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Fidelity National Title, one of Arizona's largest title insurance and escrow service companies, today announced that in June, 2009, the median home resale price increased for the first time since 2007, which is a direct result of increasing trends of multiple offers on properties and a large reduction in active listing inventory, especially bank-owned (REO) properties. Overall pricing in Greater Phoenix ceased its sharp decline in April, and continued to rise through the rest of second quarter.
According to MIchael Orr, founder of The Cromford Report, several sectors are still seeing price declines, including properties over $350,000, condominiums and mobile homes. To date, recovery is strongest in Avondale, Glendale, Maricopa, South Phoenix, West Phoenix and Queen Creek - areas most dominated by the 2008 glut of lender-owned homes that also suffered the most severe price declines. Scottsdale differs from Metro Phoenix in that it has seen only a moderate increase in demand and prices continue to fall. It has a predominance of luxury homes and condos, which are both sectors with excess supply and are not yet in a recovery phase.
Foreclosures have not slowed as unemployment and economic uncertainties are still impacting homeowners' ability to make payments. There are a large number of consumers behind on their payments and seeking short sales or loan modifications. June and July has seen a solid increase in the number of short sales as consumers, real estate agents and lenders begin to realize the benefits over foreclosure. Short sale activity has increased substantially as consumers are learning how to prevent foreclosure, and as lenders and banks recognize the benefits of short sales to mitigate their losses.
The largest constraint on sales volume has been the availability of obtaining finance, which has constrained many buyers' ability to purchase the homes they want. Credit approval guidelines are stricter than at any time in recent history. The lack of attractive finance for homes above $400,000 is a critical factor prohibiting recovery of the high end of the market. As a result, cash buyers dominate sales– which heavily favors investors when competing for the most attractively priced homes.
The Genworth Mortgage Corporation Metropolitan Statistical Areas Declining/Distressed Markets Update from July 15, 2009, reflects that 14 states are considered distressed or declining in their entirety: Arizona, California, Connecticut, Florida, Hawaii, Maryland, Michigan, Nevada, New Hampshire, New Jersey, Oregon, Rhode Island, Utah and Vermont. Arizona is the first to show signs of stabilization.
"We have a large amount of property that has yet to find its way into the marketplace," stated Fidelity Senior Vice President Steve de Laveaga. "We believe that there will be 3 primary avenues of property distribution from the distressed side: REO, short sale and investor-based trust sales."
The Market's Impact on Real Estate Agents
As the market continues to wildly fluctuate from month to month, lenders, realtors and title companies struggle to adequately maintain service and staff levels.
Also, consumers have become hungrier to learn ways in which to save themselves from foreclosure, and buyers are more actively seeking short sale purchase opportunities. Therefore, the demand has increased sharply for real estate agents with short sale expertise on both the seller and buyer side of the transaction.
The Certified Distressed Property Expert (CDPE) designation is rapidly becoming an important credential for real estate professionals to have, due to increasing demand for this expertise from consumers, banks and lenders.
This information is released in partnership with The Cromford Report, a daily report tracking the residential real estate trends of the Metropolitan Phoenix area.
About Fidelity National Title Insurance Company of Maricopa and Pinal Counties
Fidelity National Title of Maricopa and Pinal Counties was established in 1981 and is one of Arizona's largest providers of title insurance and escrow services. It has maintained a steady physical and financial base in Arizona for almost thirty years, remaining rock solid through decades of market swings. It is protected under the umbrella of Fidelity National Title Group, which holds over $2.8 billion in reserves.
Fidelity National Title Group
Founded in 1848, Fidelity National Title (fntarizona.com) is the world's largest title insurance company, issuing insurance policies and escrow services throughout the US, Canada, Mexico and 50 countries. It is also one of the nation's largest providers of title insurance and escrow services, issuing approximately HALF of the residential and commercial title insurance policies in the United States, and is one of the foremost experts in the area of HUD, short sale, REO and foreclosed properties.
Fidelity National Title Group is ranked at #264 on the Fortune 500, an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations. Fidelity National Title Group is a subsidiary of holding company Fidelity National Financial, Inc. (NYSE: FNF), a leading provider of title insurance, specialty insurance, claims management services and information services.
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carrie[.]kwprgroup.com 
