Prescott Arizona area foreclosure market report for Q1 2009
Print This Post The first quarter of 2009 is thankfully over and we are seeing buyers starting to take advantage of the pricing in the real estate markets in Prescott, Prescott Valley, Chino Valley, and Dewey-Humboldt. Foreclosures and short sales have driven prices come down to levels seen before the “boom.” Historically, prices have increased at a modest 3% – 5% range, and I would imagine that if normalcy comes back to the real estate market, we could anticipate similar growth in the future. We just have to cycle through some of this foreclosure inventory first.
Speaking of foreclosures, according to latest data from Zillow, the Prescott area averaged only about 4.1% in foreclosure transactions in the previous 5 years. For 2008, we averaged 23.9%!
| Zillow Prescott MSA Distressed Sales Data | |||
| Time Period | Homes Losing Value (Pct) | Homes Sold For Loss (Pct) | Foreclosure Transactions (Pct) |
| Past 12 Months | 92.9% | 34.0% | 23.9% |
| Past 5 Years * | 4.4% | 7.1% | 4.1% |
To see the full report on Zillow
The Zillow data compares fairly closely with the Prescott MLS data below. On the listings side, there were 274 residential single family residence that were listed as foreclosures or short sales, about 22% of the total amount of listings on the market for Q1.
However, on the sales side, foreclosures and short sales made up 34% of the total sales. This is probably due to the 22% discount off of “retail price” that distressed home buyers are getting in the Prescott AZ area.
This discount is driving down the amount that tradional sellers are willing to take for their homes to 76% of their asking prices on average. Banks are getting 13% more, or 89% of their asking prices, on average.
The time it takes to sell a home is decreasing, but tradional sellers are having to wait a little over 6 months, or 192 days, and REO and short sales are taking about 4 months, or 124 days, on average .
| Q1 Foreclosure, Short Sales Data | ||||
| REO/Short Sale Traditional | ||||
| New | 274 | 961 | 22% | of listings |
| List $/sqft | $106 | $158 | 40% | less |
| Closed | 116 | 226 | 34% | of listings |
| Sold $/sqft | $94 | $120 | 22% | less |
| SP/LP | 89% | 76% | -17% | less |
| DOM | 124 | 192 | 55% | longer |
| *Source: (PAAR) Areas 110-670 | ||||
Prognosis for Q2: Prices will stabilize at the low end and tradional sellers will continue to have to drop what they get to match the foreclosure comps that appraisers are going to be using. When homes don’t appraise, buyers either get a discount or will walk most of the time.
Sign up for the Prescott Arizona Area Foreclosure and Real Estate Market Report to stay on top of the Quad-Cities area of Northern Arizona including Prescott, Prescott Valley, Chino Valley, and Dewey-Humboldt.
Tags: 
Categories: 
Thanks for your comment, Robert. I think if you read the entirety of my blog you will see that I try to post the current news and views about the market. You are welcome to post your analysis of what the market will do. My readers welcome input from all sides.
Thank you! This is just what I was looking for. Keep up the great work!
[...] How to help speed up a short sale tips [...]
Great blog post. The media will never pick up on this because it is more complicated than a soundbite.
If I may add that with the number of outstanding loans that are scheduled to reset in the next couple of years, decreasing home values and stricter lending guidelines, the rate of foreclosures are on track to peak in 2010. Short sales have become a growing niche for Real Estate Agents to sell homes before they become bank owned.
short sales | short sales education | short sales success
1/3 on the market are foreclosed or short sales – wow. It’s nice that you research this information. The agents who represent home sellers prob don’t share that info with buyers. Take care.
Dear Patrick,
Great article! I agree with you. I also would like to add couple more alternatives to those homeowners who want to stay in their homes.
There are two products those aren’t widely knowing and common in the market place. Trsutee Foreclosure Delays and Loan Re-Write.
Did you know that Homeowners are illegally being foreclosed on especially in Trustee States?
In Judicial Foreclosure states, a judge reviews the legality of the foreclosure proceedings to ensure the homeowner is being protected against greedy lenders and yet still the lenders are not properly following the foreclosure laws correctly (see this article: http://www.nytimes.com/2009/08/31/nyregion/31judge.html?_r=2).
In Trustee States, lenders employ a “third party” trustee company to replace the legal function of a judge and orchestrate the foreclosure process. If banks are not legally foreclosing when they know a judge reviews the case what do you think they are doing when they only have to go through a trustee that they pay? And what is more interesting, the trustee company is liable for the foreclosure proceedings but who is going after the trustee companies to review the legality of these foreclosure packages? You guess it! Yes, No one is..!
Did you know that a loan Re-Write program has the ability to reduce homeowner’s current loan balance down to the current market value at prime + 3%?
Here is an example: You owe $500K on your home but it is only worth $350k. Investors will bulk purchase the note from your current lender and re-write it back to you at $350k, saving you (the homeowner) over $150k!
I hope this helps!
To find out more about our services you may want to visit http://ASNDinc.com/
Yamen Elasadi
yamen@ASNDinc.com
Arizona Unemployment Trends – September 2009
Arizona Unemployment Trends Visualized as a Heat Map:
Arizona Unemployment in September 2009 (BLS data)
http://www.localetrends.com/st/az_arizona_unemployment.php?MAP_TYPE=curr_ue
versus Arizona Unemployment Levels 1 year ago
http://www.localetrends.com/st/az_arizona_unemployment.php?MAP_TYPE=m12_ue
[...] How to help speed up a short sale tips [...]
[...] How to help speed up a short sale tips [...]
This is good news… Foreclosure market needs movement to make more money and start leaving this situation
that’s good to hear. when you are experiencing foreclosure, you need the help of reliable real estate agents. when you are looking for them you may visit this site:
REALTOR
[...] How to help speed up a short sale tips [...]
[...] How to help speed up a short sale tips [...]
Hi!. Thanks for the blog. I
Hello, possibly this posting could be off topic but anyhow, I’ve gone surfing about your site and it looks genuinely great. It’s obvious that you know your topic and you appear passionate about it. I’m constructing a new blog plus I’m attempting to make it look good, and also present the best quality content. I
Considering, finding the right foreclosure home is the most essential step involved while buying a foreclosure some research should be done ahead of time before finding the most affordable home.
[...] See: Why short sales aren’t always a good deal. [...]
[...] Considering making an offer in today’s distressed home marketplace in Prescott or Prescott Valley? See: Top 10 tips to win the REO multiple offer game. [...]
[...] Foreclosures are still cranking in the U.S [...]
[...] 31% of Phoenix area home sales are foreclosures in March down from 51% in Feb [...]
[...] How to help speed up a short sale tips [...]
[...] See: Why short sales aren’t always a good deal. [...]
[...] Considering making an offer in today’s distressed home marketplace in Prescott or Prescott Valley? See: Top 10 tips to win the REO multiple offer game. [...]
[...] See: Why short sales aren’t always a good deal. [...]
[...] Considering making an offer in today’s distressed home marketplace in Prescott or Prescott Valley? See: Top 10 tips to win the REO multiple offer game. [...]
[...] How to help speed up a short sale tips [...]
[...] How to help speed up a short sale tips [...]
[...] How to help speed up a short sale tips [...]
[...] See: Why short sales aren’t always a good deal. [...]