Home > Blogs > Anna "Banana" Kruchten > Anna Banana Kruchten, Phoenix Broker

Phoenix Foreclosure vs Short Sale Market Report May 2012

By Anna "Banana" Kruchten

Real Estate Agent with HomeSmart Real Estate AZ Broker BR030809000

May 24, 2012 06:39 AM

Phoenix Foreclosure vs Short Sale Market Report May 2012

History has shown us that Phoenix short sales were typically sold at higher prices than a lender owned property. This has Buying a foreclosure in Phoenix been slowly changing over the last six months and has now reversed itself. Phoenix Lender Owned homes as if April of 2012 are now more expensive to buy than a short sale. The median price for Lender owned properties was $70.72 per square foot as compared to only $67.13 per square foot for short sales.

So what does this mean to Phoenix home buyers? For one it means that due to the multiple bids that we are experiencing on lender owned homes it has caused the sales prices to rise. And two, if you're considering buying a lender owned home - know - that more than likely you will be up against many bidders and you must expect to write your highest and best offer right upfront.

Make sure that you have an experienced real estate agent guiding you through the sales process. An experienced agent will know exactly what other homes in the neighborhood have recently sold for the past month. She/he will also be able to help you see the current market trends and discuss a smart strategy in writing a winning bid.

It's a tricky real estate market in Phoenix and it important to be up to the minute
with what's happening in the market - BEFORE you make an offer.

******************************************************

Real Estate and Working with my Clients is my Passion!

I take my clients trust in me very seriously. I'm known for 'telling' it like it is, not what folks might want to hear or think it should look like. Now that may sound kind of tough, but think about it, in the long run if you want to buy or sell a home you need to know the real facts in order to make a wise choice.

If you want the truth and the whole truth, I am the
Phoenix Real Estate Broker for You.

When you are ready to buy or sell a Phoenix Area Home, I will be your advocate, guide, and fierce negotiator. I will work hard to make your buying or selling a home as smooth and stress-free as I possibly can - even if it's a short sale. Guaranteed.

Call me and we'll create a plan of action to buy a home or sell your home!

Sincerely,

Anna 'Banana' Kruchten

Broker/Owner

602-380-4886

Re-Blog

Featured

Comments(20)

Comment

Show All Comments

Sort:

John McCormack, CRS

Albuquerque Homes Realty - Albuquerque, NM

Honesty, Integrity, Results, Experienced. HIRE Me!

Let me be the first to say congrats on the Golden Star my friend.

May 24, 2012 07:25 AM

Cathy Criado

Criado Realty - San Antonio, TX

Making Real Estate Profitable

I keep telling people it's time to get off the bench! You are so very right!

Sincerely,

Cathy Bureau
♥X☺X☺X☺♥

May 24, 2012 08:20 AM

Evelyn Kennedy

Alain Pinel Realtors - Alameda, CA

Alameda, Real Estate, Alameda, CA

Anna:

Buyers are sometimes slow to see changes in the market. Even though we may counsel them that things have changed, they still lag behind. Good thing you are there to help people find the right home for themselves.

May 24, 2012 08:57 AM

Anna "Banana" Kruchten

HomeSmart Real Estate - Phoenix, AZ

602-380-4886

John appreciate your support!

Cathy most people here in Phoenix have known for a long time that they should be buying homes. We were one of the first states to fall hard and we're one of the first to make it back up out of that deep hole.

Evelyn yes it's all of our jobs to teach them the facts and give them their choices.

May 24, 2012 11:01 AM

Ed Silva, 203-206-0754

Mapleridge Realty, CT 203-206-0754 - Waterbury, CT

Central CT Real Estate Broker Serving all equally

Anna, that is an interesting statistic. In our area the short sales are still running higher and the actual cost of the REO does not reflect the work that needs to be done because of the damage and vandalism done to the homes

May 24, 2012 11:13 AM

Anna "Banana" Kruchten

HomeSmart Real Estate - Phoenix, AZ

602-380-4886

Ed there has been quite the turn around on REO's as most lenders are smart enough - now - after 5 years to make repairs before they go to market. They know they'lll make more.

May 24, 2012 12:01 PM

Myrl Jeffcoat

Sacramento, CA

Greater Sacramento Realtor - Retired

I'm also glad the news media is beginning to report what we are seeing statistically in many of our MLSs. In some areas many more homes are going to Pending status, than are coming on the market listed for sale. It's become-becoming a seller's market in many places around the country.

May 24, 2012 12:16 PM

Anna "Banana" Kruchten

HomeSmart Real Estate - Phoenix, AZ

602-380-4886

Myrl we are down down down on listings here. It has become a sellers market - in the low to mid to +mid range. The upper end is still soft. I do think many of us have turned the corner.

May 24, 2012 12:20 PM

Jennifer Fivelsdal

JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY

Mid Hudson Valley real estate connection

Ann this is great news for the Phoenix market, multiple offers and rising home price. Here is hoping this trend will be seen in more markets.

May 24, 2012 12:24 PM

Mike Cooper, Broker VA,WV

Cornerstone Business Group Inc - Winchester, VA

Your Neighborhood Real Estate Sales Pro

That's interesting, Anna. I had done a blog a little while ago about our market. That exact same thing has been happening this year. REO are selling higher than short sales. Makes you wonder what advantage a lender would see in accepting a short sale. Happy Memorial Day!

May 24, 2012 01:28 PM

Christine Donovan

Donovan Blatt Realty - Costa Mesa, CA

Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Anna - Depending on condition, for some time, many of our buyers have preferred REOs to short sales due to the length of time to get a response and the uncertainty. Perhaps that also drives the price?

May 24, 2012 03:16 PM

Thom Abbott

MyMidtownMojo.com |770.713.1505 | Intown Atlanta GA Condo Living - Atlanta, GA

Midtown Atlanta GA Condos For Sale

Multiple bids? Rising prices? I'm liking the sound of that tune!

I just need to find me some listings and some buyers!

May 24, 2012 09:00 PM

Ron Marshall

Marshall Enterprises - Saint Michael, MN

Birdhouse Builder Extraordinaire

How could you possibly think that you could buy a short sale or foreclosure without an agent. That would be financial suicide.

May 24, 2012 11:55 PM

Scott Godzyk

Godzyk Real Estate Services - Manchester, NH

One of the Manchester NH's area Leading Agents

Good Morning Anna, that is an interesting trend. I love the information for Buyers in your area that you have included in your blog. Have a great Friday

May 25, 2012 12:46 AM

Cheryl Thomson REALTOR Ret Army

United Real Estate DC Metro Region (703.216.5635) cheryltee47@gmail.com - Prince William, VA

Associate Broker in Northern Virginia

Hi Anna. This reminds me I got to get on the ball of my market reports. Congrats on the feature and Have a Great Memorial Weekend!

May 25, 2012 12:57 AM

Debora Nichols

Residential Sales, Purchases, Investors, Vacation Homes - Phoenix, AZ

Realtor Anthem,Phoenix,Scottsdale,Glendale,Peoria

Great post Anna, It never ceases to amaze me that so many people don't know that the Real Estate market in Phoenix has changed, and changed pretty quickly I might add.

Have a wonderful Memorial day weekend.

May 25, 2012 01:25 AM

Anna "Banana" Kruchten

HomeSmart Real Estate - Phoenix, AZ

602-380-4886

Jennifer I hope so as well.

Mike the banks are 'silly' not to accept a short sale and they'll lose much more by foreclosing. Boggles my mind at times why they allow them to go to trustee sale....but that's another subject!

Christine not sure that has been the factor now as that's been the case for the last 5 years. I think it's more the demand for homes is so high that prices are rising and inventory is dramatically less. Plus asset managers are cleaning up the homes much more than they did in the beggining of this mess.

Thom - oh yes this has been going on for at least 2 years here. It's not new news. It's just interesting to me that short sales have switched position. Normally shorts were in good condition - more so than reo's.

Ron you got that one....will file that one in the crazy section.

Scott it is interesting. You like I watch these numbers closely every month and we know what's really happening out there.

Cheryl- I get that. I need to create about another 10 yet myself. Enjoy!

Debora - hmmm I get the feeling most people that live here know the market has changed. It'd difficult for our relocation buyers to understand at first that there will be mulitple bids and most are cash sales. They learn quickly that they must adjust to the market - or rent.

May 25, 2012 01:37 AM

Debbie Reynolds, C21 Platinum Properties

Platinum Properties- (931)771-9070 - Clarksville, TN

The Dedicated Clarksville TN Realtor-(931)320-6730

Anna, I am seeing this trend in my area, too. Hopefully with the changes coming in June with short sales, we will see a lot more movement in these properties and they will not make it to foreclosure.

May 25, 2012 01:44 AM

Lloyd Binen

Certified Realty Services - Saratoga, CA

Silicon Valley Realtor since 1976; 408-373-4411

Ms. Anna Banana,

Great to hear your market is turning fast. A housing recovery and a new administration will do wonders for our economy.

May 25, 2012 07:28 AM

Anna "Banana" Kruchten

HomeSmart Real Estate - Phoenix, AZ

602-380-4886

Debbie that is certainly the trend here. Also along with that is many foreclosure are being bought at auction by investors. Then they come back on the market.

LLoyd - we'll let's get the housing situation handled first. We all know how politics works - or doesn't.

May 27, 2012 01:38 AM