PHOENIX – For the first time in three years, Phoenix-area housing prices have increased from year-to-year.

Preliminary April date shows the first year-over-year price increase in the local housing market, according to a new report from the WP Carey School of Business at ASU.

From April 2009 to April 2010, the valley saw a 1-percent increase in home prices.

That’s coming on the heels of a 13-percent decline from December 2008 to December 2009, a 9 percent drop from January 2009 to January 2010, a 7 percent decline February 2009 to February 2010, and a 3 percent drop in home prices from March 2009 to March 2010.

The 1-percent increase is the first increase in 3 years. The average price for single-family homes was $127,000 in February — it’s projected to reach $135,000 in April.

“Prices may continue to increase slowly for the next few months, but price stability, rather than increases, is likely for the rest of the year,” says Professor Karl Guntermann explains.

1. Las Vegas, Nev.
Las Vegas-Paradise-Pahrump, Nev., Combined Statistical Area
Change: 24 percentage points
Homes with Price Reductions, 1/1/2009: 54%
Homes with Price Reductions, 9/11/2009: 30%
Moody’s Economy.com forecasts that five years from now, home prices in Las Vegas will have risen by 3.53%

2. Phoenix, Ariz.
Phoenix Lake-Cedar Ridge, CA Metropolitan Statistical Area
Change: 18 percentage points
Homes with Price Reductions, 1/1/2009: 58%
Homes with Price Reductions, 9/11/2009: 40%
Moody’s Economy.com forecasts that five years from now, home prices in Phoenix will have risen by 7.44%

3. San Diego, Calif.
San Diego-Carlsbad-San Marcos, Calif., Metropolitan Statistical Area
Change: 15 percentage points
Homes with Price Reductions, 1/1/2009: 45%
Homes with Price Reductions, 9/11/2009: 30%
Moody’s Economy.com forecasts that five years from now, home prices in San Diego will have risen by 25.41%

4. Miami, Fla.
Miami-Fort Lauderdale-Miami Beach, Fla. Metropolitan Statistical Area
Change : 12 percentage points
Homes with Price Reductions, 1/1/2009: 43%
Homes with Price Reductions, 9/11/2009: 31%
Moody’s Economy.com forecasts that five years from now, home prices in Miami will have dropped by -2.93%

5. Los Angeles, Calif.
Los Angeles-Long Beach-Riverside, Calif., Combined Statistical Area
Change: 10 percentage points
Homes with Price Reductions, 1/1/2009: 45%
Homes with Price Reductions, 9/11/2009: 35%
Moody’s Economy.com forecasts that five years from now, home prices in Los Angeles will have risen by 12.36%

As part of the Housing and Economic Recovery Act (HERA), passed by Congress in July 2008, $3.92 billion was provided to communities hardest hit by residential foreclosures and mortgage delinquencies. The city of Phoenix received $39,478,000 in Neighborhood Stabilization Program (NSP) funds to help families purchase foreclosed homes at a discount, which in turn helps stabilize neighborhoods. NSP Homeownership Assistance funds are for down payment and closing cost assistance for eligible homebuyers.

Homeownership Assistance Description

The NSP Homeownership Assistance Program provides a $15,000 loan for down payment and closing cost assistance for buyers of foreclosed homes anywhere in the city of Phoenix. The full amount of the loan is paid back to the city when the homebuyer sells the home or refinances. The program targets foreclosed single family homes, townhouses and condominiums (condo conversions are not eligible) that meet HUD Housing Quality Standards (HQS). The Homeownership Assistance program is for down payment and closing cost assistance only and cannot be used to fund rehabilitation activities.

Eligible HomebuyerEligible families can earn up to 120 percent of area median income (AMI), which is based on family size. In determining a family’s income, all wages and salaries of all family members over age 18 are considered as well as other sources of income.

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