Today, foreclosures make up more than 10% of Tucson home sales market. Even just 5 years ago, we wouldn’t have dreamed that we’d see that many foreclosures, a number high enough to seriously affect home values across the board.
But foreclosures are a sad reality in Tucson’s real estate market today and in real estate markets across the country. Homeowners who lose their jobs and have no means of financial support have no choice but to let the banks repossess their homes. Some homeowners attempt to stall the foreclosure process by seeking financial assistance from some of the financial aid programs now available. Other homeowners choose doing a short sale to avoid a foreclosure.
Sometimes short sales turn into foreclosures, however, depending on how quickly the banks’ investors can earn a profit from the disposition of that home. There’s no set formula. But foreclosing on a home is usually the last choice because it is the least profitable option.
For home buyers and investors, though, foreclosed properties are the bargain of the century and are being purchased at a high rate of speed. We’re seeing more first-time home buyers because they can now afford a home at these bargain prices. And we’re seeing more investors purchasing homes at these distressed prices. Eventually, the number of foreclosures available will decrease. Home values will begin to grow. And our Tucson real estate market may even reach a state we consider “normal” again.