The pace of foreclosed houses for sale slowed in Phoenix in July compared to June sales, pushing down total home sales, based on data from a real estate research company.
In July, sales of new homes and resales of existing homes and condos dropped to 10,288 units in the Maricopa-Pinal metro area, a decrease of 4.1 percent compared to June but marked an increase of 27.7 percent compared to July 2008. Compared to all other July sales, total home sales for July 2008 marked the highest.
Sales of previously owned homes and condos increased for the 13th straight month on a year-over-year comparison, covering the 45.4 percent decline in newly built homes in July. The 1,029 total sales of new homes in July this year marked the lowest July new home sales in more than ten years.
Meanwhile, foreclosure homes and condos comprised 57.8 percent of all home and condo resales in July, a decrease of the 64-percent share in June and the lowest percentage since October 2008, when foreclosure sales accounted for only 54.7 percent of all total home resales. The share of foreclosure resales hit its highest level in March this year, when it reached 66.2 percent of all home and condo resales.
The median sales price in July for all newly-built and existing homes and condos was $132,500, an increase of 1.9 percent from the June median but a drop of more than 32 percent from July 2008. The July month-over-month price increase was the third straight monthly increase. The median price has increased slightly every month since it fell to its lowest level of $125,000 in April.
Phoenix analysts said that the median price increased because of the drop in sales of lower-priced foreclosure properties, the increase in number of move-up buyers and the rise in number of families looking for homes nearer the schools of their children.
The July overall median home sales price of $132,000 marked a 49.8-percent drop from the June 2006 median of $264,100, the highest price reached in Phoenix. The median home price has been dropping year-over-year for 30 straight months.
Home sales in Phoenix have been dependent on first time homebuyers and investors. In July, 47.5 percent of all buyers used home loans guaranteed by FHA. Second-home buyers and investors comprised 42.5 percent of all home purchases.
According to Phoenix-area analysts, foreclosures will still play a significant role in the housing market in the coming months and years. In July, nearly 5,900 homes and condo units have been foreclosed in the Phoenix metro area.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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