PHOENIX, AZ - The number of single-family houses that resold in the Phoenix region in November rose above the year-ago mark for the fifth consecutive month, even as total sales fell because of weakness in the condo and new-home markets. Buyers' preference for discounted foreclosures helped drive the area's overall median sale price down by a record 31 percent, a real estate information service reported.
Last month about 61 percent of the Phoenix-area houses and condos that resold had been foreclosed on at some point in the prior year, according to MDA DataQuick. The San Diego-based firm tracks real estate trends nationally via public property records.
A total of 5,168 new and resale homes closed escrow in the combined Maricopa-Pinal counties metropolitan area in November, down 32.2 percent from October and down 22.1 percent from a year ago. Last month's nearly 32 percent annual gain in resales of single-family detached houses was not enough to offset losses for resale condos and newly constructed homes, which fell 50 percent and 68 percent, respectively.
It's not unusual for total sales to dip a bit from October to November. This year's relatively sharp month-to-month decline is at least partly the result of this November having just 17 business days, compared with at least 19 normally. This October had 22 business days for recording transactions.
The median price paid for all homes sold in the Phoenix area was $162,984 in November , the lowest since it was $162,000 in March 2004. Last month's median fell 6.9 percent from $175,000 in October and fell 30.6 percent from $235,000 a year earlier. November's median was 38.3 percent lower than the peak $264,100 median in June 2006.
Another price gauge analysts watch suggests sharper declines: The median paid per square foot for resale houses fell to $84 in November, down 42.9 percent from a year ago and down 51 percent from a peak $171 in June 2006.
The median sale price - the point where half of the homes sold for more and half for less - has plunged for reasons beyond the widespread decline in home values. Compared with a year ago, today's sales are more highly concentrated in lower-priced areas and, regardless of location, are more likely to involve a distressed property. The higher prices and qualifying standards for "jumbo" mortgages has resulted in sluggish sales in the more expensive neighborhoods. At the same time, bargain shoppers have flocked to the more affordable areas rife with discounted foreclosures.
Source: TheStreet.com