Arizona home values continue to slide - East Valley Tribune: News

Arizona home values continue to slide

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Posted: Friday, February 26, 2010 5:51 pm | Updated: 3:44 am, Sat Oct 8, 2011.

The price of an average home in the state dropped another 1.5 percent from the third to fourth quarter of 2009.

Arizona home values continue to struggle to find a bottom.

New figures from the Federal Housing Finance Agency show the price of an average home in the state dropped another 1.5 percent from the third to fourth quarter of 2009. That brings the year-over-year difference to 12.7 percent.

It also means that a home that sold for $200,000 when housing prices in Arizona hit their peak in early 2006 now is worth just $125,200.

Looking at the agency's index another way, the average Arizona home is now worth just about what it was in early 2004.

The figures show that the housing market in Arizona continues to remain far more volatile than the rest of the nation, where the decline in the last quarter was just 1.1 percent, with a 1.2 percent year-over-year drop.

Only two states did worse on an annual basis: Hawaii, where home values dropped by 13.1 percent, and Nevada where the slide was nearly 17.3 percent.

The agency's figures are significant because it computes its index based on numbers from Fannie Mae and Freddie Mac, which have the largest database of conventional mortgages going back 34 years.

That allows the agency to track prices on the same home being sold and resold. By contrast, some other indexes are based solely on whatever happens to be sold during that period.

Within Arizona there are some differences.

Annual price declines were the sharpest in the Phoenix metro area which consists of Maricopa and Pinal counties. Home values declined by 2.5 percent between the third and fourth quarters of 2009 - and more than 16 percent in the last year.

In fact, of the 300 largest metro areas in the country, only three had sharper annual declines: Bend, Ore., Las Vegas, Nev. and Reno, Nev.

Pima County saw a sharper quarter-over-quarter drop than the Phoenix area - almost 3.5 percent - but the annual decline is just 11.3 percent.

In other areas where the agency breaks out data, the annual declines were nearly 12.6 percent in Coconino County, 14.8 percent in Mohave County, 12.7 percent in Yavapai County and 11.7 percent in Yuma County.

The data for individual counties is actually more comprehensive than for the state. That is because FHFA includes not only the resale of the same homes it has tracked but also refinancings of those houses.

Nationwide, more than a third of the states posted year-over-year increases in home values, led by Oklahoma at 3.5 percent and Virginia with a nearly 3.1 percent change.

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