Thursday, September 22, 2011

Rapidly dwindling inventory of bank owned homes in metro Phoenix

In his September 15th market summary Mike Orr of Cromford Report said

We are projecting about 4,500 new foreclosure notices during September, a drop of some 16% from August and about 2,850 trustee sales, a drop of about 21%. Part of the drop is because September has 9% fewer working days (21) than August (23).

Nevertheless it still looks like the foreclosure tide is on its way out, and the inventory of bank owned homes continues to fall, as does the count of pending foreclosures.

Context: In the 30days preceding Mr. Orr's report, there were 8,763 properties sold in the greater Phoenix metro region. As of September 20, 2011 there are 19,241 properties listed for sale in the area. Nineteen thousand, plus forty-five hundred, minus nearly nine thousand... equals not enough homes for sale in a mere couple of months.

You can sign up for the highly respected and frequently dead-on accurate Cromford Report for a nominal fee for a 3month membership. Last I checked I think it was $90 for 3 months. WELL worth it.

By the way, I completely agree with Mr. Orr. The foreclosure tide is on it's way out. My investors looking for bank owned homes in the under $125,000 price range are having a devilish time finding and getting the right home. Multiple offers, bidding wars, paying over asking price. If you're shopping under $75,000, triple that difficulty level.