Read on for a snapshot of what went on in the Phoenix area real estate market in January. 

Enjoy!

What specifically happened last month/quarter in this market?

A total of 6,960 resale homes sold in Maricopa County in January, down 6.3% from December but still 65.5% higher than in January 2008. Of the homes sold, 48% were foreclosures (up from 42% in December).  Comparatively, in January 2008, 43% of homes resold were foreclosures. 

The relatively high number of foreclosures – and the ever-weaker economy ­– continued to put downward pressure on prices, which fell 8.0% (the same as December’s decline).  The median price of $135,335 is 39.9% lower than the median price in January 2008.

Foreclosed homes represented a good deal for buyers across the Valley – particularly in Tempe and Chandler, where the median price of a foreclosed home was 20% and 16% less than the price of a traditionally-sold home, respectively.

Will the market conditions continue or will they change?

Some slowing in foreclosure activity may be seen in the coming months as programs designed to make it easier for distressed homeowners to modify their mortgages ramp up.  But, according to ASU’s Realty Studies, “with the extremely weak economy the ability to maintain ownership or to purchase a home will continue to be severely tested, which will further delay any potential recovery.”

What are the bright spots in the Greater Phoenix real estate market?

Median prices fell across the Valley in January, but the declines were less dramatic in some cities.  In month-over-month declines (between December 2008 and January 2009) in Gilbert and Chandler, prices fell 1.4% to $197,250 and $204,000, respectively.  In year-over-year declines (between January 2008 and January 2009), prices again fell across the Valley, but declines were the least dramatic in Tempe (15.6% compared to Maricopa County’s 39.9%).

The number of homes sold was down across the Valley in January compared to December, but the volume of sales still far outpaced January 2008 – 114.6% more homes were sold in Phoenix in January 2009; that number was 48.3% for Mesa and 33.3% for Gilbert.

What’s happening in the Greater Phoenix condo market?

The number of townhouses and condos resold in Maricopa County fell 15.2% in January to 615 homes (after increasing 27.2% in December).  Sales were down in most Valley cities; the most moderate decline was in Phoenix, where sales fell 4.1%.  The largest decline was in Tempe, where sales fell 50%.

Median prices fell overall, too, down 11.3% in January compared to December (after increasing 3.1% in December).  The smallest declines were in Scottsdale (2.5%) and Gilbert (2.0%).  The largest were in Chandler (22.6%) and Mesa (20.4%).

Foreclosed townhomes and condos represented a good deal for buyers in Maricopa County overall, with prices 16.2% lower than on traditionally-sold homes.  The best deals in January were found in Gilbert, where the price difference was 48%, Scottsdale (19.3%) and Phoenix (15.8%).