Resale home market reports through May show signs of improvement in overall values in the Valley of the Sun. The foreclosure market activity varies through out the Valley, such as 40% in El Mirage, 22% in Tempe and 33% in Surprise. Another significant component in our market has been the number of previously foreclosed property, which accounted for approximately 40% of the traditional transactions (in other words, investor "fix-n-flip" purchases). There has been a minor decline in foreclosure sales, from 40% in March 2010 (4,370 sales) to 33% in May 2010 (3,230 sales) - however these numbers are still above 2009 reports (May 2009 reported 3,035 sales).

The number of mortgage defaults and late payments continue to be at record levels - the main issues center around whether house-hold incomes will increase enough to hold-on to current properties. Further level of income changes impacts the ability of households to maintain payments for their homes, especially if confronted with a change in an adjustable interest rate. Even if a household has the ability to economically maintain their property, declining neighborhood values and restrictive debt amounts, could induce some households to walk away from their home.

The good news is that previously declining values have piqued the interest for investors and first time, owner-occupant purchasers, especially in the lower-income ranges. The good news is that all this interest has caused median prices to increase. The median price for the traditional market in May 2010 was $144,000, which is the same as April, but above 2009's median price, which was $130,000.

The foreclosure properties had a median price of $148,655 through May 2010. However, in April 2010 reported median price of foreclosure property at $156,180 which is up from $150,090 in 2009. The recent improvements in home prices, not only provide evidence of potential short-term appreciation, it has further enhanced the interest of first time buyers.

Since the Greater Phoenix area is so spreadout, the median price can range significantly. I have highlighted a few of the cities reported numbers for your review. If you do not see your city listed or wish to learn more about a particular city or property, please do not hesitate to call/email me.

Phoenix Thru May 2009 $80,875 / Phoenix Thru May 2010 $107,630

Tempe Thru May 2009 $169,000 / Tempe Thru May 2010 $175,000

Avondale Thru May 2009 $108,025 / Avondale Thru May 2010 $113,500

El Mirage Thru May 2009 $68,900 / El Mirage Thru May 2010 $80,000

Peoria Thru May 2009 $160,000 / Peoria Thru May 2010 $161,900

Goodyear Thru May 2009 $134,900 / Goodyear Thru May $155,000