As was previously covered in this blog, Arizona once had one of the highest number of underwater homeowners in the country. During the worst of the Great Recession, somewhere around 50 percent of homeowners in Phoenix were underwater. The housing market in metro Phoenix was highly unstable, even when the market in many other cities began to improve. Now, thankfully, the Phoenix housing market is starting to look more and more attractive to buyers.
According to reports, 20.6 percent of metro Phoenix homeowners are underwater now, which is less than half of the homeowners who were underwater during the worst of the recession. This totals to 186,539 Valley homeowners. This percentage is still behind the national rate, which is around 13 percent, but overall this is good news for many. More and more Phoenix homeowners will be able to sell and refinance their homes.
Phoenix home prices have risen more than 65 percent since the real estate market crashed. Though sales prices have flattened recently in many areas, overall this is a positive trend for the Phoenix housing market. What's more, if home prices climb 5 percent nationally during the next 12 months, another 1.2 million properties will be pulled out of the negative equity trap.
With the Phoenix housing market continuing to improve, many will be making the exciting decision to sell or buy homes in the area. Accordingly, many will be engaging in real estate transactions. These transactions can involve much in the way of legal complexities. Identifying red flags and making sure each step along the way meets all legal requirements can help buyers and sellers successfully navigate these transactions.
Source: AZ Central, "Fewer Phoenix-area homeowners underwater," Catherine Reagor, June 5, 2014