Earlier in the month some good news came out about mortgage delinquency rates in Arizona and California. Credit reporting agency TransUnion indicated that 6.14% of mortgage holders in Arizona were more than 60 days behind on the payments. This is a marked improvement from the year before when an additional 21% were similarly behind on payments. With initial filings of foreclosures also down the signs are all pointing to continued improvement and stability in the real estate market locally. All told this means fewer distressed properties on the market to weigh down price points. Arizona has been helped by the rapidity its homes go through the foreclosure process, which doesn’t have to involve courts in most cases.
Even in the best of times foreclosures are still a reality that must be dealt with, but returning to more normal levels will certainly benefit the market. Short sales are the other type of distressed property that will be with us in a more meaningful manner for quite some time. Values have increased statewide helping some homeowners to get “above water” and not owe more than their mortgage, but there still remains a big percentage of owners who are underwater. Thankfully banks have seen the benefit of approving short sales more rapidly as beneficial to their bottom dollar. When feasible this alternative is much preferred for all parties and the market in general to a foreclosure. The future looks much brighter by the day for the local market, but a long way remains to see a truly healthy market.
Connect With Us!