Catherine Reagor
On real estate
Jun. 22, 2008 12:00 AM
The housing market continues to search for a bottom as foreclosures continue to climb across metropolitan Phoenix.
In May, 3,402 homes across Maricopa County went into foreclosure, according to the Information Market. Almost all of those homes went back to the lenders. May's foreclosure figure is up from the 2,969 foreclosures, or trustee deed sales, filed in April.
Don't expect foreclosures to slow this month either. The number of pre-foreclosures, or notice of trustee sales, filed also climbed in May. Last month, there were 6,384 pre-foreclosures filed in Maricopa County, compared with 6,143 in April.
Everyone tracking the Valley's housing sector is looking for that key indicator that will show the first sign of a market rebound, or at least an end to the downturn. When pre-foreclosures fall, foreclosures will fall as well.
Fewer foreclosures mean fewer bank-owned properties selling for below-market prices at auctions. It also means fewer listings that people trying to sell their homes have to compete with, and, one hopes, fewer people just struggling to hold on.
May home sales
Another key indicator, home sales, showed a slight improvement last month.
New and existing Valley home sales ticked up in May, according to analyst RL Brown's Phoenix Housing Market Letter. Building permits were up slightly.
There were a total of 7,202 new and existing home sales in May, compared with 6,636 in April. Home-building permits totaled 1,552 in May, up from 1,473 in April.
The median price of a new Valley home has dropped to $218,861, down from $267,934 a year ago. That's an 18 percent drop, but Brown said it improves the market's affordability, which will draw more buyers.
More real-estate talk
If you are near Biltmore Fashion Square in Phoenix today and want to chat about the real-estate market, please stop by Borders at 1 p.m. I will be there to discuss the big issues facing the Valley's housing market and signs that may indicate recovery.
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