Job news, Maricopa land for sale, and the fed raises rates again!

The first article Arizona mirrors nation on high-wage jobs, from The Business Journal reports that the proportion of high-wage jobs in Arizona is nearly identical to the national average, according to a new analysis of federal employment data. About 15 percent of all jobs in the U.S. pay high wages, defined as paying at least 50 percent more than the overall average wage, according to The Center for Competitiveness and Prosperity Research, a unit of the W. P. Carey School of Business at Arizona State University. "Arizona ranked 17th -- in the middle of a group of competitor states, but near the bottom of a group of New Economy states," he said.
http://www.bizjournals.com/phoenix/stories/2006/06/26/daily33.html?jst=b_ln_hl

The second article Maricopa land going on the block, from The Business Journal reports that Land in the city of Maricopa will be up for auction Thursday. About 106 acres will be offered in tracts ranging from about 20 acres to 80 acres. Bidders will be required to pay 10 percent down and must have $50,000 in certified funds for each tract and $250,000 if they want to bid on the entire acreage. The land fronts on McDavid and Warren roads and comes with power, gas, phone service and three registered wells.
http://www.bizjournals.com/phoenix/stories/2006/06/26/daily35.html?jst=b_ln_hl
The third article Cost to borrow rises with rates, from The Arizona Republic reports that the anticipated Fed action today would lift the federal funds rate by one-quarter of a percentage point to 5.25 percent. That would be the 17th such increase since the Fed began to tighten credit in June 2004. This step would leave both the funds rate and the prime rate at their highest points in more than five years. Before the Fed's series of increases, the prime rate stood at 4 percent and the funds rate was at 1 percent. It was a boon for borrowers, a bane for savers. Those extraordinarily low rates were needed to help brace the economy after the stock market bubble burst, the 2001 recession set in, terrorists struck the U.S. and accounting scandals rocked Wall Street.

Slowing market helps developer

The first article, Slowing market helps developer, from the Arizona Republic, reports that the slowing real estate market is giving new real estate players like Patriot American Development a chance to enter the market. Patriot American purchased two prime parcels of state trust land in Peoria yesterday. It was the only bidder on one parcel and beat out Toll Brothers on the other. In all, Patriot American purchased 1,260-acres for $102.5 million, or about $81,000 per-acre. The land is located near Jomax Road between 83rd and 67th Ave. The parcel is surrounded by housing developments West Wing Mountain and Terramar. The site is designated low density residential on Peoria's general plan.

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The second article, Wickenburg growing rapidly, from the Arizona Republic, reports that in the past six years, Wickenburg's annexation has doubled its population, and town officials are reviewing proposals for 16 residential projects totaling more than 6,200 units. Construction is underway at Monte Vista Ranch, a 300-acre community one mile from downtown. It will have 150 homes, and offers 50 custom homesites from 2 to 15 acres that range from $395,000 to $1.1 million. Almost half the lots have been sold and two homes have been completed. The community also offers 65 luxury villas with 2,400 to 3,400 square feet with price tags exceeding $1 million. The largest residential project in the works is Wickenburg Ranch Estates, a 2,160 acre development situated in Yavapia County that will be annexed into the city. It will have 2,324 units ranging from custom lots to multi-family homes. It is expected to break ground this summer.

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IN THE NEWS!

The first article, Valley's pricey areas not in nations top 100, from the Arizona Republic, reports that when it comes to a list of the nation's most expensive zip codes, Paradise Valley's 85253 and Scottsdale's 85262 just don't measure up to the Hampton's in New York and the exclusive Rancho Santa Fe in Southern California. A recent Forbes magazine analysis of the 2005 median home sales prices rank Paradise Valley No. 122 and Scottsdale's 85262 at No. 390. "I would say that they still know they live like kings at the top of the mountain," said RL Brown, a Valley housing analyst who sees good news in the relatively low rankings of Arizona's high-rolling homeowners. "We're affordable" in comparison to the nation's most expensive areas, he said. Realtor Rusty Davis of Russ Lyon Realty said that in the past three months, 77 homes have sold in Paradise Valley at an average of $2.7 million, including a $9.5 million home northwest of Scottsdale Road and Doubletree Ranch Road.

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The second article, Growth stretches areas of the Sun Belt, from the USA TODAY, reports that 2005 city population estimates released by the Census Bureau on Wednesday show that growth is shifting from large central cities that grew rapidly years ago to smaller, outlying communities in California, Texas, Arizona and Florida. Among the top gainers was Gilbert, which grew 11 percent from 2004 to 2005, ranking it the forth fastest growing city over 100,000 in population in the country. Several other Arizona cities made the list of fastest growing cities, including Chandler, Phoenix, Mesa and Scottsdale. The article shows the trend that will benefit the Metro Phoenix real estate market- that people are still moving here in large numbers. The article states that Phoenix added the most people, 44,000, from 2004 to 2005, and ranks Phoenix as the sixth largest city in population in the U.S.

http://www.usatoday.com/news/nation/census/2006-06-21-census-figures_x.htm

Don't wait for prices to go down in the West Valley!

W. Valley home prices rise as number of resales fall, from the Arizona Republic, reports that the number of West Valley resale transactions in May were down from the same time frame a year ago, but prices inched upward in West Valley cities, according to numbers posted yesterday by the Arizona Real Estate Center at ASU. Prices held firm as move-up buyers dominated the market. Some of the West Valley's major cities, including Goodyear, Avondale, El Mirage and Surprise, represent 9 percent of the total resale market. The article gives the sales numbers and median prices for each West Valley city.

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Freeway/Transportation Growth & Projections

The first article, Summit shows need to speed freeway construction, from the Arizona Republic, reports that Arizona business and government leaders met yesterday for the Arizona Transportation Acceleration Summit, hosted by the Arizona Chamber of Commerce, to talk about accelerating freeway construction above the schedule approved by voters in 2004. Much of the discussion was on the South Mountain Freeway and freeways into Pinal County. Although no specific freeway projects were identified as candidates for acceleration, summit participants agreed to move forward to speed up construction plans and will present a detailed package to the state Legislature in January.

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The second article, Summit zeros in on transportation, growth, from the Phoenix Business Journal, also reports on yesterday's transportation summit. It quotes speaker and local economist Elliott Pollack as saying accelerating the freeways is vital to meet population demands. "What's real is that growth will continue to be in the periphery," he said. "Light rail and bus will never move a large percentage of the people commuting. Your bang for the buck remains in freeways," he added. Summit participants agreed that Arizona is behind the curve when it comes to building roads and meeting transportation needs. Today, the state's population is about 5.1 million. That figure is expected to be 7 million by 2010, 9.5 million by 2025 and 13 million by 2050. Currently, legislatures are expected to approve a state budget that includes $345 million for transportation, but that is just a drop in the bucket as to what is needed to accelerate the freeways.

http://phoenix.bizjournals.com/phoenix/stories/2006/06/12/daily35.html?t=printable

Robust job market in Phoenis metro area continues

The article, Survey indicates Phoenix job market will have robust summer, from the Arizona Republic, reports that hiring by Phoenix-area employers should outpace hiring nationally, according to a Manpower employer survey being released today. It found that 36 percent of local employers expect to add staff in July, august or September, compared to 31 percent nationally. "We're in a period where we'll probably have slower growth going forward," said Tracy Clark, an economist at ASU. "But given the fact we have continuing population growth, there's no reason to expect it to fall off the cliff." Construction, durable-goods manufacturing, transportation/public utilities and education were among the industries expecting to add jobs.

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Resales down but prices stays steady

Valley resales plunge, from the Arizona Republic, reports that sales of existing homes in the Valley fell in May to the lowest levels since 2003, but prices held steady. There were 6,870 resales in the Valley in May, down 34 percent from the 10,425 that were recorded in May 2005. However last year was a hyper-market and the numbers now reflect a more sustainable market, according to Jay Butler at the ASU Real Estate Center at ASU. The median resale price stood at $265,000, up only $2,000 from the $263,000 median price in September. Last year's May median price was $235,000.

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Pinal County keeps moving despite slowdown

Slowdown not stopping Pinal Developments, from the Phoenix Business Journal, reports that a handful of developers are planning to add more than 5,000 homes in unincorporated Pinal County despite the slowing housing market. Las Vegas developer JEKE Group LLC plans a 225-acre master-planned community called Maricopa Opus near Maricopa, and SPD Inc. is planning a 1,200-acre, 4,200 home master-planned community called Dugan Fields on the south side of Highway 84 between White and Parker Roads, west of Casa Grande. SPD Principal Matt Montgomery said the East Valley has been bolstered by the Intel Corp. expansion in Chandler and consistent job growth along the Interstate 10 corridor.

http://phoenix.bizjournals.com/phoenix/stories/2006/06/12/story6.html?t=printable

Resale stats

Home resales still well below record 2005 pace, from the Phoenix Business Journal, also reports on the May 2006 resale numbers. It states that Jay Butler, director of the Real Estate Center at ASU, believes that home prices will continue to slightly decline month-to-month moving through the summer. "When purchasing a home for investment or occupancy, the rapid growth in price that was so evident in much of 2005 is somewhat soothing to the uncertainty of the buying decision," said Butler. "If home prices continue to be stable or even decline in some areas, potential buyers may be increasingly reluctant to make the purchasing decision, because future price appreciation is much more uncertain." So far in 2006 there has been 30,830 resales, compared to 46,485 sales at the same point in 2005. The article gives the sales volume and median prices for all the major Maricopa County cities.

Home resales still well below record 2005 pace
http://phoenix.bizjournals.com/phoenix/stories/2006/06/05/daily49.html?t=printable

Resale stats

Home resales still well below record 2005 pace, from the Phoenix Business Journal, also reports on the May 2006 resale numbers. It states that Jay Butler, director of the Real Estate Center at ASU, believes that home prices will continue to slightly decline month-to-month moving through the summer. "When purchasing a home for investment or occupancy, the rapid growth in price that was so evident in much of 2005 is somewhat soothing to the uncertainty of the buying decision," said Butler. "If home prices continue to be stable or even decline in some areas, potential buyers may be increasingly reluctant to make the purchasing decision, because future price appreciation is much more uncertain." So far in 2006 there has been 30,830 resales, compared to 46,485 sales at the same point in 2005. The article gives the sales volume and median prices for all the major Maricopa County cities.

Home resales still well below record 2005 pace
http://phoenix.bizjournals.com/phoenix/stories/2006/06/05/daily49.html?t=printable

Pent up demand?

Builder foresees rebound, from the Arizona Republic, reports that Robert Toll, the chief executive for Toll Brothers Inc., believes that a strong economy will spark a housing market rebound after excess inventory from speculators is shaken out, perhaps very soon. He said that demand will be driven by buyers who are biding their time for better incentives or lower prices. "The next great story is pent-up demand" he said. "Once the natural balance is restored in the market, you're going to see prices go up again. Prices are going to go up quite a bit," he added. Toll also believes that the second-home market will stay particularly robust as Baby Boomers look to move to Sun Belt states or urban centers with rich culture and entertainment.
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Biltmore condos go to auction!

The article, High-end condos' low opening bids signal glut, from the Arizona Republic, reports that two pricey new condo developments have units that are being auctioned off at opening bids that are half of what the homes originally cost. Four condos in the Optima Biltmore Tower at 24th Street and Camelback, with costs of $949,000, are being auctioned off with the opening bid on one starting at $475,000. In Tempe, three condos at the Vale development, 1111 W. University Blvd., will go to the highest bidder this month as well, with units originally costing $429,000 to $699,000. The suggested opening bid starts at $240,000. A growing number of real estate market watchers say there is just too many pricey condos being built and not enough buyers. Almost 8,000 condos and lofts are planned or under construction across the Valley now, more than went up in the Valley over the last 10 years. High-end condos' low opening bids signal gluthttp://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0604catherine0604.html

IN THE NEWS!

New Homes Get Bigger, Yards Get Smaller

Apparently, bigger is better when it comes to new single-family homes.

Despite the dwindling size of households, new homes are getting bigger and bigger - averaging 2,400 square feet in 2005, according to the National Association of Home Builders. That's a 50 percent increase over the typical 1,600 square foot new home built in 1973.

Among other facts and trends revealed in the association's report on new homes:
One-fourth of new homes have at least three bathrooms.
Ceilings are at least 9 to 10 feet on the first floor and upscale houses have a standard ceiling height of 10 to 12 feet on the first floor and 9 feet on the second floor.
Front doors are single and wider.
The living room in homes with less than 3,000 square feet are being replaced by a room known as a den, parlor, retreat, library or music room. In homes larger than 3,000 square feet, living rooms are remaining.
Stairs are moving from the front of the house to the middle or the rear.
Master baths have shower stalls and a compartmentalized toilet. Mid-to-upscale homes have multiple shower heads and a tub. Upscale homes will continue to have whirlpool tubs even though nobody ever actually uses them.
Yards are shrinking. The American yard is expected to decline to 7,000 square feet from today's 9,000 square feet in the next few years. The first article, Builder expects 25-40% sales dip, from the Arizona Republic, reports that Engle Homes is the latest builder to announce sales are falling because of weakened demand and more buyers cancelling deals. The are expecting a 25-40% dip in second quarter sales from the same quarter last year. "We are experiencing a more challenging housing market, characterized by higher inventory levels, softening demand and increased competition," said Chief Executive Antonio Mon. "We expect these conditions to impact most of our markets for at least the remainder of 2006." Several other builders also recently announced lower sales projections, including Standard Pacific and Pulte.

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The second article, Vegas housing: not too hot anymore, from the USA TODAY, reports that a record 20,515 homes and condos are on the market in Las Vegas, up from 10,555 last May and 4,553 in 2004. Sellers are lowering prices as a result of the slowdown. Builders in Las Vegas are also dropping prices to move unsold inventory. Sound familiar? But as in Phoenix, builders are convinced that the dynamics of Las Vegas will help the market stabilize. Every month, 4,000 to 6,000 people move to Las Vegas. The city's fast growth is what helped spur the construction boom in the first place. As the population grew, real estate prices skyrocketed 45% between 2004 and 2005. Two years ago, new housing developments sold out six months in advance. Now, signs are up around town for those who need to sell their homes in a hurry to avoid foreclosure. The article states that Las Vegas, like Phoenix, Miami, San Diego and Washington, have become much friendlier to buyers as the housing supply increases and appreciation levels off to a rate that is at least a little closer to the national average.

http://www.usatoday.com/money/economy/housing/2006-06-04-las-vegas-housing_x.htm

IN THE NEWS!

The first article, Realtor's seminar designed to help homeowners avoid 'bubble bath', from the Arizona Republic Scottsdale, reports on Scottsdale real estate broker Robert Long seminar titled "Understanding Bubbles and Busts", which talks about how homeowners can avoid a bubble bath, meaning losing their house to foreclosure. Long said that the Valley housing market has an inventory of about 42,000 resale homes in April, nearly five times as many as the previous April. What's worse is that about a third of these homes are vacant, noting that investors are more likely to slash their sales price than someone who is living in their home and does not have to move. RL Brown in his latest Phoenix Housing Market Letter notes that consumers cancelled contracts for new homes because they cannot sell their present homes in a "faltering resale market". The big question Long talks about in his seminar is how low will prices go. He also goes over how to avoid foreclosure. Realty Trac reports that about 6,200 Arizona homes went into foreclosure in the first quarter of 2006, up 6 percent from the same period a year ago. Nationally, foreclosures were up 72 percent year-over-year in the first quarter.

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The second article, Home foreclosure hot spots, from MSNBC, reports that according to Foreclosure.com, a Florida-based company that tracks the foreclosure market, 87,582 American homes were in some phase of the foreclosure process, and in some cities foreclosure filings have jumped by 26 percent and more. Rising mortgage rates and a cooling housing market are cited as reasons for the increase in foreclosures. The foreclosure rate rose in many cities where the appreciation has far outpaced the national average, such as Los Angeles, New York, Miami, Las Vegas, San Diego, Dallas, Houston and Sacramento. In addition, hard-up cities such as Cleveland and Detroit, where the economy is terrible, lead the nation in foreclosures. The article does not mention Phoenix. The article also gives some pointers on how to capitalize on the foreclosure market.

http://www.msnbc.msn.com/id/13086712/page/2/