Greater Phoenix resale numbers show foreclosed, traditional sales nearly split for June

In June 2008, a total of 7,845 resale homes recorded sold in Maricopa County.

This sales activity includes 3,275 recorded foreclosed home transactions and 4,565 traditional market transactions. Foreclosed transactions represent home owners losing their property to successful individual bidders or the lender of record.

In May 2008, the split was 2,895 foreclosed homes and 4,315 traditional transactions, while June 2007 was 575 and 4,570 recorded sales, respectively. Historically, June is a strong month and the 4,565 traditional recorded sales represent the best month of 2008. The 2008 year-to-date total is 21,060 traditional sales and 14,590 foreclosures.

The declining prices have fueled renewed investor interest and potential owner-occupants, especially in the lower income ranges. For the traditional market the median price was $218,000, while the foreclosed properties had a median price of $169,890.

For a year ago, the median prices were $265,000 and $225,900, respectively. Investment interest is being driven by the anticipation that home prices will rise again in the next few years. The lower median price is being impacted by several forces including the large number of vacant homes, especially in certain neighborhoods. Further, capital is available for lower-priced housing, but lacking in the higher priced housing market.

Because the greater Phoenix area is so large, the median price can range significantly. In North Scottsdale, the median price for a foreclosed property was $502,275, while the traditional market was $570,200. In South Scottsdale the splits were $219,360 and $252,000, respectively. In Maryvale, the median price for traditional transactions were $111,000 and foreclosures were $125,990, while in Union Hills it was $263,150 and $205,460.

While lower prices can greatly improve affordability, they can adversely impact many owners and potential sellers that are watching their limited equity erode, as prices decline to and even below existing debt level. Thus, lower prices affect the ability and desire to continue owning the home and even overall confidence in the economy, which puts additional strain on the local housing market.

For the last year, the housing market has been confronting issues derived from the hyper-market of previous years such as the subprime meltdown and overly ambitious investors. Unfortunately, there is increasing data, such as job losses and layoffs, that the economy is now weakening and will add further stress for the housing markets.

Though there has been little attempt to help investors, many programs have been started to help people save their homeownership.

Most of the attempts have dealt with adjustable interest rate mortgage being reset to higher interest rates. The basic premise is that the home occupant has the income but not enough to satisfy the new mortgage payment. In a weak economy, many households now will not have the needed income to save their homes, even with a new mortgage payment plan.

Further, with increased energy and food costs, there is even additional strain on the household budget. Thus, the potential economic downturn and inflationary pressures will define how much further the housing market will worsen and when recovery will begin.

Within the 855 total recorded sales, the townhouse-condominium market had 230 foreclosed properties. A year ago the split was 1,215 for traditional sales and 40 for foreclosed sales. In June 2008, the median price for foreclosed properties was $133,215, while the traditional market stood at $164,950. For May 2008, the splits were $135,600 and $169,900, respectively.

The median square footage for a single-family home recorded sold as foreclosed was 1,665 and 1,865 square feet for a market transaction home. In Paradise Valley, the median square footage was 3,210 square feet at a median price of $2,167,000. For a year ago, the foreclosed market was at 1,790 square feet and the traditional market stood at 1,725 square feet. In the townhouse/condominium sector, the median square footage for a foreclosed unit was 1,075 square feet (1,050 square feet for year ago), while the traditional market unit was 1,120 square feet (1,060 square feet for a year ago).

Below are the median prices recorded of single-family resale homes and condominium/townhomes for the selected cities in Maricopa County for June 2007, May 2008 and June 2008.

June 2007 SINGLE-FAMILY RESALE HOMES June 2007 CONDOMINIUM/TOWNHOUSE RESALES
Total Median Traditional Median Foreclosed Median Total Median Traditional Median Foreclosed Median
Price Sales Price Sales Price Price Sales Price Sales Price
Selected Cities

Phoenix 1,375 $225,000 1,230 $230,000 145 $191,475 465 $166,900 450 $168,100 15 $136,900
Scottsdale 425 605,000 405 623,500 20 320,335 270 235,000 260 238,000 10 198,000
Chandler 390 287,250 350 289,500 40 269,270 35 175,950 35 175,950
Gilbert 360 293,000 325 295,000 35 247,050 20 185,000 20 187,450
Mesa 545 235,000 490 236,500 55 200,295 105 150,000 100 150,000 5 167,400
Tempe 135 289,000 130 289,500 5 287,100 85 179,500 85 179,500
Avondale 100 236,500 75 245,000 25 221,600
El Mirage 60 194,900 45 194,950 15 193,950
Glendale 345 243,000 310 243,480 35 230,125 65 144,000 60 144,500 5 115,225
Goodyear 90 284,500 75 299,000 15 257,625
Peoria 240 254,450 210 256,450 30 236,700 20 182,000 20 188,000
Sun City 115 184,500 110 185,000 5 170,000 45 128,000 45 128,000
Sun City West 45 217,500 45 217,500 10 175,500 10 175,500
Surprise 280 229,000 220 232,500 60 220,950

Maricopa County 5,145 260,000 4,570 265,000 575 225,900 1,215 179,900 1,175 180,000 40 158,700

May 2008 SINGLE-FAMILY RESALE HOMES May 2008 CONDOMINIUM/TOWNHOUSE RESALES
Total Median Traditional Median Foreclosed Median Total Median Traditional Median Foreclosed Median
Price Sales Price Sales Price Price Sales Price Sales Price
Selected Cities

Phoenix 1,930 $169,090 940 $196,000 990 $150,380 305 $154,665 215 $165,000 90 $135,500
Scottsdale 455 470,000 365 484,500 90 399,715 215 235,000 175 247,500 40 173,680
Chandler 425 245,000 315 255,000 110 211,525 30 145,800 20 144,750 10 145,800
Gilbert 455 236,000 305 242,500 150 225,000 20 180,000 10 180,000 10 182,665
Mesa 725 189,950 455 203,250 270 171,540 85 137,500 65 142,000 20 108,660
Tempe 150 257,000 130 262,000 20 196,640 50 158,275 45 163,275 5 130,500
Avondale 240 164,840 120 163,320 120 166,150
El Mirage 130 130,500 55 135,000 75 126,075
Glendale 490 182,790 270 196,000 220 170,000 35 111,200 10 113,500 25 107,995
Goodyear 205 196,000 115 215,000 90 180,200
Peoria 345 225,000 220 235,000 125 204,745 20 109,500 15 124,500 5 93,500
Sun City 95 161,500 85 160,000 10 203,130 50 115,000 50 115,000
Sun City West 85 $210,000 80 $200,000 5 $220,000 20 $137,500 20 $137,500
Surprise 440 186,155 250 193,875 190 181,240

Maricopa County 7,210 $201,000 4,315 $224,000 2,895 $174,930 900 $161,000 680 $169,900 220 $135,600

June 2008 SINGLE-FAMILY RESALE HOMES June 2008 CONDOMINIUM/TOWNHOUSE RESALES
Total Median Traditional Median Foreclosed Median Total Median Traditional Median Foreclosed Median
Price Sales Price Sales Price Price Sales Price Sales Price
Selected Cities

Phoenix 2,230 $158,100 1,070 $180,000 1,160 $144,890 310 $147,000 205 $154,990 105 $135,495
Scottsdale 440 501,135 355 525,000 85 360,000 200 221,950 170 228,900 30 184,020
Chandler 495 248,875 360 269,900 135 195,400 25 143,535 10 195,000 15 134,485
Gilbert 500 246,265 345 256,000 155 227,900 10 185,000 10 190,000
Mesa 745 179,065 450 189,900 295 160,625 95 125,000 70 130,000 25 101,915
Tempe 150 240,000 115 245,500 35 201,595 40 154,000 30 157,500 10 141,360
Avondale 285 161,000 130 158,445 155 165,970
El Mirage 145 133,100 60 132,000 85 136,255
Glendale 535 182,955 280 201,000 255 164,500 40 113,100 20 125,900 20 106,250
Goodyear 190 186,280 110 190,000 80 179,475
Peoria 350 218,440 205 222,250 145 217,500 15 154,960 10 167,450 5 134,260
Sun City 110 165,000 95 160,000 15 229,075 30 107,500 30 109,000
Sun City West 60 195,000 60 195,000 15 131,000 15 131,000
Surprise 505 175,000 285 175,000 220 175,000

Maricopa County 7,840 $194,761 4,565 $218,000 3,275 $169,890 855 $151,757 625 $164,950 230 $133,215

Realty studies is associated with the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus. Realty Studies collects and analyzes data concerning real estate in the greater Phoenix metropolitan area.

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