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By admin, June 14, 2010 7:14 pm

The Mesa real estate market, found in the midst of one of the hardest-hit parts of the country, showed some promising trends in the month of May. According to a June 9, 2010 article from the Phoenix Business Journal, “New research from Arizona State University shows foreclosures as a share of overall Valley homes sales are declining. The latest ASU Realty Studies report from the W.P. Carey School of Business says the number of foreclosures dropped from 40 percent of the market’s recorded activity in March to 33 percent in May.” The piece went on to caution that “Despite the decline, there is no guarantee the trend will continue. ‘Defaults and late payments are still at record levels and could be a precursor of additional foreclosures.’ said Jay Butler, associate professor of real estate and author of the report. ‘The main issues center on whether income will increase enough for people to hold on to their current homes, and whether they can maintain payments on their homes.’”

The prevalence of foreclosures amongst Mesa homes for sale declined, as more home sales in the Phoenix area were of the traditional variety. According to a June 10, 2010 article from KGUN 9 News, “A new report shows foreclosed homes made up a smaller share of existing home sales in the Phoenix area last month. The Arizona State University Realty studies report shows foreclosed homes dropped from 40% of all sales in March to 33% in May.” The piece, also released by the Associated Press, continued to state that “Butler says some homeowners may choose to walk away because their home’s value has sunk and because they owe too much on their mortgages. Foreclosures and sales of previously foreclosed-on properties still made up 60% of sales in May.”

Despite a low level of sales overall, some recent tracking indicators had positive news for Mesa real estate, according to a May 22, 2010 article from the Arizona Republic. The piece, composed by Catherine Reagor, noted that “April figures for existing-home sales in metro Phoenix reveal several promising shifts for those searching for signs of a housing-market recovery.”