Greater Phoenix resale numbers continue foreclosure trend
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.
| 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