Valleywide in 2008, there were 81,700 existing homes sold, 43% were foreclosures.  In 2007, there were 54,570 existing home sales, only 16% of them were foreclosures.  Home sales in Maricopa County increased a total of 27,130 in 2008, but 26,400 of them were through the increase in foreclosure sales.  The usual percentage of foreclosures to existing home sales runs about 3-4%, so as you can see, the last two years have been extremely high when it comes to the number of foreclosed homes being bought and sold in Maricopa County.

Date                      Traditional Median Price   Foreclosure Median Price

Avg. 2008                    $200,500                            $169,915

Avg. 2007                    $260,000                            $218,080

Dec. 2008                    $146,000                          $148,340

As you can also see by the numbers above, the median sales price of homes has significantly dropped in the last year.  As both home prices fall for traditional and foreclosed homes, the difference between the two are getting closer.  As a matter of fact, for December of 2008 (see chart above), the foreclosed home sales median price of $148,340 was higher than the traditional home sales price of $146,000.

Good News:

Homes are selling in Maricopa County, Arizona

Definately a buyers market, over 43,000 single family homes for sale

Great time to invest in real estate

Interest rates are extremely low

Bad News:

The number of foreclosed homes sold spiked to 35,131 in 2008.

Traditional home median prices decreased by $59,500 (23% loss)

Definately not a sellers market