The question is usually what can we expect from the Arizona Cardinals or the Diamondbacks in 2010? This year though, all eyes are on the Phoenix and Scottsdale real estate. It’s well known that in 2009, two of the major cities of Arizona, not to mention the state itself, suffered loss. For example, in the year 2009 the state’s economy suffered a record-setting 3.9 million foreclosures.
More figures revealed that many homeowners were on “upside down status”, and many others were having difficulty making payments. It is also believed that one in every five homeowners are currently paying more debt than their house is worth on the market. Statistics on Scottsdale bank owned homes are similarly revealing; more homeowners are losing properties to foreclosure, and more often than not, they end up repossessed instead of auctioned for sale.
There is also some concern regarding ARMs and Option Arm Loans this year, as many contracts will be resetting in the next two years. The changing of these loans will increase the foreclosure rate at some point. Is there any good news out there for 2010? As far as foreclosures go, probably not. However, many in the real estate business remain confident that a loan balance reduction program may be passed.
Nevertheless, an increase in foreclosures doesn’t necessarily mean bad news for the overall economy. Retail figures are up, as are industrial businesses and overall household wealth. Employers are also more optimistic regarding the addition of new full-time employees. Remember also that when more homes go into foreclosure, that means more opportunity for short sales, foreclosure auctions, and best of all, Scottsdale lender owned homes. Whenever a house is foreclosed, but doesn’t sell at auction, the lender has no choice but to repossess it. At that point, the lender makes repairs and reduces the price. You, the smart buyer, benefit. So there is good reason to be optimistic about 2010 AZ real estate!