Some Valley regions holding steady
January 18th, 2008, 3:08 pm · 1 Comment · posted by mistywilliams
The outlook isn’t all dim for the Valley’s real estate market.
A new study by Arizona State University shows that some areas, such as Phoenix, Paradise Valley and Scottsdale, are holding their own. Valleywide in September, house prices were down 3.79 percent compared with the same month in 2006, according to ASU’s Repeat Sales Index. But Phoenix and the northeast Valley, including Carefree, Cave Creek, Fountain Hills, Paradise Valley and Scottsdale, saw only an 1 percent gain or loss during that period. The index uses repeat sales data for the same homes to estimate price changes in the market.
The southeast Valley, including Tempe, Mesa, Gilbert, Chandler and in to Pinal County, experienced a 7.1 percent drop in prices.
“Except for the northeast region, which should continue in a flat situation, the trend in the data indicates more decline. There is nothing in the data that indicates a turnaround. We are not past the bottom. The decline in housing prices is expected to continue,” said Karl Guntermann, a real estate and finance professor.
The 3.79 percent decline marks the biggest drop in housing prices over a 12-month period since February 1990 when prices dropped 5.01 percent. The index was started in January 1990.
February 1st, 2008 at 1:15 pm
What is driving the decline in prices in the East Valley? Can anyone answer that? We have ASU East, Phoenix-Mesa Gateway Airport and all kinds of small commercial developments. It is certainly as beautiful as Scottsdale with much better selection of homes and neighborhoods. Is this just a case of the rich supporting the rich with their policies?