A national survey conducted by real estate website Zillow.com showed that Phoenix ranked #5 on a national survey of best cities to buy a foreclosed home.Â Cities received higher ranking when the difference between the median price of foreclosed and non-foreclosed homes was greatest.Â By their calculations the average price for a Phoenix area foreclosed home reflected a discount of 29%. National survey results show that foreclosures represent 58% of all resale transactions.Â
Since educated buyers know that the local numbers are more telling, I have included results for popular zip codes in the East Valley, showing lender-owned properties as a percentage of the overall number of active listings.
85044 9%, 85048-8% 85226-11% 85284-13%
(Keep in mind that this is a snapshot of the market on one day, Tuesday, January 26.)
To gain some historical perspective, consider the percentage of lender-owned properties as a percentage of homes SOLD in January 2009:
85044- 13%, 85048-20% 85226-47% 85284- 0%
While the percentage of lender-owned transactions has decreased since January 2009, the total amount of inventory, lender-owned or not, has increased ten-fold during this period. This is encouraging news for potential buyers.Â High inventory levels give them a number of homes to choose from. Lenders typically have faster response times when dealing with offers on their own inventory as opposed to short sales.Â Â
Regarding buyer's interest in these zip codes, a multi-month trend shows increasing popularity.Â I would expect the trend to continue through the second quarter with the upcoming spring buying season and the anticipated rush to meet the April 30 Home Buyer Tax Credit deadline of April 30, 2010.