AZ Foreclosure News: Foreclosed Home List Prices Continuously Fall in Arizona

July 13th, 2009 | by admin |

The Arizona foreclosure news has recently reported that the non-foreclosure price levels and foreclosed home list continue to fall in many Arizona cities, especially those in the Pinal County.

The home prices continue sliding downward as reports show the attack of two more waves of foreclosure – one is predicted to occur in the second half of this year while the other is expected to occur in the first few months of next year.

According to the latest Arizona foreclosure news, Darrah Dremler, a Coldwell Banker Excel Realty broker, stated that banks will release a large number of foreclosed home list properties in the next couple of months. Dremler added that the expected foreclosure wave in August or September would include the properties that were not included in the foreclosed home list inventories due to foreclosure moratoriums.

The other foreclosure wave expected to occur next year would consist of foreclosures which resulted from the ARM loans adjustments taken out from the years 2003 to 2005 and are scheduled for readjustment 5 years after they originated. The ARM borrowers are also expected to suffer from foreclosure notices after 6 to 8 months of delinquent payments.

According to the ASU data, in the first quarter of this year, nearly 50% of all the houses sold in the Pinal County were from the inventories of foreclosed homes and their prices were reduced by significant amounts from last year’s price level.

The Arizona foreclosure news reported that in Casa Grande, there was an approximately $30,000 drop down in the median price of existing homes, approximately $50,000 in Arizona City, nearly $40,000 in Coolidge, around $4,000 in Eloy, $60,000 in Florence, and $55,000 in Maricopa.

There are 2,692 properties for sale in the current home listings for sale in the 7 cities of Arizona, with 956 from the short sale lists and 797 from the foreclosure listings. The numbers put foreclosed homes in these cities at 65% of current home sale listings in Pinal County, particularly the Western part.

According to National Association of Realtors Nationwide, the unsold pre-owned homes inventory ending the first quarter of the year was 3.7 million property units. The AZ foreclosure news reported that it would take 10 months or even more to sell all these units. If the foreclosure waves described by Dremler come true, chances are, the inventories for the foreclosed home list would inflate to levels that would be very difficult to sell even in a couple of months.