Phoenix Arizona Real Estate Market Has Record Pre-foreclosures

by benjaminteam on June 26, 2009

in East Phoenix Valley and Gold Canyon Real Estate

In one of our earlier posts we reported how investors are gobbling up foreclosures in the Phoenix real estate market. While this trend continues, there is more speculation that not all pre-foreclosures being held by the banks are making their way back into the market in a timely way.  In a June 23rd Arizona Republic article it was reported that as many as 45,000 “pending” foreclosure homes are being “held back” from being placed on the market to be sold. (Arizona Republic reports that this data comes from the research firm, Information Market. )

One belief is that the banks are deliberately dragging their feet at putting these homes onto the market in an effort to keep home prices from sliding even farther. But many feel that this may even hinder and prolong the market’s long term recovery.

Another belief is that the banks are dragging their heels on higher ticket properties because the demand is low and selling off so many of these properties at low prices could possibly cause some banks to fail.

Another school of thought is that the banks are simply overwhelmed with the volumes and cannot deal with them any quicker.

Many of these properties may be actually listed in the MLS and on the market for sale as a “potential short sale” – a process which often takes many months to go through — if the short sale is allowed by the bank(s) to happen at all.  We know from personal experience this “short-sale” process can account for a number of homes and keeps them on the market in this “limbo” state for months and months, as we have had “short-sales” finally close after 9+ months of negotiation.  Other agents we know have had even longer “short-sale” experiences.

Whatever the reason, the volume of “pending” foreclosures has grown steadily since 2006. In 2006 it was reported that only 2,311 homes were in this “pre-foreclosure” state, and now as of June 2009 they are reporting 45,709.

What this says is that there will be foreclosures coming onto the marketplace for many more months in the Phoenix Arizona areas.

If you are a buyer looking for bargains, now is the time to check into the market. Call us if we can help you — 480-201-3001 or send us an e-mail – homes@benjamin.com.

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Tagged as: arizona foreclosures, arizona short sales

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