Pinal County resale housing market experiences drop in median price, resales in third quarter
MESA, Ariz. — While the resale single-family home market in Pinal County improved in second quarter 2006 to 1,180 homes from 1,110 homes in the 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 third quarter 2006, there were 16,100 sales in Maricopa County.
The phrase "drive 'till you can afford" has epitomized the Pinal housing market. For third quarter 2006, the median home price in Pinal County was $199,900, while it was $211,000 in the second quarter and $214,000 for a year ago. For the third quarter, the median home price in Pinal County was down from 80 percent of the median price in Maricopa County ($265,000) to 77 percent ($260,000).
Although the average 30-year mortgage for third quarter 2006 was 6.2 percent (5.5 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 be very comparable at $1,040 versus $1,350 for a year ago. It would be $1,335 for a home in Maricopa County.
Although Pinal County has a limited job base and commercial real estate sector, people were willing to drive increasingly longer distances to find affordable housing. However, declining affordability, higher gasoline prices and more congested highways could begin to limit the housing market in Pinal County.
"Because investors were drawn to the inexpensive housing in Pinal County, higher prices have limited the investor’s role in the local housing market," said Jay Butler, director of the Arizona Real Estate Center. "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 1,465 square feet, while it was 1,640 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 2004 | Fourth Quarter 2005 | ||
|---|---|---|---|---|
| Resales | Median Price | Resales | Median Price | |
| Apache Junction | 420 | $157,365 | 360 | $220,000 |
| Arizona City | 85 | 87,540 | 95 | 145,000 |
| Casa Grande | 200 | 128,000 | 210 | 175,000 |
| Coolidge | 35 | 65,000 | 35 | 90,250 |
| Eloy | 20 | 78,500 | 30 | 80,000 |
| Florence | 10 | 77,500 | 40 | 165,000 |
| Maricopa | 55 | 165,000 | 90 | 252,500 |
| Queen Creek | 185 | 151,000 | 345 | 243,900 |
| San Manuel | 30 | 66,800 | 25 | 83,500 |
| Tucson (Saddlebrook) | 60 | 295,000 | 55 | 389,950 |
| Pinal County | 1,135 | $145,000 | 1340 | $220,000 |