Foreclosures on rise in Arizona, Valley

Home foreclosures are on the rise in Arizona as the housing market continues to cool down and interest rates rise.

[A] Northern California-based real estate investment advisory firm, reported that more than 8,000 properties went into foreclosure in Arizona during the first six months of the year.

Although the 8,321 Arizona filings in the first two quarters of 2006 represent an increase compared to the last six months of 2005, the number is down by about 800 from the first six months of 2005.

Maricopa County accounted for the bulk of foreclosure activity, 5,215 actions, for the first six months of the year. However, the majority of defaults are being settled prior to the actual foreclosure sale of the property, according to Foreclosures.com figures. About 1,100 Arizona properties initially in foreclosure came under new ownership in the first half of 2006.

McGee also said home prices will not crash like they did in the early 1990s. “Back then, overbuilding by developers led to excess inventory and what we call competitive liquidation of unsold new homes,” she said. “This time, the inventory just isn’t there.”

Foreclosures.com has been analyzing markets, providing foreclosure lists and assisting investors since 1992. The company covers more than 946 counties across the United States.

The Arizona Business Journal July 18 2006