Many in Arizona buying foreclosed properties

The foreclosure problem in Arizona has led to an increased number of families moving into distressed properties.

A report from the W. P. Carey School of Business at Arizona State University revealed that area home prices continue to fall, led in part by a rise in the number of foreclosures in the region. Those repossessed properties also give homebuyers the opportunity of moving into a discounted home. Foreclosure sales made up 45 percent of the home sales market in August, said the report.

"When you add in resales of previously foreclosed-on homes, all of this foreclosure-related activity represents a full two-thirds of the market's transactions in August," said Jay Baker, a professor of real estate who authored the report.

At the same time, families are moving into a new home for the median price of $135,000, down from $137,000 in July. That price was also down from the $143,000 buyers paid in June and the $144,000 they paid in May, demonstrating a steady decline in home prices that could be tied to the elevated number of foreclosures that have dropped home values around the state.

Arizona continues to be one of the top states for foreclosure, dropping home values and forcing relocating families to sell their homes for less. RealtyTrac reported that one in every 167 Arizona homes received a foreclosure filing in August, the second highest rate in the nation.
 

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