Foreclosures step up the rate of sales of households in the Phoenix Region

Despite a fall in the average sales rate owing to the dwindling condo and new-home markets, the selling rate of the single-family houses in the phoenix area in November was even higher than last year. As per the report of the real estate information service, the buyer’s choice for a discount in foreclosures buttressed the region’s median sale price by a record low of 31%.

The MDA DataQuick reported that during the previous month, approximately 61% of the houses resold in the Condos and Phoenix regions were foreclosed at just the exact point as in last year. The patterns in real estate are measured across the nation by the San Diego-based firm depending on the records based on public properties.

The number of new and resale homes foreclosed in the urban areas of Maricopa-Pinal counties last November stood at 5,168. The records showed a slump by 32.2% since October and 22.1% since last year. The average annual profit of about 32% in the previous month in the resale of single-family houses was not sufficient to bring about a loss for a resale in Condos and newly erected houses. Resale in Condos and the newly built houses fell significantly by 50% and 68% respectively.

A drop in the entire sales from October to November was no surprise. A sharp fall in the consecutive months can be attributed to November, which has just 17 working days as compared to the usual 19 business days. October, this year had a total of 22 days allotted for business transactions.
$162,984 was the median cost for all houses in the Phoenix region in November. This was the least since March, 2004, when it was $162,000.

The median price in the previous month dropped by 6.9% from $175,000 in October and dipped by 30.6% from $235,000, in the previous year. November witnessed a median price of 38.3%, lower then a high median of $264,100 during June in 2006.
Steeper falls are likely to happen, as foreseen by another price gauge analysts. The median price per square feet for a resale of home dropped to $84 in November, which was 42.9% lower than in the previous year and short by 51% from a high $171 during June, 2006.

The median sale price has seen a decline. Compared with a year ago, today’s sales are more highly focused in regions with cheaper rates. Irrespective of the location and the place, distressed properties are more likely to be involved. The higher rates and criteria for jumbo mortgages have consequently led to a dampening of sales in the lavish and cosmopolitan areas. Shopaholics, at this time have been frequenting the less expensive areas offering a discount on foreclosures.

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