Real Estate Market Begins 2005 With Hot Month

The Valley housing market kicked off the New Year with a bang.

January home sales set a new record at 9,360 recorded sales. That's a gain of nearly 4,300 sales year - over - year, according to the Arizona Real Estate Center at Arizona State University.

Home prices continue to rise, up 24 percent year-over-year to a median home price of $194,000.00.

And for the first time ever, the median home price in Paradise Valley hit the $1 million mark. This is the first time that a median resale home price in any Valley community exceeded $1 million, according to Jay Butler, director of the Arizona Real Estate Center.

Arizona Real Estate researchers said that with mortgage rates higher now than a year ago, the average mortgage payment rose nearly $200 on the typical 30-year mortgage.

Checking sales figures and median sales prices Valleywide from January 2004 to 2005:

* Recorded sales in Phoenix increased from 1,460 sales to 2,685 sales, while the median sales price increased to $154,000.00 from $127,000.00

* The Scottsdale resale home market improved from 515 to 785 recorded sales. The median sales price continued its upward movement by increasing from $350,000 to $458,690.00

* Mesa resales grew from 665 to 1,060 sales, while the median price increased from $144,000.00 to $172,900.00.

* Glendale improved from 390 to 640 sales and the median sales price increased from $148,950.00 to $171,450.00.

* The Sun City resale market increased from 125 to 160 sales, with the median sales price increasing to $159,000.00 from $124,000.00. Resale activity in Sun City West increased from 65 to 95 recorded sales and the median sales price increased from $154,900.00 to $179,900.00.

* Gilbert's resale activity moved from 280 to 565 sales and the median sales price increased from $190,000.00 to $244,000.00.

* Chandler's resale market expanded from 325 to 625 recorded sales, while the median sales price increased from $165,000.00 to $219,000.00.

* The resale market in Tempe improved from 115 to 195 sales, with the median sales price increasing from $166,950.00 to $219,000.00.

*Avondale's resale market grew from 105 to 220 sales with the median price moving from $146,250.00 to $188,140.00.

* El Mirage improved from 50 sales to 155 sales, with the median sales price rising from $123,500.00 to $150,410.00.

* Goodyear moved from 75 to 195 sales, while the median price increased from $149,900 to $204,000.00.

* Surprise increased from 170 sales to 370 sales, median sales rose from $145,115.00 to $195,000.00.

As seen in: The Business Journal Phoenix, The Arizona Real Estate CEnter is associated with East College at Arizona State University's East campus. For more: www.east.asu.edu Latest News 5:31 pm MST Wednesday 2/16/2005.

Home prices showed steady climb in 2004

LATEST NEWS
11:56 AM MST Tuesday
Home prices showed steady climb in 2004
Valley home prices, both new and resales, and interest rates were on the rise in 2004, according to research released Tuesday by the Arizona Real Estate Center.

Even though the average interest rate on a 30-year mortgage neared 6 percent during the summer months of 2004, the annual average interest rate remained unchanged from the 2003 average of 5.5 percent.

"While interest rates were expected to increase during 2004, they remained fairly stable due to low inflation," said Jay Butler, director of the Arizona Real Estate Center located at Arizona State University's East campus.

In the resale home market, the median home price increased 12.8 percent from $155,000 in 2003 to $174,815 in 2004. The median home price for resales opened 2004 at $156,000 in January and increased to $190,000 by December.

For new homes, the median home price increased 12.6 percent from $173,240 in 2003 to $195,000 in 2004. During 2004, the median home price increased from $178,110 in January to $211,640 in December, a 19 percent increase.

Butler added that based on 85 percent loan-to-value, the average monthly mortgage payment would have increased from $735 in January to $920 in December in Arizona.

Research indicates that if the median home price remains at $190,000 as found in December 2004, affordability can only be maintained with a mortgage rate at 6.125 percent.

Valleywide, housing resales and new homes were most affordable in Chandler, Gilbert, and in the West Valley communities of Avondale, Goodyear, and Surprise.

North Scottsdale's housing affordability index for both resales and new home sales continued to decline.

For more: www.east.asu.edu.