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Bank and HUD Foreclosures for Sale Dragging Housing Values Down

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By : John Cutts    99 or more times read
The continuous rise in the number of bank, government and HUD foreclosures for sale is taking its toll on Arizona as housing values decline in September 2010 in several key areas. The declining prices of residential properties is being seen by market analysts as a sign that recovery is far from being reached.

People buying Tucson foreclosed homes are not that many as most investors and home buyers are wary of investing in real estate right now despite declining prices. Tucson is one of the areas in Arizona hit hard by the housing industry crisis. Another is Phoenix.

Aside from the high levels of Arizona foreclosure homes, the economic slowdown is also being blamed for the declining prices of houses in almost all key areas of the state. In Phoenix, values have declined in September for the second consecutive month. The Arizona State University's Repeat Sales Index has estimated that prices of dwellings dropped by around 4% during the month compared with the same period of last year.

The September decline followed an August drop of around 2% when compared with the same month of 2009. The previous month's value decline was also attributed to the huge supplies of foreclosures, including bank and HUD foreclosures for sale. Housing industry analysts have stated that if October home values showed another drop, it will not be good for the metro area and the whole state's residential property market.

Prices of foreclosure real estate in Phoenix, considered as one of the strongest segments of housing sales, declined in August. This was followed by further price declines in September, analysts have reported. September home foreclosure prices recorded a drop of almost 6% when compared with August 2009. Meanwhile, non-foreclosure dwellings recorded a price decline of 9% in September 2010 when compared with the same 2009 period.

The average price of Phoenix homes in September was estimated to be around $124,900. Meanwhile, housing data showed that condominium prices are declining even faster than other types of residences, with the average price estimated to be at $62,000 in September.

Median price for condo properties in August was at $65,000, while the average value for July was $77,000. Along with foreclosed properties like HUD foreclosures for sale, values of regular dwellings are expected to continue to drop until the end of 2010.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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