PHOENIX - An ASU report shows that foreclosures in the Phoenix area may be leveling off, but there could be a new wave in foreclosures coming in the next few months.
Professor Jay Butler authored the report that shows the number of foreclosures down 7 percent from March compared to May. The foreclosures still however make up 33 percent of the market’s recorded activity.
Butler says with school being out, people may see this as a time to make a “strategic default.”
“It is sort of the final group of foreclosures,” he said. “These are the people who can afford to pay their mortgages but don’t want to.”
Another concern is what happens to the foreclosures that have and are being bought.
“There is some concern that if people who bought foreclosures can’t rent them or flips them then they’ll end up going back,” said Butler.
Butler says some areas of the Valley, like Chandler and Gilbert, are seeing some improvements in terms of prices. But as far as full recovery, we could still be a long way away.
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