I don’t know what to make of this, “… while all home sales prices are up 29.3% over the last year, new home sales prices are up just 1.5%, non-distressed property prices are actually down 1.1%…”
That last bit isn’t ringing true to me. I’ll have to look into it.
June’s home sales in Greater Phoenix were 4.7% below May’s total and down almost 16% when compared with this time last year. The reduction was entirely due to a large decline in sales of distressed units. Single family home prices changed only slightly between May and June of this year. However, the data confirms a very significant recovery in prices compared to a year ago. Over the last year, the median price of a home sold was up over 29% from $116,000 to $150,000. On a per square foot basis, prices were up over 21% from a year ago. The lowest point in overall prices now appears to have been in September, 2011. However, the underlying data shows that there is much more to the story than just the headlines. For example, while all home sales prices are up 29.3% over the last year, new home sales prices are up just 1.5%, non-distressed property prices are actually down 1.1%, Bank Owned Sales prices were up 26.9%, GSE REO sales prices were up 36.1% and prices of properties subject to trustee sales to third parties were up 31.9%. Thus, it appears to be a shift in the supply/demand characteristics of distressed properties that have caused the overall increase in prices. It has yet to affect the non-distressed market.