Default Research Reports Year-End Data: Phoenix Foreclosures Drop 6%; Investors Return to Market
Phoenix, AZ, January 05, 2011 --(PR.com)-- Year-end foreclosure data for Maricopa County, AZ (Phoenix) show that Notices of Trustee Sales (NTS) in 2010 dropped by 4,106 to 57,776, down from 61,882 in 2009. At the same time, the value of properties dropped by 10%, signaling continued volatility in the Phoenix housing market.
Phoenix led the county with (20,528) NTS, followed by Mesa, 5,755; Glendale, 4,213; Scottsdale, 3,598; and Gilbert, 3,522. While 90% of NTS were single family homes, 5.0% were condominiums and 2% were commercial properties.
Arizona’s non-judicial foreclosure process requires Notices of Trustee Sales to be recorded a minimum of 90 days before auction, generally 90 days after the first late mortgage payment. Foreclosing lenders are also required to publish once-weekly notices in a newspaper in the same county as the property for four weeks. In addition, lenders must mail a notice to all parties affected by the foreclosure within 5 days of the recorded NTS.
Phoenix property values declined 10% in 2010, with the rate of decline increasing throughout 2010. Serdar Bankaci, Founder of Default Research, Inc., a pre-foreclosures tracking firm, said that, while property values are dropping, inventories have remained relatively stable, which he sees as a positive sign.
“It’s never a good sign when property values drop, but there is light at the end of the tunnel – and I don’t believe it’s the light of an oncoming train,” Bankaci said. “Foreclosed properties are beginning to sell, primarily because investors are returning to the market. I see this trend continuing – even accelerating – in 2011.”
Bankaci doesn’t expect 2011 to be a year of dramatic swings in the Phoenix real estate market. “Foreclosure rates should hold steady in 2011. I don’t see any big changes there. The same goes for home prices. I know other real estate experts are predicting larger negative swings in property values, but I don’t see it,” Bankaci said. “Unemployment in Maricopa County is 8.3% – a full percentage point lower than the national average of 9.3. Secondly, investors are beginning to flood back into the market. As they do, inventories will drop – and conventional buyers will be competing with investors for available properties, which will necessarily have a stabilizing effect on the market.”
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Phoenix led the county with (20,528) NTS, followed by Mesa, 5,755; Glendale, 4,213; Scottsdale, 3,598; and Gilbert, 3,522. While 90% of NTS were single family homes, 5.0% were condominiums and 2% were commercial properties.
Arizona’s non-judicial foreclosure process requires Notices of Trustee Sales to be recorded a minimum of 90 days before auction, generally 90 days after the first late mortgage payment. Foreclosing lenders are also required to publish once-weekly notices in a newspaper in the same county as the property for four weeks. In addition, lenders must mail a notice to all parties affected by the foreclosure within 5 days of the recorded NTS.
Phoenix property values declined 10% in 2010, with the rate of decline increasing throughout 2010. Serdar Bankaci, Founder of Default Research, Inc., a pre-foreclosures tracking firm, said that, while property values are dropping, inventories have remained relatively stable, which he sees as a positive sign.
“It’s never a good sign when property values drop, but there is light at the end of the tunnel – and I don’t believe it’s the light of an oncoming train,” Bankaci said. “Foreclosed properties are beginning to sell, primarily because investors are returning to the market. I see this trend continuing – even accelerating – in 2011.”
Bankaci doesn’t expect 2011 to be a year of dramatic swings in the Phoenix real estate market. “Foreclosure rates should hold steady in 2011. I don’t see any big changes there. The same goes for home prices. I know other real estate experts are predicting larger negative swings in property values, but I don’t see it,” Bankaci said. “Unemployment in Maricopa County is 8.3% – a full percentage point lower than the national average of 9.3. Secondly, investors are beginning to flood back into the market. As they do, inventories will drop – and conventional buyers will be competing with investors for available properties, which will necessarily have a stabilizing effect on the market.”
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Default Research Inc
Josh Chernikoff
888-211-8396 x705
www.defaultresearch.com
Josh Chernikoff
888-211-8396 x705
www.defaultresearch.com
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