Report: Foreclosures Still Driving Home Sales

PHOENIX (AP) - Foreclosed homes are still king in the Phoenix-area real estate market.

A monthly sales analysis by a professor at the W. P. Carey School of Business at Arizona State University shows that 65 percent of all home resales in February were either foreclosures or resales of properties that previously had been foreclosures.

Professor Jay Butler's monthly sales analysis shows that 7,925 homes were sold in February, up from 7,725 in January. The median home price was also up slightly. The report does not track new home sales.

Butler says the sluggish economy is still weighing on home sales and the ability of homeowners to make their payments. He says some homeowners in areas that have seen steep declines in home values may decide to walk away from their homes, putting further pressure on the struggling real estate market.