PINAL COUNTY MARKET OVERVIEW

PINAL COUNTY MARKET OVERVIEW

4th QUARTER 2016

As neighboring Maricopa County grows, so does Pinal

County. Pinal has the advantage of available land, more

affordability, and promising job growth thanks to major 40K

corporate development.

35K

30K

POPULATION

25K

Population Growth & Total Population

450K 400K 350K 300K

? The Arizona Office of Economic Opportunity projects that 20K

250K

the population in Pinal County will grow by 2.6%, once 15K

200K

the final numbers are counted for 2016, to approximately 10K

150K

417,000. The population is predicted to reach 1 million by 2049, 5K

100K

but with the recent job announcements and lack of affordable 0K

50K

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

housing inventory in Maricopa County, Pinal could reach that -5K

0K

milestone much sooner.1

JOBS

Population Growth

Total Population

Source: US Census

? The November brought the exciting announcement that Casa Grande will be home to the new Lucid Motors manufacturing facility - a 500 acre, $700 million, 2,000 employee luxury automotive manufacturer.2

? Recently, Intel announced plans to complete a $7 billion high-volume semiconductor factory, that will be the most advanced of its kind in the world, in Chandler. The factory known as Fab 42 will create 3,000 high-tech, high-wage jobs and is expected to create more than 10,000 long-term jobs combined with the indirect impact on businesses that will support factory operations.3

HOUSING

? New Single Family permit activity in Pinal County saw dramatic increases in 2016 as affordability continues to drive buyers south of the valley. At the end of 4Q16, 2,473 permits were counted, that's a 14% share of the market when looking at the city of Maricopa and Pinal Counties combined.4

? Pinal's permit totals were up 22% over the total counted in 2015. By comparison, the highly active southeast valley saw 5,897 permits, held a 33% market share, but only saw permit counts increase by 3% compared to 2015.4

Metro Phoenix Job Growth

100K

43K

52K

42K

61K

52K

50K

26K

0K

-50K

-32K

-47K

-100K

-150K

-147K

-200K 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Bureau of Labor Statistics

? On a more regional level, new home permits in Casa Grande increased by 74.7% year over year in 2016, Florence saw a 5.6% increase, Maricopa permit numbers grew by 56.1% and all other county permits increased by 11.9%.4

? For all of 2016, the median new home sales price (all product 2500 types) in all of Pinal County was $213,846. By comparison, the median price in Chandler was $386,934 and $351,500 2000 in Gilbert.5

Single Family Permits

Source: US Census

? Cromford also shows us that the median sales price for 1500

4Q16 was $177,900, up from $165,000 in 4Q15 and up

significantly from the lowest point of the recession (4Q10) when median sales prices were only $110,000 in Pinal County. By comparison, the 4Q16 median resale price in Chandler was

1000 1,597

1,742

2,124

1,721

2,087

2,234

$286,500 and $285,000 in Gilbert.6

500

974

? According to the Cromford Report, the median sales price of

traditional-sale single family homes through the MLS was

$178,500 in December 2016, up from $170,000 in December 2015, a 5% increase.6

0

2010

2011

2012

2013

2014

2015

2016

Sources: (1) Arizona Office of Economic Opportunity (2) Eric Jay Toll, "Breaking: Arizona wins 2,000-worker..." Phoenix Business Journal, Nov 29, 2017 (3) Hayley Ringle, "Intel investing $7 billion in Chandler facility..." Phoenix Business Journal, Feb 8, 2017 (4) Home Builders Association of Central Arizona (5) RL Brown (6) Cromford Report

PINAL COUNTY MARKET OVERVIEW

2016 Top 10 Home Builders by Permits

-

100

200

300

MERITAGE HOMES 2016 Average Sales Price: $243,812

D R HORTON

$187,000

FULTON HOMES

$250,220

219

SHEA HOMES

$315,753

190

PULTE HOMES

$260,485

168

MISC CUSTOM

$422,860

166

D R HORTON/EXPRESS

$155,428

119

KB HOME $205,597

99

ROBSON COMMUNITIES

$281,341

87

PULTE HOMES/DEL WEBB

$258,148

74

400 350

500 445

Source: RL Brown

Land Advisors Organization is the nation's largest brokerage company focused exclusively on land.

Founded in 1987, the company has long employed the philosophy of having deeply experienced land brokers, acquiring the most comprehensive data, and utilizing cutting-edge technology to display and interpret this ever-changing collection of information to help our clients achieve their goals.

Our distribution network includes over 60 internal Agents and the

collective relationships nationwide that foster our collaborative outreach efforts.

Scottsdale, AZ | Casa Grande, AZ | Prescott, AZ | Tucson, AZ | Irvine, CA | Bay Area, CA | Coachella Valley, CA | Pasadena, CA | Roseville, CA San Diego, CA | Santa Barbara, CA | Valencia, CA | Orlando, FL | Tampa, FL | Boise, ID | Albuquerque, NM | Las Vegas, NV Austin, TX | Dallas-Fort Worth, TX | Houston, TX | Salt Lake City, UT | St. George, UT | Bellevue, WA

For More Information about the Pinal County Market: Kirk McCarville | kmccarville@ 211 North Florence Street, Suite 101, Casa Grande, Arizona 85122 Office: 520.836.8801 | Cell: 520.251.0348 |

The information contained herein from sources deemed reliable. We have no reason to doubt its accuracy but do not guarantee it. It is the responsibility of the person reviewing this information to independently verify it. This package is subject to change or complete withdrawal.

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