Arizona home prices continue to slide - East Valley Tribune: Business

Arizona home prices continue to slide

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Posted: Wednesday, November 24, 2010 10:01 am | Updated: 2:59 pm, Wed Nov 24, 2010.

Home prices in Arizona slid another 2.5 percent in the last quarter, faster than the national average.

New figures Wednesday from the Federal Housing Finance Authority also show that prices of homes sold in Arizona are down more than 9.3 percent from the same period a year earlier. That compares with a 3.2 percent drop nationwide.

Only two states had a more rapid year-over-year declines: Idaho and Georgia.

The inability to turn around home the trend means that a home which was valued five years ago at $200,000 is now worth close to 36 percent less, or $128,560. That compares with an 8.4 percent decline over the same period nationally.

In general, prices appear to be dropping more rapidly in rural areas of the state.

For the Phoenix metro area, for example, the price of an average home dropped and just 7.9 percent since the third quarter of 2009. That encompasses both Maricopa and Pinal counties.

The figure for Pima County was nearly identical.

But prices dropped nearly 10.2 percent year-over-year in Coconino County, with a 10.5 percent drop in Mohave County. Yavapai County home prices are down 10.1 percent.

Only Yuma County bucked that trend, with a 6.9 percent decrease in the last year.

The figures in the report are considered a good indicator of housing prices because it is based on a repeat-sales index. It measures the prices on about 6 million homes whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac and where there are records of the prior sale going back to 1975.

FHFA also computes an even broader index on a local level, factoring in repeat refinancings of the same property to show overall changes in home values.

At the other end of the scale, home prices in West Virginia rose 4.4 percent in the last year and are up nearly 9.3 percent over five years. Other states showing annual price gains include Alaska, North Dakota, Louisiana, Maine, Texas, Massachusetts, South Dakota, Kentucky and Indiana.

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