Real estate analysts have looked into the wider economic implication of the huge supplies of bank and Freddie Mac foreclosures for sale on residents of Arizona. Some of them believe that the market will encounter a second wave of foreclosure crisis judging from the number of properties under pre-foreclosure.
According to a number of local market analysts, more residential properties are in danger of adding their numbers to foreclosed homes in Maricopa, AZ and other local foreclosure markets. Market observers count households that are at least 90 days behind in paying mortgages among pre-foreclosure properties in the state.
Meanwhile, the Center for Responsible Lending (CRL) has predicted that a further 138,500 properties will be added to Arizona foreclosure listings for 2010. Between the years of 2009 and 2012, the center also predicts that foreclosed property numbers in the state will surpass 450,000.
Local brokers have also stated that it does not matter which local area is analyzed; in majority of cities and counties in the state, one can find foreclosure properties for sale and pre foreclosures in almost uniform levels, although some of them are not reflected in official market statistics particularly if lenders are holding them off the market.
Meanwhile, CRL has expounded on the broader impact of bank, government and Freddie Mac foreclosures for sale on the economic status of families and local areas in Arizona. According to the center, on average, a homeowner in the state has lost almost $23,000 in home value since the foreclosure crisis started.
The center also estimates that over 2.2 million households were affected by the housing market crisis, with the center predicting that when 2012 comes, people in the state will incur an accumulated loss of $51.7 billion. Considering this potential scenario, analysts stated that it would take several decades for the state to recover.
Analysts are also worried about the shadow inventory issue, or those properties that are already in foreclosure or are ready to be sold, but are not yet released to the market by lenders and home sellers. According to them, once these shadow inventories of bank, government and Freddie Mac foreclosures for sale are injected into the market, the prices of homes will decline drastically and the market will experience another wave of crisis.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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