Record Jump In Forclosure Filings
As for the record jumps in new foreclosure filings, again, you’ve got to look closely at the hard data. In 34 states, the rate of new foreclosures actually decreased. In most other states, the increases were minor — except in the California, Florida, Nevada, and Arizona real estate markets. These increases were attributable in part to investors walking away from condos, second homes, and rental houses they bought during the boom years.
Doug Duncan, chief economist for the Mortgage Bankers Association, says that without the foreclosure spikes in those states, “we would have seen a nationwide drop in the rate of foreclosure filings.” In Nevada, for instance, non-owner-occupied (investor) loans accounted for 32% of all serious delinquencies and new foreclosure actions. In Florida, the investor share of serious delinquencies was 25%; in Arizona, 26%; and in California, 21%. That compares with a rate of 13% for the rest of the country. This makes for some great buys for the savvy Arizona real estate investor in the area of short sales, foreclosures, and wholesale properties.
Bottom line: Those nasty foreclosure and delinquency rates you’re hearing about are for realtor in mesa az. But they’re highly concentrated among loan types, local and regional economies, and investors who got their foot caught in the door at the end of the “boom” and are just walking away from those poorly performing realestate in mesa. Most of those investors still have homes to live in, maybe more than one.
In the wake of the boom years, we now have a high inventory of homes on the market, Investors and speculators who quickly bought up mesa homes for sale dumped them just as quickly back on the market in hopes of a fast return. The frenzy of investors purchasing homes put pressure on inventories and drove prices up, further increasing investor activity. Then, as if all at once, many of those investors put their properties on the market, creating an imbalance in the reverse direction. With so many homes on the market, prices began to stall and then fell. Prices will continue to fall until demand chews up excess inventories.
With investors no longer a big part of housing demand, primary homeowners are slowly chipping away at the existing inventory. The Las Vegas housing market will rebound in March 2008, according to the largest and most respected appraisal firm locally. The main contributing factor to the sooner than later rebound of this southwestern city is a growing population and thriving local economy.
Arizona and Nevada are expected to lead the country in percentage population growth for the next 20-25 years. The population of Arizona is expected to approximately double during that time so we can expect a strong housing demand going forward. Normal inventory levels for Phoenix real estate are about 6-8 months. Current inventory is about 10-12 months. So, we are not far above “normal” inventories in Phoenix. There are, however, outlying cities in this large metropolis that have inventories Kamagra in excess of 1 year. Queen Creek real estate inventory is the worst with approximately a 2-3 year surplus of homes on the market, mostly due to the large percentage of new homes purchased by investors and then quickly flipped back onto the resale market. Surprise and Peoria real estate markets have a 1-2 year inventory for largely the same reason. We are already seeing some Scottsdale real estate and Paradise Valley real estate prices increase in value. Billions of dollars are being poured into the local economy in the way of commercial development from the downtown area to Northeast Phoenix and Scottsdale.
The demand for Arizona homes will remain strong in years ahead as new populations create the need. The demand for housing across our great nation will remain strong as this next generation of young debutantes steps onto the home buying stage. Interest rates are still at historic lows and the lending institutions will continue to offer creative financing options. Sure, some hedge funds lost the air in their tires, but financing sub-prime loans is a high stakes game for the super rich and is not of geopolitical significance. They will find other ways to lend their billions for huge profits in the wake of this sub-prime debacle. Let’s not be gripped in the fear created by reports from all media types trying to “make news”. Let’s face it, the real numbers are not that bloody exciting. Ask yourself, is this an Arizona real estate crisis, or the perfect time to buy an affordable Arizona home? Proper timing and negotiating techniques make all the difference in the current Arizona real estate market. When choosing an Arizona realtor, trust the expertise and experience of Equity Alliance Properties.
For up to date Arizona real estate market research, contact Robert Hand at 480.206.8133 or go to http://www.equityallianceproperties.com
I attended Wichita State University from 1979 through 1983 majoring in Chemistry. Enlisted the U.S. Navy in June of 1983, specializing in intelligence gathering and dissemination and tactical operations. Served onboard the U.S.S. W.S. Sims FF-1059 through April of 1987 working in Electronics Warfare in the Combat Information Center. Attended the University of the State of New York, majoring in Electronics Technologies while on Active duty. After 4 years of active duty, continued service for 2 more years in the U.S. Naval Reserves through June of 1989.
With an interest in real estate since I was just a young lad, I decided to get my real estate license in 1995, prompted by the allure of investment opportunities in this fast growing city I had found myself surrounded in. For years I helped others invest in their dream homes or make smart gains in the properties they bought and sold. I also helped my colleagues who came to this country to work from overseas find a home for their families.
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