Prospective home buyers looking at Phoenix as a retirement or investment area or as a base for their families should make their purchases now from Phoenix’s foreclosed home list inventories, according to analysts of residential real estate sales in Phoenix.
The analysts found that the average foreclosed home list prices and non-foreclosure list prices in Phoenix reached their lowest level in the first week of April – $155,789 – and in the last week of the same month – $155,900. They compared home sales prices in Phoenix from March this year through May.
The $155,789 average home price was the lowest level reached in Phoenix in seven years. Since April, foreclosed home list prices and non-foreclosure list prices in the city reversed their downward direction and slowly crept up to reach the current average price level of $169,668.
To support the contention of the analysts that the time to buy foreclosed home list properties is now, they also analyzed median home sales prices in the city during the same months.
The median home price is the price level where half of total sales were priced above and half of total sales were priced below.
The lowest median sales price in Phoenix was $115,500, a sales price recorded in the middle of May. It has been the lowest median since 2002 and was lower than the current $124,000 median home price.
According to another report, the percentage of foreclosed home list properties in the city’s housing market has gone down from 28 percent to 14 percent of available residential listings. This information should encourage prospective home buyers to make their home purchases now before foreclosed home list inventories get lighter or else they would have to wait for the next foreclosure batch.
In contrast, the percentage of short sales has increased from 22 percent to 33 percent while the sales percentage for non-foreclosure properties remained largely the same.
Meanwhile, the higher-priced sector of the Phoenix market is still in its slow pace. Only 12.3 percent of houses priced at $400,000 and higher are scheduled to be purchased while 42 percent of houses priced lower than $400,000 have pending purchase contracts.
Based on the residential sales study, home buying activities in Phoenix in the first 6 months of this year are at record levels since the boom years of 2004 and 2005. Currently, there are more than 13,000 pending contracts to buy foreclosed home list properties and non-foreclosure units, with about 4,000 more being negotiated.
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