For the second month in a row, the Valley has seen a drop in the foreclosure rate, according to a report from the W.P. Carey School of Business at Arizona State University.
In January and February, 43 percent of the existing-home transactions in the market were foreclosures, but that declined to just under 38 percent in March and now to 36 percent for April.
“The actual number of monthly foreclosures in the Phoenix area is still very high,” says associate professor of real estate Jay Butler. “It’s like flying through a hurricane, and we may just be in the eye right now. There’s probably more of the storm to go through, and we could see another wave of foreclosures.”
In April, the Phoenix area had about 3,750 foreclosures in the existing-home market. That’s down from about 4,150 in March, but still up from about 3,500 last April. Butler doesn’t expect to see clarity in the market’s direction until October or November.
Butler’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at http://wpcarey.asu.edu/realestate/Phoenix-Resale-Market-Reports.cfm.