I have noticed that some of you have been curious with the current Arizona Real Estate Market conditions and just wanted to shine some light on the developments that are happening at the Arizona Trustee Sales.

A dramatic increase in investor bidding competition has been happening and it has been difficult to purchase Trustee sale properties under previous pricing of plus/minus 80% of retail value for Arizona wholesalers of Real Estate.  The recent market appreciation here in Maricopa County is evidenced by many local statistics.  The average median sales price of a Single Family Home in Maricopa County went from $113,000 in August, 2011 to $127,000 in February, 2012.  This constitutes a 21.26% annualized increase.  Also, the active retail inventory dropped from 5.79 months in February 2011 down to 3.35 months in February 2012, showing a 42% decrease in supply of available homes on the open market.  And of course, it doesn’t help when Warren Buffett on February 28th, 2012 states on CNBC, “If I had a way of buying a couple hundred thousand single family homes, I would load up on them.”  Since this current market is so aggressive, purchasing properties up to 85% of retail value is starting to occur by wholesalers.

Purchasing Trustee Sale Homes in Arizona with lower spreads is common, however with shortage of actual inventory on the market for all the buyers, investors are still selling them at the retail level in this “hot” market.

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