The Phoenix-area housing market is starting to see a little relief from the foreclosure crisis.
A new report from the W. P. Carey School of Business at Arizona State University shows that, in October, foreclosures made up 26 percent of the existing-home transactions in the market.
That’s the lowest level since April 2009.
Still, the report’s author wants to be clear, the end is not in sight.
The foreclosure rate has dropped all the way down from 43 percent of the area’s single-family existing-home transactions in January and February to 26 percent last month.
This is a continued decline from September, when the rate was 29 percent. August was the only month this year when the foreclosure rate went up in the Phoenix area.
However, Butler doesn’t expect the downward trend to continue straight through next year.
This October did mark the lowest number of foreclosures in quite a while. The market had 1,900 in October, down from almost 2,300 in September.
There were almost 3,400 foreclosures last October. The last time the number of foreclosures dipped below 2,000 in a single month was back in February 2008.
Overall activity in the Phoenix-area housing market is also down. The market had just over 7,200 transactions in October, down from almost 8,000 transactions in September. That’s partly due to the season.
Butler’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at http://wpcarey.asu.edu/finance/real-estate/upload/Press-Release-October-2011A-resale-homes.doc.
More analysis is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com.
• Allison Hurtado, (480) 898-7914 or firstname.lastname@example.org