Two states are miles apart in terms of real estate prices
Arizona’s once strong real estate market is now teetering as home values in the Grand Canyon State are down to extremely disappointing low figures. In a report by the Arizona Daily Star, “Home values dropped more in Arizona in the last year than in any other state. The price of an average Arizona home in the first quarter of this year is 13 percent less than at the same time a year ago, new figures from the Federal Housing Finance Agency showed Tuesday. Home values in the state, on average, are now more than 20 percent below where they were at this time in 2005, while prices were going up but before the housing bubble burst. And there is no real sign that the slide in values is slowing: The prices dropped by 3.4 percent just between the last quarter of 2009 and the first quarter of this year.”
Following the 1Q10 results of the Case Shiller Home Price Index, Phoenix is one of the thirteen metro areas that reflected a decline in March with a 51.8 percent fall. However, there’s still some hope to this. Its YoY change is recorded at 2.4 percent, not something as high as in other cities like Cleveland with 6.7 percent, San Diego with 10.8 percent and San Francisco with 16.2 percent.
It may look grim for the entire state but I’d like to count on Bob Beemis, CEO of Arizona Multiple Listing Services who thinks that these drastic numbers shouldn’t put much pressure on us. azcentral.com writes, “He reminds people that national numbers have a severe lag time and real time is more important. More people are trying to sell their homes. 14,000 new listings flooded the market in both March and April. But foreclosures and short sales are still the majority. 26% of the new listings in April were foreclosures. 27% short sales. And of all active listings, 39% are short sales. The highest in the past two years.”
If that doesn’t sound good news to you, I wouldn’t know what kind of optimism should be presented.
On the other hand, Denver, Colo. is in an upswing. Real estate prices are faring better despite the continued recession. According to The Associated Press, “The drop from February to March marked the sixth straight decline. Prices in 13 of the cities fell. Six metro areas, including Denver, recorded price gains. Metro Denver recorded a month-over-month gain of 0.6 percent, and the local index is up 4.1 percent for the year, double the 2 percent increase in the U.S. national index.”
This doesn’t come as a surprise after all. The Wall Street of the West has been hanging on the crisis and this maintains a general atmosphere of stable prices. Let’s get our hopes up, shall we?