Homes Near...South Scottsdale Are Holding Their Value...

Huge supply of houses keeping prices down, from the Arizona Republic, reports that most Valley neighborhoods saw home values peak in May or June, and that housing prices dipped in more than half of all zip codes in Metro Phoenix in July and August, according to a new study by the Arizona Republic. Homes near central Phoenix, Tempe and South Scottsdale are holding their value or gaining, but in the outlying areas, prices have dipped. "Most people who bought on the fringes last year are likely going to have to hold on for at least three years or sell for a loss," said real estate agent Margie O'Campo de Castillo of Phoenix-based Arizona Dream Realty. The Valley's price dips are a result of supply and demand. There are 45,000 homes on the market across the Valley right now, compared with fewer than 20,000 last October. Housing analysts say when the Valley's supply of homes for sale drops below 35,000, the market will have rebounded or be close to it. The median used-home price fell to $256,900 last month after peaking in June at $267,000. "The Valley's housing market is returning to normal. After last year's inflated home price run-ups, that means many areas will see prices drop," said Jay Butler, director of the Arizona Real Estate Center at ASU. "Some areas of the Valley will feel the correction more than others," he added.