January 14, 2009

Greater Phoenix 2008 resale numbers finish year up compared to 2007

Posted: January 14, 2009

In December 2008, there were 7,425 recorded home resales, with foreclosure activity representing 42 percent (3,110 transactions), and traditional market transactions at 4,315. Foreclosure transactions represent home owners losing their property to successful individual bidders or the lender of record.

December activity brought 2008 to 81,700 transactions, with foreclosure activity representing 43 percent of the transactions (34,955 sales). For 2007, there were 54,570 recorded sales, but foreclosure activity was only 16 percent (8,535 sales) of the market.

For 2008, foreclosure activity differed throughout the Valley such as 43 percent in Surprise, 22 percent in Tempe and 40 percent in Mesa.

“In the much hoped for response to various mortgage modification programs offered by lenders and government agencies to assist troubled homeowners, recorded foreclosure activity could slow over the next few months,” said Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus. “The fundamental issue is that most of the programs are based on the homeowners having the required income to support the modified mortgage.

“Unfortunately, the extremely weak economy is leading to mounting job losses that could severely affect the ability of a troubled household to have the needed income to qualify for one of the possible programs,” he said.

While many will be helped, other households will confront not only job loss but the loss of their home. Thus, the desire and ability to maintain ownership or to purchase a home is being severely tested, which will further delay any potential recovery. The local housing market will continue to be vexed well into 2010 by eroding consumer confidence, possibly additional job losses and tighter mortgage underwriting guidelines.

While lower prices can greatly improve affordability, they can adversely affect many owners and potential sellers who are watching their limited equity erode, as prices decline to and even below existing debt level. Rapidly declining value can be another issue in some of the mortgage modification programs which require a limited decline in value from the purchase and financing of the home.

For the traditional market, the median price in December was $146,000 ($200,500 for 2008), while the foreclosed properties had a median price of $148,340 ($169,915 for 2008). In December 2007, the traditional market median prices were $240,000 ($260,000 for the year), with foreclosures at $205,260 ($218,080 for 2007).

The declining prices have piqued interest for potential investors and owner-occupants, especially in the lower income ranges. Investment interest is being driven by the anticipation that home prices will rise again in the next few years. Slightly over 30 percent of the foreclosed homes were sold again, with a median price markdown of 13 percent. The markdown varied throughout the Valley ranging from 40 percent in Maryvale to 28 percent in Gilbert to 7 percent in Tempe.

Since the Greater Phoenix area is so large, the median price can range significantly. For December 2008 in North Scottsdale, the median price for a foreclosed property was $429,750 ($371,300 in November), while the traditional market was $518,850 ($500,000 in November). In South Scottsdale the splits were respectively $175,950 ($240,910 in November) and $215,000 ($229,000 in November).

In Maryvale, traditional transactions were $50,000 ($57,000 in November) and foreclosures were $108,180 ($112,020 in November), while in Union Hills it was $227,000 ($242,000 in November) and $218,300 ($204,090 in November), respectively.

For December 2008 in Paradise Valley, traditional transactions had a median price of $1,237,500, with a median square footage of 4,010 square feet.

Within the 725 total recorded sales for December 2008, the townhouse/condominium market had 280 foreclosed properties. This brought 2008 to an end with a total of 9,420 sales, including 2,815 foreclosed sales. For 2007, the split was 12,125 for traditional sales and 620 for foreclosed sales. In December 2008, the median price for foreclosed properties was $119,550, while the traditional market stood at $137,250. Last year, the splits were $150,150 and $170,000, respectively.

The median square footage for a single-family home recorded sold as foreclosed in December was 1,670, and it was 1,700 square feet for a market transaction home. For a year ago, both the traditional and the foreclosed markets were at 1,760 square feet. In the townhouse/condominium sector, the median square footage for a foreclosed unit was 1,115 square feet (1,080 square feet for year ago), while the traditional market unit was 1,190 square feet (1,090 square feet for a year ago).

 

December 2007 -- SINGLE-FAMILY RESALE HOMES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix 1,005 $195,120 620 $210,000 385 $177,000
Scottsdale 265 515,000 215 537,500 50 407,705
Chandler 270 255,000 200 259,000 70 245,420
Gilbert 285 265,000 200 255,000 85 279,525
Mesa 435 209,450 290 214,670 145 195,500
Tempe 80 258,705 70 275,000 10 206,810
Avondale 115 202,500 50 201,500 65 202,500
El Mirage 60 163,740 20 153,500 40 176,150
Glendale 260 207,425 160 213,620 100 196,120
Goodyear 85 234,405 50 268,000 35 213,380
Peoria 155 234,600 100 235,500 55 230,100
Sun City 50 167,000 45 165,000 5 250,225
Sun City West 50 215,000 50 215,000    
Surprise 240 218,705 140 225,750 100 210,715

           
County 3,900 $228,055 2,555 $240,000 1,345 $205,260

 

November 2008 -- SINGLE-FAMILY RESALE HOMES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix 2,065 $120,000 950 $105,000 1,115 $127,500
Scottsdale 275 375865 200 402025 75 311240
Chandler 340 221000 200 225000 140 210960
Gilbert 335 215000 195 215000 140 213850
Mesa 640 151000 350 149000 290 154720
Tempe 85 208780 65 220000 20 192925
Avondale 255 136325 125 132000 130 143950
El Mirage 135 100000 65 94000 70 107030
Glendale 470 140000 225 138000 245 148665
Goodyear 185 165000 85 156000 100 171950
Peoria 300 194000 160 197500 140 184620
Sun City 50 149750 40 149500 10 170000
Sun City West 35 210000 35 210000    
Surprise 380 162240 195 160000 185 165735
           
County 6,465 $159,900 3,370 $162,000 3,095 $155,100

 

December 2008 -- SINGLE-FAMILY RESALE HOMES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix
2,480 $108,255 1,360 $90,000 1,120 $128,480
Scottsdale
310 403,000 230 415,000 80 350,240
Chandler
355 207,000 210 223,000 145 186,000
Gilbert
380 200,000 240 203,500 140 197,870
Mesa
755 145,000 445 148,000 310 143,335
Tempe
115 215,000 80 220,900 35 182,360
Avondale
285 127,500 150 120,250 135 136,975
El Mirage
170 99,450 90 84,500 80 112,360
Glendale
505 137,685 275 135,000 230 138,750
Goodyear
180 154,590 100 146,500 80 166,775
Peoria
310 176,300 175 166,000 135 186,325
Sun City
70 132,950 55 130,950 15 141,075
Sun City West
45 186,250 45 187,500    
Surprise
420 150,000 235 152,500 185 146,155

           
County 7,425 $147,100 4,315 $146,000 3,110 $148,340

 

2007 -- SINGLE-FAMILY RESALE HOMES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix
14,800 $220,000 12,405 $225,000 2,395 186,900
Scottsdale
4,225 572,000 3,910 587,000 315 455,000
Chandler
3,835 289,000 3,425 292,350 410 259,165
Gilbert
3,690 294,000 3,150 296,000 540 278,995
Mesa
5,895 232,900 5,120 237,000 775 201,755
Tempe
1,390 275,000 1,310 277,500 80 227,190
Avondale
1,210 225,000 840 230,000 370 215,845
El Mirage
700 190,200 460 195,000 240 180,525
Glendale
3,825 235,000 3,155 240,000 670 211,585
Goodyear
1,055 252,000 795 263,500 260 223,180
Peoria
2,590 257,000 2,185 259,900 405 244,860
Sun City
1,070 190,000 1,030 190,000 40 171,560
Sun City West
650 245,000 635 255,000 15 200,000
Surprise
2,715 235,215 2,055 240,000 660 224,850

           
County 54,570 $255,000 46,035 $260,000 8,535 $218,080

 

2008 -- SINGLE-FAMILY RESALE HOMES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix
23,725 $150,000 11,560 $160,000 12,165 $144,000
Scottsdale
4,150 460,750 3,240 476,250 910 396,605
Chandler
4,565 234,000 3,135 243,000 1,430 209,435
Gilbert
4,955 235,000 3,185 239,900 1,770 229,575
Mesa
8,080 175,000 4,840 185,000 3,240 164,815
Tempe
1,300 230,290 1,015 240,000 285 196,130
Avondale
2,995 158,895 1,390 154,000 1,605 164,245
El Mirage
1,625 124,900 725 120,000 900 129,500
Glendale
5,660 172,500 2,995 181,250 2,665 164,430
Goodyear
2,270 186,635 1,245 187,100 1,025 185,525
Peoria
3,635 210,000 2,100 215,000 1,535 200,000
Sun City
975 157,750 815 156,000 160 169,000
Sun City West
655 225,000 620 230,000 35 209,200
Surprise
4,935 179,595 2,795 180,000 2,140 177,400

           
County 81,700 $186,000 46,745 $200,500 34,955 $169,915

 

December 2007 -- TOWNHOUSE-CONDOMINUM RESALES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix 245 $151,215 200 $152,000 45 $149,450
Scottsdale 160 234,000 145 239,500 15 207,980
Chandler 20 144,750 15 146,600 5 130,945
Gilbert 5 193,000 5 193,000    
Mesa 60 135,000 60 135,000    
Tempe 35 179,450 30 180,000 5 147,200
Avondale            
El Mirage            
Glendale 25 124,000 20 132,500 5 100,500
Goodyear            
Peoria 10 126,750 5 126,750 5 129,455
Sun City 45 122,750 45 122,750    
Sun City West 5 180,000 5 180,000    
Surprise 10 136,000 10 136,000    

           
County 675 $166,620 585 $170,000 90 $150,150

 

November 2008 -- TOWNHOUSE-CONDOMINUM RESALES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix 190 $112,625 90 $110,000 100 $115,000
Scottsdale 115 186950 75 200450 40 155770
Chandler 30 123000 15 123450 15 111930
Gilbert 10 137075 5 144750 5 137075
Mesa 75 108345 35 117500 40 106250
Tempe 20 164805 10 170000 10 161040
Avondale            
El Mirage            
Glendale 35 77000 10 77000 25 79135
Goodyear            
Peoria 20 138000 15 145175 5 112600
Sun City 25 107000 25 107000    
Sun City West 5 106900 5 106900    
Surprise            
           
County 570 $125,785 305 $136,900 265 $115,835

 

December 2008 -- TOWNHOUSE-CONDOMINUM RESALES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix
245 $120,000 130 $128,000 115 $110,000
Scottsdale
150 200,000 105 220,000 45 170,000
Chandler
35 114,750 20 126,190 15 114,750
Gilbert
15 130,500 10 129,225 5 161,875
Mesa
85 105,000 55 105,000 30 105,000
Tempe
40 162,450 30 162,450 10 158,790
Avondale
           
El Mirage
           
Glendale
35 70,250 10 49,900 25 80,000
Goodyear
           
Peoria
15 102,000 10 132,500 5 94,500
Sun City
35 95,000 35 95,000    
Sun City West
10 136,150 10 136,510    
Surprise
           

           
County 725 $129,690 440 $137,250 285 $119,550

 

2007 -- TOWNHOUSE-CONDOMINUM RESALES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix
4,695 $162,900 4,410 $164,870 285 $133,535
Scottsdale
2,870 243,950 2,730 244,950 140 216,595
Chandler
425 167,950 410 168,000 15 145,235
Gilbert
165 184,000 160 185,000 5 165,750
Mesa
1210 150,000 1,150 151,000 60 121,500
Tempe
720 182,500 705 182,900 15 167,000
Avondale
           
El Mirage
           
Glendale
625 139,000 590 139,160 35 117,280
Goodyear
15 166,245 15 166,245    
Peoria
275 168,000 265 169,000 10 149,715
Sun City
585 129,000 575 129,000 10 141,235
Sun City West
190 160,000 190 160,000    
Surprise
110 118,000 110 118,000    

           
County 12745 $176,000 12,125 $177,700 620 $152,690

 

2008 -- TOWNHOUSE-CONDOMINUM RESALES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix
3,230 $135,900 1,995 $147,450 1,235 $119,790
Scottsdale
2,090 226,950 1,635 230,725 455 196,980
Chandler
365 137,850 235 142,900 130 127,500
Gilbert
140 164,305 85 165,000 55 147,200
Mesa
1,105 125,000 775 132,000 330 104,690
Tempe
490 159,515 395 160,000 95 144,925
Avondale
           
El Mirage
           
Glendale
370 104,155 170 111,950 200 97,275
Goodyear
           
Peoria
195 140,000 140 150,350 55 124,775
Sun City
485 113,000 445 115,000 40 95,565
Sun City West
160 131,000 155 132,600 5 110,400
Surprise
65 117,250 65 117,250    

           
County 9,420 $150,000 6,605 $160,000 2,815 $126,925

 

 


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