March 26, 2009

Pinal County resale housing prices continued to drop in fourth quarter 2008

Posted: March 26, 2009

In the fourth quarter 2008, of the 2,850 recorded resale transactions in Pinal County, 1,240 or 44 percent were foreclosures. For the third quarter, there were 1,515 foreclosures or 45 percent of the 3,355 recorded transactions.

Although recorded foreclosure activity slowed in the fourth quarter, it still represented a dominate segment such as a 50 percent share in the city of Maricopa and 55 percent share in Queen Creek. Maricopa County reported 22,100 recorded sales in the fourth quarter with foreclosure activity representing 45 percent of the recordings.

“In Pinal County, there is a wide range of homes available from the listed homes to foreclosures, but a key force has been the rapidly declining prices,” said Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus. “Homeowners and investors are buying with the expectation of strong appreciation in the future.”

For all transactions, the median price has steadily eroded from $220,000 in fourth quarter 2005 to $143,100 in second quarter 2008 to $119,000 for the current quarter. The foreclosure median price was $126,400, while the traditional transaction was $115,000.

The median home price in Pinal County was 75 percent of the median price in Maricopa County ($158,000). 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 $740 in second quarter 2008 to $615. It would be $815 for the median priced home in Maricopa County.

Although affordability has improved, concerns about energy costs, highway congestion and limited employment opportunities continue to strongly hamper any potential recovery of the housing market in Pinal County. In order to reduce inventories, new home builders are still aggressively pursuing buyers through incentives such as specially priced upgrades, free pools and gift cards.

The new home remains a strong competitive and attractive alternative to the resale home in Pinal County. New home sales were 1,400 homes with a median price of $159,285, in contrast to last year’s 3,140 sales and median price of $181,585.

The median square footage for a resale home in Pinal County was 1,790 square feet, while it was 1,690 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

 

Fourth Quarter 2008 -- SINGLE-FAMILY RESALE HOMES
Selected Cities Total Median Price Traditional Sales Median Price Foreclosed Sales Median Price
Apache Junction 315 $135,000 190 $129,450 125 $147,900
Arizona City 80 73,525 75 72,000 5 81,545
Casa Grande 180 119,900 100 115,000 80 135,150
Coolidge 90 91,425 60 85,000 30 93,785
Eloy 20 93,350 15 89,000 5 123,615
Florence 145 93,000 85 84,950 60 130,000
Maricopa 705 130,000 350 129,900 355 133,000
Queen Creek 1,255 116,000 695 115,000 560 121,440
San Manuel 15 82,000 10 83,000 5 81,000
Tucson
(SaddleBrooke)
30 271,100 25 275,000 5 267,195
             
Pinal County 2,850 $119,000 1,610 $115,000 1,240 $126,400

 


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