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Home prices expected to increase in 2012
Valley home prices are expected to increase about 9 percent during 2012, according to Clear Capital's Housing Data Index. That report says however the same cannot be said for home prices in Tucson. Director of Research Alex Villacorta says one reason Tucson prices are expected to continue to slide is the city's high rate of bank-owned homes,
ALEX VILLACORTA: The current rate of these distressed homes selling is actually surging now, whereas for the rest of the market, including Phoenix, we saw that in 2009, early part of 2009, so it's kind of a delayed effect for this market.
Villacorta says the number of bank-owned homes didn't hit its peak of 42 percent, until last quarter. He says during the low-point of the housing market, the percentage of bank-owned homes in Tucson was just 34 percent, whereas in Phoenix, it was 63 percent.
ALEX VILLACORTA: The fact that the market itself has lost 63 percent from the peak of the market to its lowest point indicates that even with that nine percent, the market will still be down upwards of 58 percent from the peak values.
Villacorta says that will still only put housing prices in Phoenix at about 2001 levels.
EDITOR'S NOTE (5/2/2012): An earlier version of this story misspelled Alex Villacorta's name.