Agents have been reporting that it seems that price drops in the Phoenix area have been accelerating since August. This month’s report from Jay Butler of ASU’s Realty Studies seems to confirm this. According to yesterday’s Arizona Republic: [Full report not available as usual on ASU Polytechnic’s website. Available here however.]
The volume of homes sold in the metro Phoenix area held up in October, but prices fell to the lowest level since May 2005.
The month brought 3,610 resales, up slightly from 3,050 in September, but still down year over year, according to the Arizona State University realty-studies program.
The median price across the Valley is down $15,000 year over year to $242,000, the report said.
Not only were buyers paying less, but the median square footage of homes sold increased 110 square feet, meaning they got more for their money than last year’s shoppers.
That $15,000 translates into a 6% price drop year-over-year. As we have observed in the past, sellers are also contributing incentives such as closing costs, so the actual price drop is greater compared to past years. Some communities in the Valley aren’t faring as well as others. My own hometown of Gilbert dropped year over year from $328,000 to $275,000 for a $53,000 drop or 16%.
