Where have all the foreclosures in the Phoenix real estate market gone?
Not all that long ago, back in 2007, there were more than 25,000+ REO listings in the Valley. Last year at this time there were about 10,000+ REO listings in the valley. Today in 2012 there are only about 1,500 REO listings in the valley. Foreclosure inventory on the market is disappearing. But wait, does this mean the market is turning around? No, not likely any time soon.
There are many foreclosures – or homes in some stage of becoming foreclosures all over the area. There are still owners in home, after home, after home who are not paying their mortgage payments. Some of these owners have not made a payment in two or three years – seriously! The banks are still holding onto a “shadow inventory” of thousands of homes – not releasing them to the market so they can be sold. In some areas there are many, many homes that have foreclosed and have been sitting empty for months and months – some years.
How long will it take for the banks to move the foreclosure inventory onto the market? How long before they get a grip on the volume of homes where owners are not paying their mortgage payments? Are the banks waiting for the fine tuning to be worked out with institutional investors to buy volumes of the foreclosures at a time and turn them into rentals?
Only time will tell. Stay tuned and watch and wait.
(Real estate data taken from Phoenix Multiple Listing Service. Information is deemed accurate, but not guaranteed.)