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'Double Dip' Looms for Prices of Phoenix Foreclosures

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By : Dywon Erick Dylon    99 or more times read
Homebuyers who intend to purchase foreclosed homes at cheaper price tags should head to Arizona, particularly to the city of Phoenix. Analysts are expecting prices of Phoenix foreclosures to further drop this month to another record low. Median price for Phoenix foreclosures is forecast to drop to as low as $115,000.

If the median price hits that low, it would be lower than the record low for prices of Phoenix foreclosures, which hit $119,900 in April 2009. Last November, the median price of foreclosed homes in the city was at $121,500, the lowest so far since April 2009.

Falling home prices in the city are attributed by analysts to a continuously rising volume of foreclosed homes. Since June this year, median prices for existing houses have been declining. The trend is seen as connected to the recent expiration of a federal home buying tax credit last June. The slower demand of home purchases has been dropping since then.

Many homebuyers assert that prices of Phoenix foreclosures are now more reasonable and cheaper than price tags of 78526 foreclosures (Brownsville, Texas). This is because to begin with, there are more foreclosed homes in Phoenix than there are in that area.

Home prices in Phoenix rose to as high as $250,000, especially during 2004 to 2006 when there was a property boom. However, when the housing market collapsed, prices started to drop and hit a bottom in April 2009. A ‘double dip’ happens when prices hit another bottom after some time.

Just like 78526 foreclosures, the volume of foreclosed properties in Phoenix has also been declining in the last two months. Analysts point out that the drop is temporary, especially as Bank of America has announced that it would soon resume its foreclosure activities soon. It is estimated that Phoenix foreclosures would grow by another 1,000 units every month when the bank restarts its foreclosure process in the state. The same increase could be expected in 78526 foreclosures.
Original post: on, your source of government foreclosures.

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