February 12, 2009

Greater Phoenix resale numbers show foreclosures not slowing

Posted: February 12, 2009

The year began with 6,960 recorded home resales, while December 2008 had 7,425 recorded home resales. Foreclosure activity in January 2009 represented 48 percent (3,370) of the transactions, while there were 3,590 traditional market transactions. Foreclosure transactions represent home owners losing their property to successful individual bidders or the lender of record. For January 2008, there were 4,205 recorded sales, with 1,800 sales in foreclosure or 43 percent on the month’s recordings.

For January 2009, foreclosure activity differed throughout the Valley such as 51 percent in Surprise, 38 percent in Tempe and 35 percent in Scottsdale. Even in response to hiatus and mortgage modification programs, foreclosure activity did not slow.

Due to the time it takes to record transactions, some slowing might still be evident in the next few months. However, with the extremely weak economy the ability to maintain ownership or to purchase a home will continue to be severely tested, which will further delay any potential recovery, according to Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus.

“The local housing market will continue to be vexed well into the next year by eroding consumer confidence, brought on by a weak economy, possible job losses and tighter mortgage underwriting guidelines,” said Butler.

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 in January was $136,000 ($243,000 for January 2008), while the foreclosed properties had a median price of $135,000 ($208,250 for January 2008).

“Investment interest is being driven by the anticipation that home prices will rise again in the next few years,” said Butler. “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.”

While lower prices can greatly improve affordability, they can adversely impact many owners and potential sellers whom 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.

Since the greater Phoenix area is so large, the median price can range significantly. For January 2009 in North Scottsdale, the median price for a foreclosed property was $443,470 ($429,750 in December), while the traditional market was $489,000 ($518,850 in December). In South Scottsdale the splits were respectively $195,350 ($175,950 in December) and $221,450 ($215,000 in December).

In Maryvale, traditional transactions were $41,000 ($50,000 in December) and foreclosures were $81,730 ($108,180 in December), while in Union Hills it was $220,000 ($227,000 in December) and $186,780 ($218,300 in December), respectively. For January 2009, Paradise Valley had a median square footage of 4,600 and a median price of $1,587,500.

Within the 615 total recorded sales for January 2009, the townhouse/condominium market had 285 foreclosed properties. For a year ago, there were 700 total transactions, with 140 foreclosing. In January 2009, the median price for foreclosed properties was $104,745, while the traditional market stood at $125,000. Last year, the respective splits were $156,200 and $176,000

The median square footage for a single-family home recorded sold as foreclosed in January was 1,605 and 1,700 square feet for a market transaction home. For a year ago, the foreclosed market was at 1,815 square feet and the traditional market stood at 1,800 square feet. In the townhouse/condominium sector, the median square footage for a foreclosed unit was 1,090 (1,090 square feet for year ago), while the traditional market units was 1,205 square feet (1,115 square feet for a year ago).

January 2008-- SINGLE-FAMILY RESALE HOMES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix 1,130 $193,870 610 $210,000 520 $180,730
Scottsdale 270 550,000 215 577,500 55 498,000
Chandler 255 255,550 170 280,000 85 222,130
Gilbert 270 283,325 155 284,550 115 281,280
Mesa 435 207,830 260 214,000 175 198,000
Tempe 70 243,000 55 255,000 15 224,500
Avondale 130 204,615 45 192,500 85 202,020
El Mirage 60 164,255 25 160,000 35 170,000
Glendale 270 206,000 145 213,000 125 193,265
Goodyear 110 237,000 55 260,000 55 218,550
Peoria 165 255,000 80 254,000 85 258,135
Sun City 60 161,000 45 162,000 15 147,700
Sun City West 40 249,500 40 249,500    
Surprise 265 210,000 140 213,875 125 205,890
             
County 4,205 $225,000 2,405 $243,000 1,800 $208,250

 

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

 

January 2009 -- SINGLE-FAMILY RESALE HOMES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix
2,425 $ 90,675 1,190 $ 74,500 1,235 $104,460
Scottsdale
255 380,000 165 387,000 90 376,000
Chandler
305 204,000 165 230,000 140 192,590
Gilbert
360 197,250 195 200,000 165 189,900
Mesa
645 138,000 335 140,000 310 134,900
Tempe
80 205,000 50 219,500 30 175,800
Avondale
255 115,000 120 114,900 135 115,570
El Mirage
155 85,000 85 76,125 70 94,000
Glendale
505 130,000 250 125,000 255 134,000
Goodyear
195 150,000 115 145,000 80 156,375
Peoria
310 171,310 145 171,950 165 171,310
Sun City
60 140,340 40 132,500 20 150,225
Sun City West
40 219,000 40 219,000    
Surprise
410 144,000 200 142,900 210 144,000
             
County 6,960 $135,335 3,590 $136,000 3,370 $135,005

 

January 2008 -- TOWNHOUSE-CONDOMINUM RESALES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix 265 $160,240 195 $166,495 70 $152,115
Scottsdale 165 266,450 135 250,975 30 312,775
Chandler 20 130,000 15 130,000 5 115,200
Gilbert 10 177,500 10 174,750    
Mesa 75 143,885 60 153,260 15 115,110
Tempe 35 160,000 30 167,000 5 150,420
Avondale            
El Mirage            
Glendale 20 129,950 15 130,000 5 109,080
Goodyear            
Peoria 15 145,000 10 206,250 5 125,800
Sun City 35 122,000 35 124,000    
Sun City West 5 167,500 5 167,500    
Surprise 10 123,250 10 123,250    
             
County 700 $171,405 560 $176,000 140 $156,200

 

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 15 130,550 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

 

January 2009 -- TOWNHOUSE-CONDOMINUM RESALES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Phoenix
235 $106,000 105 $116,000 130 $ 97,650
Scottsdale
105 195,000 75 210,000 30 169,375
Chandler
30 88,850 15 79,900 15 116,785
Gilbert
10 127,850 5 192,000 5 99,835
Mesa
75 83,600 35 79,000 40 87,320
Tempe
20 157,000 15 129,250 5 187,610
Avondale
           
El Mirage
           
Glendale
30 72,000 10 60,000 20 91,000
Goodyear
           
Peoria
15 144,585 10 129,750 5 148,750
Sun City
30 98,500 25 98,500 5 94,705
Sun City West
10 142,000 10 142,000    
Surprise
           
             
County 615 $115,000 335 $125,000 280 $104,745

 


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