July 2009 began with 11,868 Metro Phoenix foreclosures on the Phoenix area real estate market. The supply of bank owned (REO) properties has gotten low when compared to former levels.
Read the chart in the following manner: July 2009 began with 11,868 Metro Phoenix foreclosures on the MLS (residential). 4,716 of those (39.7%) were REO properties and 7,152 (60.3%) were real estate short sales.
The chart indicates a rather dramatic shift with Metro Phoenix foreclosures. As mentioned in a previous post:
The two main contributing factors to the decrease in Metro Phoenix
foreclosures are: sales that have doubled since January of 2009 and the
moratorium that prevented lenders from foreclosing on properties during
the six-month period ending on June 1st.
Wow, you have the best stats I have seen on our valley's RE condition! Thanks! I wasn't aware that we had been in a moratorium situation! That explains a lot to me. What this moratorium a national one or just AZ, etc?
Posted by: TCL | July 24, 2009 at 02:25 PM
Thanks, TCL. To the best of my knowledge it was a national moratorium. There will be more bank-owned properties on the market in the near future, but perhaps not as many as some people may think.
The Federal Government is offering some of the bailout money to induce lenders to complete loan modifications. Additionally, there are quite a few lenders going into the "rental" business. In other words, instead of selling off inventory at huge losses NOW, some lenders are hiring property management companies to rent them out. They intend to sell them several YEARS down the road when the market recovers. I will be writing a post on this in the near future.
Additionally, short sales are becoming more popular.
Posted by: Ron | July 24, 2009 at 02:51 PM
Wow Ron. I have not heard about this new trend of banks renting out homes... I guess it makes sense at least for the banks not bleeding too badly and needing the cash desperately enough.
BTW - your articles on the trustee process was excellent. I think more people would do it if most like myself didn't have 8-5 weekday jobs... Do you know how much those companies charge you to buy a property at a trustee sale for you?
Posted by: TCL | July 29, 2009 at 06:22 PM
Between $1,500 - $2,500.
Posted by: Ron | July 31, 2009 at 07:11 AM