Foreclosure rate stays high, possible return to negative trend

March 10, 2011, Arizona State University

More bad news for the Phoenix-area housing market. A new report from the W. P. Carey School of Business at Arizona State University shows the possible return to a negative trend.

In the final months of 2010, had gone down to represent only 30 percent of the transactions in the single-family home resale market. However, in January, that rate shot up to 43 percent, and the new report reveals it was about 43 percent again in February.

“We’ve all been watching to see if the foreclosure rate in late 2010 would carry over into this year, but unfortunately, the good news hasn’t come yet,” says associate professor of Real Estate Jay Butler, who wrote the report. “January 2011 showed a reemergence of troubled times, which continued through February.”

Butler explains the year 2010 ended with an unusual set of circumstances, including foreclosure moratoriums, legal challenges to the foreclosure process, and weak economic and job recovery.

“The fundamental uncertainty now is whether the initial months of 2011 represent just a short-term response as the pipeline unclogs after the foreclosure moratoriums or if it’s a continuation of a market being dominated by foreclosures,” says Butler.

Out of more than 8,500 single-family home resale transactions in February, more than 3,600 were foreclosures. In addition, when you look at the rest of the transactions, 40-percent of those were the resales of previously foreclosed-on properties.

“Thus, foreclosure-related activity represented a total of 66 percent of the market transactions in February,” explains Butler.

The median price for single-family homes resold (not newly foreclosed) in the Phoenix area in February was $127,500. That’s up from $125,000 in January, but way down from last February’s $140,000.

In the townhouse/condominium market, 580 foreclosures happened in February. The median price of a townhome/condo resold (not newly foreclosed) in February was $75,000. That’s way down from $95,000 last February.

Butler’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at wpcarey.asu.edu/realestate/Pho … e-Market-Reports.cfm. More analysis is also available from Knowledge@W. P. Carey, the business school’s online resource and newsletter, at knowledge.wpcarey.asu.edu.

Explore further: Report: Foreclosures still dominate housing market

More information: Butler’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at wpcarey.asu.edu/realestate/Pho … e-Market-Reports.cfm

Related Stories

Report: Foreclosures still dominate housing market

March 17, 2010

Despite signs of economic recovery across the country, the Phoenix-area housing market continues to be driven by foreclosures. Last month, almost two-thirds of the existing-home transactions in the market were either foreclosures ...

ASU report: Foreclosures still cloud housing market

February 12, 2010

(PhysOrg.com) -- Foreclosures continue to play a major role in the Phoenix-area housing market. Almost half of the existing-home transactions in the Valley last month -- 45 percent -- were foreclosures. That's according to ...

Another wave of foreclosures likely in new year

December 10, 2009

(PhysOrg.com) -- As we near the end of the year, Phoenix-area home prices have started to go up, but another wave of foreclosures is likely to hit soon. That's according to the author of the latest Realty Studies report from ...

Study: New negative trend in Phoenix housing market

November 30, 2010

It’s official: The Phoenix housing market appears to be experiencing a new downward trend. A new report from the W. P. Carey School of Business at ASU confirms a year-over-year decrease in home prices for the third month ...

Recommended for you

Nanoscale Lamb wave-driven motors in nonliquid environments

March 19, 2019

Light driven movement is challenging in nonliquid environments as micro-sized objects can experience strong dry adhesion to contact surfaces and resist movement. In a recent study, Jinsheng Lu and co-workers at the College ...

OSIRIS-REx reveals asteroid Bennu has big surprises

March 19, 2019

A NASA spacecraft that will return a sample of a near-Earth asteroid named Bennu to Earth in 2023 made the first-ever close-up observations of particle plumes erupting from an asteroid's surface. Bennu also revealed itself ...

The powerful meteor that no one saw (except satellites)

March 19, 2019

At precisely 11:48 am on December 18, 2018, a large space rock heading straight for Earth at a speed of 19 miles per second exploded into a vast ball of fire as it entered the atmosphere, 15.9 miles above the Bering Sea.

Levitating objects with light

March 19, 2019

Researchers at Caltech have designed a way to levitate and propel objects using only light, by creating specific nanoscale patterning on the objects' surfaces.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.