Arizona Sales Up As U.S. Home Values Fall

Arizona sales up as U.S. home values fall
Thursday, February 12, 2009, 9:41am MST
Phoenix Business Journal - by Adam Kress

The National Association of Realtors reports a record drop in home values around the country, but home sales are up in Arizona.

Nationwide home prices fell 12.4 percent during 2008, according to NAR. That’s the largest yearly decline since the group began tracking the numbers in 1979. The median price for a U.S. home sold during the fourth quarter of 2008 fell to $180,100, down from $205,700 during the last quarter of 2007.

The vast majority of metropolitan areas -- 134 out of 153 -- recorded price declines compared with the last quarter of 2007.

Foreclosures and short sales accounted for 45 percent of all deals. That has driven sales volume up in states like Arizona, Nevada, Florida and California.

The largest sales gain in the fourth quarter from a year earlier was in Nevada, up 134 percent, followed by California at 84.7 percent, Arizona, up 42.6 percent, and Florida with a 12.5 percent increase.

“Once again, we see a pattern of strong sales gains, particularly in lower-price homes, in areas with price declines resulting from foreclosures,” said Lawrence Yun, NAR chief economist, in a statement.

Despite the record drop in home values last year, Yun said there is hope in the form of government help.

“Assuming housing provisions in the economic stimulus package are quickly enacted and provide enough encouragement for home buyers, we could see a quick lift in home sales for the critical spring home-buying season,” he said. “If that occurs, we could see home prices begin to stabilize in many metro areas later this year as supply and demand begin to return to balance, which would greatly benefit the overall economy,” Yun said.

Cape Coral-Ft. Myers, Fla., saw home prices fall nearly 51 percent for the year -- the steepest drop in the nation. The Beaumont-Port Arthur area of Texas saw median home prices increase almost 17 percent -- the highest increase in the nation.