The most common question I get from homeowners is,"Where will Real Estate values be in 2-3 years?" I wish I had a crystal ball. For now, I will just have to make an educated guess.
Seeing that the volume of foreclosures is barely slowing in Maricopa County, I think that, in 2-3 years, we will be in approximately the same market as we are in now...a market fueled by distressed properties. I believe the small slowdown we have seen in the number of foreclosures is due to the increase in the number of short sales and the fact that some lenders have been postponing auctions. I believe the general public is now better informed as to the benefits of short sales and is now more inclined to pursue one.
I think that those homeowners who are underwater and are "on the fence" about short saling or strategically defaulting will take the plunge and attempt a short sale. The more distressed homeowners are talking to each other regarding their financial difficulties, the less the negative stigma of a short sale or foreclosure. The higher the number of homeowners defaulting, the more those "on the fence" will see a short sale as a viable solution and a wise market opportunity.
I believe that in the future we will see another wave in the West Valley...an onslot of bankruptcies. Just as we begin to see a slight tapering in the number of short sales and foreclosures in the years ahead, the swell of bankruptcies will begin. Consequently, we will have a market with a steady supply of distressed properties for at least the next 2-3 years. And, with a wealth of inventory, comes low, affordable prices.
If you have any questions about the value of your home and/or know of anyone who is considering capitalizing on this market, give us a call at 623-694-0354 or visit our website. www.MaryDrefs.com. We are here to help.
