Lower prices lift resales

The ailing housing market showed a glimmer of life last month with existing home sales in all but one West Valley community posting year-over-year gains.

Valleywide, some 5,585 resale homes were sold in April - up from 4,855 a year ago, an Arizona State University report shows.

But experts say it's unclear whether the increase marks the beginning of recovery or just a blip in the market.

"One month does not make a trend," said Jay Butler, who heads up ASU's Realty Studies department. "You just sort of have to wait and see."

But for a time, there were signs of life in the West Valley housing market.

In comparison to a year ago, the Sun City resale market increased from 115 to 125 sales, but the median sales price decreased to $176,500 from $210,000. Resale activity in Sun City West increased from 40 to 50 sales, and the price decline was less severe than in Sun City - $222,000 to $205,000.

The townhouse/condominium market in Sun City decreased from 60 to 40 sales, and the median price dipped as well, $136,000 to $117,250. Sun City West's townhouse/condo market held its own with this year's 25 sales mirroring 2007. Prices, however, dropped from $164,700 to $138,750.

While home sales in Surprise were stronger than they have been in months, 370 this year compared to 235 in 2007, sellers took a hit in the pocketbook as the median price plunged from $246,060 to $200,250.

Sales in El Mirage increased from 55 to 85 and, like Surprise, sales prices plummeted, $199,000 to $140,170.

In Glendale, sales increased from 330 to 385, and prices dropped more than $50,000 per sale, $245,000 to $189,000.

The only West Valley area to see a year-over-year decline in sales was Peoria, 250 to 235. The median price moved from $257,915 to $224,000.

Year-to-date through April, sales totaled 16,975, compared with 19,045 last year, according to the study. Still, real estate agents say they're seeing more buyer activity as home prices continue to slide.

The Valley's median home price dropped to $210,000 in April, compared with $265,000 a year ago. That's the lowest median recorded since February 2005 at $200,000, the report shows.

Those lowered prices have opened up opportunities for first-time homebuyers and others who were priced out of the market during the boom.

Investors are also getting back into the game, and lenders are aggressively trying to offload foreclosure and bank-owned properties, Butler said.

The beleaguered economy continues to play a role, however, in some individuals' reluctance to buy, he said. People are worried about getting laid off, salary cutbacks, high gas prices and other costs, he said.

They're saying, "Now may be a great time to buy, but maybe we need to be a little bit more cautious," Butler said.

The market won't level off until the huge inventory of foreclosure and bank-owned properties is whittled away, said Mike Wasmann, president of the Arizona Association of Realtors. Those properties are driving down prices in some areas, making it tough for average home sellers to compete, Wasmann said.