Realtors are starting to see a glimmer of light at the end of a long and torturous tunnel.

“Buyers are taking advantage of the great home prices and interest rates,” said Realtor Lisa Murray of RE/MAX Sun Properties.

Sold or closed escrow in March 2009 were 62 homes, more than double the number from February, she said.

“Overall, with prices down, interest rates low and a huge selection of available homes, it’s a great time to buy,” said Murray.

March is historically the month in which home sales begin a seasonal increase that generally last through August, said Jay Butler, director of Realty Studies at Arizona State University.

“There is an increasing hope that the housing troubles are beginning to ebb,” said Butler.

Foreclosure activity decreased by 38 percent in Maricopa County in March, said Butler. He attributed the decline to many banks holding back on foreclosures as they awaited details of a Treasury Department program to standardize the loan-modification process for mortgage borrowers.

Economic recovery is about making people feel more confident, said Mark Zandi, chief economist for Moody’s Economy.com.

Increasing home sales and gains in the stock market are promising signs that the worst may be over and people could start spending again.

Bargain hunting is the order of the day, and why not? There is so much inventory available that buyers can pick and choose with so many sellers in desperate straits.

This “deep discounting,” as the National Association of Realtors describes it, is helping boost sales, especially in places where there is an overabundance of distressed properties. Sales activity involves either foreclosure sales or short sales, where the mortgage lender agrees to take less than the loan balance.

Secondly, Uncle Sam is willing to help first-time buyers, defined as anyone who hasn’t owned a home in the last three years. These buyers are entitled to a maximum $8,000 tax credit. Mortgage interest rates are at record lows hovering around 5 percent and the Federal Reserve is doing its best to make mortgage loans available.

“Cash is king,” said Robert W. Peirce, Jr., chief executive officer of Scottsdale Area Association of Realtors. “Good things are starting to happen out there.” He commented on a recent upturn in activity at a Fountain Hills Realtors Marketing Session.

As of April 1, 777 homes were listed for sale in Fountain Hills with 463 of them single-family homes and 63 foreclosures, said Murray. The average price is $733,362. Currently in escrow are 78 homes with an average price of $532,619.

March was the second consecutive month where more than one house per day received an accepted offer.
“Again, a good sign,” said Realtor Erica West with Sonoran Properties GMAC Real Estate.  

The most popular price range for both listing and sales is between $200,000 and $500,000, said West. Within that price range, about 150 homes were available in early April.

“Real estate markets are local. The values in Fountain Hills are not influenced by what is happening in Queen Creek,” believes West.

“Our median price declined only seven percent in 2008 while it declined 12 percent in Sun City. Fountain Hills is unique. We offer a small town lifestyle.”

Single family and patio home sales for all Maricopa County rose 77 percent for the first quarter of 2009 over the first quarter of 2008, said Jerry and Irene Cain, MCO Realtors, who track statistics for the local housing market. The median sales price went down 45 percent to $132,000.

Fountain Hills sales for this category showed a marginal drop from 97 closures to 91, said the Cains.

“Our median sales price went down too, but only 28 percent to $365,000,” said Jerry Cain.

Condominium homes and Gemini home sales for Maricopa County rose slightly (4.3 percent)  from the first quarter of 2008 to first quarter of 2009. The median price fell 40 percent to $105,000. The number of Fountain Hills’ closings for condos and Gemini homes in the same time period dropped from 47 to 30 with a 37 percent decline in median price to $159,000, said Cain.

“However, currently there are 23 condominium/Gemini homes in escrow and the median list price for those is up to $194,000, another positive sign for our town,” added Cain.

“These properties in escrow are a small indication of price stabilization. However, there still is a lot of inventory out there and it still is very important for property owners to price their property accordingly if they want to sell.”

Members of FireRock, the town’s first luxury gated residential community, heard in early April that five projects were under review and 29 homes were under construction.

Marianne Wiggishoff, Community Association manager, reported 190 homes have been completed in the upscale residential community off Shea Boulevard. FireRock has 379 custom sites.