Report shows Phoenix home foreclosures declining
Foreclosures as a share of the overall Phoenix-area resale-housing market activity are declining. The latest Realty Studies report from the W. P. Carey School of Business at Arizona State University explains the number of foreclosures has gone down from 40 percent of the market’s recorded activity in March to 33 percent in May. However, will the drops continue?
“The key question is whether this is a harbinger of the future of steadily lower foreclosure activity or a ‘blip’ with a return to higher levels,” said associate professor of real estate Jay Butler, who authored the new report. “Defaults and late payments are still at record levels and could be a precursor of additional foreclosures. The main issues center on whether income will increase enough for people to hold onto their current homes and whether they can maintain payments on their houses, especially if confronted with a change in an adjustable-rate mortgage that could reset in coming months.”