What does the Phoenix real estate market look like for 2012?

A few weeks ago I was invited to a seminar put together by our partners at Fidelity National Title Agency called the “Crystal Ball” – or in other words what the future of the Phoenix real estate market looks like for 2012.

With a staggering 175,000 valley homes already gone to foreclosure in the past few years, it is refreshing to see the number of pending foreclosures are nearly half of what they were this time just a year ago. Not to mention the number of bank owned homes currently available for sale in the Phoenix market are significantly less than they were even six months ago. What does the Phoenix real estate market look like for 2012? Here is what we can look forward to in 2012:

  • Bank panelists at the event all agreed, they have plans to increase short sale approvals in 2012.
  • Banks are beefing up employment – Bank of America now has 3,000 employees in their short sale department.
  • Banks would rather approve a short sale than let a home go to foreclosure.
  • Bank of America has set a goal for 2012 to approve short sales within 20 days and aims to approve more than 60% of their short sale applications.
  • Short sales in Arizona on average sell for a higher list price than REO sales. More short sale approvals could cause our home values to go up.
  • Two years ago, banks handled delinquent mortgages almost exclusively by foreclosure. Today that rate has dropped to 32.1% from 2009. This is the biggest drop for any other state in the nation.
  • With record lows in available inventory, there is no longer a huge supply of future foreclosures casting a dark shadow over our housing market.

I believe the future of the Phoenix real estate market looks positive – especially for those homeowners who really need to get out from under their mortgage. With the drop in pending foreclosures and REO inventory, we have to shift our focus. If we want to improve the housing market and economy for 2012, we will need to put our attention on short sales. Helping homeowners who are underwater get a fresh start is an essential piece of the recovery process.

If you or someone you know needs help with their mortgage, please contact us today. With the New Year right around the corner, it is time to set our goals for 2012 – perhaps a short sale should be at the top of your resolutions. I look forward to assisting you with your personal and financial goals – Frank.

PS make sure you ask me about the HAFA relocation assistance programs – you could receive up to $3,500 cash with your short sale approval!