Phoenix Housing Market to Recover Faster

A recent article by KTAR explains why the foreclosure rate in the Phoenix area is a bit higher than other large cities but also how this fact is misleading. Because demand is high and the market is moving so quickly in the Phoenix area, banks are actually able to move through their foreclosure inventory. As a result, they are moving forward with foreclosures rather than just sitting on them like they are in other cities. 

Some cities inventories are so stagnant that the banks are delaying foreclosures because they wouldn't be able to sell them once the foreclosure is completed. That is not the case in the East Valley and Phoenix Area markets.

So what does this mean? If trends continue, the ability to move through the pending foreclosures quickly point to a quicker recovering of the housing market. This is great news for owners and potential buyers!!

The article mentioned is listed below:

There's good news and bad news in the Valley's housing market. 

by Lou Romano/KTAR (July 28th, 2011 @ 8:10am) 

PHOENIX - There's good news and bad news in the Valley's housing market. 

The bad news: Phoenix now has the second-highest foreclosure rate in the country at 3.5 percent. That means one out of every 28 homes went into foreclosure over the last six months.

The reason Phoenix is so high on the list is because foreclosures in other cities are on the decline.

The good news: Phoenix will recover a lot faster than other cities hit hard by the housing crisis.

In Phoenix, we are showing an 18 month supply of properties either in the foreclosure process or already foreclosed that based on the current sales pace would take 18 months to sell those off, says Darren Bloomquist with Realty Trac.

He and the reason other cities are seeing a decline in foreclosures is because they're stuck. So many have been filed that it now takes nearly a year to complete the foreclosure process.

Bloomquist says it'll take about a year-and-a-half for the Valley housing market to recover, that's nearly half the time it'll take other big cities. 

Ashby Realty Group handles Arizona real estate sales, Arizona short sales, Arizona strategic short sales, Arizona pre-foreclosure sales, and Arizona foreclosures in the entire metro Phoenix area. We specialize in the East Valley: Queen Creek, Gilbert, Chandler, Mesa, Scottsdale, Paradise Valley, Apache Junction, Gold Canyon, Tempe, Florence, San Tan Valley, Ahwatukee, Anthem at Merrill Ranch resort community in Florence AZ. Serving all of Maricopa and Pinal counties in Arizona.