May 8,2009

This is information from our Manager which was included in our May Pinetop 411 newletter. If you would like to subscribe to our newsletter contact Me.



               Real Estate Market update for the White Mountains

Evidenced by the calls and emails we receive, we know the state of the Real Estate market is forefront in the minds of the majority of those that receive the 411.  In response to all those calls and emails, this month is dedicated to our current thoughts on the Real Estate market .
First of all, there are some positive signs.  There has been a marked increase in recent activity and a coinciding increase in properties going into escrow. We believe there is still a lot of pent up demand, albeit for smaller, more conservative properties.
The birds eye view of recent history and consequent effects of the financial crisis one the Real Estate markets varies from both country to country and community to community.  The drops in Real Estate values is as divergent as the geography.  The bottom line is areas that have seen the largest foreclosure driven increases in supply have also experienced the greatest declines in value.  Econ 101 taught us the basic rule of Supply and Demand, when supply exceeds         demand, prices go down.  There are few places in the United States where this basic law has had more effect then the Greater Phoenix market.  For the past 2 years, Phoenix has been on almost every Top 10 list of the worst markets in the U.S.  
There are only 11 markets in the US that are predicted to show appreciation this year and they are almost all in the snow belt.  In addition to being outside the sunbelt, those stronger markets share another common trait; they did not have the crazy run up in prices seen in the now      hardest hit states like Arizona, California, Nevada and Florida.
How do we think this translates to all of you that own property in White Mountains or those that have been wondering if now is the right time to purchase a mountain retreat?  First, we have come to realize that even though the White Mountains is very different than the metropolitan markets, the majority of our Buyers come from metro Phoenix or Tucson and are to some      degree conditioned by what is happening in the communities they reside in.  The result is that to a certain extent, perception becomes reality.
In the Pinetop-Lakeside to Show Low portion of the White Mountains 75 Residential (other than manufactured properties) have sold year to date.  This is 19 shy of the umber of similar sales during the same period in 2008 and equates to about a 20% decline in sales volume.  Again, there is glimmer of hope as there has been a recent increase in the number of people looking as well as the number of homes going into escrow.  With that said, those that are buying are being more conservative and purchasing smaller and less expensive properties.  This trend has led to a drop in average home sales prices of about 25%.  The actual home over home sales price drop is closer to  20%.  We are wondering if we are seeing a complete paradigm switch in American buying habits.  The era of conspicuous consumption may morph into an era where it is more acceptable to have a $500K cabin instead of a million dollar one as well as to blow off the European vacation and instead enjoy the asset in the mountains.  Only time will tell.
In summary, we are back to that basic Law of Supply and Demand.  Property values in the  Pinetop area are probably near the bottom.  (When we are on our way up, we'll be able to tell you where the bottom was and who the one guy was that timed it perfectly).  The values of new and like new homes with a modern cabin feel (i.e. log or cedar sided, woodsy in and out, hardwood floors, granite counters, etc) are doing fairly well.  Older homes, especially those they may have had painted siding or didn't have interior wood finishes or forced air gas heat are in much greater supply and have experienced a more dramatic drop in prices.  Please call us if you would like to discuss in detail a property you own or may be thinking about.



May 6, 2009

Here goes......my first blog.  I will try to keep this an ever interesting and helpful place to check back for information on real estate and related issues here in the White Mountains of Arizona.  My family and I moved to Pinetop from Glacier Park Montaina 13 years ago and have enjoyed our time here.  The four season climate was an added benefit.  In Montana they say there are only two seasons, 9 months of winter and 3 months of relatives.  What is going on in real estate in Pinetop?  The question everyone is asking......Not probably what you would think.  Do we have good deals? Some  Do we have foreclosures? a few Not like Phoenix and Tucson, though.  We have mostly second homes and people are holding on.  Prices have come down but Sellers are not giving away their cabins.  We are starting to see more traffic and are looking forward to a wonderful summer.  Hope to see you HERE!