Foreclosures power a homebuying spree in West

Heavy discounting on foreclosed homes and low interest rates continued to power a homebuying spree across the West in September, sending sales of existing homes in the region soaring at an annual pace reminiscent of the days of the housing boom, according to two reports Friday.

About 100,000 existing homes and condos were sold last month in the 13-state region. Without adjusting for seasonal factors, sales were up nearly 43 percent from the same month last year but declined 9.6 percent versus August's total, according to the National Association of Realtors.

In Salt Lake County, sales of existing single-family homes and condominiums increased 13 percent in September this year compared with September 2007, according to the Salt Lake Board of Realtors. September's increase was the first month since January 2007 that there was a year-over-year hike in sales, the board said in a news release Friday.

Despite the year over year increase, sales in Salt Lake County declined slightly — 1 percent — in September, compared with August.

The board said that the median price of all housing properties sold in Salt Lake County in September was down 2 percent to $220,000, compared with the median price of $225,000 in September 2007.

The peak median price of $243,000 occurred in June of last year. Since then, the median sales price in Salt Lake County has fallen 9.5 percent.

With sharply discounted foreclosures making up a larger slice of overall sales, the median price in the West plunged almost 19 percent from a year ago to $253,600 — slightly higher than what the median was five years ago, the association said.

Nationally, existing home sales rose 7.8 percent from September 2007 but declined 9.6 percent from August last year on an unadjusted basis. The U.S. median price tumbled 9 percent to $191,600.

In the West, where foreclosures have been particularly pronounced, the region led the nation in terms of sales pace and median home price declines.

Las Vegas, Los Angeles, Phoenix and San Diego posted the sharpest spike in home sales last month, according to the Associated Press-Re/Max Monthly Housing Report, released Friday. The data includes all home sales recorded in the metro area by all local agents, regardless of company affiliation.

Los Angeles, San Francisco, San Diego and Phoenix were among the top five metros to post the steepest median price decline in the United States, with Detroit second overall behind Los Angeles. The year-over-year surge in sales might appear like the makings of a turnaround, but housing experts are quick to downplay that scenario.

For one, they note the easy comparison to September 2007's sales, which were dismal in the wake of the credit crunch that started just months before, drying up lending for all but traditional conforming loans at $417,000 or below.

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