Bank owned homes ”“ also known as lender owned homes, foreclosures or REO’s (Real Estate Owned) ”“ continue to fly off the shelf in the Phoenix real estate market.
On the chart above, green circles indicate a condition favorable for sellers, red circles indicate favorable for buyers (white is neutral).
Of note, active listings continue to decline. The 6,107 active REO listings are half what they were just three months ago (as indicated in the “Last Qtr” column). There is only a one month supply of REO homes listed.
“Distressed sales” ”“ those sales involving either an REO home or a short sale ”“ make up a significant portion of the home sales across the Phoenix metro area. Virtually every major city in the Valley is showing distressed sales compose well over 50% of all sales, and many cities are over 75%.
Competition for purchasing REOs is fierce. If you are looking for a bank owned home in the Phoenix metro area, odds are you will be facing a multiple offer situation only a few days after a home is listed. Don’t expect to get an REO at much, if anything, below list price, and don’t expect to negotiate price with the lender. Sometimes a lender will come back with a counter for “highest and best” offer. My suggestion is to put your highest and best offer in initially ”“ someone else probably already has.
Tables and charts from CromfordReport.com using data from public records and data licensed from the Arizona Multiple Listing Service (ARMLS). Cromford Associates LLC, ARMLS and yours truly, Jay Thompson, expressly disclaim and make no representations or warranties of any kind ”“ express, implied or statutory ”“ as to the accuracy of the data, nor its merchantability or fitness for any particular purpose.
In other less legal-like words, if you use this data to make personal, business or investment decisions and something blows up, it’s not our fault and you can’t sue us.