Total home resales and house repo sales in Greater Phoenix in July slowed down, according to the Realty Studies Unit of the Arizona State University Polytechnic Morrison School of Management and Agribusiness.

In July, a total of 11,500 existing homes were sold in the Phoenix metro area, a decrease from the 11,820 units sold in June and a substantial increase from the 8,165 units sold in July 2008.

With 4,200 foreclosure units sold in July, foreclosure sales comprised 37 percent of total home resales. A total of 7,300 units were traditional sales. Comparing foreclosure sales to traditional sales, about 46 percent of recorded sales were foreclosure properties.

The percentage of foreclosure sales declined in July, compared to the 51 percent share in February 2009 when 4,295 foreclosure properties were sold. Analysts explain that the decline resulted from various federal and state efforts to reduce foreclosures. Foreclosure filings did not immediately result into repossessions as lenders delayed actions to allow homeowners to apply for loan modifications.

In July 2008, a total of 3,470 units or 42 percent of total sales were foreclosures. In July this year, the share of foreclosure sales differed in several areas of the Valley. In Goodyear, 42 percent of total sales were foreclosures while in Mesa, 36 percent were foreclosure sales. In Surprise, 38 percent of total sales were foreclosure properties.

ASU analysts said that although the share of foreclosure sales declined, foreclosure properties still drove total home sales.

Jay Butler, director of the ASU Realty Studies unit, explained that the major participants in the current housing market are still the same as during the housing boom. He added that investors looking for cheap properties to profit from are still the main drivers of sales.

Until the share of foreclosure sales decline to around 3 to 5 percent, according to Butler, a housing market recovery cannot be established. He added that the market has recovered if it is primarily driven by sales of owner-occupant homes.

Butler also said that job losses and reduced income due to furlough programs and reduced salaries have blocked many potential home buyers despite historically low mortgage rates and low-priced homes.

Meanwhile, the median sales price for foreclosure homes across the Phoenix metro area in July was higher than the median sales price for traditional sales because of the rising number of higher-priced properties being foreclosed and sold. The median sales price for foreclosures in July was $148,045 while the median price for traditional sales was $135,500.