http://www.TheCameronTeam.com/ Metro Phoenix Home Sales Report for October 2011
Yes, it is true! Stop believing everything you hear in the news.
There is no Shadow Inventory, other than the WIP or Works In Process. It takes time to evict occupants, repair homes, get utilities on and the appraise and assign them to be listed for sale. Here in metro Phoenix as any given time there are about 8,000 homes vacant and not listed for sale. They are in the que. Then there are another 6,000 between those listed for sale and those Pending, ready to close. That is your Shadow Inventory.
There is no Flood of Foreclosure coming. The number of homes in foreclosure is down 50%. It continues to slowly drop as about 5,000 are sold as REO and Short Sale each month and then another 3,500 are added as new homes in foreclosure. To create a flood of foreclosures the number of homes in foreclosure would have to rise!
Prices are not dropping, they are rising. They may be dropping in the luxury market, but the entry level is up 20-30% from the lows. Mid range homes are up. The median price of home in metro Phoenix is up and the average price per square foot is up. What more do you want.
It is not better to rent than to own. At the entry level, a house payment with minimal down is about 40% cheaper than rent. Jeeze, that is why investors are making 25% cash on cash return off their rental properties. In the mid range it is cheaper to own, but the luxury market is always more expensive to own than it is to rent.
Check out my October Market Report by clicking here!
Check out the graph below of Active Available Homes for Sale in Metro Phoenix and Scottsdale! The inventory is way down! 50% Year to date and over 70% off the high!