Phoenix September 2008 Home Sales

September sales of existing single-family houses in the Phoenix area jumped 85 percent above last year as prices fell and foreclosures rose to half of all resale transactions, a real estate information service reported.

Overall sales rose less dramatically because of annual declines in sales of newly built homes and resale condos. A total of 7,870 new and resale homes closed escrow in the combined Maricopa-Pinal counties metropolitan area in September, up 9.5 percent from August and up 16.2 percent from a year ago, according to MDA DataQuick. The San Diego-based firm tracks real estate trends nationally via public property records.

Despite the September surge, sales of existing single-family (detached) houses were still the second-lowest for a September in eight years. Single-family home sales have risen on a year-over-year basis for three consecutive months.

The median price paid for all homes sold in the Phoenix area was $178,607 in September. That was down 6 percent from $190,000 in August and down 24.9 percent from $237,900 a year earlier. September’s median was 32.4 percent lower than the peak $264,100 median in June 2006.

Another gauge analysts watch suggests sharper price declines: The median paid per square foot for resale houses fell to $99 in September, down 35.2 percent from a year ago and down 42 percent from a peak $171 in June 2006. September’s figure was the lowest since $98 in January 2004.

The median sale price – the point where half of the homes sold for more and half for less – has plunged for several reasons: Widespread home price depreciation; higher prices and qualifying standards for “jumbo” mortgages, which has undermined higher-end sales; and buyers’ preference for discounted foreclosures.

About 51 percent of the Phoenix-area houses and condos that resold in September had been foreclosed on at some point in the prior 12 months.

Phoenix MSA

Number of sales	Sept '07	Sept '08	%Change
Resale houses	2,956	5,462	84.8%
Resale condos	547	473	-13.5%
New homes	3,269	1,935	-40.8%
All homes	6,772	7,870	16.2%

Median sale price	Sept '07	Sept '08	%Change
Resale houses	$250,000	$174,925	-30.0%
Resale condos	$169,900	$145,500	-14.4%
New homes	$236,700	$198,233	-16.3%
All homes	$237,900	$178,607	-24.9%