How Hot is the Phoenix Bank Owned Real Estate Market?

avatarthumbnail.jpgFor the past two years I’ve said raw inventory numbers have little meaning unless filtered against the pace of sales. High inventory really isn’t all that high if it’s being absorbed at an accelerated rate.

Phoenix’s bank owned real estate market is proving that statement.

As of this morning there are 4,299 bank owned properties listed in the Arizona Regional MLS, which is a higher total than we’ve seen over the past few months. And as of this morning, there were 1,041 sales of REO properties recorded over the last 30 days.

The result? An absorption rate of 4.08 months – deep into the territory known as a sellers’ market. Put another way, one out of every nine homes in the MLS is an REO property. And one out of every three four sales over the past 30 days was a bank owned home.

Now … this isn’t to say all bank owned homes are selling quickly. I was reviewing some with a client last week and we were somewhat surprised to see there are many on the market that still are priced above current market values. Though such a strategy might work in a normal sellers’ market, it probably will be less successful in a sellers’ market being driven by prices driven lower by the banks.

Still, there’s less wiggle room to be had on bank owned homes whose list prices reflect the current market. Something to consider when making that offer …

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


  • Francy 10 years ago

    The trend in the outlying areas (Queen Creek and Maricopa in particular) is that if an REO property is priced at market value and is in good condition will sell quickly – selling *at or above* the listed price. There is a similar trend with short sale properties. Those in good condition will have several offers waiting on the current lender to OK the short sale.

    Those properties with condition issues are remaining on the market a lot longer and are selling below the listed price.

  • BawldGuy Talking 10 years ago

    As usual Jonathan, you’ve provided excellent analysis, put into easily understood English. It’ll be interesting for both of us to watch how the MSM spins this new reality into more of their specially concocted Chicken Little recipe. 🙂

    I know we both have been pretty careful not to make concrete statements concerning the future of the RE markets, but one has to wonder what Phoenix is gonna look like around this time next year. I’m thinking they may be on the precipice of living up to their name.

    They may be the story of the year for ’09 in real estate.