Arizona experienced a 36% drop in foreclosure proceedings compared to a year ago. The falling number is a result of a number of factors, almost all positive. First, banks are finding other viable alternatives to foreclosure including loan modifications and principal adjustment. With the Fed keeping interest rates low, refinancing is becoming more prevalent, allowing people to remain in their homes. Secondly, the real estate market overall is recovering, inviting new buyers into the marketplace with greater frequency. This is leading to an increasing number of sales and short sales as opposed to foreclosure.
It also suggests that the jobs market is improving, with more and more people being able to find a job locally and hold onto property as opposed to giving it up to chase a position across the country. Those economic prospects lends justification for lenders to work with owners on distressed mortgages, an option unavailable in a suffering job market. With the recent drop in foreclosures, Arizona almost fell out of the top 5 of foreclosure activity. As a result, there are more long-term roots taking hold for Mesa residents, allowing many families to stay and become part of the fabric of their communities.
With more people remaining in Arizona and foreclosure rates falling, this suggests that people are finding better ways to keep their property. An identity based upon time spent living in an area is always superior to more transient times, of which foreclosures are a sure sign. The plummeting foreclosure rate is great news for communities like Mesa and purports a solidifying local population with long-term citizenry. And long-term residents are more likely to make investments in local businesses and infrastructure, creating a positive feedback between property, jobs and communal investment.
Contact us today to learn more about the metro Phoenix real estate market.
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