Conclusion

  1. The number of foreclosures (REOs, bank-owned homes) listed for sale in Phoenix has crashed over the last 12 months and now there is only ONE-THIRD the number of homes listed for sale by banks as a year ago in metro Phoenix.
  2. The Phoenix “shadow inventory” of homes (1. Homes that have already been foreclosed on by the banks (the banks now own these homes) but the banks haven’t yet listed these homes in the MLS for sale, and 2. Homes that are in the foreclosure process but haven’t yet gone to foreclosure auction (the banks don’t own these homes yet but the banks will end up owning most of them)) is also falling rapidly which means the number of foreclosures listed for sale by banks in Phoenix is likely to continue to fall. [Edited for clarity 11/5/2011.]
  3. As the number of foreclosures listed for sale falls, the downward pressure foreclosures put on home prices will also weaken.
  4. Therefore, I expect that the median home price in most zip codes in metro Phoenix will increase significantly next year.
  5. If you were considering buying a home in most parts of metro Phoenix, I would encourage you to consider buying sooner rather than later. Call me for more information about buying a Phoenix area home at 480-463-4475.

Video


(When I said “property managers” in the video, I meant [bank] “asset managers.”)

To learn how the home buying process in Arizona works, go to HowToBuyArizonaRealEstate.com. That website of mine is intended for Canadian buyers of Arizona homes, however, its step-by-step explanation of the process will be valuable to any Arizona home buyer, whether Canadian or not.

Or give me a call at 480-463-4475 to learn more about buying a home in metro Phoenix.