The reason relates to slower population growth, as well as a remaining large stock of foreclosures, according to an Arizona Republic report last week.
Phoenix ranked fourth nationally in foreclosures, according to a report out this month by Realty Trac. The 124,720 homes under foreclosure in Phoenix was down 7% from 2009, but was up 28% from 2008. The unemployment rate in Arizona went from 9.3% in November 2009, to 9.47% by November 2010.
The article noted the areaâ€™s housing boom included a 50% jump in home prices between 2004 and 2007. The median price in the Valley is now $114,000, whereas it was $155,000 in 2003, according to Arizona State Universityâ€™s realty-studies group.
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Experts at the Urban Land Institute Arizona conference last week announced they expect housing wonâ€™t recover to pre-boom levels until 2015, one year later than their prediction in 2010 and three years later than their prediction in 2009.