About 200 valley houses were up for foreclosure auction. Nearly two thousand people turned up – albeit mainly as onlookers. At the Mesa Convention Center the auction was held for two days and was conducted by Hudson & Marshall. This could well kick off a trend. The value of the houses standing on the block ranged from $100,000 to $6000,000. All of them were picked up by jumbo lenders. About three fourths of the houses were sold for prices starting from $75,000 and going up to $465,000. Bidders did not shout down each other and prices did not rise. Hudson & Marshall is scheduled to hold another auction early next year.
Sheldon Good & Co conducted a similar auction on 21 Arizona bank foreclosures located in Anthem, Casa Grande, Queen Creek and West Valley. Prices kept at a low level from the start starting with $80,00 for a new three bed-bedroom unit.
Foreclosures are increasing and so are the numbers of houses going back to the lenders after it fails to be disposed off at the auctions. Two years ago most the auctions were held in the courthouse of Maricopa County. But the number of bidders became less and less because most of the foreclosed houses suffering vandalism at the hands of the departing owners and local criminals had become worthless – of much less value than the loan hanging on to it.
The average house price in the valley is sliding down and is hovering around $240,000.
The numbers of foreclosure listings continue to rise. Last month 1,344 Phoenix foreclosure listings were added. Nearly 3,500 borrowers are in the red and running behind schedule. Foreclosure notices are about to be served on them. Statistics (National Council of Real Estate Fiduciaries and ASU commercial real estate index rates) show that the value of commercial properties in the metro areas of Phoenix has increased by 1.8%. This can be compared with the drop in housing market by 3.4%, comments Anthony Sanders, finance professor at W.P. Carey School of Business in Arizona University. The industrial sector of the real estate market came out winners with an increase of 4.5% in value. The apartment sector turned out to be a modest winner with a gain of 1%.
The average price of a Valley house fell in November but larger houses were sold off. This might confuse the average calculations.