The pace of Valley home resales continued to fall in January, the Arizona Real Estate Center reported Friday.
With 5,260 recorded sales in January 2006, the greater Phoenix resale market fell from 6,480 sales in December 2005 and from 9,360 sales in January 2005.
Jay Butler, director of the Arizona Real Estate Center, cautioned that January is a poor barometer for measuring the coming year, since the impact of the holidays typically cools the housing market. He said that the basic direction of the local real estate market will probably not become known until the second quarter.
“The primary news of last year’s housing market was the rapid rise in the median home price from $194,000 in January to $260,000 in December,” said Butler. “However, since the record of $263,000 was set in September, the growth rate has disappeared, with the median price being $257,000 in January, which is still well above last year’s $194,000.”
Affordability remains a concern, as mortgage interest rates are higher than a year ago. Butler said the average 30-year mortgage for January 2005 was 5.4 percent, while it was 5.8 percent for January 2006. Based on an 85 percent loan-to-value, the monthly mortgage payment for the median-priced home increased from $925 to $1,280.
Last month, 19 percent of all recorded sales were for homes priced from $125,000 to $199,999, 41 percent for $200,000 to $299,999 and 36 percent for homes priced over $300,000.
The following is a list of home resales and prices recorded within some of the largest cities within Maricopa County, comparing January 2006 with January 2005:
* The Phoenix resale home market decreased from 2,685 sales to 1,635 sales, while the median sales price increased to $207,000 from $154,000.
* Scottsdale’s resale home market declined from 785 to 400 recorded sales, as the median sales price rose from $458,690 to $600,000.
* Resales in Mesa declined from 1,060 to 615 sales, while the median price increased from $172,900 to $240,000.
* Glendale decreased from 640 to 410 sales, but the median sales price increased from $171,450 to $238,500.
* The Sun City resale market fell from 160 to 100 sales, but the median sales price increased to $212,000 from $159,000. And resale activity in Sun City West also slowed from 95 to 40 sales, but the median sales price increased from $179,900 to $243,500.
* The resale market in Gilbert fell from 565 to 310 sales, but the median sales price increased from $244,000 to $337,250.
* Chandler’s resale market slowed from 625 to 330 recorded sales, while the median sales price increased from $219,000 to $305,000.
* Tempe’s resales decreased from 195 a year ago to 140 sales, with the median sales price increasing to $269,900 from $193,500.
* Avondale fell from 220 to 150 sales with the median price moving from $188,140 to $258,000.
* El Mirage resales decreased from 150 to 70, while the median home price went from $150,410 to $224,000.
* Goodyear’s resale home market fell from 195 to 100 sales, while the median price increased from $204,900 to $275,000.
* Surprise decreased from 370 sales to 165, as the median home price rose from $195,000 to $249,000.
* The highest median sales price was in Paradise Valley at $1,507,500 with a median square footage of 4,160.
The Arizona Real Estate Center is associated with East College at Arizona State University’s Polytechnic campus. The center collects and analyzes data concerning real estate in the greater Phoenix metropolitan area.
