12 Feb 08 
A Glance at the Arizona Real Estate Market
If you want to hear about the best deals in housing, you may want to subscribe to New Homes Section's Blog.
Stay Connected to New Homes for Sale and Builder Incentives!
Thanks for visiting!
Price
According to the ASU Realty Studies website, in the fourth quarter of 2007, Arizona saw a 3% price decrease of median new homes in Maricopa County; the decline was valued at approximately $8,300. Note that within the data some variables change so the actual price decrease may be less or more but it’s safe to assume that there was a decline in median home prices from third quarter 2007 to fourth quarter 2007. The trend actually started earlier in the year and continued through the end of 2007 despite some speculation that the price decrease would begin to balance out in November. In 2008, the same is expected to continue in Phoenix and the effect will likely trickle through to Arizona homes for sale in other areas. As usual, real estate is local and house values within cities differ; a real estate professional can help you discover areas that may not be experiencing a decline.
Listings
The listing price for Arizona Homes also saw a fall in mid January of 2008, as compared to that in December 2007. However, this may not indicate much more than a realization from sellers that their listing prices were too high. The present decline is smaller than the decline felt in 2006.
Sales
According to ASU’s Realty Studies website, Maricopa County new home sales in the fourth quarter of 2007 experienced sales only at 64% of what was experienced in the same period of 2006 (7,060 in ‘07 and 10,905 in ‘06). Some experts believe that this decrease in sales may continue in the early part of 2008 and could drag out longer.
Conclusion
In the last few years, the prices of median homes towards the end of the year have not fluctuated. However, November and December of 2007 presented a somewhat different, rather surprising picture. This unexpected decline in the last months of 2007 gives enough evidence that declines may be seen in 2008.
Observing the downward momentum, one can speculate that the price falls in 2008 will be similar to those experienced in 2007. A quick glance at the numbers provided by the ASU Realty Studies website shows that the median home prices of new homes sold in the city of Phoenix fell to $315,300 in the fourth quarter of 2007, as compared to $327,995 in the same quarter of 2006. That shows a decline rate of just under 4%.
Although home prices are declining, it still may be a good time to buy for many Arizona residents. Low interest rates could off-set a decline in home values and the selection of available homes has never been better. A quick consultation with a qualified real estate professional will help you determine if now is the time for you to buy a new home.
Much of the information for this post was found at ASU’s Polytechnic Campus website and is considered reliable.
Tags: Arizona Real Estate, home listings, home prices, home sales, new homes, new homes for sale, Real Estate, resale homes for sale
