Arizona - A new report show prices of existing homes in metropolitan Phoenix plummeted by 18 percent between April 2007 and April 2008.The report compiled by Arizona State University researchers puts much of the blame on foreclosed homes being dumped on the market by banks.
The dramatic price drop was much steeper than reflected in March, when prices showed a 13 percent drop from a year earlier.
ASU real estate professor Karl Gunterman says the rise in foreclosures has banks discounting homes they repossess, which drives down overall prices.
Hardest-hit are the southwestern Phoenix suburbs of Avondale, Buckeye and Goodyear, which saw 30 percent declines. To the southeast, Mesa saw the steepest drop at 18 percent. Even Scottsdale and Paradise Valley recorded double-digit price drops.
In my opinion, the banks need to step up and start to work with Realtors on selling these homes. You can have a buyer and seller in total agreement and it still takes 2-3 months for the bank to get back to you! It's madness.
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