Home prices expected to rise this month

The latest forecast calls for metro Phoenix home prices to climb in March.

The median sales price of a house in the region is expected to reach $114,000 this month, according to the Pending Price Index from the Arizona Regional Multiple Listing Service. The area's median price has been hovering around $110,000 for the past few months.

Home sales climbed 9 percent in February, giving prices a little boost.


Housing-data analyst Tom Ruff of the Information Market said he was "starting to see a bottom forming" for the market.

"Sales volumes are up year over year," he said. "New (foreclosure) notices are declining. Pending active (foreclosure) notices are declining. Higher prices are being paid by investors (for homes) at auction. Large hedge funds are taking a close look at our market and are prepared to hit the ground running."

ARMLS' forecast for home prices in April isn't as optimistic. The Realtor index is calling for metro Phoenix's median price to drop to $109,000. But ARMLS is always very open with a disclaimer that its index's prediction for home prices more than a month out is less accurate.

The index shows Phoenix's median home prices dropping to $95,000 in May. But few market watchers believe that will happen.

Commercial values

Homeowners weren't the only ones to receive disappointing reports on their properties' value from the Maricopa County assessor last week.

Apartment owners received the worst news. The median value of metro Phoenix apartments plummeted 33.5 percent. The median decline for single-family homes was 11 percent.

Vacant-land values fell 21.3 percent. Commercial properties, including office and industrial buildings and shopping centers, are down 15.1 percent.

But no property owner can expect a similar drop in their property taxes due to government-budget shortfalls.

Consumer aid

This week, government and non-profit groups are reaching out to consumers reminding them to watch out for scams.

Community Housing Resources of Arizona, as part of the Loan Modification Scam Alert campaign, has these tips:

- Contact your lender first and be persistent.

- Meet with a non-profit housing counselor.

- Avoid anyone who asks for fees up front, guarantees they can lower your payment or tells you to stop making your mortgage payment and pay them instead.

- Call these foreclosure hotlines for help: 888-995-4673 or 877-448-1211.

by Catherine Reagor The Arizona Republic Mar. 9, 2011 12:00 AM




Home prices expected to rise this month