After dropping throughout 2011, the Phoenix area saw a jump in single-family home foreclosure sales in August, the W.P. Carey School of Business at Arizona State University reported Monday.
Last month, there were nearly 2,900 single-family home foreclosure sales in the area. That’s down from 4,000 in August 2010, but up from 2,500 in July of this year. Thirty-one percent of all existing home transactions were foreclosure sales in August. That comes after the share of foreclosure sales fell below 30 percent for the first time since spring 2009, the report showed.
Until the recent change, foreclosures had been steadily declining from 43 percent of all sales in January and February, to 29 percent in July. Some market observers said timing may be a reason for the reversal. “The uptick in foreclosure activity was not entirely unexpected since we’ve seen a pattern of upward movement in this rate in the latter months of a year over the last few years,” said Jay Butler, W.P. Carey School of Business professor and author of the report.
Butler said the weak economy and lack of income growth may also be leading to more people giving up on their homes. “While the housing market is beginning to produce some positive movement, the surrounding economic environment continues with anemic job and economic growth that’s forestalling consumer confidence and preventing people from buying homes,” he said.
The median price for a single-family home resold in the Phoenix market in August was $120,000, down from $135,000 last August and $124,900 in July, according to the report.
Foreclosure sales in the townhouse and condominium sector of the market were also up from 340 in July to 350 in August. However, foreclosure sales dropped from 650 year-over-year, signaling there has been some improvement. The median price of a town home or condo resold in August was $76,450, down from $80,000 a year earlier, the W.P. Carey School reported.