We have been reading numerous blog posts over the past three weeks on how the Phoenix foreclosure market has hit rock bottom. If you were to pull up the MLS today you would see roughly 5,800 active foreclosure units on the market and over 6,000 sold in the last month meaning the supply of foreclosures is less than one month.
Those numbers have been slipping over the last couple of months, but that does not mean it is a trend that will be staying that way. While the number of foreclosure homes in the Phoenix market may be way down in the MLS, that does not mean the number of trustee sales in Arizona has taken a large drop.
Many of the largest banks in the nation agreed to put a temporary moratorium on foreclosures to give home owners a chance to work out loan modifications. There are some estimations that only one third of foreclosed homes are being marketed in the MLS right now.
So what is next? The Phoenix market will more than likely see a very sharp increase in the amount of bank owned foreclosures on the MLS in the very near future. There is even a chance that if all of the foreclosed properties in Phoenix are released quickly another drop in home values could happen.
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You are so right here. Just gave a talk to Realty Executives agents yesterday advising a marked increase in foreclosures is just around the bend. I wonder if we have enough qualified investors and regualar buyers to handle the big increase?