Greater Phoenix Area April Real Estate Market Update

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

Enjoy!

What specifically happened last month/quarter in this market?

A total of 9,100 resale homes sold in Maricopa County in April, up 5.7% from March and 42.3% higher than in April 2008.  Of the homes sold, 27% were foreclosures, continuing a downward trend in foreclosures (in February, 50% of total sales were foreclosures; that number was 31% in March).  Comparatively, in April 2008, 40% of all homes sold were foreclosures.

“The slowdown [in foreclosure activity] can primarily be attributed to the various hiatus programs that lenders instituted, while awaiting the new loan modification and refinancing programs from the federal government,” according to Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus.

The median price of homes sold in Maricopa County in April was down slightly -- 1.4% -- after falling 10.9% in March. The median price of $131,715 is 36% lower than the median price in April 2008.

Foreclosed homes represented a good deal for buyers in some Valley cities – particularly in Scottsdale and Chandler, where the median price of a foreclosed home was 18% and 11% less than the price of a traditionally-sold home, respectively.

Will the market conditions continue or will they change?

“Historically, April is part of the resale home season that usually lasts until August,” said Butler. “During this time, sales and median prices tend to increase as the buyers move to lock in a purchase before the start of schools and the holiday times. Thus, some improvement in the local housing market would not be unexpected.”

“There is increasing hope that the housing troubles are beginning to ebb and the bottom, along with recovery, is in sight,” said Butler. “However, many problems continue to exist that could hinder the timing of any recovery,” he cautions.

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

Median prices of traditionally-sold homes fell in most Valley cities, except for Scottsdale, where prices rose 6.7% to $400,000 and Mesa, where prices rose 2.3% to $135,000.  Still, prices were down across the board compared to April 2008 – 53.9% in Phoenix, 29.1% in Mesa, 20.8% in Scottsdale, 31% in Tempe, 18.3% in Gilbert, and 19.1% in Chandler.

The number of homes sold in April compared to February increased in most Valley cities.  The number of homes sold rose 8.5% in Phoenix, 17.4% in Scottsdale, 2.2% in Gilbert, 3.7% in Mesa, 5.6% in Tempe, and 4% in Chandler.  Compared to April 2008, the number of homes sold was up everywhere except for Tempe -- as much as 75.6% (Phoenix).

What’s happening in the Greater Phoenix condo market?

The number of townhouses and condos resold in Maricopa County rose 6.1% to 955 homes in April after falling 4.3% in March.  April sales were 9.8% higher than April 2008.  Sales were up in Phoenix (1.4%), Scottsdale (43.8%), and Gilbert (33.3%).  Sales were down in Mesa (5.6%) and Tempe (16.7%).  Sales were flat in Chandler.

Median prices were up overall, rising 2.7% to $115,000 after falling 10.4% in March.  Prices were up in Phoenix (7.9%), Chandler (6.3%), and Mesa (2.6%).  Prices were down in Scottsdale (8.2%), Gilbert (11.4%), and Tempe (6.3%).