Phoenix metro home sales fall

The month of October saw the number of home sales in the Phoenix metro area check in at 6,903, a figure that is down 24.6 percent from last year at this point and the lowest total the month has seen in 15 years, according to MDA DataQuick.

Compared to September, home sales dropped 6.2 percent in October, which is a change to the seasonal housing market expectations in Phoenix, says the report, which noted the market annually averages 9,411 home sales in the month, 26.1 percent more than the current numbers.

The report mentioned that the monthly home sales may have been negatively impacted because “September was the last month that people who qualified for the federal home buyer tax credits could close escrow.” The closing deadline during that month could have nabbed more buyers, which may have provided a small surge in the September sales numbers and been part of the reason for the drop in October’s numbers.

First-time buyers and investors paying with cash tend to be moving towards purchasing many of the foreclosed properties in the area, according to MDA DataQuick.

Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions notes that foreclosed properties and short sales have made up many home sales this year because buyers looking for discounted properties also enjoyed the federal tax credit and record low mortgage rates.