Pinal County fourth quarter resale numbers dismal
MESA, Ariz. — Since hitting a high of 1,785 recorded sales in second quarter 2005, the Pinal County resale market has steadily declined to 720 transactions in the final quarter of 2006. This brought the 2006 total to 3,860 sales in comparison to 6,115 sales for 2005. Although the resale single home market in Pinal County improved in second quarter 2006 to 1,180 homes from1,110 homes in first quarter, it fell appreciably in the third quarter to 850 recorded sales. A year ago the resale market recorded 1,550 home transactions. For 2006, there were 67,035 sales recorded in Maricopa County.
Much like the sales activity, the median price has steadily eroded from $220,000 in fourth quarter 2005 to $191,500 for the fourth quarter 2006.
The median home price in Pinal County was down from 77 percent of the median price in Maricopa County ($260,000) in third quarter 2006 to 75 percent ($257,000) in the fourth quarter of 2006.
“As home prices in Pinal County drop relative to Maricopa County, the phrase ‘drive ‘till you can afford’ will again take on greater meaning in the Pinal housing market,” said Jay Q. Butler, director of Realty Studies at Arizona State University’s Polytechnic campus.
Although the average 30-year mortgage for fourth quarter 2006 was 5.9 percent (5.6 percent for a year ago), the declining home prices allowed the monthly mortgage payment for the median price, based on an 85 percent loan-to-value, to decrease from $1,075 to $965. It would be $1,300 for the median priced home in Maricopa County.
While Pinal County has a limited job base and commercial real estate sector, people were willing to drive increasingly longer distances to find affordable housing. Even though affordability has improved, higher gasoline prices and more congested highways have begun to limit the housing market in Pinal County.
“Because investors were also drawn to the inexpensive housing in Pinal County, higher prices have limited their role in the local housing market,” said Butler. “In order to reduce inventories, new home builders have been aggressively pursuing buyers through incentives such as specially priced upgrades, free pools and gift cards.”
The new home has become a strong competitive and attractive alternative to the resale home in Pinal County. Thus, there are many reasons for the slowing market and issues that will have to be overcome for any future recovery.
The median square footage for a resale home in Pinal County was 1,470 square feet, while it was 1,650 square feet in Maricopa County.
GREATER PHOENIX REAL ESTATE MARKET
Quarterly Resale Home Sales and Median Prices
Selected Cities in Pinal County
| City | First Quarter 2005 | First Quarter 2006 | ||
|---|---|---|---|---|
| Resales | Median Price | Resales | Median Price | |
| Apache Junction | 545 | $169,900 | 295 | $229,500 |
| Arizona City | 70 | 95,400 | 60 | 143,500 |
| Casa Grande | 245 | 132,750 | 220 | 175,000 |
| Coolidge | 30 | 65,000 | 50 | 114,000 |
| Eloy | 15 | 72,500 | 30 | 119,900 |
| Florence | 30 | 130,500 | 30 | 195,950 |
| Maricopa | 85 | 178,770 | 95 | 250,000 |
| Queen Creek | 270 | 173,250 | 230 | 239,860 |
| San Manuel | 35 | 59,000 | 25 | 80,000 |
| Tucson (Saddlebrook) | 75 | 339,750 | 45 | 462,500 |
| Pinal County | 1,435 | $162,000 | 1,110 | $211,500 |
| City | Second Quarter 2005 | Second Quarter 2006 | ||
|---|---|---|---|---|
| Resales | Median Price | Resales | Median Price | |
| Apache Junction | 520 | $193,500 | 305 | $224,450 |
| Arizona City | 100 | 105,900 | 65 | 139,900 |
| Casa Grande | 295 | 152,000 | 215 | 179,000 |
| Coolidge | 45 | 81,500 | 45 | 123,000 |
| Eloy | 40 | 71,460 | 40 | 89,000 |
| Florence | 40 | 126,500 | 25 | 170,000 |
| Maricopa | 120 | 222,500 | 95 | 256,500 |
| Queen Creek | 425 | 205,840 | 250 | 235,000 |
| San Manuel | 30 | 80,420 | 30 | 104,000 |
| Tucson (Saddlebrook) | 105 | 353,500 | 50 | 370,000 |
| Pinal County | 1,790 | $186,000 | 1,180 | $211,000 |
| City | Third Quarter 2005 | Third Quarter 2006 | ||
|---|---|---|---|---|
| Resales | Median Price | Resales | Median Price | |
| Apache Junction | 410 | $222,375 | 200 | $224,000 |
| Arizona City | 95 | 134,450 | 55 | 145,220 |
| Casa Grande | 310 | 165,900 | 170 | 175,000 |
| Coolidge | 45 | 83,200 | 30 | 107,500 |
| Eloy | 40 | 87,000 | 25 | 85,000 |
| Florence | 40 | 186,100 | 20 | 178,000 |
| Maricopa | 115 | 245,450 | 70 | 217,625 |
| Queen Creek | 385 | 235,000 | 180 | 220,000 |
| San Manuel | 15 | 75,355 | 35 | 98,000 |
| Tucson (Saddlebrook) | 55 | 364,900 | 35 | 350,000 |
| Pinal County | 1,550 | $214,000 | 850 | $199,900 |
| City | Fourth Quarter 2005 | Fourth Quarter 2006 | ||
|---|---|---|---|---|
| Resales | Median Price | Resales | Median Price | |
| Apache Junction | 360 | $220,900 | 165 | $216,500 |
| Arizona City | 95 | 145,000 | 35 | 139,900 |
| Casa Grande | 210 | 180,000 | 150 | 160,000 |
| Coolidge | 35 | 94,500 | 25 | 101,000 |
| Eloy | 30 | 80,000 | 25 | 106,000 |
| Florence | 40 | 165,000 | 15 | 169,000 |
| Maricopa | 90 | 252,000 | 55 | 220,000 |
| Queen Creek | 345 | 243,900 | 175 | 210,000 |
| San Manuel | 25 | 83,500 | 10 | 90,750 |
| Tucson (Saddlebrook) | 55 | 389,950 | 40 | 412,450 |
| Pinal County | 1,340 | $220,000 | 720 | $191,500 |