Phoenix-area housing market shows signs of price stability

The Phoenix-area housing market is still stuck in the mud, but at least it's no longer sinking in quicksand. That was the reaction of two local housing analysts to the latest S&P/Case-Shiller report on home prices in the nation's 20 largest metro areas. The quarterly report, released Tuesday, said home prices double-dipped throughout much of the nation, reaching 2002 levels in March, based on the latest data available. The report listed the Valley among the worst-performing areas in terms of median home-price change during the period from March 2010 to March 2011. The median sale price on an existing home in metro Phoenix decreased 8.4 percent, second only to Minneapolis, which had a 10 percent decline, the report said. However, the Phoenix area was one of the best performers with regard to the most recent month-over-month price change measured by the Case-Shiller study, from February to March. The Valley's median home-resale price decreased 0.5 percent during that one-month period, making it the fifth-best metro area in terms of price retention. The Phoenix area's recent performance boost in home-value retention reflects that prices have essentially stabilized since January, local analysts said, following an artificial price increase and subsequent decline caused by the introduction and expiration of an $8,000 federal income-tax rebate for first-time homebuyers.

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