Phoenix Foreclosed Homes Comprised 66 Percent of Market

Phoenix foreclosed homes accounted for 66 percent of housing market activity in October, according to a study by Jay Butler, real estate professor at the Arizona State University W.P. Carey Business School.

Butler said that foreclosure actions on 3,815 houses in October represented 38 percent of Phoenix’s overall housing market and that about 45 percent of total home sales in October involved units that had been foreclosed before being sold and resold. He explained that the two percentages meant that foreclosure activity in Phoenix was 66 percent of the overall housing market in October.

Butler also explained that the 45-percent share of foreclosures in total home sales in October was actually slightly less than the share of foreclosure sales in September, but total foreclosure actions in October were higher than those in September. Half of all foreclosure sales sold at about 19 percent below market prices.

The median home sales price in October in Phoenix was $140,000, a 20-percent drop from the median of $175,000 in October 2008. However, the median sales price for Phoenix foreclosed homes climbed up to $153,450, a substantial increase from $136,800 the previous month but a decrease from $159,775 in October 2008.

In North Scottsdale, the sales price median for foreclosed houses in October was $397,560, a drop from $410,000 in the previous month while the median sales price for conventional sales was $460,000, an increase from the previous median of $445,000.

In South Scottsdale, the sales price median for foreclosure homes was $164,000, a decrease from $178,000 in the previous month while the median sales price for conventional sales was $198,000, an increase from the previous median of $190,000.

Nearly 1,400 condo units and townhouses were sold in October, including 535 foreclosure properties. In October last year, a total of 850 units were sold, including 355 foreclosed properties. The median sales price for conventional condo and townhouse sales was $95,750, a drop from $136,750 in October 2008 while the median sales price for foreclosed units was $105,500, a decrease from $119,375 in October 2008.

In October, the median area for a foreclosed single-family house sold was 1,695 square feet, a slight increase from 1,650 square feet in October 2008 while the median area for homes in traditional sales was 1,750 square feet, a drop from 1,765 square feet in October last year.