!

WHAT DO YOU KNOW ABOUT THE PHOENIX REAL ESTATE MARKET?

Is housing glut over? Experts predicts housing shortage by spring in ArizonaPosted by Simon Giannini – January 26, 2012

1/26/2012 10:00:00 PM

Positive signs that the local housing market continues to recover

The following are the top turnaround markets, according to Move Inc’s report from May (Including year-over-year median list of price increases).

1. Phoenix-Mesa. ArizonaMedian list price increase from Q1 2011 to Q1 2012: +26.94%

“If you are trying to get a market to correct, the first thing you have got to get rid of is the glut of over supply,” Michael Orr said.

Existing inventory in the Phoenix market is down around the three-month mark, according to Orr, who said inventory in Maricopa and Pinal counties is in an under-supply situation, and other Arizona communities are moving in that direction

Top 10 Turnaround Housing MarketsDaily Real Estate News | Thursday, May 10, 2012

Friday, February 17th, 2012 4:02AM

US Housing Among Most Attractive Assets



CONFIDENTIAL

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Jobs gains seen in suffering “sand states”By Paul Davidson, USA Today

One-year forecast change in jobs: Arizona: All sectors: 2.6%

Phoenix among leaders in job growthPhoenix Business Journal by G. Scott ThomasDate: Wednesday, August 31, 2011, 11:48am MST – Last Modified: Wednesday, August 31, 2011, 11:52am MST

Phoenix No. 6 in the nation for new jobsDate: Wednesday, September 28, 2011, 10:45am MST – Last Modified: Wednesday, September 28, 2011, 11:52am MST

Ranked 8th



Phoenix No. 5 for job growth during past yearPhoenix Business Journal by Adam Kress, New Media EditorDate: Monday, June 4, 2012, 10:30am MST – Last Modified: Tuesday, June 5, 2012, 11:53am MST

POPULATION INCREASEARIZONA STATE (ACTUAL TO 2011, PROJECTED 2012+)


12,799 Active Distressed

1,196Active Distressed

91% Decline


DISTRESSED SFR INVENTORY UNDER $300K (EXCLUDING AWC)

Active Listing CountsGreater Phoenix – ARMLS Residential Resale – Measured Weekly

Last Update: 6/9/2012 11:53:50 PM© 2012 Cromford Associates LLC


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Why Aren’t There More Homes for Sale?June 11, 2012, 9:20PM

“It’s no secret to anyone who has watched the real estate market over the past year that the number of homes for sale has dropped sharply, especially in hard-hit markets such as Miami, Orlando and Phoenix.

6,663 Active Normal

2,824Active Normal

58% Decline


NORMAL SFR INVENTORY UNDER $300K (EXCLUDING AWC)

Active Listing CountsGreater Phoenix – ARMLS Residential Resale – Measured Weekly


7©Investment Property Experts


HOUSING PRICES

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2011



MARICOPA COUNTY MEDIAN SALES PRICE – SFR ONLY

$123,100

+30%

$160,000

Quarterly median Sales PriceGreater Phoenix – ARMLS Residential Resale – Based on Calendar Quarter



+30%


Monthly Average Sales Price per Square FootGreater Phoenix – ARMLS Residential Resale – Measured Monthly


MARICOPA COUNTY AVERAGE DOLLAR PER SQUARE FOOT – SFR ONLYALL PRICE RANGES



LET’S TALK ABOUT “SHADOW INVENTORY”

Single Family Detached – Maricopa County – Measured Monthly© 2012 Cromford Associates LLC

REO Inventory by ZIP CodeJune 1, 2012

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15,584

3,1477241,344

35,235

7,981

6,112

3,102

Down 56%

Down 61%

Down 88%Down 57%

Within 90-Day Reinstatement PeriodSometimes included in “Shadow Inventory”

Bank-Owned, Not ListedAKA “Shadow Inventory”

Bank-Owned, Active in MLS

Bank-Owned, Pending

1 ½ Years

11,684 Short Salesare Under Contract


30+ days late but no foreclosure notice

33% Decline

51% Decline in Delinquencies from Peak in Feb 2010


Source: Lender Processing Services

12.4%

May-12

6.1%

9.14%

Mortgage Loan Delinquencies Hit Lowest Mark In Three Years: Report

Collections & Credit Risk | Sunday, May 13, 2012

The national mortgage delinquency rate (the rate of borrowers 60 or more days past due) declined for the first quarter ended March 31, coming in at 5.78%

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% NON-CURRENT HOME LOANS IN ARIZONAMAY 4, 2012

© 2012 Cromford Associates LLC


Daniel Butterfield – [email protected] Taplin – [email protected]

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