Active Listings – Owned By Banks:
Pending Listings – Owned By Banks:
Monthly Sales of Homes That Were – Owned By Banks:
I’d also like to comment on Michael Orr’s post titled Shadow Inventory from May 23rd. On that day he addressed the rumors that the banks are going to flood the market with all the extra bank owned homes they are holding back. The article is well worth the read. Here are some of the statistics from it…
All numbers are for Maricopa County Only:
18,386 Total Number of Homes Banks Own
- 5,213 Active Bank Owned Listings in ARMLS
- 7,170 Pending Bank Owned Listings in ARMLS
- 477 Temporarily Off the Market in ARMLS
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5,526 Unaccounted for Bank Owned Homes
5,143 Bank Owned Homes SOLD in the month of May 2009
Since the banks extra inventory is only a 1 month supply, “flood” or “tsunami” would be incorrect classifications.
Please read the entire article here – get password here. For an example of how you can use the valuable information from the Cromford Report, check out this post by Dru Bloomfield RE: the Phoenix Real Estate Market.
Talk is circling the office about starting a new series on the blog. It would be a Monday posting of greater Phoenix real estate market updates. The decision has yet to be made as to the frequency of said series, however with any new series comes the need for a new creative name. This is where you come in. Any ideas?
I’ve read the article and I thought Michael Orr’s supporting facts and stats were AWESOME, but, I also work with Asset Managers who believe the opposite. They are telling me that the banks are trickling them in 10 a week for them to list, so that they don’t flood the market and so that they control the inventory being put on the market. If this is indeed the case, I think it is quite genius, in my opinion. This is what could be causing the multiple offers and allowing the prices to be driven up. Just my thoughts, anyway! Have a great day!
Good comment Joey. I think Tom Ruff’s numbers and Michael Orr’s commentary are accurate, but the big mystery (which leads to conspiracy) is the 43,000 Notices that have been issued. These homes aren’t owned by the bank, so they’re not included in the shadow inventory analysis. I think this leaves everyone to guess as to how the banks are going to deal with the Notices.
If tomorrow they decide to foreclose on all 43,000 of them and list them for sale – they would flood the market and values would decline. The good news for the Valley is this would also be the way the banks lose the most money – so I don’t see that happening.
I agree with you 100% that it’s genius the banks have figured out how to increase values – simply control the supply.
Thanks for the mention, Phil. The Cromford Report is invaluable in keeping up on the real estate market here in Phoenix, and gives a lot of insight into what the future may hold.
How about “Metro Monday”?
Absolutely! I haven’t come across any other agent that uses the Cromford Reports as good as you.
Metro Monday!? It’s in the running! All I could think of was “Super Market Monday’s”, but I figure people would be expecting grocery prices.
I suppose I have had too many bank-involved transactions to think the banks have figured anything out – especially in UNISON. Accidently…maybe, I can give them that much.