As a result of a reduction in distressed sales including short sales, foreclosures and pre-foreclosures, Phoenix area home sales dropped 4.4% in June and down 6.6% when compared with the previous year according to a report from Michael J Orr, Director of the Center for Real Estate Theory and Practice at ASU’s WP Carey School of Business.
Short Sales and Pre-foreclosures Demand Still Elevated
short sales as a preferred alternative to foreclosure. Consequently we have
seen single family short sales volumes grow by 12% over the last year, while
foreclosure rates have declined sharply. Average $/SF pricing for these homes
has reversed direction over the last few months and is now by up by 6.6%
compared with 12 months ago. Short sales and pre-foreclosures represent about
20% of single-family home sales, up from 17% in July 2011. Short sales and
pre-foreclosures are selling for a lower average price per sq. ft. than bank
owned homes, which is the reverse of the situation 12 months ago. However
pricing is higher than for Fannie Mae / Freddie Mac / VA REOs.”
Lehrman of The SRL Group, a boutique real estate broker in Phoenix. Phoenix areas including Desert Ridge, Biltmore, Chandler, Arcadia, North Scottsdale, Mesa and Tempe continue to experience high demand.