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In June 2008, a total of 7,845 resale homes recorded sold in Maricopa County.

This sales activity includes 3,275 recorded foreclosed home transactions and 4,565 traditional market transactions. Foreclosed transactions represent home owners losing their property to successful individual bidders or the lender of record.

In May 2008, the split was 2,895 foreclosed homes and 4,315 traditional transactions, while June 2007 was 575 and 4,570 recorded sales, respectively. Historically, June is a strong month and the 4,565 traditional recorded sales represent the best month of 2008. The 2008 year-to-date total is 21,060 traditional sales and 14,590 foreclosures.

The declining prices have fueled renewed investor interest and potential owner-occupants, especially in the lower income ranges. For the traditional market the median price was $218,000, while the foreclosed properties had a median price of $169,890.

For a year ago, the median prices were $265,000 and $225,900, respectively. Investment interest is being driven by the anticipation that home prices will rise again in the next few years. The lower median price is being impacted by several forces including the large number of vacant homes, especially in certain neighborhoods. Further, capital is available for lower-priced housing, but lacking in the higher priced housing market.

Because the greater Phoenix area is so large, the median price can range significantly. In North Scottsdale, the median price for a foreclosed property was $502,275, while the traditional market was $570,200. In South Scottsdale the splits were $219,360 and $252,000, respectively. In Maryvale, the median price for traditional transactions were $111,000 and foreclosures were $125,990, while in Union Hills it was $263,150 and $205,460.

While lower prices can greatly improve affordability, they can adversely impact many owners and potential sellers that are watching their limited equity erode, as prices decline to and even below existing debt level. Thus, lower prices affect the ability and desire to continue owning the home and even overall confidence in the economy, which puts additional strain on the local housing market.

For the last year, the housing market has been confronting issues derived from the hyper-market of previous years such as the subprime meltdown and overly ambitious investors. Unfortunately, there is increasing data, such as job losses and layoffs, that the economy is now weakening and will add further stress for the housing markets.

Though there has been little attempt to help investors, many programs have been started to help people save their homeownership.

Most of the attempts have dealt with adjustable interest rate mortgage being reset to higher interest rates. The basic premise is that the home occupant has the income but not enough to satisfy the new mortgage payment. In a weak economy, many households now will not have the needed income to save their homes, even with a new mortgage payment plan.

Further, with increased energy and food costs, there is even additional strain on the household budget. Thus, the potential economic downturn and inflationary pressures will define how much further the housing market will worsen and when recovery will begin.

Within the 855 total recorded sales, the townhouse-condominium market had 230 foreclosed properties. A year ago the split was 1,215 for traditional sales and 40 for foreclosed sales. In June 2008, the median price for foreclosed properties was $133,215, while the traditional market stood at $164,950. For May 2008, the splits were $135,600 and $169,900, respectively.

The median square footage for a single-family home recorded sold as foreclosed was 1,665 and 1,865 square feet for a market transaction home. In Paradise Valley, the median square footage was 3,210 square feet at a median price of $2,167,000. For a year ago, the foreclosed market was at 1,790 square feet and the traditional market stood at 1,725 square feet. In the townhouse/condominium sector, the median square footage for a foreclosed unit was 1,075 square feet (1,050 square feet for year ago), while the traditional market unit was 1,120 square feet (1,060 square feet for a year ago).

Below are the median prices recorded of single-family resale homes and condominium/townhomes for the selected cities in Maricopa County for June 2007, May 2008 and June 2008.

June 2007 SINGLE-FAMILY RESALE HOMES June 2007 CONDOMINIUM/TOWNHOUSE RESALES
Total Median Traditional Median Foreclosed Median Total Median Traditional Median Foreclosed Median
Price Sales Price Sales Price Price Sales Price Sales Price
Selected Cities

Phoenix 1,375 $225,000 1,230 $230,000 145 $191,475 465 $166,900 450 $168,100 15 $136,900
Scottsdale 425 605,000 405 623,500 20 320,335 270 235,000 260 238,000 10 198,000
Chandler 390 287,250 350 289,500 40 269,270 35 175,950 35 175,950
Gilbert 360 293,000 325 295,000 35 247,050 20 185,000 20 187,450
Mesa 545 235,000 490 236,500 55 200,295 105 150,000 100 150,000 5 167,400
Tempe 135 289,000 130 289,500 5 287,100 85 179,500 85 179,500
Avondale 100 236,500 75 245,000 25 221,600
El Mirage 60 194,900 45 194,950 15 193,950
Glendale 345 243,000 310 243,480 35 230,125 65 144,000 60 144,500 5 115,225
Goodyear 90 284,500 75 299,000 15 257,625
Peoria 240 254,450 210 256,450 30 236,700 20 182,000 20 188,000
Sun City 115 184,500 110 185,000 5 170,000 45 128,000 45 128,000
Sun City West 45 217,500 45 217,500 10 175,500 10 175,500
Surprise 280 229,000 220 232,500 60 220,950

Maricopa County 5,145 260,000 4,570 265,000 575 225,900 1,215 179,900 1,175 180,000 40 158,700

May 2008 SINGLE-FAMILY RESALE HOMES May 2008 CONDOMINIUM/TOWNHOUSE RESALES
Total Median Traditional Median Foreclosed Median Total Median Traditional Median Foreclosed Median
Price Sales Price Sales Price Price Sales Price Sales Price
Selected Cities

Phoenix 1,930 $169,090 940 $196,000 990 $150,380 305 $154,665 215 $165,000 90 $135,500
Scottsdale 455 470,000 365 484,500 90 399,715 215 235,000 175 247,500 40 173,680
Chandler 425 245,000 315 255,000 110 211,525 30 145,800 20 144,750 10 145,800
Gilbert 455 236,000 305 242,500 150 225,000 20 180,000 10 180,000 10 182,665
Mesa 725 189,950 455 203,250 270 171,540 85 137,500 65 142,000 20 108,660
Tempe 150 257,000 130 262,000 20 196,640 50 158,275 45 163,275 5 130,500
Avondale 240 164,840 120 163,320 120 166,150
El Mirage 130 130,500 55 135,000 75 126,075
Glendale 490 182,790 270 196,000 220 170,000 35 111,200 10 113,500 25 107,995
Goodyear 205 196,000 115 215,000 90 180,200
Peoria 345 225,000 220 235,000 125 204,745 20 109,500 15 124,500 5 93,500
Sun City 95 161,500 85 160,000 10 203,130 50 115,000 50 115,000
Sun City West 85 $210,000 80 $200,000 5 $220,000 20 $137,500 20 $137,500
Surprise 440 186,155 250 193,875 190 181,240

Maricopa County 7,210 $201,000 4,315 $224,000 2,895 $174,930 900 $161,000 680 $169,900 220 $135,600

June 2008 SINGLE-FAMILY RESALE HOMES June 2008 CONDOMINIUM/TOWNHOUSE RESALES
Total Median Traditional Median Foreclosed Median Total Median Traditional Median Foreclosed Median
Price Sales Price Sales Price Price Sales Price Sales Price
Selected Cities

Phoenix 2,230 $158,100 1,070 $180,000 1,160 $144,890 310 $147,000 205 $154,990 105 $135,495
Scottsdale 440 501,135 355 525,000 85 360,000 200 221,950 170 228,900 30 184,020
Chandler 495 248,875 360 269,900 135 195,400 25 143,535 10 195,000 15 134,485
Gilbert 500 246,265 345 256,000 155 227,900 10 185,000 10 190,000
Mesa 745 179,065 450 189,900 295 160,625 95 125,000 70 130,000 25 101,915
Tempe 150 240,000 115 245,500 35 201,595 40 154,000 30 157,500 10 141,360
Avondale 285 161,000 130 158,445 155 165,970
El Mirage 145 133,100 60 132,000 85 136,255
Glendale 535 182,955 280 201,000 255 164,500 40 113,100 20 125,900 20 106,250
Goodyear 190 186,280 110 190,000 80 179,475
Peoria 350 218,440 205 222,250 145 217,500 15 154,960 10 167,450 5 134,260
Sun City 110 165,000 95 160,000 15 229,075 30 107,500 30 109,000
Sun City West 60 195,000 60 195,000 15 131,000 15 131,000
Surprise 505 175,000 285 175,000 220 175,000

Maricopa County 7,840 $194,761 4,565 $218,000 3,275 $169,890 855 $151,757 625 $164,950 230 $133,215

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.

File photo

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In May 2008 a total of 5,740 resale homes recorded as sold. This sales activity includes 1,475 recorded foreclosed home transactions and 4,265 traditional market transactions, while a year ago it was 305 and 4,915 recorded sales, respectively.

Foreclosed transactions represent home owners losing their property to successful individual bidders or the lender of record. In April 2008 the spilt was 1,825 foreclosed homes and 3,760 traditional transactions.

Historically May is a strong month, and the 4,265 recorded sales represent the best month of 2008 and the best since 4,570 homes were recorded sold in June 2007. The 2008 year-to-date total is 16,280 traditional sales and 6,435 foreclosures.

For the last year the housing market has been confronting issues derived from the hyper-market of previous years such as the subprime meltdown and overly ambitious investors. Unfortunately, there is increasing data, such as job losses and layoffs, that the economy is now weakening and will add further stress for the housing markets.

While there has been little attempt to help investors, many programs have been started to help people save their homeownership. Most of the attempts have dealt with a reset of higher interest rates, with the basic premise being that the home occupant has the income but not enough to satisfy the new mortgage payment.

“However, in a weak economy, many households now will not have the needed income to save their homes, even with a new mortgage payment plan,” said Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus. “With increased energy and food costs, there is even additional strain on the household budget, thus, the potential economic downturn and inflationary pressures will define how much further the housing market will worsen and when recovery will begin.”

The declining prices have fueled renewed investor interest and potential owner-occupants, especially in the lower income ranges. For the traditional market, the median price was $223,500, while the foreclosed properties had a median price of $179,465. For a year ago, the median prices were $265,000 and $217,225, respectively.

“Investment interest is being driven by the anticipation that home prices will rise again in the next few years,” Butler said. “The lower median price is being impacted by several forces, including the large number of vacant homes, especially in certain neighborhoods. Further, capital is available for lower-priced housing, but lacking in the higher priced housing market.”

Because the Greater Phoenix area is so large, the median price can range significantly. In North Scottsdale, the median price for a foreclosed property was $475,000, while the traditional market was $575,000. In South Scottsdale the splits were $253,515 and $260,000, respectively. In Maryvale, traditional transactions were $147,900 and foreclosures were $142,785, while in Union Hills it was $280,000 and $231,415, respectively.

Lower prices can greatly improve affordability, but they can adversely impact many owners and potential sellers who are watching their limited equity erode, as prices decline to and even below existing debt level. Thus, lower prices affect the ability and desire to continue owning the home and even overall confidence in the economy, which puts additional strain on the local housing market.

Within the 810 total recorded sales, the townhouse-condominium market had 130 foreclosed properties. A year ago the split was 1,225 for traditional sales and 20 for foreclosed sales.

In May 2008 the median price for foreclosed properties was $136,000, while the traditional market stood at $169,900. For April 2008, the respective splits were $148,000 and $171,500.
The median square footage for a single-family home recorded sold as foreclosed was 1,695 and 1,840 square feet for a traditional market transaction home.

In Paradise Valley, the median square foot home was 3,210 at a median price of $2,000,000. For a year ago, the foreclosed market was at 1,735 square feet and the traditional market stood at 1,695 square feet. In the townhouse/condominium sector, the median square footage for a foreclosed unit was 1,025 square feet (1,155 square feet a year ago), while the traditional market was 1,195 square feet (1,090 square feet for a year ago).

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Realty Studies is associated with the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus.

File photo courtesy of MLS.

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For the first time since July 2005, the Phoenix-area resale housing market has posted year-over-year improvement.

April had 5,585 recorded sales in contrast to 4,855 sales for a year ago and 4,335 sales in March 2008. Given the improvement, the basic question is whether this is the first sign of the much anticipated recovery or merely a blip in a continuing weak market, said Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus.

“Historically, April is not a strong month and is usually well behind March, which could have been impacted by the Easter holiday this year,” he said.

The total March and April 2007 activity was 10,245 sales, while 2008 was comparable at 9,920 sales. The 2008 year-to-date total is 16,975 sales, while it was 19,045 sales in 2007 year to date.

The median home price declined from $220,000 to $210,000, in contrast to last year’s $265,000. This is the lowest median price since February 2005 at $200,000.

“One of the driving forces in increased activity has been rapidly declining prices that have fueled renewed investor interest and potential owner-occupants, especially in the lower income ranges,” said Butler. “Investment interest is being driven by the anticipation that home prices will rise again in the next few years. The lower median price is being impacted by several factors, including the large number of vacant homes, especially in certain neighborhoods,” he said.

In addition, capital is available for lower-priced housing, but lacking in the higher priced housing market. The recent rise in the FHA limit from $271,050 to $346,250 will help some move-up market activity. However, the non-conforming limit remains at $417,000, which will be of little assistance to the higher priced market.

Last year, 41 percent of the resale homes sold for more than $300,000, while it was 24 percent for April 2008. Influenced by foreclosed properties, homes selling for under $200,000 have increased from last year’s 16 percent to a current 44 percent of the local resale housing market. The most evident impact of lower prices is improved affordability.

Even though mortgage interest rates increased from last year’s 5.8 to 5.9 percent, the much lower sales price allowed the monthly payment to decline from $1,320 to $1,060. While improving affordability based on lower home prices can greatly benefit buyers, it adversely impacts many owners and potential sellers whom are watching their limited equity erode, as prices decline to and even below existing debt level. The lower prices affect the ability and desire to continue owning the home and even overall confidence in the economy, which puts additional strain on the local housing market.

For the last year, the housing market has been confronting issues derived from the hyper-market of previous years such as the subprime meltdown and overly ambitious investors. Unfortunately, there is increasing data, such as job losses and layoffs that the economy is now weakening and will add further stress for the housing markets, according to Butler.

“In a weak economy, many households will not have the needed income to save their homes. Further, with increased energy and food costs, there is additional strain on the household budget,” he said. “Thus, the potential economic downturn and inflationary pressures will define how much further the housing market will worsen and when recovery will begin.”

Changes in median prices can vary tremendously throughout the Valley. For the western suburbs the median price has fallen 24.1 percent from last year’s $235,000 to $178,431, while East Mesa moved down 8.7 percent ($235,000 to $214,500). Since the Greater Phoenix area is so large, the median price can range significantly from $563,000 ($605,000 in March) in North Scottsdale to $146,455 ($148,800 in March) in the Maryvale area of the city of Phoenix.

With 835 recorded sales, the townhouse/condominium market improved from the 685 sales of March, but was well below last year’s 1,305 transactions. The median home price decreased from $174,500 in January 2008 to remain for the third straight month at $165,000, while it was $184,950 for a year ago. The underlying reasons for the fairly stable price can run the gamut from the return of the seasonal visitor, international investors, and new households satisfying their initial housing needs.

The median square footage for a single-family home recorded sold in April 2008 was 1,770 square feet, which is larger than the 1,700 square feet for a year ago. The larger size demonstrates that buyers are able to take advantage of lower prices to upgrade their housing. In the townhouse/condominium sector, the median square footage was 1,190 square feet, which is larger than the 1,085 square feet reported a year ago.

In contrast to April 2007, recorded sales in the city of Phoenix increased from 1,280 sales to 1,435 sales, but the median sales price decreased to $178,000 from $225,000 for a year ago. Since Phoenix is a geographically large city, the median prices can range significantly such as $146,455 ($148,800 in March) in the Maryvale area to $280,000 ($263,500 in March) in the Union Hills area. The townhouse/condominium sector decreased from 415 to 250 sales, and the median price decreased from $165,000 to $150,000.

The Scottsdale resale home market declined from 400 to 330 recorded sales, with the median sales price also decreasing from last year’s $557,500 to $506,500. The median resale home price is $563,000 ($605,000 in March) in North Scottsdale and $266,500 ($260,000 in February) in South Scottsdale. The townhouse/condominium sector in Scottsdale decreased from 300 to 205 sales, while the median sales price decreased from last year’s $264,450 to $262,500.

The Mesa resale housing market improved from 530 to 590 sales, while the median price fell from $234,510 to $196,250 ($200,000 in March). The townhouse/condominium sector also fell from 185 to 100 sales, while the median home price decreased from $158,000 to $140,000.

Glendale increased from 330 to 385 sales and the median sales price decreased from $245,000 to $189,000 ($209,750 in March). The townhouse/condominium sector decreased from 60 to 25 sales, while the median sales price decreased from $136,250 to $115,630.

· For the city of Peoria, the resale market declined from 250 to 235 sales, while the median price moved from $257,915 to $224,000 ($225,000 in March). The townhouse/condominium sector decreased from 30 to 15 sales, and the median price went from $200,000 to $140,500.

In comparison to a year ago, the Sun City resale market increased from 115 to 125 sales, while the median sales price decreased to $176,500 from $210,000. Resale activity in Sun City West increased from 50 to 40 sales and the median sales price decreased from $222,000 to $205,000. The townhouse/condominium market in Sun City decreased from 60 to 40 recorded sales, while the median home price decreased from $136,000 to $117,250. In Sun City West, activity stayed at 25 sales, with the median sales price decreasing from $164,700 to $138,750.

The resale market in Gilbert increased from 330 to 360 sales, and the median sales price decreased from $295,195 to $240,065 ($245,000 in March). The townhouse/condominium market stayed at 15 sales, with the median sales price decreasing from $207,500 to $166,930.

For the city of Chandler, the resale market declined from 375 to 340 recorded sales, while the median sales price went from $297,950 to $236,780 ($234,000 in March). The townhouse/condominium market declined from 60 to 40 sales, and the median sales price dropped from $179,975 to $155,000.

§ The resale market in Tempe decreased from 120 to 100 sales, with the median sales price decreasing from $285,000 to $248,500 ($237,000 in March). The townhouse/condominium sector fell from 75 to 40 sales, and the median sales price decreased from $184,200 to $172,475.

The highest median sales price was in Paradise Valley at $1,375,000, with a median square foot house of 3,540 square feet.

· In the West Valley, the following communities represent 14 percent of the resale market.

o Avondale increased from 90 to 190 sales, with the median price moving from $233,980 to $176,000 ($185,130 in March).

o El Mirage increased from 55 to 85 sales, while the median home price went from $199,000 to $140,170 ($146,900 in March).

o Goodyear went from 95 to 165 sales, while the median price decreased from $265,000 to $219,900 ($220,000 in March).

o Surprise improved 235 to 370 sales, but the median price moved from $246,060 to $200,250 ($205,000 in March).

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 area.

File photo

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Since 625 resale homes were recorded sold in third quarter 2007, the Pinal County resale market has consistently posted improvement, with 1,145 sales in the fourth quarter and 1,680 sales for the first quarter of 2008, well above last year’s 840 sales.

Housing activity was good throughout the quarter as shown by the monthly activity — 465 recorded sales in January, 600 sales in February and 620 sales in March.

This activity is fairly close to the record 1,785 sales in second quarter 2005. The Queen Creek area accounted for 39 percent of the resale activity followed by 18 percent in the Maricopa City area and 15 percent in the Apache Junction area.

Maricopa County reported 11,390 recorded sales in the first quarter.

“In Pinal County, there is a wide range of homes available from listed homes to foreclosures, but a key force is 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.”

The median price has steadily eroded from $220,000 in fourth quarter 2005 to $193,000 in third quarter 2007 and $156,160 for the current quarter. It was $204,600 for a year ago.

The median home price in Pinal County was 70 percent of the median price in Maricopa County ($222,450), while it was 78 percent a year ago. Although the thirty-year mortgage remained stable at 5.9 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 $1,020 to $790. It would be $1,020 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.

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 1,864 homes with a median price of $174,000, in contrast to last year’s 2,480 sales and median price of $219,315.

The median square footage for a resale home in Pinal County was 1,730 square feet, while a new home was 2,125 square feet. In Maricopa County, the resale home was 1,751 square feet and 2,370 square feet for a new home (median price of $253,505).

GREATER PHOENIX REAL ESTATE MARKET

Quarterly Resale Home Sales and Median Prices

Selected Cities in Pinal County

First Quarter 2007 First Quarter 2008

Resales Median Price Resales Median Price

Maricopa 90 246,500 310 170,000
Apache Junction 210 $235,000 245 $183,465
Arizona City 40 135,000 40 114,500
Casa Grande 95 180,000 170 146,000
Coolidge 35 125,900 55 119,950
Eloy 15 118,450 20 95,930
Florence 30 157,270 90 141,660
Queen Creek 200 207,170 660 153,000
San Manuel 15 100,000 25 100,000
Tucson (Saddlebrook) 50 395,000 40 340,000
Pinal County 840 $204,600 1,680 $156,160

Second Quarter 2006 Second Quarter 2007

Resales Median Price Resales Median Price

Maricopa 95 256,500 115 219,500 Apache Junction 305 $224,450 210 $217,500
Arizona City 65 139,900 45 137,450
Casa Grande 220 179,000 105 177,120
Coolidge 45 123,000 35 108,500
Eloy 40 89,000 30 130,000
Florence 25 170,000 45 170,000
Queen Creek 250 235,000 240 198,000
San Manuel 30 104.000 20 100,000
Tucson (Saddlebrook) 50 370,000 80 382,500
Pinal County 1,180 $211,000 970 $200,000

Third Quarter 2006 Third Quarter 2007

Resales Median Price Resales Median Price

Maricopa 70 217,625 55 215,000
Apache Junction 200 $224,000 125 $218,500
Arizona City 55 145,220 35 135,000
Casa Grande 170 175,000 45 157,995
Coolidge 30 107,500 30 140,000
Eloy 25 85,000 15 127,500
Florence 20 178,000 20 154,900
Queen Creek 180 220,000 195 193,050
San Manuel 35 98,000 10 103,000
Tucson (Saddlebrook) 35 350,000 55 335,000
Pinal County 850 $199,900 625 $193,000

Fourth Quarter 2006 Fourth Quarter 2007

Resales Median Price Resales Median Price

Maricopa 55 220,000 205 197,680
Apache Junction 165 $216,500 175 $195,000
Arizona City 35 139,900 40 116,000
Casa Grande 150 160,000 115 160,000
Coolidge 25 101,000 30 122,050
Eloy 25 106,000 15 110,000
Florence 15 169,000 60 155,000
Queen Creek 175 210,000 405 170,000
San Manuel 10 90,750 10 89,700
Tucson (Saddlebrook) 40 412,450 55 350,000
Pinal County 720 $191,500 1,145 174,000

REALTY STUDIES

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.

File photo

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With significantly lower home prices, the Pinal County resale housing market posted improvement from the 625 sales of third quarter 2007 to 1,145 recorded sales and well above the 720 sales recorded a year ago.

Housing activity was good throughout the quarter as shown by the monthly activity, with October at 355 recorded sales, November at 420 sales and December at 370 sales. Even with a strong close, resale activity in 2007 was decreased to 3,580 sales from 3,860 sales recorded in 2006 and 6,115 sales in 2005. For fourth quarter 2007 in Maricopa County, there were 10,180 sales recorded and 50,975 total for 2007.

Lower prices have made homes more affordable and even attractive to investors that foresee strong appreciation in the coming years. The median price has steadily eroded from $220,000 in fourth quarter 2005 to $193,000 in third quarter 2007 and $174,000 for the fourth quarter. It was $191,500 for a year ago.

The median home price in Pinal County was 73 percent of the median price in Maricopa County ($238,500), while it was 75 percent for a year ago. The 30-year mortgage remained unchanged at 5.9 percent, however, a lower home price drove the monthly mortgage payment for the median price, based on an 85 percent loan-to-value, to decrease from $970 to $880. It would be $1,205 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 Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus.

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. New home sales for 2007 were at 3,130 homes, with a median price of $181,585, in contrast to 3,780 sales in 2006 and a median price of $223,000.

In the fourth quarter, the median square footage for a resale home in Pinal County was 1,735 square feet, while a new home was 2,125 square feet. In Maricopa County, the resale home was 1,751 square feet and 2,510 square feet for a new home, with a median price of $267,645.
GREATER PHOENIX REAL ESTATE MARKET
Quarterly Resale Home Sales and Median Prices
Selected Cities in Pinal County
First Quarter 2006 First Quarter 2007
City Resales Median Price Resales Median Price
Apache Junction 295 $229,500 210 $235,000
Arizona City 60 $143,500 40 $135,000
Casa Grande 220 $175,000 95 $180,000
Coolidge 30 $114,000 35 $125,900
Eloy 30 $119,000 15 $118,450
Florence 30 $195,950 30 $157,270
Maricopa 95 $250,000 90 $246,500
Queen Creek 230 $239,860 200 $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

Second Quarter 2006 Second Quarter 2007
City Resales Median Price Resales Median Price
Apache Junction 305 $224,450 210 $217,500
Arizona City 65 $139,900 45 $137,450
Casa Grande 220 $179,000 105 $177,120
Coolidge 45 $123,000 35 $108,500
Eloy 40 $89,000 30 $130,000
Florence 25 $170,000 45 $170,000
Maricopa 95 $256,000 115 $219,500
Queen Creek 250 $235,000 140 $198,000
San Manuel 30 $104,000 20 $100,000
Tucson (Saddlebrook) 50 $370,000 80 $382,500
Pinal County 1,180 $211,000 970 $200,000

Third Quarter 2006 Third Quarter 2007
City Resales Median Price Resales Median Price
Apache Junction 200 $224,000 125 $218,500
Arizona City 55 $145,220 35 $135,000
Casa Grande 170 $175,000 45 $157,995
Coolidge 30 $107,500 30 $140,000
Eloy 25 $85,000 15 $127,500
Florence 20 $178,000 20 $154,900
Maricopa 70 $217,625 55 $215,000
Queen Creek 180 $220,000 195 $193,050
San Manuel 35 $98,000 10 $103,000
Tucson (Saddlebrook) 35 $350,000 55 $335,000
Pinal County 850 $199,900 65 $193,000

Fourth Quarter 2006 Fourth Quarter 2007
City Resales Median Price Resales Median Price
Apache Junction 165 $216,000 175 $195,000
Arizona City 35 $139,000 40 $116,000
Casa Grande 150 $160,000 115 $160,000
Coolidge 25 $101,000 30 $122,050
Eloy 25 $106,000 15 $110,000
Florence 15 $169,000 60 $155,000
Maricopa 55 $220,000 205 $197,680
Queen Creek 175 $210,000 405 $170,000
San Manuel 10 $90,750 10 $89,700
Tucson (Saddlebrook) 40 $412,450 55 $350,000
Pinal County 720 $191,500 1,145 $174,000

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.