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TEMPE, Ariz. — The Phoenix-area housing market just saw its highest percentage of foreclosures in months. A new report from the W. P. Carey School of Business at Arizona State University shows foreclosures made up 43 percent of the existing-home market activity in July. That’s the highest percentage in the Valley since January.
“After three months in the 30-percent range, the Phoenix area is back in the 40-percent range,” explains Associate Professor of Real Estate Jay Butler, who authored the new report. “This is the second month in a row with a percentage increase in foreclosures. Before that, we were seeing declines.”
The good news is that, even though the percentage was high in July, the actual number of foreclosures is not as dismal. The Phoenix-area market had almost 3,900 single-family home foreclosures in July. That’s about the same number as June, and actually a little less than last July’s 4,200 foreclosures.
Market activity overall is slowing down, which is normal for this time of year. Late summer is considered the end of the selling season. About 5,100 homes were resold in July, way down from almost 6,900 resales in June and 7,300 resales last July.
Butler says, “If you’re not selling an inexpensive entry-level home, it can be tough to sell in this market. People who normally might be looking for a ‘move-up home’ may be satisfied to stay in their current house, given the economy.”
The median price of homes resold in July was $137,500, down from $143,000 in June. However, prices are still up from last July, when the median price was $135,500.
The townhouse/condominium market had about 600 foreclosures in July, roughly the same number as in June. However, the median price dropped dramatically from $94,600 in June to $84,500 in July. This is a steep downward trend, since the median last July was $106,500.
Butler’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at http://wpcarey.asu.edu/realestate/Phoenix-Resale-Market-Reports.cfm. More analysis is also available from Knowledge@W. P. Carey, the business school’s online resource and biweekly newsletter, at http://knowledge.wpcarey.asu.edu.
W. P. CAREY SCHOOL OF BUSINESS
The W. P. Carey School of Business at Arizona State University is one of the top-ranked and largest business schools in the United States. The school is internationally regarded for its research productivity and its distinguished faculty members, including a Nobel Prize winner. Students come from 75 countries and include more than 60 National Merit Scholars. For more information, please visit wpcarey.asu.edu and http://knowledge.wpcarey.asu.edu.