Local Housing Market for 2006: PRICES UP, SALES DOWN

Home sales fall, but prices rise , from the Arizona Republic, reports that sales of existing Scottsdale homes dropped 40 percent in 2006 from the previous year while the median price edged up 13.3 percent to $595,000. Scottsdale captured 7.7 percent of the Valley's 67,035 home resales. The median price in south Scottsdale increased 14.3 percent last year to $320,000. It was up 13.3 percent in north Scottsdale to $682,000. Sales of existing condos fell 35 percent to 2,900 transactions, but prices climbed nearly 9 percent to $264,005. Paradise Valley's median price for existing homes increased 25 percent to $1.65 million. "The luxury market is as strong as ever," said Scottsdale Realtor Mark Tait of Realty Executives.

Area home sales down, prices up from the Arizona Republic SE Valley,
reports that in 2006, sales dropped 57 percent to 1,055 in Ahwatukee Foothills; 41 percent to 4,625 in Chandler; 44 percent to 3,730 in Gilbert; 42 percent to 7,600 in Mesa and 32 percent to 1,785 in Tempe. However, prices rose in 2006 anywhere from 8.5 percent in Ahwatukee Foothills to 14 percent in Tempe. Sales slowed because people seem to be settled in, content with their homes and not interested in moving, said Jay Butler. "There is no reason for them to pack up and move on", he added.

Existing home sales in December worst of 2006 from the Arizona Republic,
reports that metropolitan Phoenix's resale market finished the year with 67,035 homes sold, down from the boom years of 2004 and 2005, according to the latest numbers released by the Realty Studies Group at ASU. In 2005, there were 110,835 resales in the Valley. December 2006 sales were the worst monthly total for the entire year. Experts blame investors, many of whom fled the Valley, leaving a glut of housing behind. "They were the driving force", said Jay Butler, who heads Realty Studies. "They were the ones who would pay any price for a home." Single-family resale inventory stands at more than 42,000, nearly double that of 2005. Median prices rose nearly 50%, from $174,815 in 2004 to $260,000 in 2006. Many people are looking to this year with hopes of better times. Some agents say they are seeing buyers who stayed on the sidelines early in 2006 moving into the market. Agents say houses in good locations and at realistic prices will sell, and they are seeing a different type of buyer, the person who wants to stay put rather than the quick-money investor.