News Article From: 10-20-2006
The first article, Home values easing in slump, from the Arizona Republic, reports that despite slumping sales activity, the West Valley's median price for houses rose during the first eight months of 2006, anywhere from 10 to 30 percent, according to an analysis by the Arizona Republic. But the figures may be deceptive, say several real estate experts. First, they do not capture the slowing pace of sales after August, when for the first time in a decade, median prices for resale homes fell compared with the same time last year. "We've had a major correction," said Lyn Truitt, a real estate broker in Surprise. "The market has slowed considerably. The new-home market is impacting the resale market." New-home builders are loading up on incentives for buyers that artificially maintain the price. While it is taking longer to sell a home, those who have owned at least three years still stand to do well for themselves if they sell, says Margie O'Campo de Castillo, a broker who owns Arizona Dream Realty. "If someone experienced a 40 percent increase in equity last year, and it drops 8 percent this year, you're still doing very well," she said.
The second article, Sept. home sales plummet, from the Arizona Republic, reports that the West Valley's resale housing market continued to slide in September, which brewed a storm of increased listings, a drop in the number of recorded sales and a decrease in the median sale price. The information was released by the Arizona Real estate Center at ASU. In the West Valley's three largest cities, the number of resales sold dropped by more than half. "It creates a scenario where it takes buyers longer to make a decision because there's so much inventory," said David Karrick, a real estate agent with Realty Executives in Peoria. "Without a doubt, people can be more picky in this market." The drop in median price is keeping a lot of buyers on the sidelines.