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Don’t Be Fooled! Short Sales In Arizona Are Here To Stay (At Least For A While)

by Charlie Allred

In recent months the “Short Sales In Arizona” topic has taken a backseat to the question of the economy. People continue to argue back and forth on the economy… It’s improving. It’s not improving. It’s anybody’s guess right?

Wrong.

Fundamentally the US economy is continuing to struggle through the debt crisis and mortgage debacle of the last few years. And, with that the main driver of home prices and affordability, the job market has continued to sputter and stall.

In fact, the U.S. unemployment rate edged up to 8.3 percent in July from 8.2 percent in June, government analysts said last Friday. But, how is this tied to home prices, debt, and the short sale rates we see taking place here in Arizona? It’s simple really… Home prices are directly correlated to the average consumer’s ability to pay his mortgage! That’s really all that matters when near term price projections are considered.

So the basic formula is this: People with no job or who are working for less than they normally do to pay the bills can not finance, or refinance a home or save for a down payment on a home. If they cannot borrow or raise a down payment, they can not buy a house at any price. Lack of demand due to creditworthiness will never drive prices up. It will drive prices down. Prices remaining flat or falling means that the majority of people who bought in the mid 2000′s will remain underwater on their mortgage due to loss of value.

The question then becomes, “Why not short sale your Arizona home?” If you do, you can walk away from a burdensome debt and start over in a couple years by buying a home that will appreciate going forward. That’s much better than waiting and hoping for a miracle on your current underwater situation.

No, short sales are not going anywhere… An Arizona short sale makes a lot of sense! And, with prices heavily tied to the consumer’s ability to pay a mortgage, or save a down payment Arizona short sales will remain the best option to avoid foreclosure and start fresh with the least amount of baggage and stress.

To learn more, read this article on short sales in Arizona.

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