Cheap Foreclosed Homes Available in Surprise, Arizona
Cheap foreclosed homes are available in Surprise, Arizona, based on data prepared by Jay Butler, an associate professor of real estate at the Arizona State University W.P. Carey School of Business.
Because foreclosure homes continue to enter the housing market, the median price for all types of homes, including foreclosed homes, new homes and existing homes, fell to $131,000 in August compared to $170,000 in August last year.
According to Jay Butler, more houses are being sold in August in the West Valley compared to last year and more foreclosures have been accounting for total sales. Out of every 3 previously owned homes sold in the West Valley, one was a foreclosure property.
While the 33-percent share was a decrease from the 44 percent share in August 2008, the share was still much higher than the three- to five-percent share in a normal housing market.
In addition, Butler said that the ratio of foreclosure sales should first go down to about one foreclosed home out of every 20 non-foreclosed home resales before the housing market becomes normal. Also, owner-occupants should be the ones driving activity in the market and not investors looking for cheap foreclosed homes that have strong profit potentials.
In Surprise, out of 510 houses sold in August, 180 units were foreclosed properties, a drop from 200 units sold in August last year. With 230 foreclosures, Glendale again led other cities in the West Valley in total number of foreclosed properties.
In El Mirage, 50 homes were foreclosed in August, pushing down the median home sales price to $73,250, which is far below the median price of $116,000 in August last year.
Based on data from ASU, out of approximately 6,000 existing homes sold in the Valley in August, about 3,100 were foreclosed units. This indicated that around 34 percent of all pre-owned homes sold were foreclosures in August. During the same month last year, out of 4,300 existing homes sold, around 3,300 units were foreclosures, representing 44 percent of total home resales.
However, Butler said that the foreclosure percentage in August is not as accurate as he wants it to be because about 50 percent of conventional home sales were made by banks selling residential properties they have previously repossessed from foreclosure auctions. He therefore contended that about 67 percent of all home sales in August were foreclosures.
According to a real estate research firm, a prospective home buyer can find cheap foreclosed homes in Surprise because there are currently more than 3,500 foreclosure homes in Surprise which are available at an average of $126,530.
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