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Transcript of The Luxury Distressed Market: Tough Times Ahead The Luxury Distressed Market: Tough Times Ahead Beth...
The Luxury Distressed Market:
Tough Times Ahead
The Luxury Distressed Market:
Tough Times Ahead
Beth Jo Zeitzer
President/Broker
R.O.I. Properties
SLHT Distressed Property Symposium
April 16th, 2009Page 1
Foreclosures – Buyers Respond To Low Prices
The monthly median sales price (across all areas and types) is at the lowest level of the millennium.At $118,900, it is lower than the previous low point of $125,900 reached on January 16, 2001.It has now fallen 56% from the peak level of $267,000 reached on June 16, 2006.
As a Result …
Buyers are back in the market for smokin’ deals. Investors and first time buyers account for the increase.Purchases are focused where pricing is lowest – including the west valley and the outer suburbsMedium-priced areas like Mesa, Gilbert, Chandler and Peoria are also seeing an increaseThe move up and top end of the market is not yet participating in the increased buying activity
Source: The Cromford Report Page 2
General Market Snapshot
Source: The Cromford Report February 26th, 2009Page 3
REO Market Snapshot
Source: The Cromford Report Page 4
$1M-$1.5M Market Snapshot
Source: The Cromford Report Page 5
Lender Owned Sales
Source: The Cromford Report Page 6
Days Inventory By Price Range
Source: The Cromford Report Page 7
Sales Per Month
Source: The Cromford Report
March, 2002: 5,727March, 2003: 6,471
March, 2004: 8,677March, 2005: 9,957
March, 2006: 7,495March, 2007: 5,900
March, 2008: 4,257March, 2009: 7,594
Page 8
Investors Are Back
Source: The Cromford ReportData based on the “intended use” filed with the county recorder Page 9
Spotlight on: Paradise Valley
Sources: The Cromford Report, ARMLS
Active Listings: 581Pending Listings: 21
Properties Sold Last Month: 9REOs & Short Sales Sold Last Month: 0Days On Market – Monthly Sales: 355
Active Listings $/SF: $508.20Monthly Sales $/SF: $314.85
Median Price – Monthly Sales $1,025,000Appreciation – Monthly Median: -41.4%
Current NOTS: 42Active REOS: 9
Active Pre-Foreclosures: 34
Current Pending Distressed Properties (Lender Owned, Short Sale, Pre-Foreclosure): 11
Closed Distressed Sales, Last 6 Months(Lender Owned, Short Sale, Pre-Foreclosure): 19
Of These, Sales Over $1M: 3 of 19
Page 10
Plenty of PV homes for sale, but sales are sluggish.Prognosis – more For Sale signs ahead.
Active Listings - PV
Source: The Cromford ReportPage 11
Monthly Sales Trends - PV
Source: The Cromford ReportPage 12
The Distressed Luxury Market
While the low end of the distressed market is trading at high volume, the luxury market remains stagnantPricing in the luxury market remains unrealistic especially when compared to banks’ pricingNOTS are steadily increasing in all luxury marketsContinued economic uncertainty makes it difficult for luxury buyers to commitLending standards remain tight, and only those with the best credit may qualify
Page 13
Thank You!
Page 14