Short Sale Pre-Foreclosure Real Estate Market Overview in Greater Phoenix
December 04, 2009
More short-sales are selling but the inventory remains high the the process a bit frustrating even though some do get through.
(graph: The Cromford Report)
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We have just over $2,000,000 in short sale contracts our there, waiting for approval by the seller's lenders. I get nauseous thinking of all the ones lost. Some have been on the burner over 9 months. Many have been canceled because the buyer found another home. This is quite typical and possibly the reason why despite the smoother short sale process there is still a 10 month supply of short sales and why many people are hesitant take them on.
The supply of active short sales now exceeds bank owned homes. Last there were 14,585 for sale up 2,000 over September. Sales did increase to 1,596 from 1,444 but that is not enough to show an improvement: and prices are down.
Of the properties that go of the market: in November 50% sold, the others either foreclosed or got taken of the market for other reasons. The short sale process takes some skill to manager and there are very minute details to watch out for like the fact that the short sale department is different from the foreclosure department and there needs to be good communication between the two so that home is not foreclosed on while an offer is being reviewed: seems silly, but it happens all the time and when it does the seller's bank goes, "oops, sorry, by by" This is something a listing agent must keep an eye one.
I don't mean to scare people away from short sales. They are a good way to purchase a property if there is not defined date by which you need a property. It's a good option for some home buyers and a very good option for investors, but you need to be aware of how things are.
Apparently there are some changes coming, dictated by the government bodies, but when I see it then I'll believe it.
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 | Phoenix Housing Market Reports |
| home sales data. |
| item/180051 |
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| The Shift In Phoenix Real Estate From Bank Owned Foreclosures To Short Sales |
| All sectors, active, pending and sold have an increasing percentage and number of short sales and those numbers will continue to grow. |
| item/245165 |
