Phoenix Median Home Values Rise for 7th Straight Month

On January 9, 2010

Investors and first-time buyers are responsible for driving the Phoenix Metro housing market’s median home values to their highest since December of ‘08, moving 3.4% in November to $142,700.

Cash buyers accounted for more than 31% of all November sales according to DataQuick, while total sales rose to 10,482, up 62% from the same time last year.

Phoenix MSA

Number of sales Nov-08 Nov-09 %Chng
Resale houses 3,934 6,299 60.1%
Resale condos 322 815 153.1%
New homes 1018 1430 40.5%
All homes 5,274 8,544 62.0%

Source of Chart

With 52.2 percent of resold homes and condos in November being foreclosed properties of 12 months or fewer, investors are harboring successful fix and flip campaigns while demand stays steady and supply lessens.

Recent Cromford Reports show decreased inventories of lender-owned properties, while notices of trustee sales dropped 9% from October to November. This is the 3rd straight month of declines, an occurrence that one would have to go back 4 years ago to see… an indication of a stabilizing market.

Let’s not forget about all those maturing option-ARM and Alt-A loans… The expected sidekick of the 2010 new wave of foreclosures. So long as supply doesn’t start dwarfing demand, the promises for building wealth through purchasing foreclosed homes at Phoenix Trustee Sale Auctions during 2010 remain ever-present.

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Strategy for Investing – Foreclosure Auctions

1. First and foremost, find a source that is providing foreclosed property listings with 'comprehensive' information, and develop a system for filing.
2. Filter through the properties locating the real estate with built in equity. What is owed? Are there any junior lien holders?
3. Investigate the neighborhood comparables, comprise a list map, then get in your car and visit the properties.
4. Set your maximum bid price. This sounds simple and straightforward, however the fast-paced action of the bidding process can cause the most reserved person to hastily over-compete for a not-so-great piece of property.

AZ Auction Process – Trustee Sales

1. 90 days has passed since the Notice of Trustee Sale is issued. Prior to sale, the Trustee establishes the opening or minimum bid to be accepted at auction by referring to the calculated Credit Bid Statement prepared by the respective Beneficiary.
2. On the 91st day, said property is put on the auction block. All bidding is open and verbal. $10,000 cashier check in hand is required by all parties bidding.
3. Highest bidder must present the funds in total to the Trustee by 5pm of the next business day in order to gain title.
4. Acceptance of funds results in the recording and conveyance of a Trustee's Deed; funds are disbursed to the Beneficiary.