Greater Phoenix resale home market experiences increased activity
Tuesday, December 12, 2006
MESA, Ariz. -The local single-family resale market has settled into a very stable
pattern, from the hyper-activity of last year. There were 5,040 recorded sales for
November 2006, slightly up from the 4,985 sales in October 2006, but below last
years 7,195 sales. This is the lowest monthly level for November since 4,305 sales
were reported in 2002. So far in 2006, there have been a total of 62,415 sales for a
monthly average of 5,675 sales. For 2005 year to date, there were a total of 104,360
sales or a monthly average of 9,485 sales, while it was at 94,075 sales for 2004 year to
date, with a monthly average of 8,552 sales. The current level of activity is very
comparable to that recorded in 2003 year to date (66,260 sales).
Much like the sales activity, the median home price has been very stable at $259,000,
a slight improvement from October's $257,000 and September's $256,900. It is still
below last year's $263,000 and the record of $267,000 set in June 2006. For
November 2006, 15 percent of all recorded sales were for homes priced from
$125,000 to $199,999, 44 percent for $200,000 to $299,999 and 38 percent for homes
priced over $300,000. Last year, the distribution was 20 percent of all recorded sales
were for homes priced from $125,000 to $199,999, 40 percent for $200,000 to $299,999
and 36 percent for homes priced over $300,000. Since the Greater Phoenix area is so
large, the median price can range significantly from $715,000 ($635,000 in October)
in North Scottsdale to $182,000 ($170,000 in October) in the Sky Harbor area of the
city of Phoenix.
Since current home prices and interest rates are very comparable to a year ago, the
monthly payment of $1,320 is the same as a year ago.
"Even though mortgage interest rates have been declining for the last few months,
limited home appreciation and household income continues to raise concern about
the ability of some homeowners to maintain their homes," said Jay Q. Butler,
director of ASU's Arizona Real Estate Center at the Polytechnic campus. "This may
be especially evident for those that have used some of the more creative financing
instruments, such as option payment plans and initially low interest rate adjustable
mortgages."
Over the last few years, the townhouse/condominium market has had increased
popularity for owner-occupancy, especially for young and minority households,
and investors. This housing sector has also remained very stable with 920 sales
for November 2006, while it stood at 930 sales for September 2006 and 915 sales
for October, but well below last year's 1,600 sales. So far in 2006, there have been
13,120 sales, while there were 19,890 sales a year ago. The median home price
increased to $172,000 ($175,000 in October), while it was $165,000 for a year ago.
The median square footage for a single-family home recorded sold in November
2006 was 1,650 square feet, which is larger than the 1,615 square feet for a year ago.
In the townhouse/condominium sector, the median square footage was 1,110 square
feet, which is bigger than the 1,095 square feet reported a year ago.
- In contrast to November 2005, recorded sales in the city of Phoenix decreased
from 2,140 sales to 1,575 sales, while the median sales price increased to $226,160
from $215,000 for a year ago. Since Phoenix is a geographically large city, the
median prices can range significantly such as $182,000 in the Sky Harbor area to
$330,000 ($313,000 in October) in the Union Hills area. The
townhouse/condominium sector decreased from 510 to 315 sales while the
median price increased from $140,000 to $149,900.
- While the Scottsdale resale home market declined from 475 to 400 recorded sales,
the median sales price increased from last year's $595,000 to $630,000 ($548,500 in
October 2006). In North Scottsdale, the median resale home price is $715,000
($635,000 in October) and $330,000 ($300,000 in October) in South Scottsdale. The
townhouse/condominium sector in Scottsdale also decreased from 285 to 215
sales, but the median sales price increased from $260,000 to $275,000.
- The Mesa resale housing market declined from 840 to 600 sales, while the median
price fell from last year's $241,000 to $240,000 ($235,000 in October). The
townhouse/condominium sector also fell from 260 to 115 sales, while the median
home price increased from $150,000 to $153,350.
- Glendale decreased from 580 to 350 sales, but the median sales price slightly
decreased from $247,250 to $247,000 ($248,000 in October). The
townhouse/condominium sector also declined from 100 to 55 sales, while the
median sales price increased from $89,340 to $136,000.
- For the city of Peoria, the resale market fell from 315 sales to 225 sales, while the
median price moved from $280,000 to $270,000 ($257,500 in October). The
townhouse/condominium sector slowed from 40 to 30 sales and the median price
went from $158,750 to $169,500.
- In comparison to a year ago, the Sun City resale market fell from 130 to 100 sales,
the median sales price decreased to $190,000 from $225,000. As resale activity in
Sun City West fell from 60 to 50 sales, the median sales price decreased from
$242,500 to $220,000. The townhouse/condominium market in Sun City declined
from 80 to 55 recorded sales, while the median home price improved very slightly
from last year's $145,000 to $148,500. In Sun City West, activity fell from 40 to 20
sales and the median sales price decreased from $186,000 to $160,000.
- The resale market in Gilbert decreased from 425 to 285 sales, and the median
sales price decreased from $324,500 to $308,000 ($328,000 in October). The
townhouse/condominium market fell from 25 to 10 sales as the median sales
price decreased from $229,950 to $218,000.
- For the city of Chandler, the resale market slowed from 520 to 335 recorded sales,
while the median sales price remained the same as last year's $295,000 ($298,000
in October). The townhouse/condominium market declined from 50 to 30 sales
and the median sales price improved from $179,200 to $185,000.
?The resale market in Tempe decreased from 170 to 140 sales, with the median
sales price staying the same at $270,000 ($296,500 in October). The
townhouse/condominium sector slowed from 130 to 40 sales and the median
sales price decreased from $185,325 to $180,000.
- The highest median sales price was in Paradise Valley at $1,690,000 with a
median square foot house of 3,995 square feet.
- In the West Valley, the following communities represent 9 percent of the resale
market, while it was 10 percent for a year ago.
- Avondale fell from 190 to 115 sales, with the median price moving
from $265,000 to $245,000 ($247,000 in October).
- El Mirage decreased from 105 to 70 sales, while the median home price
decreased from $222,500 to $200,000 ($205,000 in October).
- Goodyear declined from 100 to 80 sales, with the median price
decreasing from $286,500 to $252,000 ($275,000 in October).
- Surprise decreased from 350 to 200 sales, with the median price
dropping from $263,590 to $246,000, ($237,000 in October).
CONTACT(S): Jay Q. Butler, 480/727-1300, jay.butler@asu.edu
Christine Lambrakis, 480/727-1173, 602/316-5616, lambrakis@asu.edu
The Arizona Real Estate Center is associated with School of Applied Arts & Sciences
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. Its director, Dr. Jay Q. Butler, may be reached at (480) 727-
1300 or e-mail him at Jay.Butler@asu.edu.
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