The Phoenix Area Foreclosure Experts

Phoenix Foreclosures - December 2009 Results

December 2009 Housing - Phoenix Foreclosures

Here is another in a series of reports for Phoenix Foreclosures. Results for December 2009 indicated an increase in the number of homes that sold for under $100,000. December 2009 is the first month in which there was any significant increase in this statistical category.

Looking at the total number of homes that sold for under $100,000 is one way to look at Metro Phoenix Foreclosure sales. Market information is revealed in the following chart and is read in this manner: "There were 7,670 homes sold in metropolitan Phoenix during the month of December 2009. 2,811 (or 36.6%) of all these sales were under $100,000. 2,249 of those homes (80% of the total) were Metro Phoenix foreclosure sales."I define Phoenix foreclosures as both bank owned homes and short sales.

As indicated by the color yellow, this number had been on a decline since a peak of 3,866 homes in May 2009. At that time 90% of all homes that sold for under $100,000 were foreclosure-type sales in the Phoenix area(indicated in orange).

A primary reason for the June through November decline has been the gradual increase of home prices in the Phoenix area. Our Phoenix market tracker has indicated the increase began in April 2009 when the average price in the entire metropolitan area was approximately $84.00 per square foot. Price per square foot in December 2009 was approximately $91.00.

Search Phoenix foreclosures

Phoenix housing market

DMOZ Directory

Record Setting December 2009 Fueled by Phoenix Foreclosures

Record Setting December 2009 Fueled by Phoenix Foreclosures

Yes, it's true. December saw7,670 residential sales in metro Phoenix. Foreclosures dominated those sales numbers, though the sales total wasn'tquite the all-time high. December 2004 was the only month in this last decade that had higher sales, and that was by less than 200 homes. Is that an amazing feat for Phoenix,foreclosures sales included? Definitely, considering that December is historically one of the lower sales months in the entire year as people turn towards holiday shopping and parties. It's also an impressive feat considering all of that doom and gloom reporting on the national (and local) economy seen in the Az Republic newspaper, Phoenix. Foreclosure sales made up 65.6% of December 2009 sales.

Take a look at these numbers from the Arizona Regional MLS. Sales include metro Phoenix foreclosures and normal sales.

MONTH - SALES
2009 - 7,670
2008 - 5,630
2007 - 3,347
2006 - 5,311
2005 - 6,527
2004 - 7,829
2003 - 6,311
2002 - 5,954
2001 - 4,531
2000 - 3,907

Additionally, 2009 recorded the third highest residential sales in the last decade. 2004 and 2005 (boom years) were the only two years with higher residential sales in the Phoenix real estate market. Phoenix foreclosures accounted for 69.7% of all sales in 2009.

33,014 more homes were sold in 2009 than in 2008, or a 55.7% increase!

YEAR - SALES
2009 - 92,292
2008 - 59,278
2007 - 54,231
2006 - 74,106
2005 - 104,133
2004 - 98,294
2002 - 68,411
2001 - 62,523
2000 - 55,400

There are currently 33,278 homes for sale in Metro Phoenix. Foreclosures account for 42% of all active listings. Sales are off to a pretty good start in January 2010 after a great December 2009.

Foreclosure homes in Arizona

Phoenix Foreclosures for Sale

Down Payment on House Gift |Tax Free Way from IRA

by Craig

Down Payment on House Gift |Tax Free Way from IRA

Looking for a way to get a down payment gift from a relative? Did you know your parents could take money from their IRA to give you a down payment gift -- and not face any tax penalties?

Many people are buying Phoenix foreclosures for owner occupied homes and using FHA financing because it allows the least amount of money down from the buyer. One of the nicest features about using FHA financing is that it allows gift funds to be given from a relative to the buyer.

So let’s say that you were buying a 100,000 home and you needed the required 3.5% or $3,500 dollars of down payment to qualify -- but you only have $1,000 in your bank account. A relative (and in some cases a non relative) can gift you the money with a statement stating that no repayment is required (called a gift letter) along with some other simple documentation. Then the gift funds can be counted as YOUR funds.

This might save you up to several months/years of saving money to make it to the $3,500 down-payment mark.

One thing many people don’t know is that the IRS allows a parent to pull money out of their IRA “WITHOUT” penalty or taxation in order to gift those funds to a family member’s home. Most people know you can take money out of your IRA for your own home. But many do not know that you can take money out of your account for the use of a parent's, child’s or grandchild’s home -- even if you will not live in that home!

See how nice the government is to NOT tax you on something.

See the IRS publication attached and see for yourself.

Click here Down Payment on House Gift |Tax Free Way from IRA

Phoenix real estate

Phoenix homes for sale

Phoenix foreclosures exceed 41% of active listings-January 2010

Active Phoenix foreclosures exceeded 41% of all homes for sale to begin January 2010. This information is seen in the orange color on the first chart. I've defined Phoenix foreclosures as both bank owned property and real estate short sales, though;short sales are typically considered to be "pre-foreclosure." This is the first time since April 2009 the percentage has exceeded 40%, as the months of May through December 2009 averaged 38%.

The primary reason for the higher percentage is the increase in bank owned properties, as indicated in blue on the second chart. 5,380 bank owned Phoenix foreclosures mark the highest level since May 2009. Is this the beginning of more bank owned properties on the market? It does appear so, as the second chart indicates a four month increase. 2010 marks the year that many of the 5/1 adjustable rate mortgages will have rate increases and many interest only loans will revert to principle and interest loans. Expect Phoenix foreclosures to increase during 2010, but the effect will not be as devastating as was felt in 2007 and 2008 with the 3/1 ARMS. Having said that, the state of the economy in 2010 will probably have a greater effect than adjustable rate mortgages if unemployment continues on its current course.

Another statistic not shown by these charts is the number of days listings are currently on the market. The normal listings (not Phoenix foreclosures) on the market have been there for an average of 183 days. Phoenix foreclosures have been on the market for average of 106 days. The latter number would be smaller if not for the extended sale time of short sales.

The second chart indicates 5,380 bank owned properties (38.9% of all Phoenix foreclosures in red) and 8,445 short sales (61.1% of all Phoenix foreclosures in green). Watch for further increases in 2010 for both categories of Phoenix foreclosures.

Arizona Mortgage Lender

2 week Mortgage Close

Phoenix real estate listings - 7 months of stability - January 2010

Phoenix real estate listings - 7 months of stability - January 2010 The number of listings on the Phoenix real estate market has remained relatively stable over the last 7months. The chart indicates 33,278 active listings on the Phoenix real estate market to begin January 2010, just 319 less than during the beginning of December 2009. Active listings reached their peak near the middle / end of 2008. The decline began in early 2009, reaching a low point in September with 30,995 active listings on the Phoenix real estate market. The period of relative stability began in July, and the 7 month average since July has equaled approximately 32,000 active listings. The decrease in listings was due primarily to 2 factors: the moratorium on foreclosures and the number of "normal" sellers that canceled their listings or chose not to put their home on the market. Here is a snapshot of active listings in some of the more popular cities around the Phoenix real estate market.

City	Active Listings	% of Total
Phoenix	5,485	16.5
Scottsdale	2,473	7.4
Mesa	2,275	6.8
Gilbert	1,323	4.0
Chandler	1,149	3.5
Glendale	1,046	3.1
Queen Creek	733	2.2
Maricopa	585	1.8
Tempe	571	1.7
Ahwatukee	427	1.3

These 10 cities are some of the more popular and well known within the Phoenix real estate market.

Tempe, Scottsdale, Mesa, Glendale, Chandler, Gilbert

Phoenix real estate housing market, tracker