Arizona tops in home sales decli

Arizona tops in home sales decline

Christopher Kline
azcentral.com
Aug. 15, 2006 07:55 AM

Spring home sales in Arizona fell 27 percent from 2005, according to the National Association of Realtors.

In a quarterly report, the trade association said the state’s decline was the largest in the country during the April through June period, followed by other formerly hot markets like Florida and California.

A total of 28 states and the District of Columbia recorded a fall in their spring 2006 sales, causing the national market to drop 7 percent.

“When you look at states with high housing costs or that have experienced a prolonged period of rapid price gains, you typically see slower home sales,” NAR chief economist David Lereah said in a press release.

“By contrast, states with moderately priced areas that have experienced healthy job creation are seeing sales gains – the economic backdrop remains favorable for the housing market, which is helping home sales to level out.”

The biggest boost was in Alaska, where home sales rose 48.6 percent from the second quarter of 2005.

In Arkansas the resale pace rose 17.9 percent from a year earlier, while Texas experienced the third strongest gain, up 11.3 percent.

Homes sales set a record in 2005 before falling in 2006.

The Associated Press contributed to this article.