Phoenix Foreclosures have been steadily fading for 18 months and all the press is talking about it. See our Housing Tracker Stats for a long term perspective. This week Bloomberg is on the bandwagon with a story stating home prices have risen in the 4th quarter of 2012 in almost 88% of US cities and Phoenix is leading the charge.
We recently quoted an article from Realty Trac saying that the decline in Phoenix foreclosures made Phoenix the 8th worst place in metro areas with populations over 500,000 to buy foreclosures. Another story reported by the AZ Republic stated Phoenix foreclosures are no longer driving the market.
In a Bloomberg story by John Gittelsohn & Prashant Gopal:
An improving job market and low interest rates are driving up prices by fueling demand for a tightening supply of listings. The national median price for an existing single-family home was $178,900 in the fourth quarter, up 10 percent from the same period last year. That was the biggest gain since 2005, according to the Realtors group.
“Home sales are on a sustained uptrend,” Lawrence Yun, chief economist for the National Association of Realtors, said in the report. “Home sales are being fueled by a pent-up demand and job creation, along with still-favorable affordability conditions and rents rising at faster rates.”
At the end of the fourth quarter, 1.82 million previously owned homes were available for sale, 22 percent fewer than a year earlier, according to the Chicago-based Realtors group.
The best-performing metro area was Phoenix, where prices jumped 34 percent from a year earlier. Prices rose 31 percent in Detroit and 28 percent in San Francisco.”
Regarding Phoenix Foreclosures:
“… the inventory of foreclosed homes and short sales, when lenders agree to sell for less than the mortgage balance, plunged 42 percent in December from a year earlier, said Michael Orr, director of the Center for Real Estate Theory and Practice at Arizona State University’s W.P. Carey School of Business.
“Foreclosures and short sales have gone down, eliminating the sources of many cheap homes,” Orr said in a Feb. 7 report. “So the more expensive types of transactions, like normal resales and new-home sales, went up.
The decline in Phoenix Foreclosures makes for a stable housing market and a great time for owners to sell.