Arizona Foreclosure Sales in High Demand
There are signs that a recovery in the housing market is starting to take place in Phoenix, according to the online real estate company ForeclosureDeals.com.
Since the Arizona foreclosure crisis began in 2005, home sales in the metropolitan area are growing at a stable rate. With just over 10,000 home sales in the Phoenix area in March and nearly 1,500 of those sales occurring on foreclosed homes in the state, the foreclosure market is becoming popular again, ForeclosureDeals.com said.
“Demand is starting to increase in the Phoenix area, and that’s certainly a good sign,” said James Foxx, a chief business analyst with ForeclosureDeals.com. “And a lot of foreclosure properties are almost brand new. There was a lot of new development before the crash, and now buyers are getting some amazing deals on brand new homes. Arizona has a lot of value for foreclosures.”
Foxx said one reason why buyers are looking to purchase foreclosed properties is because they offer substantial discounts compared to traditional home prices, 50% or more respectively. Arizona currently has some of the lowest real estate prices in the nation.
Some of the foreclosed properties within the state are Fannie Mae multifamily units, which are in higher demand because they are often in better condition and upkeep than other foreclosed homes.
“If you’re an investor, foreclosures can offer a lot of value, especially in Phoenix, because multifamilies make great income properties,” Foxx said.
Lenders have reported there has been higher than normal turnout at foreclosure sales and auctions throughout the entire state recently.
Despite home prices expected to increase due to increased competition for the foreclosed properties, Foxx said the time is right to buy these homes.
“The economy is beginning to rebound, and Arizona is a great place to live,” Foxx said. “Buyers are just regaining confidence in the market. We’ve been waiting for this to happen. There are great foreclosure homes going for great prices.”