October 14, 2008

Greater Phoenix resale numbers continue foreclosure trend

Posted: October 14, 2008

In September, there were a total of 8,280 resale homes recorded sold. Foreclosure activity represented 44 percent (3,655 transactions), while there were 4,625 traditional market transactions. Foreclosed transactions represent home owners losing their property to successful individual bidders or the lender of record.

In August 2008, the spilt was 3,295 foreclosed homes and 4,210 traditional transactions, while September 2007 was 795 and 3,490 recorded sales, respectively. Historically, the remaining months of the year tend to post slowing recorded activity.  The 2008 year-to-date total is 34,590 traditional sales and 25,010 foreclosures.

Foreclosure activity differs throughout the Valley such as 45 percent in Surprise, 27 percent in Tempe, and 35 percent in Gilbert. The declining prices have piqued interest for potential investors and owner-occupants, especially in the lower income ranges.

For the traditional market, the median price was $180,000, while the foreclosed properties had a median price of $153,000. For a year ago, the median prices were $254,000 and $215,950, 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 driven by several forces including the large number of vacant homes, especially in certain neighborhoods.

Since the Greater Phoenix area is so large, the median price can range significantly. In North Scottsdale, the median price for a foreclosed property was $493,000, while the traditional market was $560,000. In South Scottsdale the splits were respectively $225,000 and $235,000. In Maryvale, traditional transactions were $95,000 and foreclosures were $102,935, while in Union Hills it was $243,625 and $215,860, respectively.

The lower prices can greatly improve affordability, however, 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.

 “The events of the last few weeks have continued to erode consumer confidence and constrict the financial system,” said Jay Butler, director of Realty Studies in ASU’s Morrison School of Management and Agribusiness at the Polytechnic campus. “In addition, potential buyers still confront a weak economy, possible job loss and tighter underwriting guidelines. Thus, the desire and ability to purchase a home is being severely tested, which is further delaying any potential recovery.”

Within the 800 total recorded sales, the townhouse/condominium market had 295 foreclosed properties.  A year ago the split was 690 for traditional sales and 60 for foreclosed sales. In September 2008, the median price for foreclosed properties was $117,455, while the traditional market stood at $145,000. Last year, the respective splits were $165,000 and $170,000.

The median square footage for a single-family home recorded sold as foreclosed was 1,610 square feet and 1,755 square feet for a market transaction home. For September 2008, Paradise Valley had  a median square footage of 3,915 and a median price of $1,326,000.  For a year ago, the foreclosed market was at 1,730 square feet and the traditional market stood at 1,745 square feet. In the townhouse/condominium sector, the median square footage for a foreclosed unit was 1,090  square feet (1,145 square feet for a year ago), while a traditional market unit was 1,155 square feet (1,035 square feet for a year ago).

September 2007 -- SINGLE-FAMILY RESALE HOMES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix 990 $208,000 745 $216,190 245 $184,600
Scottsdale 255 530,000 230 535,000 25 443,975
Chandler 230 284,625 190 291,100 40 255,750
Gilbert 250 280,000 200 279,500 50 285,460
Mesa 390 225,000 325 230,000 65 200,760
Tempe 95 265,000 85 269,500 10 221,040
Avondale 90 219,500 60 220,000 30 215,585
El Mirage 50 182,000 25 181,000 25 182,700
Glendale 250 230,000 175 240,000 75 213,740
Goodyear 85 252,000 60 258,250 25 237,915
Peoria 120 250,000 100 251,025 20 217,615
Sun City 65 172,500 60 176,720 5 160,240
Sun City West 45 220,000 45 220,000    
Surprise 160 236,025 105 235,900 55 236,145
             
County 3,490 $244,700 2,695 $254,000 795 $215,950

 

August 2008 -- SINGLE-FAMILY RESALE HOMES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix 2,260 $145,000 1,075 $156,000 1,185 $135,490
Scottsdale 345 442,000 270 447,500 75 407,925
Chandler 415 230,000 295 240,000 120 204,020
Gilbert 470 228,000 295 232,900 175 213,635
Mesa 680 169,860 400 183,000 280 155,000
Tempe 110 212,500 85 230,000 25 172,975
Avondale 275 158,300 120 157,000 155 159,815
El Mirage 170 116,000 80 119,000 90 114,495
Glendale 520 170,000 270 182,000 250 153,225
Goodyear 215 181,735 125 179,500 90 187,705
Peoria 350 205,000 215 210,000 135 197,460
Sun City 65 157,000 50 145,000 15 188,490
Sun City West 35 184,635 30 194,000 5 174,030
Surprise 455 170,000 255 165,000 200 177,585
             
County 7,505 $178,000 4,210 $193,550 3,295 $161,875

 

September 2008 -- SINGLE-FAMILY RESALE HOMES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix
2,570 $136,000 1,215 $145,000 1,355 $128,950
Scottsdale
345 396,250 255 400,000 90 350,000
Chandler
435 220,000 310 228,465 125 204,600
Gilbert
485 229,965 315 230,000 170 229,500
Mesa
820 163,000 485 170,000 335 149,350
Tempe
110 214,655 80 220,000 30 197,550
Avondale
385 143,470 185 141,250 200 145,250
El Mirage
175 114,750 85 115,000 90 113,875
Glendale
620 158,000 335 167,900 285 149,110
Goodyear
225 155,000 125 161,500 100 152,500
Peoria
375 202,575 210 211,000 165 192,295
Sun City
90 156,750 65 150,000 25 185,500
Sun City West
35 198,480 30 200,000 5 184,065
Surprise
460 165,900 255 166,330 205 165,000
             
County 8,280 $169,000 4,625 $180,000 3,655 $153,000

 

September 2007 -- TOWNHOUSE-CONDOMINUM RESALES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix 300 $150,000 265 $150,000 35 $140,735
Scottsdale 170 245,250 160 245,000 5 295,000
Chandler 25 162,250 25 162,250

 

 

Gilbert 10 189,000 10 189,000    
Mesa 65 149,900 60 149,900 5 130,585
Tempe 30 175,000 30 175,000    
Avondale            
El Mirage            
Glendale 45 139,800 40 139,400 5 140,250
Goodyear            
Peoria 15 161,950 15 161,950    
Sun City 25 122,725 25 122,725    
Sun City West 15 150,000 15 150,000    
Surprise            
             
County 750 $169,995 690 $170,000 60 $165,000

 

August 2008 -- TOWNHOUSE-CONDOMINUM RESALES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix 280 $129,840 160 $150,000 120 $108,500
Scottsdale 180 217,000 140 210,000 40 229,355
Chandler 35 145,700 25 145,700 10 148,515
Gilbert 15 162,750 5 209,750 10 135,000
Mesa 110 115,370 75 120,000 35 113,350
Tempe 55 160,000 45 160,000 10 134,065
Avondale
El Mirage
Glendale 35 101,950 20 106,950 15 90,495
Goodyear
Peoria 10 175,000 10 175,000
Sun City 35 108,000 30 115,000 5 91,915
Sun City West 10 122,320 10 122,320
Surprise
             
County 815 $146,820 550 $157,000 265 $125,330

 

September 2008 -- TOWNHOUSE-CONDOMINUM RESALES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix
305 $134,130 175 $149,000 130 $111,490
Scottsdale
145 210,000 90 216,000 55 203,320
Chandler
25 125,500 15 126,000 10 110,570
Gilbert
15 147,200 10 159,850 5 124,775
Mesa
110 105,835 70 125,000 40 99,875
Tempe
40 145,000 25 157,000 15 133,200
Avondale
           
El Mirage
           
Glendale
35 94,040 15 91,250 20 94,040
Goodyear
           
Peoria
20 137,640 15 130,000 5 141,515
Sun City
35 97,680 30 100,000 5 95,360
Sun City West
10 132,500 10 140,000    
Surprise
           
             
County 800 $139,200 500 $145,000 300 $117,455

 


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. Realty Studies is a comprehensive and objective source of real estate information for private, public and governmental agencies. Its director, Dr. Jay Q. Butler, may be reached at (480) 727-1300 or e-mail him at Jay.Butler@asu.edu. To subscribe to RSS feed for Realty Studies news, visit http://www.poly.asu.edu/realty/rss.html.

Jay Butler, Jay.Butler@asu.edu
(480) 727-1300

Chris Lambrakis, lambrakis@asu.edu
(480) 727-1173
Public Affairs at ASU Polytechnic campus