The stats are out and just as we have said the market is recovering but really how much? Here is the real story.
Distressed Home Sales – Phoenix Real Estate dominated the landscapae of our market in recent years. Prior to 2011, lender owned (bank owned) home sales outpaced the short sale market. By 2011 that trend was reversed and short sales became the primary component of Distressed Home Sales in Phoenix Real Estate Market. By the end of 2012 short sales outnumbered lender owned sales by 2:1.
This turnaround is due to the improved and streamlined lender short sale programs and the reduction in the banks volume of distressed properties. And of course they have now realized the advantages to doing a short sale over a foreclosure and they are now eager to do just that.
Homeowners are the big winners in this scenario, especially those who were able to avoid foreclosure, buyers who purchased below market value and communities who saw fewer vacant properties dotting the landscape of their neighborhoods.
In 2010 Distressed Home Sales made up about 70% of total sales. In January 2012 that number dropped to about 58% and by the end of this past year that number had fallen to about 40%. Distressed properties put a negative pressure on pricing, so at this point a reduction in the number of short sales/foreclosures is aiding the recovery of our real estate market and as a result we are seeing an increase in prices.