Market Causes Increased Demand for Real Estate Agents to Have CDPE Designation and Short Sale Expertise

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 the 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 have 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.