For only the second time this year, the monthly foreclosure rate has gone up in the Valley. According to a new report from the W.P. Carey School of Business at Arizona State University, foreclosures made up 29 percent of the existing-home transactions in the market in November. That's an increase from 26 percent in October, but it wasn't unexpected, according to the author.
"Nothing like this goes down smoothly," said business professor emeritus Jay Butler. "The foreclosure rate's movement is more of a cha-cha-cha, with a few steps forward and couple of steps back. Most people thought 2011 would be a better year for the housing market than it was, but it's a good transition year."
Valley foreclosures started the year as 43 percent of existing-home market transactions in January. Overall, Butler anticipates that foreclosures will continue to drop in 2012.
The Phoenix area had about 2,100 foreclosures in November, up from 1,900 in October, but almost identical to the number from November 2010. Overall housing-market activity remained about the same in October (about 7,200 transactions) and November (about 7,100 transactions). More analysis is available from knowWPCarey, the business school's online resource and newsletter, at http://knowwpcarey.com.