Most Phoenix Home Buyers are not Buying Distressed Properties

A surprising new trend regarding Phoenix’s distressed properties has been taking shape over the last six months, but I’ll bet it’s not the trend you’ve been hearing about.

Just below, you’ll see a line chart from The Cromford Report, which shows what percentage of the monthly sales across the Greater Phoenix Area since October 2011 were lender owned properties (“REO”), short sales & pre-foreclosures (“Short Sales”), and normal listings (“Normal”).

Most Phoenix Home Buyers are not Buying Distressed Properties

REO vs. Short Sale vs. Normal

As you can clearly see, the percentage of home buyers who bought non-distressed properties – or “normal” properties – has increased 20% over the last six months, from 35% to 55%. In other words, most Phoenix home buyers are not buying distressed properties. And that trend isn’t showing any signs of slowing yet either.

Since the supply of available REO and short sale listings has fallen, home buyers have started paying more attention to normal listings. And even though their average sales price per square foot tends to be higher than it is on distressed properties, home buyers are finding plenty of other benefits to purchasing normal listings: their move-in ready conditions, the quicker responses to offers, the ability to request repairs during the Inspection Period, the human interaction you feel when you buy from another person rather than a bank or government agency, and the list goes on and on…

Source: The Cromford Report

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About Doug Hill

Doug Hill is an Associate Broker with Coldwell Banker Residential Brokerage, and founded The Hill Group with his wife, Kirsten in 2003. Combined, they have helped over 1,000+ clients buy and sell homes in the Phoenix Metropolitan Area. Doug holds a Bachelor's Degree in Business Management & Economics, and is a Navy veteran. He is an active member of the Southeast Valley Regional Association of Realtors on their Professional Standards Board, and he and his wife have had the #1 team for Coldwell Banker in Arizona for multiple years in a row. He loves to read, travel, and spend time with his family and friends.
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