Prescott Valley, AZ

The Mortgage Bankers Assocation reported yesterday that Arizona residential deliquencies rose to 9.22 percent of homes in Arizona and foreclosures were started on an additional 2.52 percent of AZ mortgages bringing the total to 5.56 per cent of all homes in foreclosure.

"It is difficult to overstate the severe impact home-price declines have had on mortgage performance," said Jay Brinkmann, the MBA's chief economist, in a statement."

Brinkmann also said the MBA suspected the foreclosure numbers had been kept low by foreclosure-moratorium policies imposed by various states, lenders, Fannie Mae and Freddie Mac.

"Now that the guidelines of the administration's loan-modification programs are known, combined with the large number of vacant homes with past-due mortgages, the pace of foreclosures has stepped up considerably," he said.

Assuming the jobless rate doesn't peak until mid-2010, foreclosures and delinquencies will remain elevated until then, Brinkmann predicted.

You can see an example of this with the amount of notices of trustees sales that are scheduled in the next 3 months in the Prescott Valley Market. See map below. Yellow homes are slated for foreclosure in the next 90 days or so, and the home in green are already REOs. In the 86314 Zip Code there are 191 homes scheduled for auction and 150 already bank owned.

Prescott Valley AZ REO and Pending Trustee Sales

If you are on the market for an investment of a second home in Prescott Valley, there are bargains to be had out there and more to come. To search the current inventory of bank-owned homes and short sales in the Prescott area, click here.

Twenty new foreclosed or short sale homes came on the market last week, about one in every 4 homes being listed in the Prescott Arizona Area MLS system. 6/20 are short sale listings (see yellow highlight).

Want to see what the latest sales figures are for the Prescott Az area forelcosure market?

See: Prescott area REO and short sale homes sold 5-1-09 thru 5-15-09

To get more information about any of these listings or any others in Prescott, Prescott Valley, Chino Valley or Dewey-Humboldt areas, feel free to contact me, or you can search by MLS number, address, or lots of other ways in our Search Prescott MLS section.

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Note: Change to weekly report format. I will track foreclosures and short sales separately and do the analysis once a month vs. every week.

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Eighteen new foreclosed or short sale homes came on the market last week, about one in every 6 homes being listed in the Prescott Arizona Area MLS system, and one third of the closings were distressed sales in Prescott, Prescott Valley, Chino Valley, Dewey-Humboldt and the outlying areas of Yavapai County.

The difference between what newly listed traditional homes and Prescott foreclosed/REO and short sale properties per square foot remains large at a 42% discount.

Days on market was higher this week for both market segments, but REOs still sold 19% faster.

Are your considering a short sale as a solution to your mortgage woes? Before jumping in, see this post: Do your research with your CPA before your decide on a short sale

The percentage of foreclosed/REO/short sale new listings on market increased from 10% to 16% this week. Last week 42% of the pending sales were REO or short sales, and this week they made up 36% of the deals going into escrow. The percentage of REO/short sales that closed last week went from 36% to 26% this week. REO/short sales sold about 19% faster than traditional resales.

You can get this report sent to you via email and to see the whole report including graphs: Sign up here.

Get your Fico Scores/Reports

Activity in the distressed home market in the Prescott AZ area was weaker this time with 15 homes closing in the last 15 days of April. This compares to 44 homes sold by traditional resales during the same period.

The average price per square foot for REO and short sales was $88 and the average time to sell was 160 days compared to $133 per square foot and 190 days on market for tradional resales. You can see that the REO and short sales market in Prescott and Prescott Valley is moving much quicker and at a much lower average price.

Short sales increase: of the 15 homes sold, 6 were short sales (highlighted in yellow). Short sales can take a long time, see this post: How to help speed up a short sale tips

Almost 1/2 of the homes sold asking price or more (see original post) and got probably got multiple offers to get there.

Search for Prescott area REO/Foreclosed and Short Sale Listings

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More signs that the bottom of the real estate market in California is here or near! That is great news for home sellers in the Prescott and Prescott Valley market areas since we rely so much on the buyers from CA to buy our homes. This includes retirees looking for on of the top 10 places in America to retire, (See Best Places to Retire: Prescott, Arizona ), and professionals moving here to service the growing population.

The California Association of REALTORS® released the following information on Tuesday the 28th:

"The March sales figure of 522,980 homes indicates that the market continues to be very active," said C.A.R. President James Liptak. "All of the regions in the state experienced increases in month-to-month raw sales, with the smallest gain in the Sacramento region at 9.7 percent and the largest gain in the Riverside/San Bernardino region at 32.2 percent."

Closed escrow sales of existing, single-family detached homes in California totaled 522,980 in March at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 63.8 percent from the revised 319,290 sales pace recorded in March 2008. Sales in March 2009 decreased 16 percent compared with the previous month.

The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the March pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached home in California during March 2009 was $253,040, a 39 percent decrease from the revised $414,520 median for March 2008, C.A.R. reported. The March 2009 median price rose 2.2 percent compared with February's $247,590 median price.

"The statewide median price showed the first monthly increase since August 2007, and has remained in the $250,000 range over the past three months," said C.A.R.'s Chief Economist Leslie Appleton-Young. "A number of regions around the state also have registered monthly gains for one or more months since the beginning of this year. While these are welcome signs, it remains to be seen whether home prices have stabilized.

"While we still face continued weakness in the general economy and expect continued foreclosures, the increased incidence of multiple offers indicates that first-time home buyers and investors are responding to dramatically improved housing affordability. Low mortgage rates and house prices, coupled with the federal first-time home buyer tax credit, is having a definite impact on the California housing market," Appleton-Young added.

See the full report here: See the full report here from CAR

If you are a Californian and have your home on the market, why not take advantage of the bargains to be had in the foreclosure market in Prescott,Prescott Valley, Chino Valley or Dewey-Humboldt? You can search for properties using our customized IDX MLS search tool > Search for Foreclosures in the Prescott Arizona area.