Arizona Foreclosures…When the Associated Press gets it wrong.

Arizona ForeclosuresThere are a lot of mortgages in default in Arizona… BUT (and that’s a pretty important BUT) it’s not as bad as recently reported by the Associated Press (AP) who reported 70% of homes in Arizona are at risk for foreclosure.

No…no…no. They got it all wrong. But not before it went viral on the Internet and was picked up by some pretty big new sources, including the Wall Street Journal.

Arizona really doesn’t need the additional bad press so it’s painful that the world now thinks our housing market is worse than it actually is.

So where did that morsel of misinformation come from?  The AP attributed the statistic to the Arizona Regional Multiple Listing Service (ARMLS).   And the number was taken from the monthly ARMLS “STAT” Newletter which reported:

“Distressed sales are a composite of closed Short Sales and sales of Lender Own Properties. They exert a disproportionate pressure on the supply and demand balance and negatively affect average and median prices of both listings and sales. Of the 6,541 total sales in January, 70.2% (4,591) were distressed. Closed Short Sales of 1,479 accounted for 22.61% of total sales and 32.22% of all distressed sales, as Lender Owned Sales continued to dominate the market.

So there you have it.  70.2% of the total sales in January were distressed sales…NOT 70.2% of ALL homes in Arizona.  Pretty big difference and a pretty big reporting mistake wouldn’t you say?

Just goes to show you, you can’t believe everything that you read on the Internet…or the Wall Street Journal..I guess.

 

About Amy Jones Group

Amy Jones is the owner of Amy Jones Group Keller Williams Integrity First. The Amy Jones group has been recognized as the #1 Real Estate Team in Chandler by the Phoenix Business Journal and voted Best of Our Valley for 4 years.

The Amy Jones Group specializes in real estate in Chandler, Sun Lakes, Gilbert, Mesa, Tempe, Ahwatukee, and Phoenix.