Foreclosures are claiming a smaller share of the Phoenix sales market.

The ratio has dropped for three straight months, according to a new report from the W. P. Carey School of Business at Arizona State University.

In May, foreclosures represented about 35 percent of the existing-home transactions in the Phoenix-area housing market. From January and February, the rate was 43 percent.

“Although the number of foreclosure pre-filings has been declining for the last several months, this trend is not unusual in the early part of any year with a typical pickup over the next few months,” said Jay Butler, associate professor of real estate.

“While any decline is positive,” Butler continued, “fundamental uncertainty remains as to whether foreclosures will cease to be the dominant force in the market.”

Butler explained several factors that could strongly influence the market in the future, such as ongoing discussions about stricter underwriting guidelines, inflationary concerns, changes in the secondary market, and possible lowering of the Federal Housing Administration mortgage limit. He also emphasizes the still-struggling job market and economy.

More than 3,500 foreclosures occurred in the Phoenix market in May, which is still up from approximately 3,200 last May. When foreclosures are added to the resales of previously foreclosed properties, they total 61 percent of the recorded activity in May.

The W. P. Carey School is one of the top-ranked and largest business schools in the United States.