Blog Archives

Metro Phoenix housing prices dip again

[Source: J. Craig Anderson, Arizona Republic] — Lenders’ pledges to be more aggressive about modifying delinquent mortgage loans did nothing to ease Maricopa County’s swelling foreclosure rate in October, according to the latest housing report from Arizona State University.  Foreclosures on single-family homes increased from 3,655 in September to 3,745.  Meanwhile, home resales followed a predictable pattern of seasonal decreases, dipping to 4,465 transactions in October from 4,625 sales the month before.

The city with the highest ratio of foreclosures to resales was Phoenix, where there were 65 more foreclosures than regular sales.  The median resale price also fell slightly, to $175,000 in October from $180,000 in September.  The median price is down 30% from $250,000 in October 2007.

  Home Resale Median Price

Foreclosures

2007 Population Foreclosures Per Capita
Chandler           250 $241,200             1,335      246,399 0.542%
El Mirage             85 $101,925               100        26,431 0.378%
Surprise           280 $157,250               215        90,717 0.237%
Goodyear           125 $158,000               110        52,864 0.208%
Avondale           160 $142,250               160        79,798 0.201%
Peoria           195 $214,350               165      146,743 0.112%
Glendale           315 $154,650               275      253,152 0.109%
Phoenix        1,270 $121,950             1,335   1,552,259 0.086%
Mesa           440 $174,000               365      452,933 0.081%
Gilbert           290 $227,000               165      207,550 0.079%
Scottsdale           265 $441,500               155      235,677 0.066%
Tempe             75 $240,000                 35      174,091 0.020%
Sun City             40 $190,000                   5        39,000 0.013%
Maricopa Co.        4,465 $175,000             3,745   3,880,181 0.097%

Color Key: East Valley (green), West Valley (yellow), Phoenix (orange)

Metro Phoenix home prices drop record 18%

[Source: J. Craig Anderson, Arizona Republic] — Valley home prices continued their year-over-year plunge in April, dropping a record 18% as the impact of foreclosures and other economic factors exerted even greater influence, according to an ASU report issued Tuesday.  The Arizona State University Repeat Sales Index, which tracks repeat same-home sales, reported an “off-the-cliff drop” in home prices because, in large part, of foreclosures, which made up 20% to 30% of all April home sales.  ASU real-estate Professor Karl Guntermann, who compiled the report, said the continued rise in foreclosures was significant, but that gas prices, interest rates, tougher lending standards, and buyer psychology also took their toll.  “It’s not just one thing,” he said.  “That’s what’s so depressing, in a way.”

For March, ASU reported a 13% drop in year-over-year home prices for the Phoenix metropolitan area, at that time the largest decline ever recorded:

  • Northeast region, which includes north Phoenix, Paradise Valley, and Scottsdale, saw its first-ever double-digit drop in home prices, down 10.2% from the previous April.  Its year-over-year decline in March was just 4.3%.
  • Southwest region, which includes Avondale, Buckeye, and Goodyear, had the worst year-over-year slide, as home prices plummeted 30.6% from a year earlier, falling even further from March’s 12-month decline of 22.9%.
  • Central region, which takes up most of Phoenix, saw an additional decline of 4% compared with the previous month, bringing the total year-over-year price dip in April to 18.4%.
  • Southeast and Northwest Valley regions each fell another 4% from the 12-month drops they had seen in March, bringing their April price decreases to 17.8% and 23%, respectively.  The only positive surprise was in Sun City and Sun City West communities, where home prices were down just 14.2% from April 2007, a slight recovery after six months of being among the hardest-hit areas.