Recent studies and surveys show that as the inventory for foreclosed homes grows while the demand is decreasing. Which typically holds true for Arizona Real Estate Markets. The number of AZ properties going to auction have the banks overwhelmed with bad debt. The market here in Arizona is saturated with listings, most are short sales to where people can grab properties at a discount.... they just have to wait months for the bank's process. (Unless you are buying short sales from RAUKOV LLC where all the leg work is done and its a normal transaction) Bank owned properties are looking to skyrocket with 50% of those auctions not being sold. They are not set up to handle real estate... they collect interest.

 

So all these studies done in this article shouldn't come as a surprise. http://news.yahoo.com/s/nm/20091215/bs_nm/us_usa_housing_foreclosures 

 

Surveys show that people are more hesitant in buying foreclosures since there are many hidden fees, costs, and repairs. The property has already been neglected for so long that even when getting a great price more labor is needed to transform the house to a home. In the upcoming year they expect 3 million homes to get a foreclosure notice up from 2.3 this year. Even in Phoenix I see 40-60 new notices a night... and that's just in the East Valley! Banks are working more with these homeowners with loan mods, but most come back unfavorable... the only option is get current on the mortgage, foreclose or short sale with Raukov.

 

It's always about supply and demand... When searching for your next home you can generally upgrade for a great price buying a short sale or foreclosure you just need to flip through the hundreds of listings and possibilities. This is where your Real Estate Professional at Guardian Realty and Investment Group can step in and help make that next home purchase a steal. There are still tax credits and government programs out there to help boost the market and stimulate the economy.

 

Hopefully the number of foreclosures will help make the banks realize the benefits of short sales and get these properties written off their books. So while the future is still looking grim there are always positives to a negative.