Phoenix Median Home Price Falling Fast
Median home price fell 4.4% in July
The Phoenix area median home price fell to $195,000 in July, representing a 4.4% month-over-month decline. The average home price paid dropped 2.7% in July. These statistics represent both the shift in purchase activity at sub-$200,000 as well as a general decline in home values in the Phoenix area. July experienced a drop in Pending and Sold activity consistent with seasonal patterns while inventory moved up slightly.
Overall, trends could be perceived as consistent with a market in transition that is slowly repairing itself. Opportunities abound for Buyers right now.
Housing Market Bill Signed Into Law
President Bush and the Congress passed an important housing bill this week. The bill provides for mortgage relief, greater regulatory oversight and modernization of FHA, assistance to Freddie Mac and Fannie Mae, and first-time homebuyer tax credits. The bill does effectively end down payment assistance for FHA loans which has been an important enabler in our local market. Overall, the bill’s effect may be to calm market anxieties somewhat and boost buyer incentive and confidence.
Highlights
- The median home price declined to $195,000 in July from $203,954 the month before, representing a 4.4% drop.
- Decline in Pending and Sold activity in July is consistent with seasonal patterns..
- Housing bill signed into law this week. Will provide first time homebuyer tax benefits but end Down Payment Assistance options.
- Buyer opportunities abound as foreclosures and aggressively priced homes present strong value propositions.
| Single family | July 2008 | Change | July 2007 | Change vs. July 2007 |
| Available Inventory | 54,198 | +1.9% | 55,591 | -2.5% |
| Under Contract AWC* | ||||
| Sold | 4,575 | -8.7% | 4,683 | -2.3% |
| Avg. Days on Market | 125 days | -2.3% | 105 | +19.0% |
| Median Sold Price | $195,000 | -4.4% | $255,950 | -23.8% |
