The Phoenix area recorded 6,100 sales in October, same as September but up from 4,500 sales in October 2008. A whopping 45% of these sales were foreclosed properties.
More than 3,800 homes were foreclosed in October 2009. That is up from 2,900 in September.
We still do not see market recovery as recovery takes place in a growing economy and lower interest rates. Our economy is declining with a weak job market and interest rates are expected to rise in 2010. Half our sales stem from foreclosed homes and even those are marked down approximately 19%. This decrease in home values means that current homeowners cannot "move-up" in home and thus most activity is taking place in the lower end housing market.
First-time and investor buyers are driving our market. That leaves homes priced over $250,000 without the demand that lower valued homes have in this market.