Phoenix Foreclosures - A Closer Look at the Sales Numbers

With 6400+ home sales in January of 2012, the Phoenix foreclosure market is still red hot.  Since my last update last week, I have had a chance to look at the numbers in greater detail.

Investors remain a viable force in the Phoenix housing market.  Cash buyers (usually investors) accounted for almost 70 percent of all of the home sales in the sub $100,000 market across the valley.  On the other hand, FHA home buyers (usually first time home buyers) only made up 12 percent of all purchases last month.  

When looking at sales over $100,000, cash buyers accounted for only 37 percent of the purchases and FHA accounted for 20 percent of the sales.  The remainder were conventional home buyers and made for a more reasonable mix of buyers and investors in this price range.

Continuing the trends from previous months, contract prices were only 98 percent of the asking prices.  Upon closer look, bank owned foreclosures averaged 100 percent of the asking price (ranging from 44 percent to 273 percent).  HUD properties dropped their average down to 103 percent of the asking price with a range of 89 percent to 157 percent of the asking price (the last several months have been averaging 104 percent of the asking price).  Even short sale have been commanding strong prices on their contracts, averaging around 100 percent of the asking price.

Looking forward, the inventory of homes still remains extremelly low with the number of available homes hovering around 17,000.  Pending home sales have ticked up above the 19,000 mark.

To search for the latest foreclosures in the Phoenix market, click here Phoenix foreclosures or give us a call at 602-993-7509.