The foreclosure & short sale inventory is drastically lower than last year although the backlog is huge and more are in the pipeline.

Asked by Bret, Sam Hughes, Tucson, AZ Sat Jun 23, 2012

When will the inventory increase?

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Spirit Messi…, Agent, Tucson, AZ
Sat Jun 23, 2012
BEST ANSWER
Good afternoon Bret,

There is no proof that the "back log is huge and more in the pipeline". I know there are many theories that the banks are holding on to REO and letting them go slowly. Trust me, after working so many REO no way "the Banks" are working together. It is not just Tucson either, Phoenix had a much larger inventory than we did and it is all gone, gone.

Yes, there will be some more REO (real estate owned) coming onto the market and I predict prices will continue to increase. I dont think it will be more than what we have seen in the past 2-3 years though.

Our inventory is currently at 2005 levels. For a buyer to sit and wait for better interest rates or for prices to go down, I believe is a mistake. A buyer looking for their primary residence should see what is out there, in their budget and talk with a local Realtor.

Last but not least, I live in Colonia Solana, a stone's throw away from the Sam Hughes community. I can tell you first hand, there are not a lot of REO in these subdivision's nor do I expect that to increase in the near future.

Best of luck in your search.

Spirit




Spirit Messingham, PLLC
3rd Generation Full-Time Realtor®
Tierra Antigua Realty
Direct (520) 471-6900
Fax (866) 365-5208
SpiritRealty@Cox.net http://www.TierraAntigua.com
3 votes
Donna Moulton, Agent, Tucson, AZ
Sat Jun 23, 2012
Hi Bret,

How do you know the backlog is huge and more are in the pipeline?

We don't have judicial foreclosures in Arizona, so we didn't experience the bottleneck in foreclosure filings that other states did while they worked out the robo-signing fiasco.

The number of foreclosures and short sales has been steadily declining for months. Last year, these distressed sales were 60% of the sales. Now they are about 40%.

Donna Moulton
Associate Broker
Tierra Antigua Realty
http://www.SweetDesertHome.com
1 vote
Ric Mills, Agent, Oro Valley, AZ
Mon Jun 25, 2012
I don't forsee a big change in inventory. The "ghost inventory" may be a myth as there is no reason not to have it on the market NOW. In my estimation, waiting is probably a bad idea as the rates are low, demand is high, inventories are low and that is driving up prices. Even if more inventory comes on the market, the prices will already be driven higher by the current sales pace. The waiting game is probably a bad idea. If you are looking in the Sam Hughes area, I wouldn't wait long as homes there move very fast and I don't expect to see many distressed properties in that area. Let us know if we can help you. No one has a crystal ball!
0 votes
Eddie Holmes, Agent, Tucson, AZ
Mon Jun 25, 2012
Distressed properties are down but they are still making the market. There is no way of knowing when the inventory will increase because houses are coming on the market as fast as they come off. All trends indicate a bottoming of the market but with the unknown of the amount of shadow inventory out there, we have to continue to work with what we have.
0 votes
David Hopper,…, Agent, Tucson, AZ
Sat Jun 23, 2012
I agree with the previous answers. REO and Short Sale inventory, as you observe, are down, and I don't expect the numbers to increase -- at least not anytime soon. If you're in the market, I would not advise you to wait for a better buying opportunity. I think that's we have seen bottom. But, then, I've been wrong before.

David
0 votes
Vicky Chrisn…, Agent, Purcellvile, VA
Sat Jun 23, 2012
You know, I have been hearing this for many years..... See the link for my 2 cents....
0 votes
Gerardo C Va…, , Tucson, AZ
Sat Jun 23, 2012
Its Hard to say the back log is Huge... Short Sales are here to stay for awhile. Signs are looking good but again Short sales and Reo are most of my work these days.. If there is something I Can help you out with I will be more then happy to help you out.. Nbr is 520-867-0166 Then we can talk and I will give you the info you need. Look forward to speaking with you.
0 votes
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