Price decline for Greater Phoenix Resale Homes, but Sales Volume up

Greater Phoenix resale numbers show decline in prices:

photo credit: kevindooley

Realty Studies associated with the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus reports that Greater Phoenix residential resale numbers show a huge decline in prices.

The decline in prices certainly does not come as a surprise as we painfully witnessed this negative trend over the last couple of months, however ASU’s Jay Butler’s findings may signal a glimpse of hope.

The October 2008 same-month sales volume of non-foreclosed resale homes increased by a whopping 58% compared to resales numbers reported in 2007. Median home prices in the Greater Phoenix Metropolitan Area have come down by 30% compared to October of last year and sparked interest for potential investors and owner-occupants, especially in the lower income ranges.

Lower prices are certainly helpful to improve the absorption of the existing inventory but so far we are nowhere near to a recovery of the real estate market due to; eroding consumer confidence,  a weak economy, possible job losses and tighter mortgage underwriting guidelines.