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Home Sales Increase but Resellers Not Happy Due to Foreclosures

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By : Leticia Carvalho    99 or more times read
The Arizona State University’s Realty Studies department reported a significant increase in home sales for the third quarter this year as compared to previous quarters and with the same period last year. However, these sales were conducted mostly with foreclosure homes, which amounted to almost half of the total home sales.

There were 2,100 homes sold in Pinal County during the second quarter. This increased to 3,355 during the next quarter. Compared to last year, which reflected only 625 units, this quarter’s sales have gone up at a very high rate.

However, if home values are to be considered, this quarter’s sale would pale in comparison to prices posted last year. Median home prices have dropped because of the staggering number of foreclosure homes in the county. With foreclosure properties taking much of the volume in home sales, median home prices are expected to continue heading downhill.

Most buyers in Arizona are investors and first-time homeowners. These people, having enough resources, find good opportunities in the low home prices brought about by this crisis in foreclosures. In Pinal county, home prices at the medium range have already dropped to $129,000 this third quarter which is far below the $220,000 range that realtors enjoyed way back 2005.

Investors are taking this opportunity seeing a possible windfall once the market recovers and prices goes back up exponentially. First-time buyers on the other hand are looking at good location choices where they could purchase their primary real estate.

However, realty experts are expecting a possible lull in home sales activities as trends in the economy and the financial crisis could worsen. Threats of job losses and further inflation make people hold on to their resources more closely and delay spending their hard-earned money in making major purchases.

With the slow progress currently achieved in reducing the number of homes lost to foreclosures, these people may have something tangible to hold on to.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.

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