Report: Demand up and foreclosures down: Study by ASU shows foreclosure starts drop by almost 67 percent - Ahwatukee Foothills News: Real Estate

Report: Demand up and foreclosures down: Study by ASU shows foreclosure starts drop by almost 67 percent

Print
Font Size:
Default font size
Larger font size

Posted: Friday, July 12, 2013 8:20 am

The final chapter of the Phoenix foreclosure saga is ending, according to a new report from the W.P. Carey School of Business at Arizona State University.

The report found that from the time homeowners receive notice from their lenders they may foreclose in 90 days bringing the foreclosure starts down 66.6 percent below May 2012 levels. Given population growth that means the Valley finally hit its normal historical level of foreclosures in May.

Foreclosure starts are down far below peak levels reached in March of 2009. Without those inexpensive foreclosures coming into the market experts fear the Phoenix market will continue to struggle with a shortage of homes available for sale.

“Without cheap foreclosures coming into the market — and with ordinary homeowners reluctant to sell because they’re either locked in by negative equity or waiting for prices to keep rising — the Phoenix-area housing market continues to struggle with a chronic shortage of homes available for sale that may last for years,” said a statement from ASU. “The number of active single-family listings without an existing contract was just over 11,000 as of June 1. That’s down 0.4 percent since May 1, and 83 percent of the available homes are priced above $150,000, creating a problem for those looking in the lower price range. At least the shortage has improved somewhat from last year, when supply was dropping at a rate of 6 percent per month.”

The chronic shortage applies to homes for purchase and homes for lease, said the report’s author, Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business.

That shortage is pushing up prices for median single-family homes, the report found. Prices rose again to $185,000, up 26 percent from May of last year. 

Home prices hit a low in September of 2011, but this year prices have risen dramatically. “Between this January and May alone, the average price per square foot rose about 13 percent for area single-family homes,” Orr said.

New-home builders are not building quickly enough to meet the demand, the report said. Current new-home sales rates are less than a third of what would normally be needed to keep up with population growth. The combined population of Maricopa and Pinal counties grew 2.9 percent from 2010 to 2012, but the number of owned and leased dwelling units only grew 1 percent during that time.

Orr’s full report can be viewed at http://wpcarey.asu.edu/finance/real-estate/upload/Full_Report_201306.pdf.

• Contact writer: (480) 898-7914 or ahurtado@ahwatukee.com.

More about

More about

More about

  • Discuss

Attorney General Forum - Question 2

Attorney General candidates Republican Mark Brnovich and Democrat Felecia Rotellini debate at ...

Kyrene Akimel A-al Middle School

David Jolkovski/AFN
Kyrene Akimel A-al Middle school Principal Mike Deignan poses with students in front of the school sign that is advertising their "A" rating.

Kyrene Akimel A-al Middle School has been part of the Ahwatukee area since 1992, offering each of its Rattlers an enjoyable schooling experience from the morning bell to the ending bell.

According to its website, the name of the school is from the Akimel O’odham language and it means, “Children of the River.”

Principal Mike Deignan said the school offers sport activities and a learning lab before school starts, which provides students time before school to seek extra help with work completion or tutoring.

“That keeps our students involved with a lot of things, between the sports and the learning lab,” Deignan said.

For more information, visit www.kyrene.org/aki.

• Compiled by Daniel Ochoa.

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Print Edition Online

Most Popular

Online poll

Loading…