How Foreclosures Are Helping the Phoenix Real Estate Market

Jonathan Dalton, Phoenix Real Estate AgentNot to minimize the impact a foreclosure can have on a homeowner, but in many ways foreclosed properties are exactly what the Phoenix real estate market needs.

Reality is tough to swallow. Many sellers still suffer from “but my house is better” syndrome when pricing their homes for sale. These same folks are looking at the bank-owned homes in their neighborhood and ignoring the signs under the guise of “but the bank’s desperate to sell.”

If you’re not desperate to sell, or at least fairly motivated, you shouldn’t be trying to sell. It’s about this simple. Testing the market at above-current market prices is a waste of time – primarily yours, as you keep your house showing ready for buyers who never are going to materialize.

Short sale listings can be disregarded because the list prices are imaginary. But REOs? That is where the market is heading. Face the reality, price accordingly and condition may carry the day toward a sale over a bank-owned home.

Foreclosures are good for this market because they are attracting buyers. Where willing buyers and motivated sellers meet, the market bounces off the bottom. Price recoveries will lag but anything that brings buyers off the fence they’ve sat on for two years and into the market only can help in the long run.

[tags]bank owned homes, Phoenix real estate[/tags]

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at allphoenixrealestate.com.

0 Comments

  • Lynn Byrne 10 years ago

    We are experiencing the same issues in the Daytona Beach Market. Your comment about foreclosures is interesting. Our entire residential sales for January was 160 properties.

    I am seeing more interest from buyers and people are looking at the REOs, but few are buying — Yet.

    Good Post.

  • Kathleen Villegas 10 years ago

    I never thought of foreclosures being good for the market until I read what you wrote, but it makes sense. Not only do foreclosed properties attract buyers like one of my new neighbors, but also people like me, someone who considered for the last couple of years selling my home and buying another, but who was uncertain about it until the market changed. I see this change as an opportunity to sell my current home (before, I’m thinking, the market falls any further) and to buy my next home, which I was on the fence about, at a more reasonable price that these homes were selling for previously.

    I bought my current home in a buyer’s market, so fluctuations over the years haven’t bothered me, and I hope to buy my next home while it’s still a buyer’s market, so that the ups will only make me feel good about my purchase, and the downs, well, they won’t make me feel so badly because the price I pay now will not be so much higher than the property is worth, as is the case with many of my neighbors.

Real Time Web Analytics

Send this to a friend