Thousands of Phoenix foreclosed homes for sale are available in Arizona, but there are just no takers despite the affordable prices and the mortgage rates being at their all time lows. With the market having a vast supply of residential properties for sale with almost no buyers, it is not surprising that prices of homes continue to drop in the city.
Supplies of foreclosed homes in Maricopa, AZ and in other cities of Arizona continue to rise, with Phoenix estimated to have the highest level of home for sale totals. Among the very few who are taking advantage of the vast supplies of houses for sale, over 30% are investors who purchase such properties with a plan of converting them into rental properties.
Analysts have stated that, aside from the reluctance of traditional buyers, sellers of Arizona foreclosed homes and existing dwellings are also unable to unload their properties because most people who are willing to buy do not have the means to do so. Tighter rules governing mortgages and poor credit histories are just some of the reasons that prevent willing buyers to make any purchase.
Meanwhile, real estate experts believe that primarily, the reason majority of Phoenix foreclosed homes for sale remain unsold is because most people, particularly young professionals, find it more profitable to rent dwellings. They stated that great bargains are available to those who are looking for places to rent.
Furthermore, most renters have seen homeowners purchase foreclosed homes for sale and existing dwellings only to end up owning a property that has less value than their monthly mortgages. Most of them are also expecting values of homes to continue dropping until at least the first half of next year.
Latest housing market data for the area agree with these summations, with prices of houses declining by 5% in August 2010, while home sales also declined by almost the same percentage. This marks the second successive month that both housing factors recorded declines.
Analysts believe that as long as these factors are on a decline, the housing market will not be able to make any headway towards a recovery. They also predict that Phoenix foreclosed homes for sale will remain in the market for months, with most potential buyers hindered by personal financial fears and by tight mortgage guidelines.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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