More owner occupant buyers purchased Phoenix Foreclosure Homes for sale than speculators and other real estate investors.
Phoenix is the booming capital of Arizona. It is populated by 1.5 million residents. More owner occupant buyers purchased Phoenix Foreclosure Homes for sale than speculators,
flippers and other real estate investors.
Phoenix is the most populous city in Arizona. It was incorporated as a city in 1881. The Phoenix area is surrounded by the White Tank Mountains to the west, the McDowell Mountains to the northeast, the Sierra Estrella to the southwest and the Superstition Mountains to the east.
According to local realtors, there were more first time home buyers of Phoenix Foreclosure Homes who planned to stay in their properties for more than 10 years. Even as price levels rise, investors approached short sales because they are regarded as normal sales and garner higher prices than foreclosed homes.
Like in other metro areas the rise in sales to first time buyers of Phoenix Foreclosure Homes was mainly due to the expiration of the federal tax credit scheme. Also, as opposed to move-up buyers, first timers do not have the problem of reselling their homes first before buying another.
The percentage of sales from Phoenix Foreclosure Homes listings dropped sharply to only 33.7% of total sales (3018 units of the 8955 homes sold in April). The Price Median for all homes sold was $135,000; the price median for foreclosed homes was $106,000.
The value for non distressed pre-owned homes reached 59% of total sales. Its price median was $150,000. Over the last year, prices of pre-owned homes have improved by 9%. Total 650 units of new homes were sold at a price median of $213, 483.
Sales to investors plunged to 15% of total sales, dropping by 20% from last year and by 19% from January this year. Around 34 % of buyers paid in cash indicating that there were a lot of owner occupant buyers flush with cash to buy homes.
Foreclosure activity in Arizona increased by 22 percent in the first quarter of 2010, and also increased by 13 percent from the same period last year. In sum, the state saw 55,686 properties with foreclosures, giving the state the rank with the third highest rate of foreclosure in the nation for the quarter.
But the trend in Phoenix was as follows-
• Foreclosures did not dominate sales of existing homes in the Valley for the first time in a year• The number of investors purchasing from lenders declined.• More buyers purchased homes with the intent of living in them.• More buyers financed their purchases with long term mortgages.
Thus, owner occupant buyers dominated the sales activity in Phoenix Foreclosure Homes this year.
