June 2010 -- RESALE HOME MARKET

The local housing market returned to its historical pattern of good sales activity that usually lasts until August. For June 2010, there were 10,720 recorded sales, which is an improvement over the 9,660 sales of May, but below last year’s 11,820 sales. Foreclosure activity rebounded from 33 percent (3,230 foreclosures) of recorded activity in May to 36 percent (3,835 foreclosures) in June. However, both the market share and absolute numbers are below March 2010 at 40 percent and 4,370 foreclosures.

Foreclosure activity, as percentage of the total resale market, varied throughout the Valley such as 37 percent in El Mirage, 22 percent in Scottsdale and 36 percent in Surprise. Another significant component of the market was the sale of previously foreclosed property, which accounted for approximately 40 percent of the traditional transactions (6,885 sales). Thus, foreclosure–related activity represented 60 percent of the recorded activity.

The recent improvement in home prices, not only provides evidence of potential short-term appreciation, it has further enhanced the interest of investors’ interest in the local housing market. The median price for the traditional market in June was $143,000, which is an improvement over the $144,000 of May 2010 and last year’s $134,000. The foreclosed properties had a median price of $155,625 in contrast to $148,655 for May and $154,000 for a year ago.

Housing prices are being influenced by foreclosure-related activity. The first influence is that expensive homes continued to be foreclosed, with 30 being over $1 million in June, including 5 above $2 million. Another influence is that, for the last year, approximately 40 percent of the traditional sales were foreclosed homes that were sold again with a median price markdown of 14 percent from the foreclosed price. Although the markdown has improved from 25 percent a year ago, it does vary throughout the Valley ranging from 46 percent in Maryvale to 22 percent in Glendale to 8 percent in the Gilbert area.

Since the Greater Phoenix area is so large, the median price can range significantly. For June 2010 in North Scottsdale, the median price for a foreclosed property was $409,340 ($446,000 in May) while the traditional market was $490,000 ($469,000 in May). In South Scottsdale the splits were $190,885 ($208,190 in May) and $175,615 ($180,000 in May), respectively. In Maryvale, traditional transactions were $59,900 ($59,900 in May) and foreclosures were $74,295 ($78,765 in May), while in Union Hills it was $193,000 ($180,000 in May) and $190,000 ($184,070 in May), respectively. For June 2010, Paradise Valley had a median square footage of 3,980 and a median price of $1,090,630.

As the market begins to shift, opportunities to buy at these historically low prices will begin to dewindle. Don't miss out on your opportunity to buy a first home or invest in your future! Call us TODAY to make a SMART purchase!  www.NatesHomes.com