High Foreclosure Rates

If you are in the market to purchase a home, you will likely find

, that this is an excellent time to purchase Phoenix Foreclosure homes! The communities in the Valley still have many jobs to offer, so people are drawn there to live and raise their families. At the same time, there is an overabundance of homes that are in foreclosure, creating the perfect opportunity for many people.

In the last centuries, many of the states that border Mexico have experienced a huge population shift, with cities like Phoenix emerging as one of the largest cities in the nation. In fact, in 2006 Phoenix became our nation's fifth biggest city, as it's population topped 1.5 million. In the one year period between 2005 and 2006, an additional 43,000 people came to this continually growing city. Due to the environmental nature of the Southwest, the population is much more dense near the largest cities in this desert state, with the metro area surrounding Phoenix accounting for over 75% of the entire Arizona residential real estate market. Phoenix is located in Maricopa County, which saw an increase of 70% in foreclosure filings this last August.

Areas across the Valley are known for having affordable homes, and these areas are now facing heavy foreclosures. Some areas, where home owners purchased with ARM or Adjustable Rate Mortgages were especially vulnerable to foreclosures, such as East Valley, Mesa, West Phoenix and Maryvale. This clustering of foreclosures will force prices down over the coming months as the pattern becomes more and more noticeable.

Is it a good time to buy? Many buyers are hesitant to make a purchase at this time, preferring to wait until they can be more confident that the market is recovering. However, the low unemployment in Phoenix means that there is still a very strong demand for rental homes. The forecasted job growth moving into the future means that the demand will continue for some time. Individuals who currently reside in the suburbs, will be reluctant to move from this area if they are in the process of having their homes foreclosed, as will individuals presently living in the city.

There are many reasonably priced foreclosures that act as rental property, and prospective buyers who decide to postpone buying for the winter, will find that they will lose income as a result of this decision. The negotiating power of the buyer is probably at its peak in Phoenix this fall.

by: Logan Oulman

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