The Downward Spiral of Phoenix Foreclosures
With the global economic meltdown, Phoenix foreclosures have been on the rise Many experts have concluded that home prices still need to depreciate by another 15% within the next yearWith the global economic meltdown, Phoenix foreclosures have been on the rise. Many experts have concluded that home prices still need to depreciate by another 15% within the next year. Experts state that a 15% devaluation in home prices will bring values into the correct levels. This is a scary thought; many cities across America have already seen huge devaluations in home prices. Cities like Phoenix, Las Vegas, and Orlando have seen price drops up to 40%.
So what will happen if a city like Phoenix, AZ drops by another 15%? This could be devastating news for many homeowners who are facing Phoenix foreclosures. Thousands of homeowners across the Phoenix metro area are already feeling the impact of devalued home prices. The symptoms include much longer times to sell homes, higher monthly payments, the likelihood of needing a short sale to sell, and foreclosure. In fact, over 400 Phoenix foreclosures were post lasted Friday at the Maricopa county recorder?s office?400!
So what will happen with all of the Phoenix foreclosures? Inevitably, the banks who repossessed all of the foreclosed homes will eventually begin to resell these homes. And this is where the Phoenix foreclosures downward cycles starts. As more and more foreclosures in Phoenix enter the market for sale, more and more homes compete for buyers. Banks understand this, and begin to liquidate prices in an effort to make the home sell faster. More and more homes are sold for less money. As a result, home values continue to come down.
So, the more homes that are repossessed by banks equates to more and more homes being resold by banks. This in turn leads to the downward spiral in real estate prices. Phoenix foreclosures were up almost 25% last month when compared to year over year data. These numbers are becoming unprecedented. But this analysis helps to explain why so many experts are pessimistic with the trends in real estate. How can real estate prices possibly stabilize with so many Phoenix foreclosures.
It is highly likely that Phoenix foreclosures will continue to rise for quite some time. So what can homeowners due to protect themselves from phoenix foreclosures? Consult with an expert. Call your local real estate agent and ask them the local conditions of your neighborhood. Keep in mind that every local neighborhood performs differently. Local knowledge about Phoenix foreclosures is key. A good local Realtor will be able to provide you the latest and most up to date Phoenix foreclosures info on your neighborhood.
Call your bank. Many times banks these days are offering payment programs and debt relief options for homeowners who are facing Phoenix foreclosures. You are not alone. There are millions of families across the United States who are facing foreclosure in Phoenix. But with this in mind, you must be vigilant in correcting this problem. Do not wait until the last minute to address Phoenix foreclosures. Phoenix foreclosures can take several weeks in not months to be handled properly. And lastly, contact an attorney. A good real estate attorney can provide excellent advice when dealing with Phoenix foreclosures.
Reed Lattin is real estate investor in Phoenix, AZ Reed works for AllHomesAZ.com which buys all homes AllHomesAZ.com-member of the Better Business Bureau Sell your home fast at www.allhomesaz.com