Over the past six months, the inventory of single family homes in the subdivisions of Maricopa Arizona has more then doubled, from 440 to over 970. Most of this increase is due to an influx of distressed homes, both short sales and foreclosures. This has occured in spite of the buying activity the buying acticity has remaining relatively steady. The foreclosure moratorium has slowed down the increase over the past two weeks but it is expected to resume as soon as the investigations are finished, most likely after the first of the year.
For buyers of homes in Maricopa, this represents an unprecedented opportunity. Only a few months ago, it was very difficult to purchase a foreclosure home in Maricopa as most were receiving multiple offers soon after being listed. "Highest and best" requests from the lenders was common. Even the more desirable short sale homes were receiving offers quickly. Nowadays, there are many foreclosure homes that have been on the market for well over 30 days and lenders are accepting prices well below their approved price. Short sale prices are dropping to ridiculous levels as most agents and buyers are ignoring them in favor of foreclosures and a quicker response to offers. For those willing to wait, low offers can be placed on short sales in hopes that lenders will accept them or at least counter at a price well below market value.
For sellers, the news is not so good. It is nearly impossible to get an offer on a short sale unless the home is out of the ordinary. As a result, many of the current and/or future short sales will end up in foreclosure. Those owners that have some equity in their home are seeing their potential profits decrease due to the competition. Investors who purchased homes at a foreclosure sale are struggling to achieve the return on investment they were hoping for.
It is unknown exactly what the future holds but if the number of short sales entering the market is any indication, there will be a surge in foreclosures that will begin once the moratoriums are lifted and it will most likely continue for at least a year.
View the full spreadsheet Monthly home data