Short Sales in 2013

Short Sales in 2013

Short sales in Arizona have been the main listing focus for the last 3-4 years.  2006 saw the market peak, 2007 left everyone wondering what was going to happen, 2008 started the short sale trend, and now here we are in the beginning of 2013 and what seems to be a stable Arizona real estate market turnaround.  So will short sales still be around in 2013?

The answer is a resounding YES!  Although the market in Phoenix is in a definite state of recovery there are unfortunately many people who purchased homes during 2004-2006 and also those that refinanced in an attempt to cash out on the equity of their home for whatever reason.  Most of these individuals will still find themselves upside in 2013 and probably through a lot of 2014 and possibly beyond as well.

It's a matter of numbers -- if you bought a house in 2005 for $300,000 and it dropped 50% in value (which many did, some areas of Phoenix saw declines of over 80%!) it dropped at one point to $150,000.  Even if the market recovers at an insanely high 10% a year (national average is usually about 6%) that's only about 15k-20k per year so you'd have to wait it out another 5-7 years for the value to come back.

Now, not everyone is upside down, highly leveraged, or refinanced to the hilt, nor does everyone need to sell.  As I tell a lot of my potential clients, you aren't ever really upside-down in value until you actually sell the house.  If you don't need to sell then it isn't so big of an issue.

However with most people moving within 5-7 years for job reasons, family changes, relocation choices, downsizing/upsizing, etc. you may not have a choice but to sell and if that's the case then if you don't have that equity a short sale can be the best option to help you move on with your life.

For more information on short sales in Arizona please visit our Az Short sale site at www.AzHomeHelp.com  or call us today at 480-241-4406.