The number of foreclosed properties being sold at Phoenix home auctions in Arizona remains at record levels, with the city making the top 100 list of metro areas in the U.S. with the worst foreclosure numbers. The city was ranked 98th out of all U.S. metros in terms of the most number of foreclosed properties for the second quarter of 2010.
When it comes to home prices, the huge supplies of foreclosures at house auctions in Arizona seemed to have taken their toll as Phoenix was ranked 97th among all metros in terms of having the worst prices for dwellings. Housing prices declined by 4.4% in the city during the second quarter of 2010.
However, market analysts have stated that most existing residences and even properties sold at foreclosure houses auctions are undervalued in Phoenix. They stated that this was due to an overcorrection. In reality, home values in the city should be at least 4% higher than they are known to be.
Analysts have added that, to get the actual values of regular homes and residences sold at Phoenix home auctions, employment rates, interest rates and average salaries should all be taken into consideration. They further added that, given these factors, the housing market of the metro area seemed to be on its way towards a recovery.
In addition to perceived improvements in home values, analysts have also reported that gross metropolitan product (GMP) for the city, as well as employment records, are up for the second quarter of the current year. GMP, which refers to the value of services and goods produced in an area, rose by 1.2% in Phoenix, according to Mountain Monitor.
This makes Phoenix the fifth ranked metro area out of 100 in terms of GMP performance. Most metros in the U.S. averaged a 0.6% rise in GMP and although Phoenix's record is still one percent less than its peak production performance in the 2007 fourth quarter, there is hope that the production increase will continue on for the remaining quarters.
According to local economists, although the number of foreclosed properties sold at Phoenix home auctions will continue to post high numbers, the housing market is expected to achieve further improvements, particularly with employment rates recording a 1% increase during the second quarter of 2010.
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