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”).
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