A number of housing markets in Arizona remain out of balance due to huge supplies of foreclosed fixer upper homes for sale and distressed houses. According to housing market analysts, although the industry crisis seemed to be flattening out in some local markets, foreclosure numbers have remained elevated, showing that the residential property sector is still not over the worst.
Phoenix foreclosure listings and distressed property listings in other key areas of the state are predicted to expand further in the coming months, with most analysts not expecting an improvement in the home market until next year. In one of Phoenix’s local markets, Ahwatukee, foreclosures have remained a major concern, with real property agents reporting a large number of for-sale properties remaining unsold for months.
According to realtors, although sales of non-foreclosed and foreclosures in Arizona are relatively steadier this year compared with 2010, distressed property levels have remained elevated in most parts. In Ahwatukee, realtors reported that supplies of for-sale houses have diminished somewhat, but the area is facing another type of problem; that of longer periods of time that residential properties stay in the market before getting sold. According to them, on average, houses take half a year to get sold in the region.
In addition, over 50% of housing sales in the area are accounted for by foreclosed fixer upper homes for sale, distressed properties and short sales. They revealed that this is common in almost all Arizona markets. The huge number of distressed houses accounting for total residential sales is keeping the market out of balance, realtors further stated. Most of them expect such problems to persist for the rest of 2011.
Analysts believe that the housing industry will gain some traction once foreclosure listings start to diminish. They asserted that this could happen if sales will pick up. They also stated that an improvement in housing prices will greatly help the residential market, but they admit that so far, none of these is yet to happen. Real property agents in the Ahwatukee market are hoping that more jobs will be created because they believe that, ultimately, this will be the factor that will drive more sales which would benefit the overall home market.
For most of the area’s realtors though, the coming spring season brings hope that more fixer upper homes for sale and other types of residential properties will get sold in the region. They stated that buyers usually have more time during the spring to house hunt.