Market Conditions in Phoenix>Question Details

Will Beecher, Real Estate Pro in Albuquerque, NM

Is a 2nd wave of foreclosures coming? Any brokers experiencing this in Phoenix? I am in NM and seeing a 2nd wave.

Asked by Will Beecher, Albuquerque, NM Thu Sep 19, 2013

We tend to have less foreclosure's than a bigger city like Phoenix; but I figure Phoenix would be the market to be seeing that activity even more so than here.

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Answers

6
As of now I don't see a wave coming. As of now there are about 520+/- active REO SFHs in Maricopa County active. You can track the number by going on following link, which is also available at http://www.agentsingh.com
Click on Residential Foreclosures.

http://www.flexmls.com/cgi-bin/mainmenu.cgi?cmd=url+other/cr…

Let me know if you have any questions.

Harnek Singh Dadiala
HomeSmart
623 229 6691
http://www.agentsingh.com
0 votes Thank Flag Link Fri Sep 20, 2013
The buyers that are sitting on the sidelines looking for this to happen are going to be disappointed.
0 votes Thank Flag Link Fri Sep 20, 2013
No. REO inventories are below normal. I am sure this disappoints the shadow enthusiasts.
0 votes Thank Flag Link Fri Sep 20, 2013
My opinion and Analysis also supports a NO.
0 votes Thank Flag Link Fri Sep 20, 2013
I agree with Melissa. This second wave prediction idea has been floating around since 2011 and has yet to materialize. The Metropolitan Phoenix real estate market is particularly strong compared to many due to a high demand and strong growth. But even should the unexpected occur, I would expect more ripple than wave.
0 votes Thank Flag Link Thu Sep 19, 2013
Actually no! We have been experienced unusually LOW inventory until August and we now see a very stable set of listings on the market. Most of those still on the market are typically overpriced or needing work and buyers are tending toward the fully remodeled properties as we had so many investors come in for the fix and flip. The short sales and Foreclosures have slowed dramatically. in fact the reports are showing our foreclosure numbers below 2005! One of the reasons we are not seeing another dip is that our housing values have increased in the last 18 months as much as 35% in some areas. I had a seller that I met in March of this year expecting to do a short sale, and since timing was not critical to her, I recommended she wait a bit. We just closed her home last week and she closed RECEIVING a check instead of having a short sale on her record!

Melissa Schwartz, e-Pro
Associate Broker
Realty ONE Group
0 votes Thank Flag Link Thu Sep 19, 2013
We are still below our 2007 prices across the board! And even with the crazy increases we have seen, we do not expect to get back there anytime soon! The market has slowed (normal for this time of year). The banks are telling me that Short Sales are really JUST beginning across most of the US. Arizona was one of the few, I believe due to our anti-deficiency statutes that was able to negotiate with the banks and successfully MOVE hundreds of thousands of properties via short sale and foreclosures. THAT is what allowed us to lead the recovery. When we started short sales in 2007 and 8, the banks said "we will just sue the homeowners". Quickly they learned they could not!!! so finally our repeated request of "would you like something NOW or nothing?" actually sunk in for the Banks(-: Banks earlier this year were PAYING our seller's hand over foot to short sale.
Flag Thu Sep 19, 2013
Thanks for quick answer. I read that report about lowest since 2005, then all of sudden we got another wave and some articles predicting more 1st quarter 2014. That is a happy story from "Short Sale to Riches" haha! One thing we definitely have not seen in NM is 35% increase so that makes a huge difference! We would be lucky to be up 5%. I am sure many markets have not seen that kind of growth. Therefore if we get another wave then Phoenix will be off the top areas ;-) PS. I had client from FL tell me it is still a mess down there. Still 50% haircut from peak.
Flag Thu Sep 19, 2013
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