More Phoenix Homeowners Expected to Avoid Foreclosures
Analysts claim that a lot of homeowners in Phoenix, Arizona will avoid foreclosures in the coming months as the number of properties entering pre foreclosure has declined in the metro area. They also reported that several aspects of the housing market are showing signs of improvement, particularly in the area of sales and inventory.
According to housing industry analysts, one of these signs is the record home sales posted during the month of March. Resales for the month totaled 10,031, the highest on record since October of 2005. Out of this total however, 1,311 were properties from Phoenix AZ foreclosure listings or were sold at foreclosed property auctions. Data also showed that during the month, 65% of total sales were accounted for by distressed properties.
In terms of foreclosures, analysts reported that Arizona foreclosure listings still dominate the metro area's housing market, but there had been signs that the level might be starting to ease down a bit. Actual foreclosures in Phoenix increased in March, totaling 5,000, a number that is 500 more than the previous month. However, the number of pre-foreclosure or trustee sales notices issued has been averaging 5,000 for every month in 2011, declining from the monthly average of 7,000 last year. Housing experts claim that this shows that fewer delinquencies are being recorded in the metropolitan area.
Experts also asserted that this means that more homeowners are likely to avoid foreclosures in the near future which could help ease the burden of the region's housing industry. Another good thing going for Phoenix is that the inventory of for-sale homes has been declining for the past four months. This, analysts explained, can mean that the supply of residential properties is going down and demand is going up.
Latest housing figures showed that the number of foreclosed real estate for sale and non-foreclosed residences that are currently in the Phoenix market is around 36,000, representing a 15% decline when compared with the same period of last year. Realtors report that investors and traditional homebuyers are starting to work through the region's housing inventory, particularly those so-called cash buyers. They also reported that competition for low-priced dwellings have tightened in several local markets.
Although prices of houses have remained steady, realtors stated that they are still way below pre-crisis levels. However, they are optimistic that as long as more homeowners avoid foreclosures in the coming months, the supply of distressed properties will achieve some sort of balance and prices will climb before the year ends.