Sales of existing homes around the Phoenix area are up from last year, but a large number of those sales continue to be foreclosed properties.
According to ASU’s Realty Studies department, the region recorded more than 6,100 home resales in October. That’s roughly the same as September, but up sharply from about 4,500 in October of 2008.
Despite the strong annual growth in home sales, a big portion of the transactions this October were sales of previously foreclosed properties – a whopping 45 percent.
According to ASU, more than 3,800 homes were foreclosed on during October. That’s up from the September foreclosure total of more than 2,900.
“Typically, a housing recovery happens in a growing economy and with declining interest rates,” says associate professor of real estate Jay Butler, author of the new housing report. “However, the current recovery is limited with the possibility of higher rates and a continuing weak job market. Further, the housing tax credit could be dissipating the pent-up demand for new buyers to get into the market, weakening their influence in the future.”
Butler added that all of these foreclosures will eliminate some households from being able to obtain financing to buy a “move-up” home. Others may be “seriously limited by declining neighborhood values (on their current homes) and restrictive debt amounts.”
The median single-family home price in the Valley in October was $143,000, up from September’s median price of $140,000, but still far below last October’s median of $167,000.
“For the last year, approximately half of the home resales in the Phoenix area were foreclosed homes that were sold again with a median price markdown of 19 percent,” Butler said.
Courtesy of the Phoenix Business Journal
Thursday, November 12, 2009, 11:58am MST
According to ASU’s Realty Studies department, the region recorded more than 6,100 home resales in October. That’s roughly the same as September, but up sharply from about 4,500 in October of 2008.
Despite the strong annual growth in home sales, a big portion of the transactions this October were sales of previously foreclosed properties – a whopping 45 percent.
According to ASU, more than 3,800 homes were foreclosed on during October. That’s up from the September foreclosure total of more than 2,900.
“Typically, a housing recovery happens in a growing economy and with declining interest rates,” says associate professor of real estate Jay Butler, author of the new housing report. “However, the current recovery is limited with the possibility of higher rates and a continuing weak job market. Further, the housing tax credit could be dissipating the pent-up demand for new buyers to get into the market, weakening their influence in the future.”
Butler added that all of these foreclosures will eliminate some households from being able to obtain financing to buy a “move-up” home. Others may be “seriously limited by declining neighborhood values (on their current homes) and restrictive debt amounts.”
The median single-family home price in the Valley in October was $143,000, up from September’s median price of $140,000, but still far below last October’s median of $167,000.
“For the last year, approximately half of the home resales in the Phoenix area were foreclosed homes that were sold again with a median price markdown of 19 percent,” Butler said.
Courtesy of the Phoenix Business Journal
Thursday, November 12, 2009, 11:58am MST
No comments:
Post a Comment