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Thursday, February 10, 2011

Conservatorship Case Law Update

Division Two of the Arizona Court of Appeals held surety bond could be held liable for illegal acts of conservator prior to issuance of bond holding that guardians and conservators are responsible for pursuing assets wrongfully taken from protected person even if it means suing themselves for misappropriated assets. The Court awarded prejudgment interest against the surety but declined to award attorney’s fees to estate of protected person stating the surety had not taken an unreasonable position, the surety made good legal arguments and the law was unsettled in Arizona. Pacheco vs Hartford, 2 CA-CV 2007-0135, issued September 22, 2008.

Reflecting on 2010

By Beth Jo Zeitzer, Owner and Designated Broker of R.O.I. Properties

As the Arizona real estate market continues to correct itself, 2010 saw many improvements, including a higher sales volume than we've had since 2008, an increased number of short sales, a lower number of Notices of Trustee's Sales than 2008 (21% lower than 2009), and heavy investor activity. Here are some additional highlights from 2010:
*Note: Though some of these stats focus on Maricopa County, we're seeing similar trends for all areas of Arizona.
Active Listings
- In 2010, Arizona had a total of 150,797 new listings. In Maricopa County average monthly listings in 2010 totaled 43,500 (14% higher than 2009, but 20% lower than 2008). 58% of listings were distressed (up from 51% in 2009 and 49% in 2008).
- In 2010, Arizona had a total of 90,331 closings. Of these, 37,833 (42%) were cash deals, indicating high investor activity. In 2008, conventional financing was used in the majority of deals. In 2010, Maricopa County monthly closings averaged 7,100 (20% higher than 2009, and 61% higher than 2008). Of these 2010 sales, 24% were short sales, compared to 22% in 2009 and 9% in 2008. As lenders streamlined their short sale processes, aimed at mitigating their damages, short sales became easier to implement and have gained a higher share of total sales.
- The average SF of homes in the Valley has changed very little since 2008, but the median price per SF has decreased (now 34% lower than in 2008). The 2010 median sales prices was $122,900, compared with $125,000 in 2009 and $184,000 in 2008.
Supply - Sales volume has increased (now at 16% vs 8% in 2008), leading to a lower supply (currently 5.9 months vs 11 months in 2008).
Notices of Trustee's Sales/Foreclosures
- Maricopa County Notices of Trustee’s Sales in 2010 were fairly similar to 2008. Overall, there were 21% less Notices of Trustee's Sales in 2010 vs 2009. However, the foreclosure volume of Notice of Trustee's Sales was higher in 2010 than the previous two years. In 2010, Notices of Trustee's Sales for homes priced under $200,000 totaled 32,876. Those priced $200,000-$500,000 totaled 32,454. Those priced above $500,000 totaled 3,188. Only 5% of Notices of Trustee's Sales are luxury homes priced over $500,000. This is due to a smaller supply, but also an increase in lenders willing to engage in short sales for luxury product. Lenders are able to mitigate their damages through a short sale, especially with luxury product and its longer days on market and capital investment needed for upkeep of these larger homes.
Beth Jo Zeitzer can be reached at 602-319-1326 or bjzeitzer@roipropertie
Sources: ARMLS, Cromford Report, and Ion Data