Realty Values in Phoenix Rise Even With Considerable Foreclosures

Current Phoenix home values continue to gradually appreciate quarterly, even with the soaring volume of foreclosures in Phoenix. A recent investigation from the W. P. Carey School of Business at Arizona State University sheds light on minor recovery for the past 5 months.

The Arizona State University-Repeat Sales Index measures variances in normal Phoenix-area housing values from year to year. The latest report affirms local house values pulled back by 25% between the months of August 2008 and August 2009. Though, that's a less significant drop than the 28 percent drop from July 2008 to 2009 and the 31 percent drop from June 2008 to June 2009.

"Since the most rapid declines back in February and March, the index has been declining at a slower rate each month," states ASU Professor Karl Gunterman, who put together the summary. "The local housing market is regaining some measure of stability."

Notwithstanding, Guntermann urges that prospective investors seeking foreclosed realty and first-time home buyers taking advantage of the federal tax credit are driving prices skyward. The Professor states the fat number of foreclosures that will most likely bang the real estate market in 2010 makes it formidable to speculate with any accuracy the direction of home closing prices with any sureness.

Opening index calculations suggest prolonged optimism at the moment, with a lessening 23-percent drop from September 2008 to September 2009 and a 20-percent decline from October to October. Homes at the lower end of the pricing scale are hurting more than those at the upper end.

The median cost for realty in Phoenix in August was $126,500. That's up from $125,000 in July and way up over the market low of $117,500 back in April.

The general index has now declined for a record thirty months concurrently. Annual depreciation rates vary widely in different areas of the Valley, but that range is starting to get smaller. Closing prices have fallen by greater than fifty percent in outlying areas ever since the highest in 2006. All other Valley cities, including Scottsdale and Paradise Valley, have suffered price drops greater than 30%.

Reverse to the single-family home market, Guntermann expects there is additional trouble into the future across the townhouse/condominium arena. The median value for those units in August was $99,000. The early estimate for October is only $90,000.

"After several months of relative stability in townhouse/condo median prices, the October decline is not a good sign," states the Professor.

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