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Around the Valley

Most communities continued to experience falling prices for homes in 2008. Some regions, such as the West Valley and portions of the East Valley and Pinal County, saw dramatic increases in sales activity as buyers returned to purchase foreclosed homes at drastically reduced prices.

West Valley

In communities including Glendale, Buckeye, El Mirage, Peoria, Goodyear and Surprise, home values generally fell by 20 percent to 40 percent. Some saw their first double- digit declines after a year of more modest losses. Sales activity was up as buyers moved in to purchase foreclosed properties and builders slashed prices for new homes.

East Valley

Median home prices declined in Tempe, Mesa, Gilbert, Chandler and Queen Creek, but not as sharply as in the West Valley. Prices fell 11 percent to 24 percent in the four municipalities, with Queen Creek experiencing the largest decrease and Tempe prices declining the least. Sales activity in the more heavily affected ZIP codes increased from the previous year, driven largely by foreclosure sales.

Scottsdale/Paradise Valley

The median home price fell 19 percent in Scottsdale and less than 1 percent in Paradise Valley in 2008. Sales activity decreased in both communities compared with the previous year, and sales of foreclosed homes were relatively low, 5 percent in Paradise Valley and up to 22 percent in Scottsdale ZIP codes.

Pinal County

The communities of Pinal County varied significantly with regard to home prices and sales. Apache Junction saw its first double-digit decline in prices since the downturn began, and sales activity slowed. Maricopa, Florence and the San Tan region near Queen Creek all saw relatively large price declines for the second year in a row, but sales activity held steady or increased from 2007. Foreclosure sales generally were 20 percent to 50 percent of sales.

A Glendale home that sold less than two years ago for $259,000 sold again three months ago for $113,000. A Phoenix home that fetched $190,000 two years ago just went for $45,900. A Queen Creek home sold for nearly $275,000 when it was built in 2005. Last month’s price: $78,000.  If there’s an upside to the Valley’s growing foreclosure problem, it’s the number of home bargains now available.  more…