Distressed sales is Arizona

Distressed sales (foreclosures and short sales) continue to drive residential real-estate prices down. Arizona has been, one of the states, hit hardest by the flood of distressed home sales and consequently the decline of the housing market.  The good news is, there is a silver lining to the storm clouds of the past. Since Arizona has already processed a flood of distressed home sales, it is expected to eliminate its future inventory faster than other states.  

Recently, the National Association of Realtors, reported Arizona has nine months of “shadow inventory” (all homes delinquent, short sales not on the market, REOs not on the market, and anything in the foreclosure process.); among the lowest in the nation. The nine months’ supply is estimated by dividing shadow inventory by the monthly number of distressed sales.    Only four other states are projected to have fewer months of shadow inventory than Arizona. This is largely due to a drop in mortgage delinquencies and shadow inventory moving through the pipe lines faster in Arizona than other states. Arizona’s lower months of shadow inventory is fantastic news since housing appreciation will likely not occur until shadow inventory works it way through a the housing market.     Let’s take a snap shot look at distressed sales in the Foothills and Oro Valley                                  

                                                                             Foothills                                    Oro Valley                           

Distressed homes sales                                    42                                               53

All homes for sale                                              419                                            315

 % of home sales that are distressed             10%                                          16%

* Source MLS 4/1/11  

Now, more than ever, it is essential for both sellers and buyers to make informed decisions regarding their real-estate transactions. ucson Real Estate Agent, Lisa Bayless, specializes in Tucson Foothills homes and Oro Valley homes.