So says Arizona Republic reporter Catherine Reagor. A home is said to be “pending” when it is under contract to be sold, but the sale has not closed.
The bad news? Many of those pending sales are short sales — they are “pending” the lender’s approval — and the contracts will never close. The agents mark the listings as “pending” while the lender deliberates to keep the number of Days on Market from accumulating.
The worst news? The Republic’s Craig Anderson has it that the inventory of unsold homes in the Phoenix area may be as high as 86,000 domiciles.
The implication? If you’re an investor, cash-flow positive rental homes are yours for the picking.
And if you’re a would-be homeowner who is renting now, with a 3.5% down payment you can buy a lot more house than you ever thought you could afford.
But there is a caveat: With this much available inventory, and with the foreclosure pipeline still very full, appreciation in home values may be a distant dream.
Investment homes for income? Doable, but growth may be a long way off.
A very nice home for you and your family to live in for at least five years? Very easily done.
Thinking of selling? You’ll need a strong motivation and a stronger stomach. We’re a long way from being done with this market.
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