PHOENIX FORECLOSURE STATS & UPDATE

According to AZ Journal of Real Estate and

business, “foreclosure activity in March 2009 represented 31% of the sales recorded down from 51% in February, 2009.”  The experts are hopeful that we are at the bottom of this and can start to inch our way up to more traditional sales.  We’re still seeing foreclosures especially as the short sale properties go to auction and have a “status change” scenario.

This foreclosure market, especially in the lower range homes, has brought investors back as well as owner occupants.  The investors are coming back with the hopes that home prices will rise over the next several years.  Greater Phoenix is a large area encompassing many areas where the median home prices have dropped significantly and the foreclosed properties have left many remaining homeowners see the equity in their homes erode.  It’s a situation that those of us who are making our payments are hoping will pass.  This keeps people in their homes and stops more homes from flooding an already overloaded marketplace.  

There are a lot of good deals out there in the foreclosure market if you want to jump into the market.  Especially first time home buyers.  Be aware of the pitfalls when purchasing bank owned properties.  Sometimes the more expensive listings are actually in worse shape than the lower prices homes — price ranges of $120k to $140k — depending upon the community.  

In addition, some listing agents don’t respond very quickly to the offers that are submitted, especially if the offers are just to be emailed or faxed.   Remember, the squeaky wheel gets oiled.  So, stay on top of the submission.  Good luck to everyone as you maneuver your way through this challenging dynamic!