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Phoenix Bankruptcy Homes for Sale Rise Despite Foreclosure Moratorium

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By : John Cutts    99 or more times read
Most major cities in the country experienced a decline in the number of bankruptcy homes for sale as the nations’ biggest lenders announced a foreclosure moratorium to study allegations of irregularities in their foreclosure processing system. But despite such moratorium, Phoenix still recorded an increase of 13 percent to 43 percent of foreclosure sales by the end of January 2011 from 30 percent during the end of 2010.

There were a total of 3,600 foreclosed homes in Phoenix in January compared to 2,500 homes in December. Experts are still trying to analyze if the surge in foreclosure transactions was actually the effect of the lifting of the foreclosure moratorium or this is, indeed, the continued foreclosure domination in the market. A report also revealed that 70 percent of borrowers have underwater mortgages.

In addition, average home price in Phoenix is also less than the national average, pegged at $125,000. Last year, home prices were around $136,500. According to the National Association of Realtors, most of the 78 metro areas located all throughout the nation it tracks showed a rebound or upward trend in home sales activity. Only in Phoenix, bankruptcy homes for sale were sold 14 percent less than the actual foreclosed price.

Without a strong upward-moving market trend, housing recovery will never be sustained and this will also limit home price growth. Although the lower prices of foreclosed homes in Arizona translate to more affordable homes, a lot of sellers and owners will be impacted by the decline in home prices, especially those who are concerned about whatever equity is left.

The decline in home prices for both existing and foreclosed houses for sale actually varies, considering how large Greater Phoenix area is. For instance, the median price for North Scottsdale bankruptcy homes for sale is at $365,250 in January compared to $374,775 in December. Traditional homes median price is at $421,000 in January compared to $401,000 last December.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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