Phoenix Bank Repo Homes Seems to Have Reached its Bottom

Phoenix is the largest city and the capital of Arizona State. It has a population of about 1,552,259 and is the core of the Phoenix Metropolitan area. Phoenix is in Maricopa County.

Arizona is one of the worst foreclosure hit states and the concentration is largely in Maricopa County – especially in Phoenix. By Phoenix Bank Repo Homes are meant those residential houses that have been repossessed or taken over by the lenders, mostly the banks, for having failed to be sold off at auctions. There are a staggering number of repo homes in Phoenix and unless these are sold the real estate market will continue to suffer. There will also be other grave problems.

The original economy of Phoenix was agriculture based centred on cotton and citrus fruits. In the last twenty years the economy has branched off into many streams with employment being concentrated in the Arizona State University, high tech companies and the government departments. Tourism brings in considerable revenue.

Arizona together with Phoenix (especially its extending suburbs) has been infected by the spreading foreclosure crisis that has spared no part of the country. Arizona is one of the top states plagued by foreclosures. In the first quarter of 2009 Arizona ranked second in the country in foreclosure rate with a count of 1:54.

The current news is that 2009 started with 6,960 sales of Phoenix bank repo homes. In December 2008 there had been 7,425 sales. In January there were 3,370 foreclosure deals as against 3,590 traditional ones. In January 2008 there had been 4,205 total sales of which 1,800 came from the foreclosure category calculating to 43% of the total number of sales.

According to Jay Butler of Arizona State University the housing market in Phoenix will continue to be troubled right up to 2010 because of decreasing consumer confidence, gloomy economic climate, fear of further job losses and stringent mortgage lending restrictions.

The banks are offering such heavy discounts that buyers have started showing interest.

The greater Phoenix area is a sprawl and this causes fluctuations in the average price of houses. For instance in January 2009 in North Scottsdale the average price of a foreclosed unit was $443,470 while in December 2008 it was $429,750. In the traditional market the rice was $489,000 and $518,850 in January 2009 and December 2008 respectively.