4-29-06 IN THE NEWS!

The first article, Valley home market continues cooling off trend, from the Phoenix Business Journal, reports that new home permits fell 24 percent in March 2006 from March 2005 numbers, according to the April issues of The Phoenix Housing Market Letter from RL Brown. For the first quarter of 2006, there were 12,868 single-family new home permits issues, down 16 percent from the first quarter of 2005. "The metro Phoenix housing market is returning to normal after an extraordinary year that allowed housing prices to rise much more rapidly than at any time in history," said Brown. Resales fell more than 25 percent in March from a year ago, and are down 16 percent for the first quarter compared to the first quarter of 2005. "There's no question that the Phoenix housing market of April 2006 is different from the market of the last year," Brown said. "It was clear that the 2005 pace was not sustainable."

http://phoenix.bizjournals.com/phoenix/stories/2006/04/24/daily43.html?t=printable

The second article, Glut of homes for sale appears to be market correction, from the Arizona Republic Southeast Valley, reports that the Arizona Regional Multiple Listing Service says the number of homes for sale in the Southeast Valley hit 13,836 in March. A year earlier it was 1,068. The number of homes for sale- a 10 percent jump up from February- could be a record. The market is apparently still correcting itself after last years frenzy. The good news is that the number of homes sold in the Southeast Valley grew from 2,360 in February to 2,920 in March. Detached homes are taking an average of 53 days to sell, and condos are taking 40 days. One interesting note is the number of high-end homes for sale in the Southeast Valley. There were 2,455 homes priced at $500,000 or more in the Southeast Valley in March.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/chandler/articles/0428ev-realestate0428Z6.html

The third article, Phoenix, Yuma among 'Inc.' hottest cities, from the Phoenix Business Journal, reports that Inc. Magazine ranked Phoenix the sixth-hottest large "City for Doing Business" and 36th overall among cities of all sizes. Phoenix was in part recognized for its robust growth in the financial services sector. Yuma topped the overall and small cities list with an 8.3 percent one-year job growth rate and a 32 percent five-year growth rate. "Strong job growth suggests an expanding economy, which means new demands and new opportunities for entrepreneurs", said Jane Berentson, Inc's editor.

http://phoenix.bizjournals.com/phoenix/stories/2006/04/24/daily41.html?t=printable

04-25-06 TODAY'S NEWS!

The first article, Interest in Arizona commuter rail grows, from the Arizona Republic, reports that state and regional transportation agencies are launching new studies this months to see if commuter rail can work in Arizona, and a statewide transit conference this week in Tempe aims to rekindle interest in heavy passenger rail, which is nothing like light rail. Locals envision service linking Phoenix with Tucson and fast growing suburbs in Maricopa and Pinal Counties.The concept is to use existing railroad tracks to set up a commuter rail system. Union Pacific and Burlington Northern control the tracks around the metro Phoenix and Pinal County areas, and the state and county agencies would need to negotiate with them for track usage and expansion. The article cites several Western states success with commuter rail.

Interest in Arizona commuter rail grows
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/news/articles/0425commuterrail.html



The second article, Retail development on way to booming Pinal County, from the Arizona Republic, reports that with Pinal County's booming population growth expected in the coming years, retail development is in the works to serve this growing area. The Ak-Chin tribe south of Maricopa just announced a 260-acre retail development that will contain big-box stores, restaurants and offices on land around the Ak-Chin casino south of the city of Maricopa. Pederson Group and WDP Partners have a 1 million-square-foot retail center near Casa Grande at Interstate 10 and Florence Blvd. expected to open in late 2007. Coolidge has a future Westcor mall site that will start once Coolidge's population hits 200,000. Queen Creek, another high growth area at the Maricopa and Pinal county border, is moving forward on a 1 million square-foot retail center at Ellsworth and Ocotillo roads.

Retail development on way to booming Pinal County
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0425biz-cr-AkChin0425.html

ARIZONA JOB NEWS

The first article, Big companies, big impact , from the Arizona Republic , reports on the largest employers in Arizona in its annual biggest companies report. No. 1 is Wal-Mart, followed by Banner Health, Honeywell International, Wells Fargo & Co, and Intel. The Arizona Republic has been compiling this list for the last 14 years, starting in 1992. The state's population growth also is reflected in the list. In 1992, the 100th company had 550 employees. This year, for the first time, all the companies listed boast more than 1,100 employees. The article contains a link to get to the complete list of the top 100 employers and contains several articles about the top employers.
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0423biz-rep100blomo0423.html
The second article, March gains push state to record job total , from the Phoenix Business Journal , reports that Arizona's economy gained another 22,600 jobs in March, pushing down the state's unemployment rate by 0.3 percentage points to 4.1 percent. With these new jobs, Arizona's overall nonfarm job count stands at a record 2.6 million, according to the Department of Economic Security Research Administration. Most of the job growth in March came from the service providing industries, up 18,400 positions. Construction employment reached another record level at 234,800 positions, gaining 1,300 jobs in March. For more, go to www.workforce.az.gov .
http://phoenix.bizjournals.com/phoenix/stories/2006/04/17/daily61.html?t=printable

Market News 04/17/06

Housing blip a speed bump, not a slump, from the Phoenix Business Journal, reports that the region's housing market has gone from red hot to lukewarm in just a few quarters, but most housing experts see the current slowdown as a market correction and not a more serious slump. "The current slowdown in the market is a short-term imbalance caused by excessive investor activity, rapid price run-ups in a short period of time and, in some cases, poor market analysis by builders that, collectively, have led to an oversupply of housing in certain price ranges, in certain areas," said Rebecca Burnham, a real estate attorney with the law firm Greenberg Traurig. In December 2004, Phoenix-area resale homes averaged just under eight days on the market and in January 2005, that number dipped to six days. A month later it increased to 35 days, and in January 2006, it rose to 49 days. In February 2006 it rose again to 55 days. Housing industry experts hope the Valley housing markets' slowing is a market correction and that the region can be propelled by continued population and job gains. As the "investor" homes that are now on the market sell, the market should get back to inventory levels that are more normal and sustainable.

http://phoenix.bizjournals.com/phoenix/stories/2006/04/17/story6.html?t=printable


Sky Harbor to get some relief, from the Arizona Republic, reports that Phoenix is poised to become an operator of Williams Gateway Airport, a significant move that solidifies the airports future role as the primary reliever to Sky Harbor International Airport. This move gives Phoenix a major voice in how and when the fledgling commercial airport would begin to alleviate congestion at Sky Harbor, the nation's seventh busiest in terms of passengers. "The demand for air service in the Valley is growing so rapidly that we are not concerned of a threat to Sky Harbor," said Deborah Ostreicher, an airport spokeswoman. "We're interested in the sustainability in Valley aviation as a whole." Look for this area to be a real estate hot spot for commercial, industrial and retail development.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/news/articles/0415gateway0415.html

RESALES SLOW 1ST QUARTER OF 2006

Housing resales slow, from the Arizona Republic, reports that Metro Phoenix's resale housing market continued to slow in March, with prices holding steady but the number of sales down from a year ago. There were 7,265 resales in the Valley in March, down from the 10,035 in March of 2005. The information came from the Arizona Real Estate Center at ASU. Jay Butler, director of the center, said the numbers show that the housing market is returning to more normal levels after last year's frenzy. The price for a typical Valley resale home was $263,000 in March, up from $213,000 in March 2005, but down $2,000 from the February 2006 median resale price. Butler noted that the first quarter of 2006 was the weakest since the first quarter of 2003, and that we will get a better indication of where the market is at later this summer. "Prices will start to come down in certain areas," he said. "Some of the older areas will hold prices better. We will see some decline but not significant declines." Now, buyers have the leverage and are making sellers suffer, according to local agents. "Sellers got greedy last year," said Diane Watson of Realty Executives in Scottsdale. "Buyers are greedy now. Buyers need to recognize it is a healthy market. They can't sit on the sideline waiting for it to fall apart. It's not going to happen."

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0412biz-resales0412.html

Is the buyer's market here yet?

'Exotic' mortgage bargains may bite, from the Arizona Daily Star, reports that the FDIC said housing market conditions "warrant monitoring" in part because of the proliferation of riskier interest-only and negative amortization mortgages in recent years, which made up 55 percent of all Arizona mortgages taken out in 2005. Charles "Chip" Ruscher, a lecturer in the Eller College of Management department of finance called the state numbers horrendous. "When you have kind of a bubbled real estate market, you're looking at probably inflated values. Even if the bubble doesn't pop, if it starts to deflate, those people are going to be in a position that's going to be impossible to repay the loan. If the real estate market stalls, slowdown or starts to decline, then they're stuck with an asset that isn't worth as much as what they owe on it," Ruscher said.

'Exotic' mortgage bargains may bite
http://www.azstarnet.com/sn/printDS/124069



Homebuyers feel pinch of rising rates, from MSNBC.com, reports that as adjustable rate mortgages expire, homebuyers are feeling the pain of rising mortgage rates. Last year, 43 percent of all US mortgages were adjustable or "exotic" in nature. But borrowing costs have been climbing for two years, in some cases to nearly double what they were in 2003 and 2004, just when the introductory low rates on adjustable rate mortgages are set to expire. That means that homebuyers who were once paying just over 3 percent interest are suddenly facing rates that at 5 or 6 percent and still climbing. Economist are bracing for an onslaught of late payments and the inevitable worry among lenders and borrowers alike that failed loans will cause a consumer or housing collapse.

Homebuyers feel pinch of rising rates
http://www.msnbc.msn.com/id/12239581/

Sunday 04/09/06 IN THE NEWS!

$900M CityScape development proposal files with city, from the Phoenix Business Journal, reports that RED Development LLC and Barron Collier Co. filed its development plan with the city of Phoenix for the massive CityScape project in downtown Phoenix at Central Ave., between Washington and Jefferson streets. The project is planned for four buildings nearly 40 stories high with 800,000 square feet of office space, 1,200 residential units, 170,000 square feet of retail, and 150 hotel rooms. The project would take five years to complete. The goal of the project is "to create a new, cohesive urban core for the city that provides day and night activities and uses for residents, tourists and conventioneers," said RED Development Principal Michael Ebert. The first phase of the CityScape project could begin later this year.

$900M CityScape development proposal files with city
http://phoenix.bizjournals.com/phoenix/stories/2006/04/03/daily62.html?t=printable



When Phoenix, Tucson merge, from the Arizona Republic, reports that Arizona's two largest metro areas are on course to meet and merge within a decade, engulfing several small towns along the way. While Phoenix and Tucson are separated by 120 miles, their suburbs reach much farther up and down Interstate 10. Planned developments stretch 60 miles south of Phoenix, deep into Pinal County. In Tucson, new projects are heading 40 miles north into Pinal County. Urban researchers are calling the corridor a megapolitan, or "super-sized" metropolitan area. "Megapolitans are the future of the country's growth," said Marshall Vest, an economist and director with the Economic and Business Research Center at the University of Arizona. "Phoenix and Tucson are already merging into one," he added. The notion of Phoenix and Tucson merging isn't new, but it is happening faster than most expected due to both cities rapid growth. Arizona is the smallest megapolitan and has the greatest potential for growth," said ASU Professor John Long. The Phoenix-Tucson megapolitan is one of several in the country, including the Los Angeles to San Diego area and the Portland-Seattle area. As a result of this "megapolitan", land is being bought in Pinal County and other fringe areas at a record pace. More than 600 land deals worth at least $1 billion closed on the fringes of metro Phoenix and Pinal County last year, according to local housing analyst RL Brown. Brown says 40 percent of all new Valley homes could be in Pinal County in the near future!

When Phoenix, Tucson merge
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/news/articles/0409merge0409.html



The boom in Metro Tucson, from the Arizona Republic, reports that since 2000, new home permits have jumped nearly 65 percent in Tucson, with 11,762 new home permits issued in 2005. The growth is reflected in the number of new home builders who have flocked to the area, including Toll Bros., Beazer and K. Hovnanian, to name a few. Growth in Tucson is moving north into Marana, where more than 14,000 residential lots are being reviewed by the town's planners. Dove Mountain and Gladden Farms are two master-planned communities that are being developed in Marana. Land prices have shot up in Pima County, causing developers to look to the fringe areas of Tucson for less expensive land. The number of active master-planned communities could triple in the next few years, said Will White, head of the Tucson office for Arizona Land Advisors, a land brokerage firm.

The boom in Metro Tucson
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0410biz-tucsonhomes0410.html

Job Growth -William's Gateway Development-Interest Rate Hike

More than 256,000 jobs will be added to state's economy through '06, DES reports, from the Arizona Republic, reports that jobs will continue to be in demand in Arizona during the next two years, with a slight cooling in 2007, according to a report released by the Arizona Department of Economic Security. "Each of the 11 major industry groups are forecast to add jobs, and rates of growth are generally expected to improve on the healthy rates of 2005," according to the report. Arizona's economy is expected to add 256,000 non-farm jobs for the 2006-07 period. Arizona is continuing to see job growth due to the influx of new residents. Arizona's unemployment rate of 4.4 percent means that employers are having a hard time finding enough workers. The influx of new residents and jobs will help with the soft landing scenario for our housing market.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0407biz-economy0407.html

Development planned for GM Proving Ground property, from the Phoenix Business Journal, reports that local businessman William Levine plans a master-planned community with homes, office buildings and shopping centers on a 1,800-acre parcel of land that was once part of the GM Proving Grounds in east Mesa, next to Williams Gateway Airport. Levine bought the land in 2004. Paul Gilbert, Levine's zoning attorney, filed an application with Mesa for a general plan amendment, starting the process of rezoning the site for the proposed community. Levine's proposal could allow multi-story buildings and substantial retail space, allowing for jobs and shopping closer to where residents live. The proposal should go before the Mesa City Council by October. Look for this area to continue to be a hot spot with all the new employment activity around Williams Gateway.

http://phoenix.bizjournals.com/phoenix/stories/2006/04/03/daily53.html?t=printable

Mortgage rates hit highest level since 2003, from MSNBC.com, reports that rates on 30-year mortgages rose this week to the highest level in 2 1/2 years as financial markets begin to worry about more inflation. Freddie Mac reported Thursday that rates on a 30-year, fixed-rate mortgage averaged 6.43 percent this week, up from 6.35 percent last week. That's the highest level since it was at 6.44 percent in September 2003. Rising rates have begun to cool off the housing market, where sales of both new and existing homes set records for five consecutive years. Analysts are looking for sales to drop by around 6 percent this year and price gains to slow from double-digit increases. A year ago, 30-year mortgages averages 5.93 percent.

http://www.msnbc.msn.com/id/7148582/

Second homes 40% of market, from the USA TODAY, reports that four of every 10 sales nationwide last year were second homes, either investments or vacation properties, according to a report released by the National Association of Realtors. Nearly 28% of homes bought last year were investment properties, an an additional 12% were vacation homes. Most of the buyers were baby boomers in their top earning years, looking toward retirement and hoping to build wealth or find a more desirable place to live. Sales of investment properties is expected to decline, but sales of vacation homes are expected to stay strong for years, because the youngest baby boomers are only 42 this year. The typical vacation home buyer last year was 52 years old, earning $83,800 a year, and purchased a property that was about 200 miles from the primary residence. The median vacation home price was $204,100.

http://www.usatoday.com/money/economy/housing/2006-04-04-real-estate-usat_x.htm

Land coming together for West Valley development, from the Phoenix Business Journal, reports that Scottsdale based Aread Inc. is assembling 2,347-acres of land in the Rainbow Valley area for a future 7,000 lot residential development called Rainbow Valley Ranch. Aread just closed on 1,365 acres of the land for $34.1 million, or about $25,000 per acre. The remaining property is expected to be assembled by 2007. Rainbow Valley Ranch will be exclusively themed master-planned community, surrounded in part by the backdrop of the Estrella Mountains. A mixture of single-family and multi-family housing, commercial and recreational amenities are planned. Aread plans to annex the property into Goodyear and begin selling lots to homebuilders in 2007. Rainbow Valley Ranch is bisected by Riggs Road and is bounded on the north by Chandler Heights Road, on the south by Hunt Highway, on the east by Sarival Road and on the west by Rainbow Valley Road.

http://phoenix.bizjournals.com/phoenix/stories/2006/04/03/daily40.html?t=printable

Kierland Opens Second Phase***Del Webb's Sun City Festival Opens to Buyers!

CONTACT ONE OF OUR EXPERTS TO GET YOU IN ON THESE
GROUND FLOOR OPPORTUNITIES! GO TO OUR MEET THE TEAM BUTTON WWW.MEETUSATTHEMALL.COM The second phase of the Plaza Lofts at Kierland Commons started last week with prices ranging from $800,000 to $1.85 million. The 54-unit phase will start construction in May with completion slated for fall of 2007. The units will be one and two bedroom plan with 1,100 to 2,800 square feet. Five penthouse units ranging from 3,200 to 3,900 square feet will be offered from $2.8 million to $3.15 million. Woodbine Southwest is the developer. The first phase of the Plaza Lofts (30 units) sold out prior to the start of construction.

http://phoenix.bizjournals.com/phoenix/stories/2006/04/03/daily20.html?t=printable

Del-Webb's newest active adult community open to buyers, from the Arizona Republic, reports that Sun City Festival in Buckeye, Del Webb's newest active adult community has opened for sales. The 3,100-acre master-planned community is located on the Sun Valley Parkway, west of the city of Surprise. It will have 7,200 homes, two 18-hole golf courses and a 31,000 square foot recreation center with a resort-style pool. Until unit models open in July, buyers can visit a preview center in Sun City Grand to view the floorplans available in the new community. Sun City Festival will take seven years to build out. Del Webb will unveil 23 new active-adult communities around the country by the end of this year in response to the growing baby boomer population who are heading into retirement. In January, Pulte, the parent company of Del Webb, closed on 4,100-acres east of the Sun Valley Parkway in Buckeye for its third all-ages Anthem community. "This area will be a city someday," said Ed Martin of Pulte Del Webb. "All of that land is either spoken for or is being entitled, so we were fortunate to get in early." If you haven't seen what's happening along the Sun Valley Parkway, you should take a drive and see all the explosive activity in this hot spot market area!

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/glendale/articles/0405gl-sun05Z18.html

second phase of the Plaza Lofts at Kierland Commons started last week with prices ranging from $800,000 to $1.85 million. The 54-unit phase will start construction in May with completion slated for fall of 2007. The units will be one and two bedroom plan with 1,100 to 2,800 square feet. Five penthouse units ranging from 3,200 to 3,900 square feet will be offered from $2.8 million to $3.15 million. Woodbine Southwest is the developer. The first phase of the Plaza Lofts (30 units) sold out prior to the start of construction.

http://phoenix.bizjournals.com/phoenix/stories/2006/04/03/daily20.html?t=printable

The second article, Del-Webb's newest active adult community open to buyers, from the Arizona Republic, reports that Sun City Festival in Buckeye, Del Webb's newest active adult community has opened for sales. The 3,100-acre master-planned community is located on the Sun Valley Parkway, west of the city of Surprise. It will have 7,200 homes, two 18-hole golf courses and a 31,000 square foot recreation center with a resort-style pool. Until unit models open in July, buyers can visit a preview center in Sun City Grand to view the floorplans available in the new community. Sun City Festival will take seven years to build out. Del Webb will unveil 23 new active-adult communities around the country by the end of this year in response to the growing baby boomer population who are heading into retirement. In January, Pulte, the parent company of Del Webb, closed on 4,100-acres east of the Sun Valley Parkway in Buckeye for its third all-ages Anthem community. "This area will be a city someday," said Ed Martin of Pulte Del Webb. "All of that land is either spoken for or is being entitled, so we were fortunate to get in early." If you haven't seen what's happening along the Sun Valley Parkway, you should take a drive and see all the explosive activity in this hot spot market area!

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/glendale/articles/0405gl-sun05Z18.html

In The News 04-03-06....The market adjustment....Superstition Vistas...The Condo craze in Scottsdale

The first article, Home builder says market's in good place, from the Arizona Republic, reports on Fulton Homes president Doug Fulton's take on the local housing market. When asked how he sees the market now, Fulton says that this is just a small correction that needed to happen. The velocity of sales and appreciation was not sustainable and we are now getting back to a normal market. Regarding home prices being too high, Fulton states that you need to look at Colorado, California, Las Vegas and New Mexico. For our economic health, jobs, the net in migration of people, Fulton says we were simply undervalued and that we have caught up to where we needed to be. He does not see prices correcting more than 10 percent from where we are today.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0403biz-execprofile0403.html

The second article, Superstition Vistas: Where we grow next, from the Arizona Republic, reports that the giant 275 square mile Superstition Vistas, a state land parcel of desert located between Apache Junction, the Superstition Mountains, Queen Creek and Florence, is being planned as a major planned community that could have almost 1 million residents by 2060. The cities closest to the future development, along with Pinal County, SRP, CAP and the Sonoran Institute , have paid the Morrison Institute for public Policy at ASU $200,000 to report on how the land should be developed. Lots of issues were discussed in the 31-page report, including water, open space, transportation and infrastructure. The full report, called "The Treasure of the Superstition", can be seen online at http://www.morrisoninstitute.org/.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/news/articles/0402vistas-main0402.html

The third article, Downtown Scottsdale is crazy for condos, from the East Valley Tribune, reports that Scottsdale's condo market is booming, with construction cranes and the steel skeletons of what will soon become luxury dwellings looming against the skyline. Investors and developers have poured more than $1.6 billion into every segment of the downtown area--- retail, employment, cultural, hotel and residential. Of the 2,600 new, planned or built condo units, 2,100 are situated in downtown, and those units are selling at average prices of more than $500,000, city records show. Of the 750 condos at Optima, 500 have already been sold! The buyers of these condo units "are people that have been living in gated communities who are excited about a lifestyle that is more engaging than what is afforded in a gated community," said John Little Sr., executive director of The Downtown Group, the city's liaison to downtown businesses.

http://www.eastvalleytribune.com/index.php?sty=62358