by Peter Corbett – Feb. 19, 2009 08:52 AM
The Arizona Republic
It is unclear how long it might take for federal stimulus money to boost the local real-estate market.
What is clear, on the heels of President Barack Obama’s stay in Paradise Valley, is that Scottsdale is battling a big surge in foreclosures, an unhealthy dip in prices and tighter lending that is limiting sales of higher-priced properties.
In January, more than a third of 255 existing-home sales in Scottsdale were foreclosures, according to the latest monthly report from Arizona State University Realty Studies. That’s an increase in foreclosures of 63 percent from a year ago.
Scottsdale’s median price fell $170,000, or 31 percent, to $380,000. That’s one of the biggest declines in recent years and resets the median at levels not seen since 2004.
Foreclosures are keeping the total sales of 255 existing homes nearly on track with a year ago. The decline was just 5.6 percent.
In Scottsdale, 35 percent of existing-home sales are foreclosures; the foreclosure rate for Maricopa County is 52 percent.
In the past six months, Scottsdale has recorded 520 foreclosures of homes and 260 condominiums.
It’s a trend that is not likely to end soon.
“The local housing market will continue to be vexed well into the next year by eroding consumer confidence,” said Jay Butler, ASU Realty Studies director.
Consumers are reacting to the weak economy, job losses and tighter mortgage-underwriting guidelines, he added.
Scottsdale’s existing condo market in January saw sales fall 36 percent and prices dip 27 percent to $195,000 from a year ago.
Survey: Valley ranks high
Even as the market struggles, it is encouraging that people still want to move to Scottsdale and that eventually will help eat away at the inventory of houses and condos.
A recent national survey by the Pew Research Center reveals that Phoenix and its suburbs are among the top seven metropolitan areas where Americans would like to live.
One-third of 2,260 survey respondents said they would want to live in Phoenix. That is narrowly behind Orlando, Tampa and San Francisco.
Denver, San Diego and Seattle finished in the first three spots in the survey involving 30 cities. Cincinnati, Cleveland and Detroit were at the bottom.
It’s revealing that nearly half of those surveyed, 46 percent, said they would like to live somewhere else.
Thirty percent pined for small-town life, 25 percent favored suburbs, 23 percent liked urban life and 21 percent thought rural was right for them.
A hot-weather place was better than cold by 2 to 1.
All that seems to bode well for places like Scottsdale and other Sun Belt cities.
Republicans are particularly drawn to the Phoenix area and Democrats favor San Francisco.
