Increase in Foreclosures Hurt Property Values
About one-half of all the homes sole in Pinetop, Lakeside and Show Low over the last six months were either bank owned or short sales. The large percentage of foreclosures has caused a large drop in property values. When a bank forecloses on a home they will sell it below market value in order to sell it quickly, and this hurts the value of other homes in the neighborhood.
Newer neighborhoods have been hit extremely hard. Most of these homes were purchased at the peak of the market and are now selling for prices far below the original purchase price of the homes, and in many cases less than half of their original prices.
This makes it extremely difficult for homeowners who need to sell their home, but they owe more on their home than what it is worth. Many of these homeowners are just letting their homes go into foreclosure, rather than explore their other options.
As bac as this is for homeowners who are trying to sell their homes, it is a great time for buyers who want to purchase a home.