Foreclosures still playing a big role in Arizona resale home sales

Foreclosures still playing a big role in Arizona resale home sales.

Distressed homes helped overall sales of single family homes in November reach 8,335. This turns out to be a 28% increase from November of 2008, but down 16% from October 2009. Jay Butler, director of realty studies at ASU, "predicts another wave of foreclosures could hit after the first of the year because of the... weak job market and... that homeowners are having a tough time paying their mortgages."

About 61% of November resale single home sales involved foreclosures, with 36% resulting from new foreclosures and the remaining 25% resulting from previously foreclosed homes that were sold again. The median price of homes sold in foreclosure fell another 5% in November to $145,500. In November 2008, the median price of homes sold in foreclosure was at $155,100.

Some good news is the same monthly report from Arizona State University showed that the median price for traditional home sales rose 2%, up to $143,000. However this was 12% lower than in November 2008.

So, foreclosures still make up over 60% of monthly sales, are continuing to fall in price, and there seems to be more foreclosures in Arizona on the horizon.

You tell me if this is a good sign or not. Perhaps it depends on whether you need to sell, or need to buy?