Foreclosures What is the Real Story
Foreclosures, what is the real story? Are they up or down? According to RealtyTrac the number of foreclosure filings, default notices and bank repossessions in October, 2014 increased 15% from September 2014. However they are still down from last year by 8%. This is the largest increase since the peak of foreclosures in March of 2010. Although foreclosure activity for the last 3 years has historically increased in October this number is higher than the seasonally adjusted expectations. “There has been an average 8 percent monthly uptick in scheduled foreclosure auctions in October as banks try to get ahead of the usual holiday foreclosure moratoriums,” said Daren Blomquist, vice president at RealtyTrac.
What is Behind the Rise in Numbers
The expiration of the Mortgage Forgiveness Debt Relief Act of 2007 has been cited as a major consideration for homeowners lack of motivation to seek out alternative remedies such as short sales as the forgiven debt must now be counted as income. The combination of higher home values and lower inventory levels in some markets have also contributed to the more aggressive foreclosure actions of the banks. RealtyTrac is reporting that 29 states have increased foreclosure auctions over last year.
What About the Phoenix Market
In Arizona, according to Michael Orr, Director of the Center for Real Estate Theory and Practice, the WP Carey School of Business, foreclosures in August were down 43 percent compared to a year earlier. That is due in part to the lower number of underwater borrowers which according to the Phoenix Business Journal down to only about 18% in Arizona, which means we are seeing far more traditional sales. As we have previously written in this blog, we are in fact in a more normal market with a slight edge to buyers.
What Does it All Mean
Simply put it means the old adage that real estate is a local industry is tried and true. For those of us living in the Phoenix metropolitan area, it is a good time to purchase a home from starter homes to luxury condos or rental properties, the local market has a great cross section of inventory. Mortgage rates remain at historic lows and lenders are beginning to relax some standards such as lowering down payments for conventional and jumbo purchases.
If you are considering buying or selling your home, it is important to hire a professional who truly understands the market. Roberta Candelaria, Broker of Phoenix Urban Spaces, is known for being the foremost expert on the Phoenix Valley’s most exclusive and exceptional urban communities. Contact Roberta Candelaria today if you want to work with the best in Central Phoenix.