Read on for a snapshot of what went on in the Phoenix area real estate market in March.

Enjoy!

What specifically happened last month/quarter in this market?

A total of 8,610 resale homes sold in Maricopa County in March, up slightly — 1.2% — from February and 61.8% higher than in March 2008.  Of the homes sold, 31% were foreclosures — down dramatically from foreclosure sales’ share in February (50%).  That’s actually lower than the share of total home sales that were foreclosures in March 2008 (39%).

“The slowdown [in foreclosure activity] can primarily be attributed to the various hiatus programs that lenders instituted, while awaiting the new loan modification and refinancing programs from the federal government,” according to Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus.

The median price of homes sold in Maricopa County in March was down 10.9% — after a 10.8% increase in February. The median price of $133,640 is 37.2% lower than the median price in March 2008.

Foreclosed homes represented a good deal for buyers in some Valley cities - particularly in Scottsdale and Tempe, where the median price of a foreclosed home was 21% and 28% less than the price of a traditionally-sold home, respectively.

Will the market conditions continue or will they change?

“Although mortgage interest rates and prices are attractively low, tighter underwriting standards, a weak economy and poor job market, including job losses and lost income through reduced pay and furlough programs, could place sever obstacles before the potential of the market. The impact of foreclosures on the market has been the primary concern of the last year and will continue to be in the coming months, especially with the end of many hiatus programs and the weak job market.”

“The fundamental mitigating factor could be the various existing and potential loan modification programs that will allow households to save their homes,” said Butler. “Thus, there is increasing hope that the housing troubles are beginning to ebb and the bottom, along with recovery, is in sight. However, many problems continue to exist that could hinder the timing of any recovery.”

What are the bright spots in the Greater Phoenix real estate market?

Median prices of traditionally-sold homes fell in most Valley cities, except for Chandler, where prices rose 3.2% to $203,815 and Sun City, where prices rose 3.0% to $140,015.  Still, prices were down across the board compared to March 2008 - 54.9% in Phoenix, 32.9% in Mesa, 28.7% in Scottsdale, 20% in Tempe, 18.4% in Gilbert, and 13.3% in Chandler.

The number of homes sold in March compared to February increased in most Valley cities except for Phoenix (where it fell 4.1%).  The number of homes sold rose 6.2% in Scottsdale, 2.2% in Gilbert, 3.2% in Mesa, 20% in Tempe, and 5.6% in Chandler.  Compared to March 2008, the number of homes sold was up everywhere except for Tempe — as much as 104.5% (Phoenix).

What’s happening in the Greater Phoenix condo market?

The number of townhouses and condos resold in Maricopa County fell 4.3% to 900 homes in March after rising 52.8% in February.  March sales were 16.9% higher than March 2008.  Sales were down in Phoenix (11.5%), Scottsdale (5.9%), Gilbert (25%), and Tempe (14.3%).  Sales were up in Chandler (20%) and Mesa (5.9%).

Median prices were down overall, falling 10.4% to $112,000 after rising 8.7% in February.  Prices fell in most Valley cities, except for Scottsdale, where they were up 6.5% to $186,450.  Prices fell 17% in Phoenix, 15.8% in Chandler, 19.1% in Gilbert, 8.8% in Mesa, and 3.6% in Tempe.