A new report shows home prices in the Phoenix area dropped by four percent in September compared to the same period in 2009, the second month in a row that prices slumped.
Thursday's report from the W. P. Carey School of Business at Arizona State University noted that the decline followed a period of relative stability and may show the start of a new downward trend.
Previous ASU-Repeat Sales Index reports revealed no change in home prices from July 2009 to July 2010 and small annual increases in June, May and April.
Professor Karl Guntermann says continuing economic weakness in the region, more foreclosures entering the market and a normal seasonal slowdown in sales are reasons to be pessimistic about prices.
The median price for all September sales was $124,900. They have varied from $122,000 to $135,000 since June 2009.