Source: www.cromfordreport.com
A quick update on the short sale and foreclosure situation in Scottsdale, courtesy of the Cromford Report. Compared to the rest of the Phoenix area, Scottsdale is in good shape. For instance, the Distress Index for Chandler is in the red zone at 49.3, and Phoenix is clocking in at 69.7. The only city that I’ve found so far that is running in the green zone is Paradise Valley.
This chart illustrates two important points about short sales and foreclosures.
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The percentage of distressed properties on the market in Scottsdale encompass about 20% of the market, but comprise almost 50% of the sales.
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Both listing and sales prices of short sales and foreclosures are significantly lower than normal properties listed for sale. In this chart, distressed properties are listed and selling at approximately 60% of normal homes.
There is an important caveat to note for this second point. Many of these distressed homes are trashed. Appliances removed. Wiring, plumbing, and HVAC equipment can be missing too. Not all homes are like this, but I do speculate that there is a growing market for investors who have the experience and resources to buy, fix, and sell some of these abandoned and abused homes.
For now, many people are looking specifically at short sales and foreclosures to find a good deal, and weather the current real estate market. Opportunities do exist, just bear in mind that it takes some leg work, and a good amount of research to make sure you are buying a diamond in the rough, and not a lemon.
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