Phoenix Home Sales Fastest in 2 Years

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Phoenix-area homes sold at the fastest pace for any month in two years during May as serious bargain hunters mixed with the more traditional springtime buyers. Subtle changes in the types of homes selling helped nudge the median sale price higher than the prior month for the first time since early 2007, a real estate information service reported.

Distressed sales continued to dominate the market, though at a slightly lower concentration. In May, 64.0% of the houses and condos that resold in the Phoenix region had been foreclosed on in the prior 12 months, down from 65% in April and 66.2 in March, according to MDA DataQuick. The San Diego firm tracks real estate trends nationally via public property records.

A total of 9,562 new and resale houses and condos closed escrow in the combined Maricopa-Pinal counties metropolitan area in May, up 6.1% from April and up 26.0% from a year ago. Total home sales have risen on a year-over-year basis for five consecutive months. However, sales of existing (not new) houses and condos combined have risen on a year-over-year basis for 11 consecutive months, and the May resale total of 8,587 was the highest for any month since June 2006.

Last month's year-over-year gains in house and condo resales offset a year-over-year decline in sales of newly constructed homes, which posted a 51.0% decline. The 975 new homes that builders sold last month marked the lowest new-home tally for a May in more than a decade.