Sale of existing homes in the Valley hit 55,370 last year, according to the Arizona State University's Real Estate Center. That represents a 2% drop off from the prior year, when a record was set with 56,365 resales.

"The housing market should continue to slow this year, but not by much, particularly with recent dips in interest rates," says Jay Butler, director of the Real Estate Center.

While sales slowed during the year, the price paid by buyers went up. The median price for an existing home increased by more than 7% to $128,900. In 1999, the average home sold for $120,000.

The rising prices will be offset somewhat by the decline in interest rates, which dropped to 6.75% this week--the lowest level in more than two years.

In Phoenix, resales fell by almost 4%, while the median price rose 7.5% to $110,375.

Scottsdale's existing home market saw slightly more sales in 2000, and the median home price grew by 11% to hit $250,000.

Resales were down 3% in Mesa, and the median home price rose by 6.5% to $119,000.

Chandler resales fell by less than 2%, and the median price grew by nearly 8% to $135,500.

In Glendale, resales dropped 8% during the year, and its median home price climbed by 7% to hit $118,000.

Tempe's resale market dropped nearly 8%, while the median price rose 7% to $141,000.

Paradise Valley, home to some of the most expensive homes in the Valley, saw resales drop 7%, but the average sale price jumped 20%.

Housing analysts predict that home buying, new and existing, in the Valley should slow less than 10% during 2001, as long as the area's strong job creation continues.

Even if the drop comes, the combined new home sales and existing home sales in the Valley, at approximately 100,000 sales annually, puts Phoenix among the top 10 cities in the nation for residential sales.

Instant Insights /

Existing Homes Sales Off Slightly in 2000 and Expected to Drop More

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