Valley homeowners who are trying to sell have some steep competition these days: motivated lenders. A little more than 49 percent of all the resales recorded in Pinal County in March were bank-owned properties. These REO – real estate owned – homes that have gone back to lenders through foreclosures are selling for real deals, of course. Because REO properties make up so many of the sales in Pinal County (which includes Queen Creek and Maricopa) the foreclosure properties are determining the area’s home prices.
Maricopa County’s REO sales are climbing as well, but make up a smaller portion of the area’s housing market. About 22 percent of all resales in Maricopa County were REO in March.
Motivated investors with empty houses are also a big part of metropolitan Phoenix home sales. In March 55 percent of all the homes that sold were empty. These properties are going to continue to dominate the market because foreclosures continue to climb. While REOs aren’t good for home prices, it is good that they are selling. The housing market won’t recover until supply drops significantly.
Source: Catherine Reagor, Arizona Republic 4-27-08
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