High Foreclosure Sales Ratio a Good Thing?

As a state Arizona has been among the leaders in the number of total distressed properties and percentage of recent sales due to its rapid expansion and heavy speculation during the previous decade. It has also received quite a bit of national attention due to this fact and undergone substantial price corrections in some areas. However, data recently released by the National Association of Realtors indicates that while such a large portion of recent sales in Arizona have been distressed properties (55%) this may have been beneficial. Having many of these properties hit the market in bulk has cleared out much of the inventory and reduced the “shadow” inventory of homes which have been foreclosed on but not yet hit the market for sale. NAR estimates that Arizona’s shadow inventory comprises a supply of homes that would take nine months to sell through, whereas New York’s shadow inventory was estimated to take 34 months and Florida’s 29 months. This ability to move these properties quickly may help values stabilize more rapidly in Arizona as distressed properties are among the biggest factor reducing home values.

Stephen Woodall

REALTOR, GRI @ Long Realty Company

Stephen has made real estate his full-time career and passion since 2008, primarily specializing in the Foothills & the Northwest Tucson areas of Oro Valley and Marana. He is a multi-million dollar producer, representing both sellers & buyers. Stephen has tremendous experience in new home sales, listing & selling primary residences, listing & selling vacant land, listing & selling luxury homes, investment properties, rentals, and real estate development parcels.