Local housing markets see glimmers of hope despite weak national numbers

The rate of foreclosures in Phoenix, Arizona, has dropped four months in a row, according to the W.P. Carey School of Business at Arizona State University.

In June, foreclosures accounted for 31 percent of existing-home transactions in the market, down from 43 percent in January. And there were a reported 3,300 single-family home foreclosures in June, dropping from 3,500 reported in May. While these numbers are encouraging, Jay Butler, professor emeritus at W.P. Carey School of Business, warns that any recovery will take time.

"Even though the number of foreclosure prefilings has been declining for the last year, foreclosures continue to be the dominant force in the market," Butler said. "Recovery is moving at a glacial pace."

The Los Angeles Times reported that Southern California's Southland housing market experienced an 11.6 percent increase in sales, and the median home price increased 1.8 percent from May to June, according to a study by DataQuick.

DataQuick President John Walsh said the housing market shows improvement but consumers are still unsure.

"The market mix indicates that a lot of potential buyers are either stuck, for lack of equity, or spooked and are waiting things out," Walsh said. 

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