Phoenix-area home prices down 2 percent in August

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PHOENIX (AP) -- A new report shows home prices in the Phoenix area dropped by two percent in August compared to the same period in 2009.

Wednesday's report from the W. P. Carey School of Business at Arizona State University also measured a 30 percent drop in the values of commercial real estate for the same period.

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 the housing prices he is measuring are consistent with the small ups and downs associated with relatively stable prices. That relative stability has held on for more than a year.

But Guntermann warns that falling prices may mean there isn't enough demand to absorb new foreclosures and more declines could develop.

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