Local homebuyers last month found bargains in foreclosed and other types of distressed property.

The median price among distressed homes was $35,000 less than among non-distressed properties — yet the former was 5 percent larger in square footage.

For all homes sold in Flagstaff in October — distressed and non-distressed — the median price was $300,000, about equal to last month but down $32,000 from the same month a year ago.

Steve Brighton, a Realtor with Century 21 Flagstaff Realty, said the deals on distressed homes boosted overall sales in October to 87, the highest number for the month since 2005, when 94 single-family homes were sold.

"That is what moving the market right now," Brighton said. "There are fire-sale prices out there right now."

The Flagstaff Realtor noted that foreclosed homes in Flagstaff don't face the same pitfalls as similar ones in the Valley, as there are fewer instances of vandalism and people squatting in the vacant homes. He said many empty homes in Phoenix are broken into so that thieves can steal air conditioners and other expensive appliances.

"There are more vandals and scavengers in the Valley," he said. "We just don't have the same kind of element here."

There are some hurdles to buying a distressed home, however.

Brighton said the process to buy one is significantly longer, some banks refuse to lend on such properties and it is not uncommon to have problems related to vandalism when buying a vacant home.

The state of Arizona, however, launched the Your Way Home AZ program this summer to help buyers pick up foreclosed homes. The program offers qualified buyers a "silent" second mortgage worth up to 22 percent of the price of the home. The second mortgage is waived if the buyer stays in the home for a set period, the minimum being five years.

Jim Snook, a Realtor with Dallas Real Estate, said a first time homebuyer credit from the Obama administration, which was scheduled to end on Nov. 30, helped to spur sales in October.

The federal tax credit has since been extended until next spring, with Congress adding a new section giving a $6,500 credit to homebuyers who have bought a house in the last five years.

Snook said homes priced below $300,000 are popular with young professionals and first-time homebuyers. The overall number of homes listed for sale is 1,000, according to Snook. That represents a year's supply, whereas most Realtors consider a three- to six-month supply a sign of healthy real estate market.

Joe Ferguson can be reached at jferguson@azdailysun.com or 556-2253.

Flagstaff Home Sales, October 2009*

Distressed Traditional All

Number sold 26 61 87

Median price $270K $305K $300K

Avg. square feet 2,150 2,040 2,104

Price per sq ft $144 $181 $173

Median Price*

2009 $300,000

2008 $332,000

2007 $386,500

2006 $387,500

2005 $349,000

2004 $264,000

2003 $237,500

*Single-family

— Source: Northern Arizona Association of Realtors. Figures are not certified as accurate and may not represent all sales.