June 21, 2010
Housing Prices Pick Up as Foreclosures Drop
Phoenix has been in the midst of a serious housing slump in the past couple of years. That’s pretty much common knowledge. The good news? Slowly, but surely the market has been picking up.
Not long ago we pointed to a rise in housing prices, and a pick up in Phoenix home sales. And now a steady drop in foreclosure rates is driving market prices up further.
According to an article posted on NuWireInvestor there have been fewer and fewer foreclosure sales of late. Foreclosure activity from subprime loans has eased as lenders have looked at other alternatives such as short sales and loan modifications. Last month, foreclosure resales represented 50.5 per cent of the resale market in Phoenix, compared to 64.9 per cent the same time last year. In May, foreclosed house and condo units were down 13.6 per cent from March.
These numbers are encouraging. And although an established trend cannot be determined just yet, things are looking promising. For the second month in a row, median sale prices in Phoenix overall rose past the level they were a year ago.
And it gets better. There is still plenty of opportunity to get in the market. Over 30 per cent of ONE Lexington’s units have been sold, but there are still one, two, three bedroom and penthouse suites available. Brand-new suites – not in-need-of repair foreclosed properties – with high quality finishes, a solid developer and well-funded HOAs. You just need to decide which suite suits you best. And quickly, like we said, the market is changing and it’s unlikely you’ll find such exceptional quality at these low market rates for too much longer.
