A new report shows home prices in the Phoenix area dropped by 8 percent in December from the same period a year ago.
Wednesday’s preliminary report from the W. P. Carey School of Business at Arizona State University is the latest in a string of dismal reports on area home prices, which have now fallen for five straight months.
Professor Karl Guntermann says prices will probably continue to fall for the next several months but he’s fairly certain the worst is over.
The median price for homes in December was $114,000, down from $122,300 the month before. The median price had remained between $122,000 and $135,000 since 2009.
Foreclosures are driving the declines. ASU professor Jay Butler says 4 percent of Maricopa County homes were foreclosed on last year.