So I got a little bit behind schedule last month with the real estate market update -- if it seems like it hasn’t been a month since I posted the last update; it hasn’t.  But since the numbers are already out for August, I thought I’d go ahead and share them with you. 

So read on for a snapshot of what went on in the Phoenix area in August. 

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 7,505 resale homes sold in Maricopa County in August, down 8.1 percent from 8,165 in July.  Slower home sales are normal for August -- July is typically the end of the home-selling season.  Still, the number of homes resold last month is 64 percent higher than in August 2007.

Of the homes sold, 43.9 percent were foreclosures; in August 2007, only 20 percent of homes resold were foreclosures.  The relatively high number of foreclosures continued to put downward pressure on prices, which fell 1.7 percent to $178,000 (that’s compared to July’s decline of 7.1 percent).  The median price of $178,000 is 28.8 percent lower than the median price in August 2007.

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

MyPhoenixMLS.com: On one hand, falling home prices and the high number of foreclosures (which can often be purchased for much less than an area’s median income) are fueling the interest of savvy real estate investors.  I’ve been busier than ever this year, in large part selling foreclosed homes to both investors and owner-occupants looking for a great deal.

On the other hand, an ever-weaker economy, declining consumer confidence, and tight credit make home buying tough for many potential buyers.  And falling prices continue to erode homeowners’ equity, fueling declines in confidence and further weakening the market.  On a positive note, economic reform has the potential to make home buying easier for many Americans (the FHA Modernization Act did, in some respects) and should help homeowners in trouble stay in their homes.

RT: What are the bright spots in the market?

MyPhoenixMLS.com: The median price for a resale home increased slightly in a couple of Valley cities -- in Chandler, it ticked up 0.2 percent; in Sun City it was up 1.3 percent; and in Glendale it was unchanged from July. 

The median price of traditional sales (not including foreclosure sales) was up 0.1 percent in Chandler, 2.2 percent in Mesa; and 1.3 percent in Avondale. 

And the median price of foreclosure sales was up significantly in a number of cities -- 0.6 percent in Phoenix, 2.8 percent in Chandler, 4.0 percent in Goodyear, 2.3 percent in Peoria, 22.4 percent in Sun City, 7.1 percent in Surprise, and 1.7 percent in Maricopa County.

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 a mixed bag in August.  Overall, in Maricopa County prices dropped slightly -- 0.3 percent -- to $146,820.  Median prices increased in Chandler (1.9 percent), Gilbert (2.8 percent) and Tempe (4.6 percent).

The number of townhouses and condos resold in Maricopa County fell 6.3 percent -- but again, that’s to be expected as July marks the end of the high season in home sales.  In Mesa, the number of townhouses and condos resold increased 4.8 percent.