Is it the right time to buy a second home in Verrado community? What is the market trend?

(85396)

darenb replied on 17 Jun 2010 08:39 AM

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Pashy,

I'm not familiar with the Verrado community specifically, but the graphs below show what is happening in the market in ZIP 85396, which I believe is where the Verrado community is located. These graphs are from the RealtyTrac Trend Center.

The first graph shows that average sales prices there appear to have flattened out over the last five months at around $200,000, while average foreclosure sales prices are also pretty steady in the $150,000 to $175,000 range. The average discount on a foreclosure property in May was 18 percent below the average sales price of properties not in foreclosure. I would interpret those sales numbers as an indication that it is a good time to buy because prices have stabilized.

On the other hand, the second two graphs below do indicate there is still some volatility and weakness in the 85396 market. The foreclosure rate in Buckeye, AZ was more than six times the Arizona average in May, and Arizona had the second highest state foreclosure rate in May. Plus foreclosure activity seems to be holding steady, if not trending higher. And the big spike in foreclosure activity in March is somewhat ominous because it could indicate the market has a lot of pent-up distressed properties that occasionally are breaking through the government and lender safety nets and making it into the foreclosure process.

VerradoAmy replied on 18 Jun 2010 03:02 PM

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If you are looking at Verrado, I would look specifically at Verrado and not the larger 85396 zip code area. While many areas around Verrado still have many distressed properties on the market the inventory of distressed homes in Verrado has remained at less than 10 for most of the year. Traditional sales (non-distressed propeties) have gone from less than 5% of the market inventory a year ago to about half of Verrado's inventory today. Builders have taken notice of the market. Verrado has gone from two active builder product lines a year ago to eight today. K Hovnanian the newest builder has already had three price increases since opening a few months ago.