Eye On Arizona

Mesa Housing: Foreclosed versus Non-Foreclosed Sales in January 2009 – Let the Numbers do the Talking

February 17, 2009

Mesa, Arizona home foreclosures rose in January 2009 as compared with January 2008. According to Dr. Jay Q. Butler, Director of Arizona State University’s Realty Studies, foreclosures are not slowing down in the Greater Phoenix Area. In Mesa, AZ, the largest city outside of Phoenix, the numbers speak volumes.

The Table below reveals data on the total number and median price of resale single-family homes and townhome/condos in Mesa, comparing closed transactions in January 2008 with January 2009 and closed transactions in December 2008 with January 2009.

Mesa experienced a 34% decline in the median resale price of Single-Family Homes and a 48% decline in Townhomes & Condos median home price when comparing data for January 2008 and January 2009. While, from December 2008-January 2009, Mesa experienced a 5% decline in Single-Family Home resale prices and a 25% decline in Townhome and Condo prices. The reason is attributed to the larger number of foreclosures in the Valley.

According to Butler, the foreclosure rate for January 2009 accounted for 48% of the transactions. The Chart below presents a comparison among the overall number of Single-Family Resale Home transactions in Mesa for the given time periods. Mesa experienced a 77% increase in foreclosures in January 2009 as compared with January 2008, with an overall foreclosure rate of 52% for January 2009.

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The data does not reveal the amount of homes that were closed through the pre-foreclosure process, a.k.a. short sale. So, although the data reveals that slightly more than 50% of homes that closed in Mesa in January were foreclosures, it does not segment homes that were closed through short sale transactions, just those that were non-foreclosed properties. This could raise the number of properties sold under distress up to 75% of the total homes sold.

Data Source: Arizona State University, Morrison School of Management and Agribusiness, Realty Studies. Butler, Jay and Lambrakis, Chris. http://asunews.asu.edu/20090212_realtystudies.

All information deemed reliable but not guaranteed.

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Tags: Condos, January 2009 Housing Statistics, Mesa Foreclosures, Single-Family Homes, Townhomes
Posted in: AZ Housing Market