New data on Pinal county, Arizona from ASU. See link below to full press release.

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.


For Immediate Release
Tuesday, October 31, 2006

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

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

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 295 152,000 295 179,000
Coolidge 45 81,500 45 123,000
Eloy 40 71,460 40 89,000
Florence 40 126,500 40 170,000
Maricopa 120 222,500 120 256,500
Queen Creek 425 205,840 425 235,000
San Manuel 30 80,420 30 104,000
Tucson (Saddlebrook) 105 353,500 105 370,000
Pinal County 1,790 $186,000 1,180 $211,000

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

Fourth Quarter 2004 Fourth Quarter 2005
Resales Median Price Resales Median Price

Apache Junction 420 $157,365 360 $220,900
Arizona City 85 87,540 95 145,000
Casa Grande 200 128,000 210 180,000
Coolidge 35 65,000 35 94,500
Eloy 20 78,500 30 80,000
Florence 10 77,500 40 165,000
Maricopa 55 165,000 90 252,000
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 1,340 $220,000

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Arizona Real Estate Center
The Arizona Real Estate Center is associated with the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus. The center collects and analyzes data concerning real estate in the greater Phoenix metropolitan area. The center is a comprehensive and objective source of real estate information for private, public and governmental agencies.

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