More owner-occupant buyers purchased foreclosed homes for sale in Phoenix, AZ in April, compared to flippers, speculators and other real estate investors.
Local realtors said there were more first time home buyers who planned to stay in their properties for more than 10 years. As price levels continued to rise, investors moved to short sales as these are considered regular sales and get higher prices than foreclosed homes.
Just like in other metro areas, the spike in sales to first time buyers was also largely due to the expiration of the federal tax credits. Also, unlike move-up buyers, first timers do not have the problem of reselling first their homes before buying another.
The percentage of sales from foreclosure home listings in the area dropped sharply to only 33.7 percent of total sales or 3,018 units of the 8,955 homes sold in April. While the price median for all homes sold was $135,000, the median for foreclosed homes for sale in Phoenix, AZ was $106,000.
For nondistressed pre-owned homes, total sales reached 5,287 units or 59 percent of total sales and the price median was $150,000. Over the past 12 months, prices for pre-owned homes have improved by more than 9 percent. For new homes, total sales reached 650 units and the price median was $213,483.
Sales to investors dropped to around 15 percent of total home sales, a drop from 20 percent one year earlier and a drop from 19 percent in January this year. The finding that around 34 percent of buyers paid in cash meant that there were also a lot of owner-occupant buyers who had cash to buy homes.
Almost 50 percent of the 5,953 homes bought with mortgages used FHA loans.
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