If you have tried to purchase a bank owned foreclosure home in the last two months you have surely seen the how competitive it has been. Most houses are going to multiple offers and many of those are going well above asking price. I have two customers I am currently working with who have made 3 and 4 offers, all of those offers have been at or above asking price, and they are still looking.
Why is this? The obvious answers are low prices and great interest rates, but the current situation goes a little deeper than that. This buyers market may have turned into a sellers market for the banks.
As of 2:15 PM today there were 6,307 bank owned properties on the market in the Arizona Multi-Listing Service. In the last 30 days 5,352 bank owned homes closed. That means there is only a 1.17 months supply of bank owned homes on the market today in the Phoenix area.
So when you go to put an offer in on that bank owned home and your agent tells you that the full price offer may not be good enough, now you know why.
