DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/105636
VISIT US ONLINE @ DSNEWS.COM Arizona We know your HOT buttons. Roberta Chatfield-Gonzalez Phoenix One Realty ABR, GRI, SRES, CLSS, e-Pro, RECS Call 602.882.0603 MEMBER ARIZONA: Yavapai, Coconino, Gila County MEMBER Holly Grigaitis Designated Broker 928.284.9367 reo@optionsaz.com verdevalleyrealestate.com IN THE NEWS Integra Expands with New Affiliate Company Tucson-based Integra Group Real Estate LLC has established an affiliate company, Integra Property Management, to address a growing need among investors for assistance in managing rental properties. Integra Property Management is also extending its services to asset management companies tasked with maintaining REO listings. Integra Property Management ensures due diligence and thorough research on each property through occupancy checks, property inspections and evaluations, posting of government-required notifications, and relocation assistance as necessary. "The creation of Integra Property Management further enhances the way we manage properties and provides a sound platform that will give our clients confidence that their rental assets will be well-managed," said Eric Lichtenheld, president of Integra Group Real Estate. "Our property management team ensures each property is thoroughly taken care of and not only meets the client's requirements but exceeds their expectations." Integra Group Real Estate is a brokerage firm specializing in the management, preservation, and marketing of REO, HUD, and distressed properties in Southern Arizona. Hardest-Hit Markets 'Overshot on the Downside' Although the Phoenix market doesn't have the appeal bustling coastal cities such as Boston, Los Angeles, and Miami claim, it has still drawn interest from foreign investors and is one of the nation's fastest-growing metros, according to Pro Teck Valuation Services. In Pro Teck's June HomeValueForecast. com report, Phoenix was used as an example to argue the point that some of the hardesthit markets have "overshot on the downside." The real estate valuation company looked at two traditional appraisal methods for determining property values: replacement cost and income capitalization. Based on these two factors, Pro Teck concluded that homes in certain markets are selling at prices are actually way below their replacement costs and the rental yields generated on these homes are far above historical levels. Pro Teck also used a home forecast model displaying prices for metropolitan areas based on two price drivers: employment growth and affordability. In the Phoenix case study, the model shows prices plummeted from 2007 to 2008 while employment stayed steady. Pro Teck explained that the median price in Phoenix started to return to sustainable levels after the bubble burst, but instead of just declining to economically supportable levels, prices plummeted below that mark. Now, after hitting a low that Pro Teck concludes was "overshot," recent data reveals homes in Phoenix are returning to what can be considered more reasonable long-term values. According to Pro Teck, market drivers in Phoenix have all turned positive for home prices, with months of remaining inventory down to 2.5 months—the lowest in the country. Listed homes are quickly snatched up at sales prices significantly below their replacement costs and rents. DataQuick recently released a report showing the median price paid for a home in the Phoenix area in May reached a 41-month high. For all new and resale houses and condos sold in Maricopa and Pinal counties, the median purchase price was $150,000. That figure marks the highest median for any month since December 2008, when the median stood at $154,000. The median increase was a 5.6 percent gain from April and a 25 percent improvement from May 2011, according to DataQuick. Although Phoenix's median price remains 43.2 percent below its all-time peak of $264,100 in June 2006, it's still 26.7 percent higher than the post-peak low of $118,347 in August 2011. DataQuick also reported 2,385 Phoenixarea foreclosures in May, which is an 8.9 percent increase from the month before, but a 51 percent decline from a year ago. The number of foreclosures so far this year (January through May) total 12,475, which is a 53.8 percent decrease year-over-year. KNOW THIS Short sales accounted for 33% of all home sales in Phoenix in June, outpacing REO sales, which made up just 14%, according to economist Tom Lawler. 75