THE RELATIONSHIP OF DISTRESS ON PRICE EROSION IN PHOENIX
Courtesy of Barb Savoy-Pacella, ABR, CHMS ~ Keller Williams Arizona Realty ~ www.PacellaGroup.com
Once again, the Cromford Report illustrates that the level of distress in a specific geographic area has a direct relationship to price erosion and to absorption.
The Cromford Report analyzed the top 20 zip codes with the highest percentage trustee sales (foreclosures) throughout the Phoenix metro area. All 20 zip codes are in West Phoenix, with 85043 (47th Avenue and McDowell) taking the number one position. The list also includes zip codes in the municipalities of Tolleson, El Mirage, Tonopah, Buckeye, Avondale, Laveen, Youngtown, and Surprise.
The Cromford Report also analyzed the top 20 zip codes with the greatest price erosion since the peak, and it's not surprising that the results were consistent in showing the relationship between trustee sales and price erosion since all 20 are in West Phoenix. The zip code of 85009 (35th Avenue and Washington) took the number one position (85009 is at 17), and again the top 20 included zip codes in the municipalities of Tonopah, Avondale, Youngtown, Buckeye, and El Mirage.
Conversely, the top 20 zip codes with the lowest percentage of trustee sales encompass the Northeast Valley and the 65 and older communities. The fewest trustee sales occurred in 85375, which is Sun City West, and the list includes the municipalities zip codes in the municipalities of Fort McDowell, Scottsdale, Tempe, Carefree, Paradise Valley, and the 65 and older communities of Sun Lakes, and Sun City.
The top 20 zip codes for lowest percentage of price erosion since the peak is also consistent. Sun City West 85375 also took the top spot for least effect of price erosion and zip codes of other municipalities included most of Scottsdale, Tempe, and 85233 in Gilbert, 85249 in Chandler and the 65 and older community of Sun Lakes.
A few interesting exceptions are Rio Verde, which has the second lowest foreclosure rate in the valley, and yet has lost 61.4% of it's average price per square foot since the peak; and Surprise which ranked 9th for foreclosures, but 48th for price erosion.
Current Conditions in the Phoenix Market:
• There are 30,465 single family detached listings currently in MLS. That is a decrease of 329 listings over last week and the eighth week in a row of a decrease
• There are 37,369 total listings currently active in MLS, which includes condos, townhomes, patio homes and lofts.
For a full report by zip code, contact us at www.PacellaGroup.com
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