Well if you are a buyer in today’s market, then you know this oh too well. The foreclosures are stabalizing and inventory is way down. As a matter of fact, in the Metro Phoenix marekt place there is only a 3 month supply of homes for sale. Of those only about 12% are foreclosure homes. That is important, because foreclosure homes are usually priced closed to the market value today, of course adjusted for condition.
With so few foreclosure homes for sale in the metro Phoenix real estate market we are seeing bidding wars on properties. There are 10, 15 sometimes even 20 offers on a house. Many are selling well above asking price. This is the demonstration of a bounce. Some neighborhoods are up 20-30% since March. But most of those neighborhoods are entry level, with cash buyers dominating the purchases. This is good, because otherwise getting an appraisal on a home that bounced 20% can be a nightmare. These new cash sales are the comps used to justify any appraisals.
Here is the quote below about foreclosures stabalizing in Arizona, there is a link below to read THE REST OF THE STORY…
In June, foreclosure rates held steady for Arizona, California and Florida at 4.1 percent, 3.5 percent and 3.4 percent, respectively, according to Realty Trac, which maintains a nationwide database of foreclosures.
“It’s obviously good news to stop the losses,” said Jim Diffley, a regional economist at consulting firm IHS Global Insight.
He cautioned, though, that even as foreclosures level out in some states, they’re doing so “at very high levels.”
Other figures from the past two weeks suggest that the housing market is recovering in many areas.
Read the full article: http://newsgeni.us/out.php?title=Foreclosures_Stabilize_in_Hard_Hit_States