Home Prices Edge Up in Some Areas, but Likely to Flatten
posted 7/26/10 from Phoenix Business Journal
Overall home prices in the downtrodden Phoenix market are gradually rising, although only in certain areas, and the trend may not last, according to the W.P. Carey School of Business at Arizona State University.
April was the first month that the overall market showed a year-over-year increase since the recession began, with the average home price moving up 0.7 percent during that month, according to the monthly report. The estimated increase from June 2009 to June 2010 is 1.8 percent.
The overall median price for a Phoenix-area single-family reached $135,000 in April, remaining fairly stable at $133,000 in June. The median moved to $130,000 last September and has stayed within $5,000 of that, according to the ASU report.
Foreclosure and non-foreclosure properties, however, are moving in opposite directions, with foreclosure houses showing small increases and non-foreclosure prices declining at double-digit rates, said Karl Guntermann, Fred E. Taylor Professor of Real Estate, who authored the new report with Research Associate Adam Nowak. “The data also indicates the higher-priced segment of the market is likely to show small year-over-year declines through the rest of 2010.”
But Guntermann also warns that the small increases in house prices will continue for only another month or two, followed by an extended period where prices remain relatively flat. “Unless economic and housing market conditions change dramatically, prices are likely to be relatively stable going into 2011.”
Read more: Home prices edge up in some areas, but likely to flatten - Phoenix Business Journal
Tags: Distressed Property, Foreclosure, Real Estate, Rio Verde, Scottsdale
