ose - p<strong>in</strong>k, friendship; red, passionate love; white, purity and worth<strong>in</strong>ess; yellow, forgive and forget sage - health <strong>ASU</strong> <strong>in</strong> <strong>the</strong> <strong>News</strong> tulip - red, love; p<strong>in</strong>k, car<strong>in</strong>g; yellow, hopeless love; striped, beautiful eyes or smile z<strong>in</strong>nia - mixed colors, thoughts of absent friends; white, goodness; yellow, daily remembrance; scarlet, constancy Reach <strong>the</strong> reporter at marybeth .faller@arizonarepublic.com or 6<strong>02</strong>-444-8167. 96
<strong>ASU</strong> <strong>in</strong> <strong>the</strong> <strong>News</strong> URL: L<strong>in</strong>k <strong>to</strong> orig<strong>in</strong>al text Source: azcentral.com Title: <strong>ASU</strong> prof comments home sales data Nielsen NetRat<strong>in</strong>gs: 1989619 Favorability: Positive Full Text: Home prices <strong>in</strong> several Valley cities are fall<strong>in</strong>g at rates not seen s<strong>in</strong>ce 1990, wip<strong>in</strong>g out equity and mak<strong>in</strong>g it difficult for those try<strong>in</strong>g <strong>to</strong> ref<strong>in</strong>ance. Throughout <strong>the</strong> Valley, prices on repeat home sales fell 4.6 percent overall from Oc<strong>to</strong>ber 20<strong>06</strong> through Oc<strong>to</strong>ber 2007. That compares with an overall decl<strong>in</strong>e of 3.8 percent for September 20<strong>06</strong> <strong>to</strong> September 2007. Unlike o<strong>the</strong>r <strong>in</strong>dices that me<strong>asu</strong>re median home prices, <strong>the</strong> <strong>Arizona</strong> <strong>State</strong> <strong>University</strong>-Repeat Sales Index is based on repeat sales. The data is <strong>the</strong> most reliable way <strong>to</strong> estimate price changes <strong>in</strong> a hous<strong>in</strong>g market because repeat sales compare <strong>the</strong> prices of a house aga<strong>in</strong>st itself, ra<strong>the</strong>r than homes of vary<strong>in</strong>g quality, said Karl. L. Guntermann, real-estate professor at W. P. Carey School of Bus<strong>in</strong>ess. Every city and region dropped <strong>in</strong><strong>to</strong> <strong>the</strong> negative category <strong>in</strong> terms of rates of change <strong>in</strong> house prices, demonstrat<strong>in</strong>g <strong>the</strong> severity of <strong>the</strong> Valley’s hous<strong>in</strong>g problem. The best performers were Phoenix and <strong>the</strong> nor<strong>the</strong>ast Valley area of Carefree, Cave Creek, Founta<strong>in</strong> Hills, Paradise Valley and Scottsdale. Both regions fell at about 1 percent from Oc<strong>to</strong>ber 20<strong>06</strong> <strong>to</strong> 0c<strong>to</strong>ber 2007. In <strong>the</strong> same period, hous<strong>in</strong>g prices dropped 11.1 percent <strong>in</strong> <strong>the</strong> Southwest region, a group<strong>in</strong>g that <strong>in</strong>cludes Avondale, Buckeye, Goodyear and Litchfield Park; 9 percent <strong>in</strong> <strong>the</strong> Northwest, <strong>in</strong> <strong>the</strong> cities El Mirage, Glendale, Peoria, Sun City, Sun City West, Surprise and Young<strong>to</strong>wn; and 8 percent <strong>in</strong> <strong>the</strong> Sou<strong>the</strong>ast, which stretches from Tempe through Mesa, Gilbert and Chandler <strong>to</strong> Apache Junction, Higley, Queen Creek and Sun Lakes. The real-estate market hit a peak for appreciation <strong>in</strong> September 2005. The 4.6 percent decl<strong>in</strong>e is <strong>the</strong> biggest drop <strong>in</strong> hous<strong>in</strong>g prices over a 12-month period s<strong>in</strong>ce <strong>the</strong> February 1989 <strong>to</strong> February 1990 period, when home prices dropped 5.01 percent, dur<strong>in</strong>g <strong>the</strong> last real-estate recession. Guntermann said he cannot predict when <strong>the</strong> decl<strong>in</strong>e will s<strong>to</strong>p or when hous<strong>in</strong>g prices will rega<strong>in</strong> <strong>the</strong>ir former strength. "It’s not just a matter of <strong>to</strong>o many houses on <strong>the</strong> market," he said. "It gets <strong>in</strong><strong>to</strong> <strong>the</strong> sub-prime-mortgage problem, affordability, foreclosures, and that has a big impact on people’s ability <strong>to</strong> ref<strong>in</strong>ance if <strong>the</strong>ir house prices go down 6 <strong>to</strong> 8 percent. They may not have any equity, and that may create cascad<strong>in</strong>g problems." 97
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