Case-Shiller home prices drop 20% and buying frenzies start
CNNMoney is reporting the S&P Case-Shiller Home Price index dropped a record 19.1% during the first quarter compared to the first quarter of 2008. Year over Year the index dropped 18.7%. Tucson isn’t included in the index buy Phoenix is included. From 2006 peak prices to this past quarter, Phoenix home prices have lost almost 50% of their value.
Phoenix is seeing a surge of investors buying foreclosures. Some are even trying to keep the people foreclosed upon in the house as renters at a reduced rate, but a recent study stated less than one quarter of the foreclosed upon people stayed living in the homes.
Having talked to a few REO agents, foreclosures and “decent” deals are flying off the MLS quickly. They mention how all of a sudden the investors are purchasing multiple homes, and good deals are receiving multiple offers.
Along those lines the Fannie/Freddie foreclosure moratorium has just been lifted and could increase the buying opportunities over the summer, when the houses start to hit the market. I haven’t seen a large increase in the notice of defaults, but the banks might of just postponed all the sale dates.