The Changing Face of Single Family Real Estate

February 24, 2012 Single Family Property Trends in Maricopa County

The Changing Face of Single Family Real Estate • Lenders prefer alternatives to taking back foreclosed property • January 2012 residential numbers show alternatives trend • Lenders prefer short sales and investors sales rather than taking back property • Lenders recording less foreclosure notices By Fletcher Wilcox V.P. Business Development Real Estate Analyst Grand Canyon Title Agency, Inc. [email protected] 602-648-1230

Fletcher Wilcox, Grand Canyon Title Agency, Inc. [email protected] 602-648-1230

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Lenders Prefer Short Sale Over Taking Back Foreclosed Property In January 2012 there were 1,392 single family short sales compared to 1,317 single family foreclosures. This was the fourth straight month in which there were more short sales in Maricopa County than foreclosures (properties going back to the lender).

Single Family Properties in Maricopa County Back to Lender Compared to Short Sales Data from NetValueCentral and ARMLS 5000 4000 3000

back to lender

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short sales

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Single Family Properties in Maricopa County Back to Lender Compared to Short Sales Data from NetValueCentral and ARMLS 45000 40000 35000 30000 25000 20000 15000 10000 5000 0

40797

38718 27522

14038

16520

back to lender short sales

9748

2009

2010

2011

Note: ARMLS stands for Arizona Regional Multiple Listing Service, Inc.

Fletcher Wilcox, Grand Canyon Title Agency, Inc. [email protected] 602-648-1230

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Lenders Prefer Investor Sale Over Taking Back Foreclosed Property In January 2012, 1,571 properties were sold to investors at the foreclosure auction compared to 1,317 being taking back by the lender. This was the fourth month in a row that lenders sold more single family properties to investors at trustee's sale auctions (foreclosure auctions) than the number of foreclosures (properties going back to the lender). When a property is auctioned at the trustee's sale one of two actions take place: The property is purchased by a third party or goes back to the lender. Most of the third party purchases are investors, so I call these purchases investor sales.

Single Family Properties in Maricopa County Back to Lender Compared to Investor Sales (third party) Data from NetValueCentral 5000 4000 3000

back to lender investor sales

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Single Family Properties in Maricopa County Back to Lender Compared to Investor Sales (third party) Data from NetValueCentral 50000 40000

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38718

30000

27522

20000 10000

10317

14452

18114

back to lender investor sales

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2010

2011

Fletcher Wilcox, Grand Canyon Title Agency, Inc. [email protected] 602-648-1230

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Combining The Number Of Monthly Short Sales With Investor Sales When combining the number of monthly short sales with monthly investor sales (third party sales), these two categories combined since May 2011 have been more than the total number of foreclosures. The table below shows in January 2009 for every one short sale plus investor sale there were four and a half foreclosures. In January 2012 for every one short sale plus investor sale there was less than one foreclosure.

January 2009 3685 808 4.6 to 1.0

Foreclosures Short Sales + Investor Sales Ratio of Foreclosures to Short Sales + Investor Sales

January 2010 3567 1842 1.9 to 1.0

January 2011 3207 2096 1.5 to 1.0

January 2012 1317 2963 .44 to 1.0

Single Family Properties in Maricopa County Back to Lender Compared to Short Sales plus Investor Sales (Third Party) Data from NetValueCentral and ARMLS 5000 4000 3000

back to lender

2000

short sales plus investor sales

1000

Fletcher Wilcox, Grand Canyon Title Agency, Inc. [email protected] 602-648-1230

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Single Family Properties in Maricopa County Back to Lender Compared to Short Sales Plus Investor Sales Data from NetValueCentral and ARMLS 50000 40000

40797

30000 20000

38718 28490

34634 27522

20065

back to lender short sales plus investor sales

10000 0 2009

2010

2011

Fletcher Wilcox, Grand Canyon Title Agency, Inc. [email protected] 602-648-1230

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Lenders Recording Less Foreclosure Notices on Single Family Properties

Single Family Properties in Maricopa County Foreclosure Notices or Recorded Notices of Trustee's Sale (NOTS) Data from NetValueCentral 10000 8000 6000 4000 2000

Fletcher Wilcox, Grand Canyon Title Agency, Inc. [email protected] 602-648-1230

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The statistics in this report are based on information from the Arizona Regional Multiple Listing Service, Inc. (ARMLS) and NetValueCentral. This report is for real estate agents only. Residential Focus does not guarantee the accuracy of the data in this report. Some numbers will change. Report may not reflect all real estate activity. Information should be verified. This article is of a general nature, and is not intended as investment advice, real estate advice, lending advice or legal advice. Please consult your broker, your lender, your own independent legal counsel, your certified public accountant. The information in this report may not be the opinion of Grand Canyon Title Agency, Inc.

Fletcher Wilcox, Grand Canyon Title Agency, Inc. [email protected] 602-648-1230

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Fletcher Wilcox V. P. Business Development, Real Estate Analyst for Grand Canyon Title Agency, Inc. [email protected] 602.648-1230 • • •

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Fletcher is proud to be a part of Grand Canyon Title Agency, Inc. The company has been closing escrows in the Valley for twentyseven years and has seventeen escrow offices in the Valley. Born and raised in Arizona, Fletcher remained in the state to receive his Bachelor of Science degree and a Master of Arts degree from Arizona State University. Obtained an Arizona Real Estate license in 1985. Co-listed and closed a $2.5 million dollar commercial property in 1986. Associations: Arizona State Escrow Association http://www.azsea.org/ Arizona Association of Realtors www.AAROnline.com Scottsdale Area Association of Realtors www.SAAROnline.com Statistician for the Heart of Scottsdale Tour http://www.saaronline.com/marketing/scottsdale.php Past Education V.P. for the Arizona Mortgage Lenders Association www.azmortgagelenders.com/ Past statistician for the Scottsdale Luxury Tour http://www.saaronline.com/marketing/scottsdale.php Fletcher is author of “Residential Focus" a newsletter which provides statistics and analysis for real estate trends and market conditions in Greater Phoenix; he has been a guest speaker on KTAR, KJZZ/NPR, KFNN, channel 3, channel 10 and channel eight on Horizon. His market analysis has been mentioned in the Arizona Republic and AZCentral.com. He is a contributing columnist for the Arizona Journal of Real Estate & Business and has written for the Arizona Association of Realtors publication Arizona Realtor Magazine; He teaches renewal courses on the Residential Resale Real Estate Purchase Contract, short sales and foreclosures and on the new Good Faith Estimate and HUD-1. From 2006 through 2008 was chairman and MC for the Industry Partners Conference: a conference involving the Arizona Association of Realtors, the Arizona Mortgage Lenders Association and the Arizona State Escrow Association. He served eleven years as a citizen board member on the Phoenix Police Department’s Disciplinary Review & Use of Force Boards. Fletcher joined Alice Cooper’s Solid Rock organization as a board member. He attends Living Streams Christian Church. Fletcher started snowboarding in 2008 going on six trips. He is not very good.

Remember Grand Canyon Title when opening your next real estate transaction! Locations for Grand Canyon Title Agency, Inc. Fletcher Wilcox, Grand Canyon Title Agency, Inc. [email protected] 602-648-1230

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Arrowhead - 17235 N. 75th Ave. #A-125, Glendale, AZ 85308 → Tony Tice – Manager 602-474-5104

Mickey Garcia, Sales Representative 602-474-5106

Biltmore - 2730 E. Camelback Rd. Ste. 105 Phoenix, AZ 85106 → Denise Eagar – Manager 602-468-7715

Call 602-648-1230

Commercial - 2720 E. Camelback Rd. #100, Phoenix, AZ 85016 → Sally Hevier – Manager 602-343-3425

Patty Erfman 602-513-2167

Fountains - 16150 N. Arrowhead Fountains Ctr Dr. #175, Peoria, AZ 85382 → Heidi Velarde – Manager 602-474-5126

Call 602-648-1230

Fountain Hills - 17251 E. Shea Blvd. #2, Fountain Hills, AZ 85268 → Toni Kusnerz – Manager 602-474-5662

Adam Saunders, Sales Representative 602-474-5218

Gilbert - 725 W. Elliot Rd. Ste #114, Gilbert, AZ 85233 → Tiffany Malcom – Manager 602-474-5210

Shannon Ellsworth, Sales Representative 602-474-5198

Hayden - 10607 N. Hayden Park Rd. #F-102, Scottsdale, AZ 85260 → Peggi Mathews – Manager 602-474-5140

Kas Baird, Sales Representative 602-474-5142

Marketplace Arrrowhead - 20329 N. 59th Ave. Ste. A4, Glendale, AZ 85308 → Judi Gonshak – Manager 602-474-5148

Call 602-648-1230

Mesa Fairways – 2420 S. Power Rd., Ste. 101, Mesa AZ 85209 → Melissa Armstrong – Manager 602-474-5214

Adam Saunders, Sales Representative 602-474-5218

Mesa Vineyard - 2152 S. Vineyard Bldg. 6 Ste. 116, Mesa, AZ 85210 → Linda Pope – Manager - (602) 474-5238

Corrie Johnson, Sales Representative (602) 474-5374

Metro - 10835 N. 25th Ave. #150, Phoenix, AZ 85029 → Jody Black – Manager 602-474-5158

Call 602-648-1230

Pinnacle Peak - 7308 E. Deer Valley Rd. #110, Scottsdale, AZ 85255 → Cathy Roe or Marilyn Zembsch 480-419-7575

Sarah Green, Sales Representative 602-474-5224

Scottsdale North - 6910 E. Chauncey Ln. #120, Phoenix, AZ 85054 → Toni Romano – Manager 602-474-5178

Sarah Green, Sales Representative 602-474-5224

Sonoran Village - 34406 N. 27th Dr. Bldg 9 Ste. 196, Phoenix, AZ 85085 → Cathy Weir- Manager 602-474-5110

Call 602-648-1230

Stapley Center - 1640 S. Stapley Drive Ste. 125 Mesa, AZ 85204 → Kathy Schaffer - Manager 602-474-5358

Call 602-648-1230

Sun City - 10001 West Bell Rd. #107, Sun City, AZ 85351 → Kathy Brooks – Manager 602-474-5184

Mickey Garcia, Sales Representative 602-474-5106

Surprise - 14239 W. Bell Rd. #108, Surprise, AZ 85374 → Susan Sowers – Manager 602-474-5186

Colleen Minetti, Sales Representative 602-474-5190

Tempe 2 - 2055 E. Warner Rd. #103, Tempe, AZ 85284 → Steve Gowler – Manager 602-474-5202

Greg Douthit, Sales Representative 480-703-9525 Shannon Ellsworth, Sales Representative 602-474-5198

Fletcher Wilcox, Grand Canyon Title Agency, Inc. [email protected] 602-648-1230

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