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Pinal County resale housing market first quarter median price up slightly


May 03, 2007

MESA, Ariz. — From a high of 1,785 recorded sales in second quarter 2005, the Pinal County resale market has steadily declined to 840 transactions in the first quarter of 2007, compared to 1,110 sales for first quarter 2006 and 1,435 in 2005. Although year-to-date sales are down, activity has followed the traditional path of increasing through the year from 210 sales in January to 345 sales in March. For first quarter 2007, there were 14,185 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, but was up from the $191,500 for the fourth quarter 2006.

The median home price in Pinal County was 78 percent of the median price in Maricopa County ($262,570), while it was 75 percent ($257,000) in the last quarter of 2006. Although the average 30-year mortgage was the same as a year ago at 5.8 percent, the declining home prices allowed the monthly mortgage payment for the median price, based on an 85 percent loan-to-value, to decrease from $1,055 to $1,020. It is $1,310 for the median priced home in Maricopa County.

During the first quarter 2007, the median square footage for a resale home in Pinal County was 1,565 square feet, while it was 1,700 square feet 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.

“But now, higher gasoline prices and more congested highways have begun to limit the housing market in Pinal County,” said Jay Butler, director of Realty Studies at Arizona State University’s Polytechnic campus.

Because investors were also drawn to the inexpensive housing in Pinal County, higher prices have limited their role in the local housing market significantly.

“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,” said Butler. “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 15 117,000
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 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