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Reports Find Foreclosures by State and New Homes Prices Declining



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By : John Cutts    99 or more times read
Housing reports find foreclosures by state to be rising while home prices take the opposite direction. In most cases, the higher the foreclosure rate of a region, the lower the prices of residential properties. This tenet holds true for Phoenix, Arizona.

While Phoenix foreclosure listings remain high, prices of residences will continue to drop in the metro area. A housing industry report from the Arizona State University's W.P. Carey School of Business showed that as of October 2010, prices of housing units have declined by 6% in the city compared with October 2009 prices. This marks the third month in a row that housing prices have fallen in the region.

Since Arizona foreclosure listings are still growing, analysts believe that Phoenix will not be the only local market that will record further price declines during the last two months of the current year. Aside from high levels of foreclosure supplies, analysts are also attributing the expected decline to the fact that the months leading to the holiday season are usually times when there is hardly any home buying activity at all.

Analysts stated that in most cases, they find foreclosures by state to be correlated with home prices. They predict that annual declines in housing prices will continue for a few more months as markets try to absorb the excess supply created by the holiday season home buying slowdown.

Despite the growth of foreclosed home lists and the drop in residential property prices, housing experts stated that the Phoenix market has a big chance of recovering by next year as job market conditions improve in the city. They stated that, as unemployment levels drop in the area, demand for residential properties will improve and this can only mean good things for the city's housing industry.

Housing experts explained that more jobs mean more people relocating to the city and more families looking for residential properties. The higher the demand for housing, the higher the chances of home prices rising, experts have added. They also revealed that they do not find foreclosures by state to be abating, but any increase in demand will at least prevent excess supplies from clogging the market and thereby depressing prices further.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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