November 07, 2008

Pinal County resale housing market sees third-quarter foreclosures rise

Posted: November 07, 2008

The 3,355 recorded resale transactions in third quarter 2008 included 1,515 foreclosures or 45 percent of the resale activity. For the second quarter, there were 845 foreclosures of the 2,100 recorded transactions or 40 percent.

Although recorded foreclosure activity slowed in the second quarter, it still represented a dominant segment, making up a 50 percent share in Maricopa and 46 percent share in Queen Creek. Maricopa County reported 23,950 recorded sales in the third quarter with foreclosure activity representing 44 percent of the recordings.

In Pinal County, there is a wide range of homes available from new homes to foreclosures, but the common has been the rapidly declining prices, according to Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness at Arizona State University Polytechnic.

“Homeowners and investors are buying with the expectation of strong appreciation in the future,” Butler said.

For all transactions, the median price has steadily eroded from $220,000 in fourth quarter 2005 to $143,100 in second quarter 2008, to $129,200 for the current quarter. The foreclosure median price was $135,240, while the traditional transaction was $129,200. The median home price in Pinal County was 71 percent of the median price in Maricopa County ($175,000). Although the thirty-year mortgage remained stable at 6.3 percent, a lower home price drove the monthly mortgage payment for the median price, based on an 85 percent loan-to-value, to decrease from $1,005 to $680. It would be $920 for the median priced home in Maricopa County.

“Although affordability has improved, higher gasoline prices, more congested highways and limited employment opportunities continue to strongly hamper any potential recovery of the housing market in Pinal County,” said Butler.

In order to reduce inventories, new home builders are still 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 2,115 homes with a median price of $161,090, in contrast to last year’s 2,645 sales and median price of $196,180.

The median square footage for a resale home in Pinal County was 1,835 square feet, while it was 1,710 square feet in Maricopa County.

First Quarter 2008 -- SINGLE-FAMILY RESALE HOMES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price

Apache Junction

245

$183,465

150

$202,960

95

$162,020

Arizona City

40

114,500

40

114,500

 

 

Casa Grande

170

146,000

100

150,000

70

143,375

Coolidge

55

119,950

30

119,950

25

118,725

Eloy

20

95,939

15

96,500

5

90,000

Florence

90

141,660

50

171,915

40

140,000

Maricopa

310

170,000

135

164,000

175

174,250

Queen Creek

660

153,000

295

141,750

365

162,880

San Manuel

25

100,000

25

100,000

 

 

Tucson (SaddleBrooke)

40

340,000

35

340,000

5

312,940

 

 

 

 

 

 

 

Pinal County

1,680

$156,160

895

$151,000

785

$161,500

 

Second Quarter 2008 -- SINGLE-FAMILY RESALE HOMES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price

Apache Junction

315

$163,090

200

$185,000

115

$149,680

Arizona City

50

95,000

45

95,500

5

93,800

Casa Grande

120

140,625

70

149,000

50

132,310

Coolidge

70

111,565

35

110,000

35

111,930

Eloy

20

84,840

10

84,000

10

84,840

Florence

135

135,500

75

136,250

60

130,350

Maricopa

310

157,000

160

150,900

140

167,900

Queen Creek

995

136,050

575

133,285

420

145,000

San Manuel

10

104,000

5

114,000

5

72,250

Tucson (SaddleBrooke)

65

367,500

65

367,000

 

 

 

 

 

 

 

 

 

Pinal County

2,100

$143,100

1,255

$141,000

845

$145,000

 

Third Quarter 2008 -- SINGLE-FAMILY RESALE HOMES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price

Apache Junction

345

$150,600

195

$151,890

150

$150,500

Arizona City

60

85,000

55

85,000

5

73,525

Casa Grande

215

130,000

115

133,450

100

125,740

Coolidge

125

99,335

45

110,000

80

97,900

Eloy

30

71,690

15

56,000

15

98,600

Florence

180

98,580

110

91,500

70

118,780

Maricopa

770

136,170

385

130,000

385

152,440

Queen Creek

1,525

125,000

830

123,000

695

130,000

San Manuel

10

90,375

10

90,375

 

 

Tucson (SaddleBrooke)

50

295,000

50

295,000

 

 

 

 

 

 

 

 

 

Pinal County

3,355

$129,200

1,840

$125,000

1,515

$135,240

 

 


Realty Studies is associated with the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus. Realty Studies collects and analyzes data concerning real estate in the greater Phoenix metropolitan area. Realty Studies is a comprehensive and objective source of real estate information for private, public and governmental agencies. Its director, Dr. Jay Q. Butler, may be reached at (480) 727-1300 or e-mail him at Jay.Butler@asu.edu. To subscribe to RSS feed for Realty Studies news, visit http://www.poly.asu.edu/realty/rss.html.

Jay Butler, Jay.Butler@asu.edu
(480) 727-1300

Chris Lambrakis, lambrakis@asu.edu
(480) 727-1173
Public Affairs at ASU Polytechnic campus