Foreclosures Continue To Fall In Metro Phoenix

Foreclosure homes are the ones we help our investors to buy for low prices and turn into rental houses to implement the projected cap rates or cash on cash rates.

In November, lenders foreclosed on 1,549 houses in Maricopa County. That’s the lowest level since December 2007, right before the foreclosure crisis hit metro Phoenix, according to the Information Market.  During 2011, a typical number of foreclosures was 4,000 to 5,000 a month.

Foreclosure starts, the early indicator of foreclosures, fell to 2,094 in November. By comparison, in March 2009, lenders started the process to foreclose on more than 10,000 metro Phoenix houses. These declines in foreclosure activity are key to tell what will happen to the housing market in coming months.

Another piece of foreclosure data that is even more important now, those loans with recent late payments or no payment, called foreclosures in the pipelines. The total number of foreclosures in lenders’ pipelines across metro Phoenix was 10,606 at the end of November. A year ago, there were double that many foreclosures under way in the region. Two years ago, there were more than 40,000.

Overall, foreclosures continue to fall in metro Phoenix. As a result, multiple bids became the norm and home prices picked up.

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