Phoenix Home Sales Show Rare Gain

PHOENIX (DQNews) --The Phoenix area logged a rare increase in home sales last month over August as first-time buyers and investors continued to dominate the market. Foreclosure resales waned again, which helped the median sale price continue a string of modest month-to-month gains that began in May, a real estate information service reported.

Last month 56.5% of the houses and condos that resold had been foreclosed on in the prior 12 months, down from 57.2% in August and the lowest since such foreclosure resales were 54.7% last October. Foreclosure resales hit a high of 66.2% this March, according to MDA DataQuick. The San Diego firm tracks real estate trends nationally via public property records.

A total of 8,886 new and resale houses and condos closed escrow in the combined Maricopa-Pinal counties metropolitan area in September, up 3.6% from August and up 12.9% from a year ago. Total home sales have increased on a year-over-year basis for nine consecutive months. However, last month's 12.9% annual sales gain was the lowest for any month since February.

Last month's sales were the highest for a September since September 2006, when 11,213 homes sold.

The unusual rise in sales last month from August was seen elsewhere in the West. Since 2000, Phoenix sales have only increased from August to September one other time - last year - and the average change between those two months is a 6.5% decline.

Last month's sales strength was likely the result of three factors: Short sales became more popular this summer and they take longer to close, meaning some deals that normally would have closed in August instead closed in September. Sales were also driven higher by the allure of historically low mortgage rates and the chance to take advantage of the soon-to-expire federal tax credit for first-time buyers.