Last month it was revealed that the monthly Phoenix real estate sales data being provided by Arizona State University’s Realty Studies department was fundamentally flawed.
Foreclosed homes – actual transactions (or non-transactions) taking place as part of a Trustees’ Sale on the courthouse steps was being included in the monthly sales report, inflating the number of sales reported in the Phoenix real estate market.
ASU’s report for May tries to correct the issue but still misses the mark. Foreclosed homes have been segregated on the report but …
“Foreclosed transactions represent home owners losing their property to successful individual bidders or the lender of record.”
A home being sold to a successful bidder on the courthouse steps is a sale. But a home reverting back to the lender of record after there were no bidders? Sorry, but no. There’s no sale taking place. It’s a non-transaction plain and simple.
These homes that revert eventually will return to the market as bank owned homes and, once sold, should count towards sales. But not when the house reverts to the lender as such a reversion indicates a lack of buyer activity, not actual buyer activity.
Jay Butler and his crew ought to know better.[tags]Phoenix real estate, ASU Realty Studies[/tags]