Short Sales continue to be a major part of the market in Phoenix
Short sales have become a significant part of the Real Estate transactions.
The chart to the right shows the sales in January 2010 by city and the corresponding percent of sales by type; Bank or Lender Owned in red, Short Sales in blue, with the remainder being traditional sales. Anthem had the highest percentage of short sale transactions in January 2010 with 38%. As you can see, every city or town in Phoenix is experiencing short sales and the underlying hardships that make these sales necessary. From Avondale to Anthem, and Gilbert to Glendale, it is a trend that will continue for all of 2010 and longer.
Short sales are defined as the market value being less than the amount owed to the bank(s). Nationwide, 24% of all properties with a mortgage were upside down or negative equity. In Arizona, the number is estimated to be closer to 51%. When a homeowner experiences a hardship such as relocation, job loss, divorce, separation, or health issues and must sell, but have negative equity, the choices are difficult. The Arizona Department of Real Estate and the Arizona Association of Realtors recently released a Short Sale Seller Advisory that discusses the options available to homeowners in this situation. A website that also have information regarding short sale can be found at Phoenix Foreclosure Options.
If you know if anyone who is experiencing a hardship and needs additional information regarding short sales and the available alternative, please pass on this information or have them call me at 480-326-8571 with any questions.