Pinal County resale housing market experiences drop in median price, competition from new homes
MESA, Ariz. — Recorded sales for resale homes tend to be strongest in the second quarter and this traditional trend continued in Pinal County with 970 resale homes recorded sold, which is better than the 840 recorded sold in the first quarter. However, continued concerns have pushed the market lower from a high of 1,785 recorded sales in second quarter 2005 and 1,180 sales for a year ago. On a monthly basis, sales activity was very stable with 310 sales in April and 330 sales in both May and June. For comparison, in second quarter 2007, there were 14,990 sales recorded in Maricopa County.
Much like the sales activity, the median price has steadily eroded from $220,000 in fourth quarter 2005 to $204,600 in first quarter 2007 to $200,000 for the second quarter. It was $211,000 for a year ago. The median home price in Pinal County was 76 percent of the median price in Maricopa County ($263,500), while it was 80 percent for a year ago. The combination of lower interest rates, from last year’s 6.2 percent to 5.9 percent, and home prices has driven the monthly mortgage payment for the median price, based on an 85 percent loan-to-value, down from $1,100 to $1,010. It would be $1,330 for the median priced home in Maricopa County. Thus, the phrase “drive ‘till you can afford” has taken on greater meaning in the Pinal housing market.
“Although affordability has improved, higher gasoline prices and more congested highways continue to impact the housing market in Pinal County,” said Jay Butler, director for Realty Studies in the Morrison School of Management and Agribusiness. “While investors were drawn to the inexpensive housing in Pinal County in 2005, today’s higher prices have limited their role in the local housing market.”
In order to reduce inventories, new home builders have been aggressively pursuing buyers through incentives such as specially priced up-grades, free pools and gift cards. The new home has become a strong competitive and attractive alternative to the resale home in Pinal County. New home sales were 2,425 homes with a median price of $201,880. Thus, there are many reasons for the slowing market and issues that will have to be overcome for any future recovery.
GREATER PHOENIX REAL ESTATE MARKET
Quarterly Resale Home Sales and Median Prices
Selected Cities in Pinal County
| City | First Quarter 2006 | First Quarter 2007 | ||
|---|---|---|---|---|
| Resales | Median Price | Resales | Median Price | |
| Apache Junction | 295 | $229,500 | 210 | $235,000 |
| Arizona City | 60 | 143,500 | 40 | 136,000 |
| Casa Grande | 220 | 175,000 | 95 | 180,000 |
| Coolidge | 50 | 114,000 | 35 | 125,900 |
| Eloy | 30 | 119,900 | 15 | 118,450 |
| Florence | 30 | 195,950 | 30 | 157,270 |
| Maricopa | 95 | 250,000 | 90 | 246,500 |
| Queen Creek | 230 | 239,860 | 230 | 207,170 |
| San Manuel | 25 | 80,000 | 15 | 100,000 |
| Tucson (Saddlebrook) | 45 | 462,500 | 50 | 395,000 |
| Pinal County | 1,110 | $211,500 | 840 | $204,600 |
| City | Second Quarter 2006 | Second Quarter 2007 | ||
|---|---|---|---|---|
| Resales | Median Price | Resales | Median Price | |
| Apache Junction | 305 | $224,450 | 210 | $217,500 |
| Arizona City | 65 | 139,900 | 45 | 137,450 |
| Casa Grande | 220 | 179,000 | 105 | 177,120 |
| Coolidge | 45 | 123,500 | 35 | 108,500 |
| Eloy | 40 | 89,000 | 30 | 130,000 |
| Florence | 25 | 170,000 | 45 | 170,000 |
| Maricopa | 95 | 256,500 | 115 | 219,500 |
| Queen Creek | 250 | 235,000 | 240 | 198,000 |
| San Manuel | 30 | 104,000 | 20 | 100,000 |
| Tucson (Saddlebrook) | 50 | 370,000 | 80 | 382,500 |
| Pinal County | 1,180 | $211,000 | 970 | $200,000 |
| 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 |