There are no shortages of bank foreclosed homes in Phoenix right now. Accordingly to RealtyTrac, there are currently 11,962 trustee foreclosure auction sales in the Phoenix area. There are also 23 online auctions scheduled. There are 9,377 REO’s (bank owned) properties and 51 government owned foreclosure properties. You should be able to find a foreclosure property in most Phoenix neighborhoods with such a large inventory available.
Home Sales and List Prices
According to Trulia.com data, the average price per square foot for a Phoenix home is $78, a decrease of 44.7% compared to last year at the same time. The median sales price for homes in Phoenix AZ for February 11, 2011 to April 11, 2011 was $85,000. The median home sales price decreased 19.2%, or $20,184 compared to the same period one year ago. Home sales decreased 2.3%. There are currently 8,056 resale and new homes for sale in the Phoenix area. The average listing price for homes in Phoenix was $195,818 for the week ending May 4, 2011 which was an increase of 1%, or $1,982, compared to week before. Hot Phoenix neighborhoods include Camelback East and North Mountain, with average listing prices of $388,041 and $153,023, respectively as well as North Mountain, with an average list price of $153,023, Paradise Valley, with an average list price of $170,419, Deer Valley, with an average list price of $145,320, and Desert View with an average list price of $328,944. Other cities nearby such as Tempe, median sales prices are $126,500, Scottsdale, $280,000, Paradise Valley, $955,000, Guadalupe, $49,000, Mesa, $105,000 and Tellson, $99,955.
Phoenix Foreclosures
Under the Uniform Commercial Code, which every state, including Arizona has adopted, only the owner of the mortgage has the right to enforce it by foreclosing. Arizona foreclosures are conducted by non-judicial foreclosure trustee sales, which do not require court approval. If you are interested in a property that you are tracking, foreclosures take about 1 to 2 years to go through the process because there are so many properties that are in default, lenders are backed up on the paperwork. Once they go to foreclosure auction sale, you can purchase the property by making a bid at the auction. The bidder with the highest bid gets awarded the property. Frequently properties don’t sell at auctions, and the lender buys the property back. It then becomes a REO bank owned property that can be purchased by making an offer through a local Phoenix Realtor.
Foreclosures are offering investors great opportunities to make money, but there is a lot of competition for these properties so if you do locate a good quality one, don’t take too long to decide. The best part about foreclosures is they are offered at substantial discounted prices. Some do need work so you always have to have an inspection to make sure you know the condition of the property. Your Realtor can give you information on current homes sales so you know what to offer. If you are lucky to secure a property, you know you are getting one with a built in equity.
