That's a two percent increase from July and more than double the 20 percent of sales recorded in August 2007.
Sales of foreclosed homes in the metro Phoenix area made up nearly half of all existing homes sold in the area last month, a new study shows.
Of the 7,505 resale home transactions recorded in Maricopa County in August, 44 percent were bought out of foreclosures, according to the Realty Studies department at Arizona State University. That's a two percent increase from July and more than double the 20 percent of sales recorded in August 2007.
There's no end in sight for the housing market slump, according to the director of Realty Studies at ASU's Polytechnic campus in east Mesa.
``Most potential buyers still confront a weak economy, slumping levels of confidence and tighter underwriting guidelines,'' Jay Butler said. ``Thus, the local housing market still contains considerable uncertainty over when any potential strengthening can be expected.''
The federal government takeover of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp. (Fannie Mae and Freddie Mac) has driving mortgage prices down, bad economic news is keeping buyer sentiment low, Butler said.
The median price of a home bought out of foreclosure in August was $161,875, compared with a non-foreclosure price of $193,550. A year ago the median prices were $220,010 and $258,000 respectively.
Prices varied widely by location. In North Scottsdale, the median price in August for a foreclosed property was $545,000, while the traditional market was $525,000. In South Scottsdale the splits were $219,855 and $242,000, respectively. In Maryvale, traditional transactions were $98,000 and foreclosures were $123,580.
The steep drop in prices is beginning to bring out investors expecting to see prices rebound in the next few years, Butler said.
Interest is especially high in the lower-priced ranges because more capital is available for those homes, he said.
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