A few weeks ago, "experts" were touting the "recovery" of the Phoenix real estate market:
The median home resale price in metro Phoenix increased in June for the first time since 2007 — a direct result of increasing trends of multiple offers on properties and a large reduction in active listing inventory, especially bank-owned properties, according to Fidelity National Title and The Cromford Report.
Even though home sales are near their 2005 peak, one agent says it’s still tough to sell real estate in Phoenix: [Thanks L!]
Brett Barry is a well-known north Phoenix agent who has gone from selling dream homes to handling evictions and open houses for foreclosure homes. He moved his office into his living room, works much longer hours for far less money but still makes his living selling homes.
According to the Arizona Republic, the number of realtors has dropped 20% since 2007:
During the boom years there were nearly 80,000 real- estate agents in Arizona. According to the state’s Real Estate Department, the number of active agents has dropped 20 percent since 2007.
Former Valley real-estate agents are working at restaurants, grocery and clothing stores, and temporary office jobs. Some plan to go back to selling homes when the market recovers, while others have given up on the business.
"I was recently at a restaurant, and the guy serving us used to be one of my big competitors," Barry said. "It’s humbling for all of us. I told him not to feel bad about being a waiter because I am basically a runner for lenders these days, dealing with many unhappy people for not much money."
Back at the peak of the market, a lot of these guys basically turned in their boxtops and spent a couple of weekends getting their license. It was easy to get a license and easy to sell a home. The world has changed, and the market will be a better place when the amateurs go back to their day job.
But back to Barry. He’s saying that he might have the wrong car for the job:
Many clients were neighbors who recognized his yellow Porsche. People would know a home was going on the market in Tatum Ranch before a sign went up if Barry’s car was in the driveway.
About 60 percent of all Valley home sales now are foreclosures. About 15 percent are short sales. Even if a home isn’t in some stage of foreclosure, a seller must compete with foreclosure price levels.
Barry takes every listing he’s offered, including several foreclosure houses 30 miles away in south Phoenix. He must keep an eye on the vacant properties and is the one police call in case there is a break-in. Driving out to each property for weekly reports to the lenders has put 30,000 miles on his Porsche during the past year.
Barry is thinking of selling the Porsche. Luxury cars stick out in less- affluent neighborhoods. And they don’t go over well with homeowners when Barry arrives representing a lender to evict them.
Sounds like a good move, Barry.
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i used to work for a firm back home in IL. the three partners each had two vehicles…the one they cheerished and drove to our office and around town….and then the one they took when they had to go to the clients place of business. the second was a very modest automobile. this was for two reasons. when you show up at a clients place of business in a car that cost what their home cost, it can make them feel less than. but the primary reason is that when you show up in a $100K auto, their first thought is …”damn, i pay this guy WAAAAAY too much.” if i saw a porsche pull up to sell my home i may be inclined to ask if the agent will take 2% instead of three? but then again, i may think to myself “here is a guy that knows what he’s doin.”