Homebuyers have shown a lot of interest for distressed properties in Phoenix, Arizona, including foreclosed tax deed sales and bank foreclosures. According to housing industry analysts, higher buying activities in the home market have helped lower the metro area's distressed property inventory.
Foreclosure auctions in Phoenix have generated a lot of buzz in the past few months among regular homebuyers and real estate investors. This resulted in the metro area having a lower supply of distressed dwellings compared with other U.S. metro regions that are similar to Phoenix's size. The lower level of inventory has also helped offset the negative impact of underwater mortgages in the region.
The supply of distressed houses in Phoenix, including those already offered at home auctions in Arizona, has been estimated to be around 13.6 months. A nationwide ranking of metro areas with the highest inventories of distressed homes showed that only five U.S. metropolitan areas are doing better than Phoenix. However, the underwater mortgage percentage of the metro region still went beyond the 50% mark.
Aside from repossessed properties and tax deed sales, the city is said to be looking at an almost 55% underwater loan burden. This means that more than half of the metro area's homeowners are paying mortgages at a cost higher than the worth of their homes. Another report actually pegged the metro area's underwater loan percentage at 70%. However, both claims have been disputed by local housing experts who argued that the numbers were inaccurate.
Despite conflicting takes on the status of Phoenix's underwater mortgages, majority of analysts agree that the list of foreclosure auctions in the city is far better than other metropolitan regions in the U.S., particularly in comparison with Las Vegas, which has been ranked number one in terms of underwater loans. The fact that the distressed property inventory of the area has gone below most regions' supplies is also considered good news for the city's housing market.
Although bank foreclosures and foreclosed tax deed sales are expected to rise in the whole country in 2011, most local analysts believe that Phoenix's residential property market will continue to get better, albeit at a slower pace than other metro regions.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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