It’s here again: time to produce my monthly Phoenix area real estate news video for Realty Times. Read on for a snapshot of what went on in the Phoenix area in October. 

Did you miss my last Realty Times news video?  You can check it out here:  http://realtytimes.com/REUv/BobStahl

Enjoy!

RT: What specifically happened last month/quarter in this market?

MyPhoenixMLS.com:  A total of 8,210 resale homes sold in Maricopa County in October, down 0.8 percent from September -- but still 107 percent higher than in October 2007.

Of the homes sold, 46 percent were foreclosures (up from 44 percent in September).  Comparatively, in October 2007, 29 percent of homes resold were foreclosures. 

That relatively high number of foreclosures continued to put downward pressure on prices, which fell 1.0 percent (compared to a decline of 5.1 percent in September).  The median price of $167,375 is 30.2 percent lower than the median price in October 2007.

RT: In your opinion, or the opinion of experts you know, will the market conditions continue or will they change?

MyPhoenixMLS.com: The fact that 107 percent more homes were sold in Maricopa County in October 2008 than in October 2007 would suggest that the housing inventory in the Phoenix area is being bought up.  Once the number of houses for sale is in balance with the number of buyers in the market, prices will begin to rise again.

Foreclosure sales continue to represent good deals for savvy real estate investors and other home buyers in the area -- in October the median price of a traditional sale in Maricopa County was 9 percent less than the median price of a foreclosure sale.

On the other hand, the economy continues to worsen and some economists are now suggesting that the recession may be longer and deeper than they had originally anticipated.  While new reports show that consumer prices have actually decreased, credit is still extremely hard to come by and mounting job losses make buying a new home -- or saving a home from foreclosure -- may be increasingly difficult for many Americans.  That all bodes ill for the prospects of a real estate recovery in early 2009.

RT: What are the bright spots in the market?

MyPhoenixMLS.com: The median price for a resale home increased in a number of Valley cities -- the biggest increases were in Scottsdale, where prices rose 7.7 percent, and Goodyear, where prices rose 5.8 percent.  Prices also rose in Chandler (2.3 percent), Tempe (2.0 percent) and Mesa (1.5 percent).

The median price of foreclosure sales increased 4.4 percent in Maricopa County in October -- and even more dramatically in some area cities.  In Scottsdale, the median price for a foreclosure sale increased 18.1 percent to $413,250.  The median foreclosure sale price also increased in Goodyear (14.9 percent), Glendale (6.3 percent), Mesa (5.4 percent), Surprise (2.8 percent) and Phoenix (1.2 percent).  Rising prices for foreclosure sales might suggest that the market is equalizing, preparing for a bottom.

RT: Is there anything the world needs to know about your area pertaining to Real Estate Market Conditions?

MyPhoenixMLS.com: The market for townhouses and condos was once again a mixed bag.  Overall, in Maricopa County prices dropped 8.4 percent in October to $127,500 (that’s after a 5.2 percent drop in September).  Nevertheless, median prices increased in some Valley cities -- 1.1 percent in Chandler, 2 percent in Mesa, 1.2 percent in Tempe, 12.9 percent in Peoria, 21.8 percent in Sun City and 6.4 percent in Sun City West.

The number of townhouses and condos resold in Maricopa County increased overall -- up 6.3 percent in October.  The number of sales fell in Peoria (25 percent) and Sun City (14.3 percent) but increased in Phoenix (6.6 percent), Scottsdale (3.4 percent), Chandler (60 percent), Mesa (13.6 percent) and Tempe (25 percent).