Phoenix Foreclosures no longer driving force in real estate market

For Sale sign advertising Phoenix foreclosures

Phoenix Foreclosures have been steadily decreasing, as reported in our Housing Tracker since October 2010, and the news seems to ringing loud and clear in the media. Reports of doom and gloom are a faint memory in people’s minds as real estate investors have had to reduce their ROI (return on investment) expectations or find other foreclosure ridden towns.

phoenix foreclosures advertised on a real estate signHome owners are the happiest as they see their equity steadily rise and many are even considering selling as values are higher than they have been in almost 4.5 years. See our price per square foot chart at this page: Price per Square Foot in Phoenix Area MLS. Price per SF has risen to $108  in January 2013, up from $85 last January and $81 in January 2011.

Curious about the current foreclosure inventory? Click on the below link:

SEARCH PHOENIX FORECLOSURES

From the AZ Republic:

For the past five years, Phoenix foreclosures have been one of the most important indicators to track metro Phoenix’s housing market. Not anymore.

Both Phoenix foreclosures and Phoenix foreclosure starts have fallen back to levels not seen in the region since 2007. In January, lenders took back 1,339 houses, according to the Information Market. During 2009-11, monthly foreclosures regularly topped 4,000 and often climbed above 5,000.

Foreclosure starts, or notice of trustee sales as they are known in Arizona, totaled 2,245 last month. In March 2009, lenders moved to begin foreclosure proceedings on a record 10,105 homeowners.

“Phoenix Foreclosures are not the driving force in Phoenix’s housing market anymore,” said Tom Ruff, real-estate analyst with the Information Market, which was purchased by the Arizona Regional Multiple Listing Service in August. “There’s not another big wave of Phoenix foreclosures coming. There’s no shadow inventory. Foreclosures will decline to new lows in a few years.”

He said current Phoenix foreclosures are against homeowners who bought during the housing boom. Anyone who bought after 2009 has equity and doesn’t have a subprime loan because of tougher lending standards.

The new leading indicator for metro Phoenix’s housing market: how many homeowners are no longer underwater and can sell for a profit now.

See the full article at:

http://www.azcentral.com/business/realestate/articles/20130204foreclosures-no-longer-driving-force-valley-market.html