In Arizona, where home prices
dropped by nearly 50% during the housing collapse, it’s expected that median
home value change will improve over the next five years, but will lag the national
trend in the next year, according to Fiserv.
Phoenix-area home prices in July were up
19.9 percent from a year earlier, easily the largest percentage gain among
major U.S. cities, according to a CoreLogic report.
Greater Phoenix REO sales dropped below 14% of the
monthly total, the first time this has occurred since January 4, 2008. At their
peak on February 11, 2009, they constituted 71.1% of monthly sales. Although it
will take some time for them to disappear completely, REOs are no longer a
major factor in the market. Contrary to the popular myth, there are not a lot
of foreclosed homes in lenders’ possession, so we don’t expect this REO supply
to increase.
In contrast, short sales comprised 31.4% of all sales in
Greater Phoenix in July. This is even higher than the 29.3% for June 2012. With
short sales selling for a lower average price per sq. ft. than REOs, this has a
negative effect on average pricing over the last 2 months.
Normal sales have fallen from 56% to 54.6% of sales and
their pricing is down from $116.82 to $115.62 per sq. ft.
The number of home refinance closings
throughout the Valley in July -- roughly 11,500 total -- is a whopping 128 percent
hike since January, and refinances have also steadily increased each month so
far this year in metro Phoenix.
Sources: 24/7 Wall St.; CoreLogic
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