Phoenix Foreclosure Homes Still Affected By Flipping

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Phoenix foreclosed homes are still feeling the effect of flipping. During the robust economy of the early 2000s, Phoenix investors flipped homes and purchased on credit. When the downturn occurred, some investors were able to make a good income, but those with imperfect credit, poor practices, and large loans found themselves in some challenges. In Phoenix, home prices doubled over a period of four years and then declined dramatically. Between August 2008 and August 2009 alone, prices of homes in the area fell 41%. In the second quarter of 2009, over 60% of Phoenixs home sales were foreclosed homes.

For buyers, it became good news. As the number of foreclosure homes in the area rose, housing prices fell, making foreclosed properties very affordable for investors and homebuyers. As well, the number of Phoenix foreclosure properties on foreclosure listings increased, offering buyers more bargaining power and selection. Whether buyers wanted new condos or suburban single family homes or something in between, they could find it at a great price.

Not all areas of Phoenix became associated with foreclosures, however. In August 2009, the suburb Sun Lakes saw very different numbers than Phoenix as a whole. In the Sun Lakes community, prices fell only 15% and foreclosures only accounted for 18% of home sales. In the second quarter of 2009, the Phoenix community recovered nicely, with prices increasing 1.2% in the area.

Some experts believe that lenders are slowing the release of Phoenix foreclosures in 2009 onto listings, so that a glut of foreclosure homes does not drive prices down further. The area still is seeing a large number of foreclosures at attractive prices. As the economy recovers, it is expected that buyers will start reinvesting in real estate.

Overall, the market for Phoenix foreclosed homes is mixed. While much of the metro area has seen a large number of foreclosures at discount prices, some suburban areas are seeing a much more stable housing market than the national average. For buyers, the news is still excellent, with plenty of selection and foreclosures at very low prices.

About the Author:
Joseph B. Smith has been educating buyers on the finer points of Phoenix Foreclosure Homes for over five years. Visit ForeclosureDeals.com and read more advice on finding information about Foreclosures.



Article Originally Published On: http://www.articlesnatch.com


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