Arizona Real Estate-Scottsdale and more

Did the house you have been keeping an eye on just get sold?......That's what happened to my client!

2007-11-08T07:47:00.000-08:00

Had enough enought bad news? So has the financial press. And their change of stories may signal a bottom in the market. Why? They're starting to look for the positive.
Just as the absorption of good properties signals a turn from buyer's markets to sellers' markets, so does positive press.
For example, Business 2.0 has joined with Moodey's Economy.com to produce a list of cities that have hit bottom and offer a good opportunity to bounce back.
They name: Dallas, Indianapolis, New Orleans, Atlanta, Montgomery, Memphis, Mobile, Austin, Houston, and St. Louis as markets that have been overlooked, undervalued and up and coming.
This is a step in the right direction.
In Phoenix, San Diego, or Las Vegas, where gloom has clouded the market, it's a great time to be a buyer. Buyers are waiting for prices to fall further, but the ones who are looking for quality properties won’t wait for the bottom. They’ll go for availability.
Another news source, ABC is also turning proactive, with its story, "Finding a mortgage today is harder, but doable."
What? You mean there's hope?
In Phoenix, San Diego, or Las Vegas, where gloom has clouded the market, it's a great time to be a buyer.
And that's the point. In every market, there's opportunity. We already know the news is bad -- what do we do about it?
You’ll know we’ve hit bottom when somebody else buys that home you had your eye on.

New home market shows signs of stabilization, Countrywide offers help, and lots more real estate news!

2007-10-30T07:52:00.000-07:00

New home market shows signs of stabilization, an article from The East Valley Tribune, reports that the Valley's new home market showed signs of stabilization last month with developers taking out fewer building permits and sales remaining fairly steady. According to analyst RL Brown's latest Phoenix Housing Market Letter, some 2,991 new homes were sold in September, a 34.18% drop from the same month last year. The report released Tuesday showed that sales have been relatively steady in the past six months, ranging from 2,945 to 3,135 each month. Brown said that builders taking out fewer home permits is a positive sign. It means that builders may have stopped building speculative homes that were adding to the oversupply. He also added that some builders are looking to construct less expensive homes in the $130,000 to $250,000 range.http://www.tribunehomefinder.com/story/100271

Countrywide offers help with mortgages, an article from MSNBC.com, reports that on Tuesday, Countrywide Financial Corp. said it will begin calling borrowers to offer refinancing or modifications on $16 billion in loans with interest rates set to adjust by the end of 2008. According to a recent survey conducted by Moody's Investors Service of 16 mortgage servicers that accounted for 80% of the market for subprime loans made to borrowers with shaky credit histories, those companies had modified only 1% of loans with interest rates that reset in the first half of this year. Steve O'Connor, the Mortgage Bankers Association's senior vice president said, "It is important to understand that the (loan) modification is only one means of helping a borrower who is behind on their payments." Countrywide said that so far this year, it has completed about 20,000 loan modifications. That number is less than 5% of the more than 500,000 loans the lender reports were behind in payments as of last month. The lender said it intends to refinance about $10 billion in loans and modify another $4 billion.http://www.msnbc.msn.com/id/21432671/
Additional articles that you may find of interest:

Chandler part of last-ditch sales effort: house swaphttp://www.azcentral.com/community/chandler/articles/1023cr-houseswap1024.html

Using YouTube to rethink the sales pitchhttp://www.azcentral.com/arizonarepublic/business/articles/1024biz-cr-youtube1024.html

Villas at Montelucia opens modelhttp://www.eastvalleytribune.com/story/100311

Findings: Light rail, streetcar not needed to relieve congestionhttp://www.eastvalleytribune.com/story/100312

Shop, restaurant tax revenue keeps Gilbert afloathttp://www.eastvalleytribune.com/story/100320

Urban Land Institute ranks Phoenix No. 9 in U.S. for real estate opportunitieshttp://phoenix.bizjournals.com/phoenix/stories/2007/10/22/daily24.html?b=1193025600^1539610 How Hard a Hit from Housing?http://www.businessweek.com/investor/content/oct2007/pi20071023_036933.htm?chan=top+news_top+news+index_businessweek+exclusives Survey: More Home Owners Go Greenhttp://www.realtor.org/rmodaily.nsf/pages/News2007102304 The Hot Market vs. the Not Markethttp://realtytimes.com/rtcpages/20071024_hotmarketnot.htm

Drive a Lexus free, Call us today for details...it's not just in Chandler

2007-10-12T07:16:00.000-07:00

Buy a new Chandler home, drive a Lexus- free, from the Arizona Republic, reports that from Friday through October 21st, Cachet Homes at Fulton Ranch will give homebuyers a free, two-year lease on a Lexus as part of its "Live and Drive in Luxury" promotion. The builder's incentive to buyers is one more example of the sharp turnaround in the Valley's housing market. Cachet communities in Chandler are Crescent Falls at Fulton Ranch and Serenity Shores at Fulton Ranch. Crescent Falls has homes from 1,975 to 2,489 square feet and start in the mid $400's. Serenity Shores has homes from 1,326 to 1,893 square feet and are priced from the high $200's. Cachet Homes credits the builder's advertising firm, The Lavidge Company, with coming up with the Lexus promotion. http://www.azcentral.com/community/ahwatukee/articles/1009cr-lexus1010.html

10,000 "multifamily units planned for Desert Ridge

2007-09-21T08:23:00.000-07:00

10,000 "multifamily" units planned for Desert Ridge, from the Arizona Republic, reports that Phoenix planners have seen the future, and it looks a lot like Desert Ridge. With a new emphasis on density and height to accommodate ongoing growth, close to half of all the residential units in the 5,700-acre master planned community will be what Phoenix considers "multi-family units." Those include apartments, condos, townhomes and other units that hold housing for more than one family. Many are to be located in the so-called "core" of the Desert View Village planning area at Tatum and Deer Valley roads. "Density is a big part of the growth solution," said Terry Feinberg, president of the Arizona Multihousing Association. Considering land costs and infrastructure demands, "it is the only way to be efficient." Jay Butler, director of Realty Studies at ASU, said most units of the type being sold at Desert Ridge or nearby Kierland are being picked up by higher-end customers, including seasonal visitors, well-off professionals who do not have children, or empty nesters, whose children have grown and left the home. The units that are already in the ground are proving popular based on the sales and occupancy. http://www.azcentral.com/community/nephoenix/articles/0919phx-apartments0919-ON.html

It's a Buyer's Market...and remember, this too shall pass......

2007-09-17T12:50:00.000-07:00

It's home-buyer's market, but buyers scarce, from the Arizona Republic, reports that while the current housing market is a buyer's market, buyers are hard to find. "The real reason why people aren't buying is they can't sell," said Jay Butler, director of Realty Studies at ASU. "Even though interest rates are down it's increasingly difficult to get financing, especially if you're stretching income a little bit to buy," he added. With the big run up in prices over the last several years, younger buyers may have a hard time with payments. For move-up buyers, there's key thing to remember, said Susan Paveza, a realtor with RE/MAX Alliance in Gilbert. "You might be selling for less, but you also might be buying for less," she said. Media coverage is having an impact on the market, she added. "The negative press is so terrible. I think the smart ones are buying now, while your media people have all the sellers thinking everything's so terrible," she said. According to the Arizona Regional MLS, there are 43,704 homes for sale in Maricopa County, said Kristine Devine, a certified residential specialist with Keller Williams Integrity First in Mesa. http://www.azcentral.com/community/gilbert/articles/0914gr-buyers0914.html

Fed discount window cut...what does it mean for you? ATM fees....can you still get free money?

2007-09-15T07:30:00.000-07:00

FED DISCOUNT WINDOW CUT...WHAT DOES IT MEAN FOR YOU?

The Federal Reserve has taken significant action lately due to the credit crunch. And now they've made an unexpected move by cutting the discount window rate, which is great news. We'll get to that in a minute, but first let's look at recent events and understand what they mean.
Market movement
To date, over 120 mortgage companies have closed their doors due to reduced liquidity. The result: borrowers who want to take out non-conforming loans have fewer, more expensive options.
Many media outlets have incorrectly added fuel to the fire by stating mortgage lending has stopped altogether and borrowers can't get a loan without a 20% down-payment. This is not true.
Conforming interest rates and loan programs, those backed by Fannie Mae and Freddie Mac, have not been significantly impacted by recent events. Even better, interest rates have come down from recent highs. While this is good news, the market is experiencing unprecedented volatility and changes could come at any time. Borrowers need to act swiftly and decisively in today's climate.
What did the Fed do?
Now back to the discount rate. This is the interest rate charged to commercial banks and other depository institutions on the loans they receive from their regional Federal Reserve Bank's lending facility. The Fed's decision to cut this rate provides stability in the financial markets and this can be good for all of us.
How exactly does this provide stability? Here's an example: imagine you just wrecked your car and it requires $5,000 worth of repairs. You have a short-term need for cash to pay your mechanic. Even though you’ll eventually be reimbursed by your insurance company, you still need the cash now. So, do you sell off stocks to get the cash, or tap into an equity line of credit? Most likely, you draw from that line of credit rather than liquidating a long-term investment.
This is what the banks are facing in today's liquidity crisis. And Bernanke's move helps them avoid long-term damage by supplying access to short-term cash.
It's important to note the discount rate is different than the Fed Funds Rate, which directly impacts interest rates you pay for Home Equity Lines of Credit, credit cards, and automobile loans. Most importantly, the discount window rate cut does not directly impact home loan rates.
What should you do now?
Information, knowledge, and expertise are the building blocks of sound financial decision making. If you are considering financing or are in the process of financing a home, you should tap into the knowledge and resources of a skilled mortgage professional. I would welcome the chance to help you navigate these choppy financial waters.
And even if you are not presently planning on any home financing--it still pays to make sure your credit score is as high as possible, in case a credit or lending need does come up before you expect it.
Again, please feel free to contact us--W are ready to help on all fronts.

THERE IS A $3 FEE FOR USING THIS ATM MACHINE--DO YOU WANT TO CONTINUE AND PAY THE FEE, OR CANCEL?

Aggravating...yet you quickly think to yourself, "What do you think, pal? I've got my kids standing here pulling at my leg to hurry up so we can move on with our day. Do you really think I'm going to run all over town to find a free cash machine? Get it over with, take your darn fee and just give me my cash!"
It's a typical scenario repeated countless thousands of times per day, all over the world, as consumers pay the price for convenience. How big of a price is being paid? ATM income to banks is estimated to be around $4.2 billion per year...that's a hefty load of cash. And although banks have made literally billions of dollars on ATM fees over the years, faced with cut throat competition and growing consumer discontent over rising ATM fees, some banks are trying a new strategy...not charging the fees at all.
So with interest rates on the rise, making profit margins slim for banks--how can they afford to do such a thing? The answer is that owners of the free networks will be charging your bank, instead of charging you...and hoping that the increased use of their machines will help to offset the loss of fee income from the consumer themselves. Smaller banks and credit unions in particular are willing to pay some fees to large free network operators, because the cost of building, maintaining and servicing ATM machines themselves would be so great. Even keeping the machines constantly loaded with cash has become increasingly expensive, factoring in the climbing cost of gasoline needed to power the vehicles that courier the cash out to the machines on a regular basis. This plan very well could be a win-win for everyone, but most importantly, could help keep those extra bucks in your own wallet...where they belong.
To find free machines near you--and start saving on costly ATM fees--check these two free locator links: MoneyPass and Allpoint.

The Fed Rate and Market/Job News

2007-09-07T08:42:00.000-07:00

MMG Update - Friday, September 7, 2007 10:48am ET
Current Trend Direction: Higher
Risks favor: Floating
Current Price of FNMA 6.0% Bond: $100.59, +38bp
"Be careful what you wish for, you might just get it" - many Traders were hoping that the Jobs Report would come in below expectations, as to clearly pave the way for a Fed rate cut on Sept 18th. In fact, the Jobs number was so lousy the only debate left is if the cut will be .25% or .50%. There is talk circling in the trading pits that the Fed is already behind the curve and the US economy may slip into a recession if the Fed does not step in quickly.
The Labor Department reported a loss of 4,000 Jobs in August, that's correct a loss! This is in sharp contrast to the 100,000 - 110,000 jobs expected. Making a bad number worse was the downward revisions of 87,000 to the last two months. This month's loss in Jobs was the worst report in four years. The current three month average of Job growth now stands at just 44,000, below the 127,000 three month average seen last month. This awful read on Jobs is demoralizing Stocks and this has helped Bonds breakaway higher.
The unemployment rate remains steady at 4.6% and is seen as the only piece of good economic news within the report.
This morning's surprisingly weak Jobs Report has helped the Bond breakaway from the 200-day Moving Average. It will now be important for the Bond to hold these gains and make the 200-day Moving Average a real floor of support. The Bond remains very overbought and could reverse lower if Traders decide to sell Bonds and take profits from this rally higher.
For now, let's float and watch how the Bond trades as it approaches strong resistance about 25bp higher than present levels. But as always stay tuned as the market volatility hasn't gone away.

Check out the interactive graph of home price history across the nation

2007-08-25T14:51:00.001-07:00

Today's New York Times
http://www.nytimes.com/interactive/2007/08/25/business/20070826_HOUSING_GRAPHIC.html#

Phoenix is NUMBER ONE in retail building

2007-08-14T11:40:00.000-07:00

Phoenix ranks No. 1 in retail building, from the Arizona Republic, reports that metro Phoenix has more retail space under construction than anywhere else in the country, according to national real estate information firm CoStar. Most of the retail growth is along the Loop 101 and Loop 202 extensions. The fast growth can be attributed not only to the Valley's increasing population and low unemployment but perhaps also to residents who love to shop, said Garrett Newland, vice president with Westcor, a shopping-center development company. Metro Phoenix had 13.4 million square feet of retail space under construction at the end of the second quarter. Nearly 83 percent of it is pre-leased, according to CoStar. http://www.azcentral.com/arizonarepublic/business/articles/0814biz-retailspace0814.html <http://www.azcentral.com/arizonarepublic/business/articles/0814biz-retailspace0814.html>

Fireside at Desert Ridge

2007-08-08T11:05:00.001-07:00

Fireside at Desert Ridge like 7 neighborhoods in one, from the Arizona Republic, reports that Fireside at Desert Ridge, going up on 270-acres west of Desert Ridge Marketplace, is like seven neighborhoods. On the northeastern corner are "maintenance free" homes-- apartment and patio homes that will be sold to empty-nesters and first-time buyers. Near Deer Valley Drive in the center are the luxury line of homes-- large with up to five bedrooms. "We are speaking to a variety of lifestyles," said Eric Orpet, marketing manager for Pulte and Del Webb, developers of the site. "We've developed brand-new unique plans for the area." In all, 916 units will be built, with homes ranging from 1,448 to 4,306 square feet with prices starting at $359,900 to $794,900. The most popular homes so far are in the Monument Series, with sizes from 3,334 to 4,049 square feet and priced from the high $600,000's. In addition to Desert Ridge Marketplace, several other shopping and lifestyle complexes are also developing in this area, including City North and Aviano.

http://www.azcentral.com/community/nephoenix/articles/0807phx-nesale0807-ON.html
Elizabeth

Fireside at Desert Ridge

2007-08-08T11:05:00.000-07:00

Fed Leaves Rate Steady; No Sign of Future Cut

2007-08-07T12:22:00.000-07:00

The Federal Reserve today largely sidestepped the growing anxiety over how tightening credit standards will affect the economy. Click below to view the NY Times full article.

http://www.nytimes.com/2007/08/07/business/07cnd-fed.html?ex=1344225600&en=754446eb09b3bc50&ei=5124&partner=permalink&exprod=permalink

America's Fastest-Growing Suburbs

2007-08-07T12:17:00.001-07:00

America's fastest-growing suburbs, from MSNBC.com, reports that Census information from 2000 through 2006, compiled by Demographic, a St. Louis research firm, shows Gilbert, Arizona as the nations fastest-growing big suburb (with a population of 100,000 or more) in the nation. The study, commissioned by Forbes.com, shows that Gilbert grew from 112,766 people to 191,517 in that period of time. The Phoenix area also saw the greatest positive domestic migration of any American metro area last year, with 115,000 more people moving into town than leaving. The article states that affordable housing and a growing economy are draws to the Phoenix metro area. Lincoln, California, outside of Sacramento, was the nation's fastest growing suburb overall (regardless of size), growing from 11,746 to 39,566 people from 2000 to 2006. Rounding out the top ten fastest growing suburbs after Lincoln were four Phoenix suburbs; Buckeye, Surprise, Goodyear and Avondale.

http://realestate.msn.com/Buying/Article_forbes.aspx?cp-documentid=5219929&GT1=10341

Paradise Valley is a bright spot even in the current market conditions

2007-08-03T08:29:00.000-07:00

The first article, Home construction remains solid in P.V., from the Arizona Republic, reports that home construction in Paradise Valley, the area's priciest market, is strong with 50 new home permits issued by the town through June, compared with 54 for the same period in 2006 and 55 in the same period of 2005. Paradise Valley, also known for tear downs of existing homes to build new mansions, also issued 35 home-demolition permits for the first half of the year, up 17 percent from 2006. That reflects a dwindling supply of vacant lots in Paradise Valley. Paradise Valley is a bright spot in an overall market that has seen permits fall 23 percent for the first half of 2007, according to the Phoenix Housing Market Letter published by local housing analyst R.L. Brown. Karl Stauffer, an associate broker with Sonoran Properties GMAC Real Estate, said luxury markets such as Paradise Valley "have been steadily grinding along." He is not alarmed at the residential-market slowdown. "Yes, it's bad medicine, but it's medicine we have to take in order for the patient to get healthy in the long term," Stauffer said.

http://www.azcentral.com/community/nephoenix/articles/0802sr-biz0803realestate-ON.html

Planners merge to discuss transportation, from the Arizona Republic, reports that Pinal County officials met Thursday to discuss improving its transportation system so it can accommodate the expected 1.9 million residents expected by 2025. "We need regional connectivity to our community centers, cities and towns and other counties," said Andy Smith, transportation planner for Pinal County. Roads in the area are already reaching capacity from the last five years of growth, which added about 100,000 new residents to the county. Regional leasers say transportation planning is also important as the county is expected to connect Phoenix and Tucson into a "megapolitan"-- a super-sized metro area estimated to have about 10 million residents by 2040. Pinal is now the sixth fastest growing county in the nation.

http://www.azcentral.com/community/gilbert/articles/0802gr-bypass02-ON.html

High End Homes in Scottsdale help market but......

2007-07-24T11:57:00.000-07:00

Scottsdale, Ariz: High-end homes help market, prices, from the USA TODAY, reports that the upper-end market in Scottsdale is holding steady and propping up overall home prices, which are relatively flat, according to Mike Deutch, president of the Scottsdale Area Association of Realtors. "The luxury home market has fared a little better than the rest of the market over the last year or so," added Mike Glover of Prudential Arizona Properties. Still, sales volume at the top end of the market isn't enough to make up for the skidding sales for homes priced below $700,000. Compared with May of last year, single-family home sales in Scottsdale overall are down nearly 23%. The article says that a median priced home in Scottsdale would be around $630,000 with 5 bedrooms, 3 baths and 3,339 square feet. The article also notes that there are a record 45,175 single-family homes for sale in the Valley.

http://www.usatoday.com/money/economy/housing/closetohome/2007-07-23-close-scottsdale_N.htm

Scottsdale resale numbers down...PRICES UP!

2007-07-23T08:53:00.000-07:00

Fron the Arizona of Real Estate & Business Journal August 2007

While the Scottsdale resale home market declined from 535 to 420 recorded sales, the median sales price increased from last year's $615,000 to $617,000. The median resale home price is $711,000 ($683,000 in April) in North Scottsdale and $320,000 ($333,000 in April) in South Scottsdale. The townhouse/condominium sector in Scottsdale declined slightly from 305 to 295 sales, while the median sales price increased from $261,500 to $273,250

Listen to NPR's Here & Now on the Valley's Development

2007-07-20T10:15:00.000-07:00

http://kjzz.org/news/arizona/archives/200707/hereandnowdevelopment

Valley is home to four the nation's fastest growing suburbs

2007-07-20T10:10:00.000-07:00

Forbes: Valley home to four of nation's 10 fastest-growing suburbs, from the Business Journal of Phoenix, reports that according to a survey released this week by Forbes magazine, Buckeye, Surprise, Goodyear and Avondale all come in the top 10 fastest growing suburbs in the U.S., according to Census Bureau data. Buckeye was the second-fastest growing suburb in the U.S. from 2000 to 2006, growing from 10,147 to 29,615, a jump of 192 percent. Surprise came in third growing from 32,000 to 86,000, a 166 percent increase. Goodyear's came in sixth with its population growing from 19,500 to 47,400, a 143 percent increase. Avondale came in ninth with its population growing from 37,000 to 75,400, a 102 percent increase. Twenty of the fastest growing suburbs were in Texas and 18 were in California.

http://phoenix.bizjournals.com/phoenix/stories/2007/07/16/daily23.html?jst=b_ln_hl

Light Rail boosts the Central Corridor rental rates

2007-07-18T12:08:00.000-07:00

Investors, light rail boost Central Corridor rental rates, from the Arizona Republic, reports that office lease rates in the Central Corridor have risen to $23.62 per square foot, driven by less expensive properties attractive to investors, and by the light rail which is expected to fuel future growth and activity in the corridor. The $23.62 average lease rate is up more than $6.00 per square foot from two years ago. In addition, the vacancy rates are significantly lower than they were only a couple of years ago. The numbers signal a resurgence of sorts for a submarket that has long "played second fiddle" to more exclusive areas such as the Camelback Corridor or the Scottsdale Airpark, said Charles Miscio, first vice president with CB Richard Ellis's Phoenix office. The article also notes the per square foot office lease rates for other market areas of the Valley, including the Camelback Corridor at $33.23, Scottsdale Airpark at $29.32, Glendale at $27.78, Downtown Phoenix at $27.61 and Downtown Mesa at $15.66.

http://www.azcentral.com/arizonarepublic/business/articles/0717biz-centralcorridor0718-ON.html

Collier Center sells for nearly $177 million

2007-07-17T10:45:00.000-07:00

Collier Center sells for nearly $177 million, from the Arizona Republic, reports that the 23-story Colliers Center building in downtown Phoenix has sold for $176.8 million, the biggest office sale in the Valley's history. The sale shows that Phoenix continues to be an attractive market for investors, said Jim Fijan, executive vice president with CB Richard Ellis, who helped broker the sale. The building, which has a total of 512,000 square feet, was 96 percent occupied at the time of sale, which closed June 28th. That works out to $ 345.31 per square foot.

http://www.azcentral.com/business/articles/0716biz-collier0717-ON.html

Price Rebound in 2008 is Expected....should you buy now?

2007-07-16T09:44:00.000-07:00

Home prices expected to rebound in 2008, from MSNBC.com, reports that the prices of new and existing homes are expected to bounce back next year after a dreary 2007, according to the latest prediction by the National Association of Realtors yesterday. The NAR expects existing homes sales to rise to nearly 6.4 million in 2008, up from the 2007 estimate of 6.1 million. New homes are expected to rise to 878,000 in 2008, from the estimated 865,000 this year. Existing home prices are expected to rise 1.8 percent to a median of $222,700 in 2008 after a 1.4 percent decline this year. The median new home price should rise 2.2 percent next year after a 2.6 percent drop in 2007. "Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008," said Lawrence Yun, NAR senior economist. http://www.msnbc.msn.com/id/19710279/ <http://www.msnbc.msn.com/id/19710279/>

Mortgage Rates edge down slightly this week

2007-06-23T13:03:00.001-07:00

Mortgage rates edge down slightly, from MSNBC.com, reports that rates on 30-year mortgages, after rising for five straight weeks, edged down slightly this week as investors reacted to news that suggested the economic drag from housing could last longer than expected. The government reported that construction of new homes fell 2.1 percent in May, leaving homebuilding activity 24.2 percent below the level of a year ago, while the National Association of Home Builders said its index of builder sentiment in June fell to a 16-year low. "Mortgage rates eased this week due to market concerns that the housing market will be a longer drag on the economy," said Frank Nothaft, Freddie Mac's chief economist. Freddie Mac reported Thursday that rates on 30-year, fixed rate mortgages averaged 6.69 percent, down from 6.74 percent last week. Rates on 15-year, fixed rate mortgages fell to 6.37 percent, down from 6.43 percent last week. Five year ARMS averaged 6.31 percent, down from 6.37 percent last week.

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

Phoenix at the top for business recruitment

2007-06-23T13:01:00.000-07:00

Phoenix sweats out top ranking for business recruitment, from the Business Journal of Phoenix, reports that Phoenix claimed the number one ranking from Expansion Management magazine as the best place for recruitment and attraction, and Arizona ranked as the top state. Maricopa County came in at number 4 for counties in the U.S. Two Arizona cities also made the midsize list: Tucson at No. 4 and Flagstaff at No. 5. Yuma came in at 7th on the small cities list. The magazine, geared to company executives looking to expand or relocate their facilities, worked with the National Policy Council think tank to develop the rankings. The council analyzed the relocation activity of 19 million companies over the past eight years to determine the most popular commercial relocation destinations.

http://phoenix.bizjournals.com/phoenix/stories/2007/06/18/daily16.html?t=printable

Housing Rebound in 2008?!

2007-06-21T11:43:00.001-07:00

Housing rebound projected for 2008, from the Business Journal of Phoenix, reports that the Greater Phoenix Blue Chip real estate panel is forecasting a 13 percent drop in single-family permits for 2007, to 37,000 permits. But they are predicting a rebound in 2008 to 40,000 permits, a 10 percent increase over 2007 levels. However there is some uncertainty to the forecast, writes topics editor Elliott Pollack. He notes a wide spread in predictions among panelists from a low of 27,000 permits for 2007 to a high of 48,000. "The single-family residential market weakened considerably late in 2006 but recently picked up again," Pollack wrote. "It remains to be seen if this is an aberration or if the worst is over", he added.

http://phoenix.bizjournals.com/phoenix/stories/2007/06/18/daily37.html?t=printable

Foreclosures up for investors.....Moody's market predictions

2007-06-13T06:42:00.000-07:00

The first article, Foreclosures up for investors, from the Arizona Republic, reports that at least one quarter of all Phoenix-area homes to fall into foreclosure this year are owned by investors, according to an Arizona Republic analysis of residential foreclosure records. Many cannot charge high enough rents to break even or sell their property at a time when the market is flooded with listings. The effect on some Valley neighborhoods with many rentals and vacant homes can be significant. Through May, 8, 597 notices of trustee sales for homes were filed in Maricopa County, putting metro Phoenix on pace to top 18,000 this year. "Investors drove up the Valley's housing market. Now, they are driving it down with foreclosures," said Jay Butler, director of Realty Studies at ASU. "You won't find a lot of people feeling sorry for them now," he added.

http://www.azcentral.com/arizonarepublic/news/articles/0609investor0609.html

The second article, Where housing will bounce back and when, from MSNBC.com, reports on which real estate markets are projected to bounce back, and how will their rebound look. The article suggests that there are three types of recovery patterns-- a "V" shaped recovery where the market experiences a sharp, fast decline but comes out strong once it hits bottom; a "U" shaped recovery, where prices decline gradually and recover slowly; and a "L" shaped curve-- a hard, fast fall with paltry price bounceback following the market trough. Areas with good local economies and population and job growth are candidates for a "V" shaped recovery. The article states that Phoenix is one of those markets. Good affordability rates and a surging job market suggest that once Phoenix bottoms out, price growth will be strong. Moody's projection model has Phoenix reaching its price trough in the fourth quarter of 2008 and then growing by 7.7 percent the following year.

http://www.msnbc.msn.com/id/19116753/

Home prices down in the first quarter....EXCEPT ARIZONA!

2007-06-04T15:15:00.000-07:00

Housing prices are flat, but that's definitely a plus, from the Arizona Republic, reports that California, Nevada, Florida and Arizona led the nation for housing price jumps a few years ago during the boom. Now, home prices are down in all the states except Arizona. According to figures released last week by the Office of Federal Housing Enterprise Oversight, during the first quarter of 2007, appreciation fell 0.84 percent in California, 0.34 percent in Florida and 0.52 percent in Nevada. Arizona showed a 0.13 percent gain for the first quarter. Home prices fell in 22 of the 26 California cities ranked by the federal agency. In Florida, appreciation was down in 13 of the 18 cities. Based on the drops in these other cities, our flat appreciation rate looks pretty good.

http://www.azcentral.com/arizonarepublic/business/articles/0603biz-catherine0603.html

Arcadia Teardowns

2007-06-01T10:34:00.000-07:00

The article, Tearing down to build up, from the Arizona Republic, reports that since 2005, more than 50 demolition permits have been issued in the Arcadia area where developers are buying up older homes and tearing them down to build large, modern homes. Some residents fear that this trend will change the character of the charming Arcadia area with its 1950's era homes. Part of the appeal of the Arcadia area are the larger lots, the close in location and the great views of Camelback Mountain. As a result of its superior attributes, the median price for new and existing homes in the zip code that covers Arcadia and some adjacent neighborhoods rose 150 percent between 2001 and 2006 to $500,000. Arcadia homes typically sell for over $1 million. Today's buyers want a more open layout rather than the collection of compartmentalized rooms in a typical ranch style home, said Shawn Bellamak, an Arcadia resident and real estate agent. A good acre in Arcadia costs $1.8 million or $1.9 million, said Scott Pfeiffer, president of Sonora West Development. Look for this trend to continue in Arcadia, Paradise Valley and parts of Scottsdale.

http://www.azcentral.com/business/articles/0531arcadia031.html

Builders offering trades on resale homes

2007-05-23T13:00:00.000-07:00

The article, Builders move homes by taking trade-ins, from the Arizona Republic, reports that builders frustrated by customers canceling deals are coming up with aggressive ways to keep them. Some are offering trade-in programs, while others are giving sales guarantees on existing homes. It's a switch from their traditional role in the house deal: building and then selling them. Now, builders are taking a more active role in clearing the way for buyers to purchase their homes. The new programs are driven by a drop in new-home orders and soaring cancellation rates that have left many builders with an excess of unsold homes. Cancellations shot from 1 percent in January 2005, the midst of the housing boom, to nearly 29 percent in March, according to Hanley Wood Market Intelligence, a real estate and new-home construction consulting firm in California. Although some companies are seeing an improvement over last year, cancellations were still running high the first quarter of 2007. At Scottsdale-based Meritage Homes, cancellations stood at 28 percent. At KB Home, it was 31 percent. Pulte Homes lost 25 percent of the sales to cancellations in its Southwest division, which includes Arizona. Valley housing analyst RL Brown said a 15 percent rate is an acceptable industry standard.
http://www.azcentral.com/business/articles/0523tradein0517.html

Realistic prices help ailing home market

2007-05-17T17:52:00.000-07:00

Realistic prices help ailing home market

Buyers and sellers; A gradual meeting of the minds
The difference between what homeowners are listing their houses for and what buyers are willing to pay is narrowing. It’s a new sign the Valley’s housing market is stabilizing.

Here’s your sign……..

Indicators that will signal a housing-market rebound:

· The gap between sales prices and listing prices will shrink
· Home listings will steadily start to fall each month until they are down by at least 20 percent.
· The time it takes homes to sell will drop from the current three-month average to a more normal two-month time frame.
· The number of monthly home sales climbs back to levels from 2003 before the market frenzy.
· Home prices go back to increasing 5 to 7 percent a year as they did before 2004.

“Both buyers and sellers are readjusting their expectations,” said University of Arizona economist Marshall Vest. “Buyers are coming back into the market with reasonable offers. More homeowners are pricing their homes to sell.”
Vest analyzed data from the Arizona Regional Multiple Listing service and found that the spread between what Valley home prices sold for in March and what they were listed for is the narrowest it has been since mid-2004. The gap hit a high in mid-2005.

Notes from an article in the Arizona Republic May 14, 2007
By Catherine Reagor

Arizona a Good Place to Start Your Business

2007-04-26T10:05:00.000-07:00

Yuma, Prescott top list of good places to start a business, from the Arizona Republic, reports that Inc. Magazine has released its list of top cities in which to start a business, and Yuma and Prescott are ranked second and third respectively, behind number one St. George, Utah. Inc's list, which includes 393 metropolitan areas, also ranked the Phoenix metro area at number 14, Tucson at 52 and Flagstaff at 73. The Phoenix metro area ranked second on the large cities list, which include metro areas with an employment base of 450,000 or more. More good news for Arizona!

http://www.azcentral.com/news/articles/0425biz-citybiz25-ON.html

Valley Housing market improves...US market worsens.....it's time to buy!

2007-04-25T14:28:00.000-07:00

U.S. Housing market worsens as Valley improves, from the Arizona Republic, reports that newly released data show that U.S. home prices fell at the steepest rate in almost 15 years in February and existing home sales fell in March by the largest amount in nearly two decades. However, the news in the Valley is better, with the housing market beginning to show signs of life in March. March resales increased over the January and February totals, and the median house price stood at $265,470. Any improvement in the market is welcome as there are still more than 50,000 houses on the market according to the Arizona Regional MLS.

http://www.azcentral.com/business/articles/0425biz-housing0425.html

2007-04-18T08:28:00.001-07:00

The first article, 2nd Waterfront tower on way, from the Arizona Republic Scottsdale, reports that the second Waterfront tower at Scottsdale Road and Camelback will begin welcoming its first residents in June. Residents of the first Waterfront condo tower started moving in in February. The $240 million Waterfront condo project is the most prominent landmark in downtown Scottsdale. Buyers at the Waterfront paid an average of $1.2 million for their condos, with the last few condos starting at $1.7 million each. Scottsdale Waterfront has a mix of residents ranging from their late 20's to the 70's, and only one in five buyers was from out-of-state, according to Geoffrey Edmunds, a development partner with Opus West for the project.

http://www.azcentral.com/community/scottsdale/articles/0416sr-waterfront0416-ON.html

The second article, Housing starts rise for second straight month in March, from the USA TODAY, reports that construction of new homes nationally rose for the second straight month in March, providing a glimmer of hope that the worst of the housing downturn may be over. The Commerce Department said Tuesday that housing starts rose 0.8% in March. In February, housing starts jumped 7.6%. Building permits also rose 0.8% in March, the first advance in three months. Building permits signal future builder construction plans. The Commerce Department housing data comes a day after a private survey of homebuilders showed that they took a gloomy view of the market in April. The National Association of Homebuilders/Wells Fargo Housing Market Index dropped to 33 this month, from 36 in March. Readings below 50 indicate more builders view market conditions as poor rather than favorable.

http://www.usatoday.com/money/economy/housing/2007-04-17-housing-starts-rise_N.htm

Foreclosures Up! New Out-of-State Builders enter AZ Market! Zillow - Cease & Desist!

2007-04-16T09:43:00.000-07:00

The first article, Foreclosures rocket in Valley, from the Arizona Republic, reports that last month, 553 families lost their homes to foreclosure, a four-year high, according to Information Market, a property-record research firm. At the same time, 1,705 homeowners received notices from their lenders that they were at least three months behind on their mortgages. In March 2006, 782 homeowners were delinquent, but only 40 homes were taken back by lenders and sold at a foreclosure or trustee sale. The Valley's housing market could take a hit if lenders try to resell foreclosed homes quickly by cutting prices. Too many foreclosures in one neighborhood can pull the area's home values down. "Our economy isn't bad, but foreclosures will continue to rise," said Jay Butler, director of Realty Studies at ASU. "The fallout from the subprime market is just beginning," he added. In metro Phoenix, foreclosures are still low compared with other states, like Florida and Michigan, which lead the nation in foreclosures.

http://www.azcentral.com/arizonarepublic/news/articles/0414foreclosures0414.html

The second article, Out-of-state homebuilders entering cooling Arizona market, from the East Valley Tribune, reports that several out-of-state homebuilders have entered the Arizona market, seeing the current slump as an ideal time to jump in. The three new homebuilders; Pennsylvania-based Orleans Homes, Canada-based Mattamy Homes, and California-based John Laing Homes have all either started developments or are looking for property. "Arizona has always been considered one of the better housing markets in the United States," said Ray Leppien, president of Orleans' local division. Arizona's market isn't as robust as it was a year or two ago, but a tremendous number of homes are still being built here compared with other states, said Elliot Eisenberg, an economist with the National Association of Homebuilders.

http://www.eastvalleytribune.com/story/87864

The third article, Zillow.com estimates draw fire, state ban, from the Arizona Republic, reports that the Arizona Board of Appraisal has issued two cease-and-desist letters to the popular real estate web site Zillow.com, claiming Zillow needs an appraiser license to offer its "zestimates" in Arizona. "It's the board's feeling that (Zillow) is providing an appraisal," said Deborah Pearson, Board of Appraisal executive director. Seattle-based Zillow.com has been popular since it launched in February 2006 and claims 4 million users a month. It has drawn criticism from real estate professionals and others about accuracy. "We strongly believe that providing 'zestimates' in Arizona is completely legal and in fact an important public service, given that (they) are the result of our 'automated valuation model' and are not a formal appraisal," said Zillow president Lloyd Frink.

http://www.azcentral.com/arizonarepublic/business/articles/0414biz-zillow0414.html

The Market was Better in March

2007-04-11T17:02:00.000-07:00

The first article, Homes sales climb, but lag boom years, from the Business Journal of Phoenix, reports that according to Arizona State University's Realty Studies program, there were 5,385 resales in March 2007, compared with 4,520 in January and 4,280 in February. It was the strongest month since 5,685 were recorded in August 2006. There were 7,265 sales in March 2006 and 10,035 in March 2005. The March 2007 numbers were similar to 2002 levels. So far in 2007, there have been 14,185 resales, compared with 17,980 for the same period in 2006. "While the resale market is tracking near historical norms, the levels should be well below those of the last few years, because the current market lacks the market frenzy to own and/or invest at almost any price and reasoning," said Jay Butler, director of Realty Studies. "The general expectation is that the 2007 resale housing market should be a good year, but no where near the records, assuming that there are no negative geopolitical events and that the sub-prime problem remains fairly contained," he added. The median price in March was $265,470, compared to $260,000 for February.

http://www.bizjournals.com/phoenix/stories/2007/04/09/daily9.html?f=et73&hbx=e_du

The second article, Market in Valley rebounds in March, from the Arizona Republic, also reports on the latest housing numbers from ASU. It quoted Jay Butler as saying "I think there's risk out there", adding that he is more realistic about the market than optimistic. Butler believes the resale market is running near historical norms. He said the market could still be knocked off track by a number of things, including the widening of the subprime lending scandal.

http://www.azcentral.com/arizonarepublic/business/articles/0411biz-resale0411.html

It's a Buyers Market

2007-04-09T10:32:00.001-07:00

It's a buyers market-like never before, from the Arizona Republic, reports that according to the Arizona Regional Multiple Listing Service, more than 50,000 houses and condos were listed in March. A healthy market typically carries about half that number, analysts say. Listings have climbed steadily since the real estate boom faded, with the total exceeding 40,000 last year. Analysts have said that reducing inventory is necessary for recovery in both the new and resale markets, yet resales are at an all time high. Analysts say that Sellers are unrealistic, with many pricing their homes higher than what buyers are willing to pay. Another reason cited for the increase in listings is that investors are unloading homes. "They are the amateur speculators of last year or the year before," said Valley housing analyst RL Brown. "Their 'wink-wink' loan of two or three years ago is about to change into a serious burden." Housing analyst Tim Sullivan of the Sullivan Group in San Diego thinks resale listings should stabilize and maybe begin to fall midsummer. Until that time, it is definitely a buyers market.

http://www.azcentral.com/news/articles/0409listings0409.html

Builders still betting on Phoenix

2007-04-04T08:30:00.000-07:00

The first article, 3 builders bet on Valley housing turnaround, from the Arizona Republic, reports that three new homebuilders are entering the Phoenix housing market, undeterred by the glut of unsold houses and high prices left over from the housing boom. Mattamy Homes of Canada, John Laing Homes of California and Orleans Homebuilders of Pennsylvania say that now is the right time to stake their claim in one of the most competitive housing markets in the country. All three builders will target move-up buyers, while Mattamy will also target first-time buyers. "This is a great opportunity for a builder to get into a market that has been tough to get into for the last five years," said Mark McHone, president of Mattamy's Arizona division. The market may be struggling now, but the newcomers expect it to rebound and be a profitable place to do business. The new builders are going after finished lots: land that already has streets, utilities, and other off-site infrastructure improvements so all the builder has to do is pull a building permit and start construction.

http://www.azcentral.com/arizonarepublic/news/articles/0331newbuilders0331.html#

The second article, Report shines a light on future development trends, from the Business Journal of Phoenix, reports that Colliers International released a forecast on what the Valley will look like in the year 2020. Highlights of the 13-year forecast include:
§ About 50 percent of the growth will be in the West Valley, where developers are master planning more than 50 square miles west of the White Tank Mountains.
§ Downtown Phoenix and the area near 24th Street and Camelback Road will continue to be the locations of choice for Class A office space in the future. But Class A development also will continue to evolve into the North Scottsdale Airpark and Deer Valley areas, around the Glendale sports complexes.
§ Interstate 17 is a corridor of infill opportunities. Older, existing products that no longer are efficient or functional will be torn down or remodeled into new products that serve the needs of the market.
§ Williams Gateway may well become the East Valley's version of Southern California's Inland Empire, an area that boasts one of the most robust economies in the United States. Many investors have begun to invest billions of dollars on this very idea.

http://phoenix.bizjournals.com/phoenix/stories/2007/04/02/story13.html?t=printable

The third article, WV to mirror north Scottsdale, from the Arizona Republic, also reports on Colliers International's report and has high expectations for the Southwest Valley. "The nine-mile corridor along the I-10 from Loop 101 to the Loop 303 will resemble the current image of North Scottsdale, with high-end retail, power centers, Class A office buildings and high-end demographic housing," the report said. A section of the report on retail growth focuses on Buckeye. It notes the huge area that Buckeye has annexed and says that 25 percent of all new homes in the Valley will be built in the town.

http://www.azcentral.com/community/swvalley/articles/0331swv-reportcover31Z5.html

Arizona's Economic Confidence on the rise

2007-03-30T15:34:00.000-07:00

The first article, $15.4 mil lakeshore hits $93.6 mil, from the Arizona Republic Tempe, reports that land values around Tempe Town Lake are soaring. Private property within the 743-acre district that surrounds the lake went from being worth $15.4 million to $93.6 million in the past nine years. ASU and the Scott family are watching the values closely. The Scotts are the only family to own land on the lakeshore. They own the Papago Riding Stables on the north side of the lake. The Scott family gets nearly constant offers to buy their five acres of prime land. "Business is good, so there is no incentive to sell," said Clay Scott. "But the offers keep coming and they keep adding zeros onto them checks." The lake is the third-most popular tourist attraction in the state, according to the Arizona Office of Tourism.

http://www.azcentral.com/community/tempe/articles/0330tr-lakevalue0330Z10.html

The second article, Economic confidence on the rise among business leaders, from the Business Journal of Phoenix, reports that Arizona business leaders are gaining confidence about the state's economy as the second quarter approaches. The latest Compass Bank Arizona Business Leaders Confidence Index rose 1.1 points to a reading of 53. "Arizona's economy continues to grow at a nation-leading rate." said Marshall Vest, director of economic and business research at Eller College of Management at the U of A. "At this level, the index is consistent with an economy growing near its potential," he added. This is good news for our real estate market as businesses that are confident about the economy will continue to expand and create jobs, which will continue to attract new residents!

http://phoenix.bizjournals.com/phoenix/stories/2007/03/26/daily31.html?t=printable

The third article, Buying homes in foreclosure can be risky, from the USA TODAY, reports that buying a home in foreclosure isn't easy, and it's hardly without risk. You need to do your research before you dive in. "There are some good buying opportunities," said David Lereah, the NAR's chief economist. "But don't repeat the mistakes of the foreclosed borrower," he added. Before you try to buy a home in foreclosure, be sure you have a good credit score and enough cash for a sizable down payment. There are several sources to find foreclosed homes, including the auction, bank REO (real estate owned), and working with owners in the pre-foreclosure stage of the process. There are good opportunities in foreclosure homes, but you have to have vision and patience to live in a little chaos.

http://www.usatoday.com/money/perfi/housing/2007-03-29-mym-foreclosure-options_N.htm

Maricopa County hold the top spot in the nation for population growth

2007-03-23T15:34:00.000-07:00

Maricopa County population booming, from the Arizona Republic, reports that Maricopa County holds the nation's top spot for population growth, adding 696,000 residents between 2000 and 2006, according to the U.S. Census Bureau. Maricopa County is now the fourth largest county in the nation with 3.8 million residents. The increase in population can also be tracked through he number of car registrations originating from other states. The state will soon have seven-digit license plates due to the growth. The rapid growth in Maricopa County can be attributed to rapid economic growth in the Valley, continued immigration from Mexico, domestic immigration from other states, and housing affordability, according to Patricia Gober, a geography professor at ASU. Pinal County was also cited as the sixth fastest growing county in the nation from 2000 to 2006.

http://www.azcentral.com/news/articles/0323census0323.html

Maricopa County holds the top in the nation for population growth

2007-03-23T15:33:00.000-07:00

Arizona's economy shows signs of stablility

2007-03-19T11:00:00.001-07:00

Experts: Arizona's economy is stable, from the Arizona Republic, reports that according to local experts, the housing market shakiness is only cooling Arizona's economy a bit in 2007. "Is a recession a possibility? Sure. Is a recession a certainty? No," said Dennis Hoffman, an economics professor at Arizona State University. The article cites several areas that show cooling, including the fact that consumers are spending less money, retail jobs are slowing, residential construction jobs are stalling and income growth could taper slightly. Compared with what's happening in other parts of the country, those are not dire developments. Economist argue that Arizona's economy, while still heavily dependent on construction, has diversified recently. Business services, finance and insurance sectors have grown sharply, said Hoffman, adding that a continuing population boom should grow health care and other related services. Austin Litvak, an economist at Moody's Economy.com, said "I would still expect Arizona to remain one of the fastest-growing economies in the nation despite the housing slowdown."

http://www.azcentral.com/arizonarepublic/business/articles/0318biz-economy0318.html

Luxury condos keep on selling - Kierland condo sells for $3.16 Million

2007-03-19T10:59:00.000-07:00

Kierland condo sells for $3.16 M, from the Arizona Republic, reports that the Valley's elite condo market continues to stay hot as evidenced by the recent sale of a super-luxury condo at Kierland for $3.16 million, the biggest in state history according to the developer. The condo was on the sixth floor of Tower II of the Landmark at Kierland. This sale follows another recent condo sale of $3 million at the nearby Plaza Lofts at Kierlands Commons. "People are wanting to free up their lives," said Connie Greve, the Centennial Homes agent who listed the condo. "They want a condominium here and where their grandkids live, or where it's cooler. They don't want to be tied down to maintaining a single-family home," she added. The most expensive condo units in the Valley have been selling well despite the housing downturn. "I expect to see the market go up," said local condo developer Keith Mishkin. "It's going to be more and more common to see the best luxury condos in the $2 million plus range. We've seen a lot of closings of late and current escrows in the $2 million to $4 million range," he added.

http://www.azcentral.com/community/scottsdale/articles/0316ON-recordcondo.html

New Condo planned in downtown

2007-03-14T15:18:00.000-07:00

Phoenix condo tower planned, from the Arizona Republic, reports that a $100 million condo development called Omega is being planned for downtown Phoenix at Second Ave. and Adams Street, behind the Orpheum Lofts. The 32-story tower would be the third urban high-rise downtown. The developer, W Development (David Wallach), is already developing the Copper Square condominium tower next to Chase Field, which is 85 percent sold out with the first residents planning to move in this summer. Wallach is bullish on the need for residential housing in the heart of the city despite lingering concerns about the health of the Valley's real estate market. "The premise that the housing market is soft in downtown is not the right place to start," said Wallach. "The right product, in the right neighborhood, has a really good chance of succeeding." Wallach hopes to break ground on the Omega project this year and said the tower could open in 2009. It would feature 1, 2 and 3 bedroom units starting at about $400 per square foot.

http://www.azcentral.com/business/articles/0314biz-condos0314.html

What's the trend? Mortgage rates going lower!

2007-03-09T12:58:00.000-08:00

Home sales can't forecast trend, from the Arizona Republic Ahwatukee, reports that median prices for existing homes in the Southeast Valley continued to bounce around in February, showing little indication of any trend for the rest of the year. Ahwatukee Foothills had the highest median resale price at $373,000 in February. Jay Butler, director of Realty Studies at ASU, called it a "pitiful month" for forecasting events because it, along with January, is usually one of the slowest months for sales of existing homes. The sales recorded in February reflect purchase decisions made over the holidays, when people weren't in a mood to shop for real estate. In fact, throughout the metro Phoenix area, the number of sales of existing homes was the lowest for any February since 2003. Compared with February 2006, median prices last month rose in Ahwatukee Foothills and Chandler, and fell in Gilbert, Tempe and Mesa, according to Realty Studies numbers. "It's just one of those markets that has no trend," said Jay Butler.

http://www.azcentral.com/community/ahwatukee/articles/0309ar-homesales0309Z14.html

30-year mortgage rates at 6.14%, from MSNBC.com, reports that rates on 30-year, fixed-rate mortgages fell to 6.14% this week, the lowest since mid-December. "Mortgage rates slid further in the past week to the lowest level this year as volatility in overseas stock markets led to questions about implications for the U.S. economy," said Frank Nothaft, chief economist at Freddie Mac. Nothaft said he believed the economy would strengthen as the year moves forward and this would leave 30-year mortgages moving in a narrow range of between 6.3 and 6.4 percent. The Freddie Mac survey showed that other types of mortgage rates hit their lowest points for the year as well.

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

Phoenix Number Two in the Nation for Jobs

2007-02-21T08:29:00.000-08:00

The article, City's latest top job ranking recognizes biotech impact, from The Phoenix Business Journal, reports that this month's Forbes list of the Best U.S. Cities for Jobs ranked Phoenix number two in the nation for the second straight year. Top honors went to Raleigh, N.C. Detroit, MI landed at the bottom of the list among the nation's largest 100 metro areas. Tucson checked in at number 20 and Las Vegas fell to eighth place. To compile the ranking, Forbes used five data points, weighed equally: unemployment rate, job growth, income growth, median household income and cost of living. The Phoenix area ranked 16th for unemployment, fifth for job growth, second in income growth, 34th in median household income and 64th in cost of living. The Forbes story, however, also had some cautionary words for areas buoyed by housing quoting Hugo Sellert, an economist and research manager with Monster: "The economy has shifted a lot in the past year, especially with the housing market cooling down," he said in predicting that markets in Florida and Phoenix will weaken, while the Midwest and Texas will start generating more jobs.

City's latest top job ranking recognizes biotech impact
http://phoenix.bizjournals.com/phoenix/stories/2007/02/19/daily3.html?t=printable

Have we seen the bottom of the market....indications are we are there!

2007-02-16T13:09:00.000-08:00

The article, Home prices ready to rebound, Realtors say, after nasty Q4, from USA TODAY, reports that home prices should spring back in the coming months, the National Association of Realtors said Thursday, after it reported that prices slid in 73 metro areas in the fourth quarter of 2006. Home sales seem to have hit bottom already in many areas: 71 metro areas had price gains, and 14 of them posted double-digit year-to-year increases. Florida, California, Nevada and Arizona saw the biggest decreases in sales volume. "At least the bottom appears to have already occurred," said Lawrence Yun, senior economist at the NAR. "Now whether or not that will be sustainable is a different question", he added. The latest news about mortgage rates should help boost home sales. The average 30-year-fixed mortgage rate for 2006 was 6.40%. Currently it's sown to 6.30%, Freddie Mac said Thursday. "It's great news," said Frank Notaft, Freddie Mac's chief economist. "I don't see any sharp swings in mortgage rates in the near term," he added.

Home prices ready to rebound, Realtors say, after nasty Q4
http://www.usatoday.com/money/economy/housing/2007-02-15-home-sales_x.htm

The article, Home builders' interest in trust land is revived, from The Arizona Republic, reports that Home builders are bidding on big parcels of Arizona state trust land again. Seven developers showed up for the auction of a 694-acre site in the northwest Valley on Thursday. The Peoria site, the north part of the Camino a Lago planned property, was appraised at $43 million. Almost 100 bids among the builders drove the price up to $61.1 million. Scottsdale-based Communities Southwest was the winning bidder. The land is south of Pinnacle Peak Road and west of 91st Avenue. Other bidders included Lennar Homes and Toll Brothers. State land auctions in September of last year were canceled because there were no bidders. Communities Southwest is planning a residential project on the site.

Home builders' interest in trust land is revived
http://www.azcentral.com/arizonarepublic/business/articles/0215biz-talker0216.html#

2007-02-07T08:22:00.000-08:00

The first article, West Valley developments ranked highly by magazine, from the Arizona Republic, reports that four active-adult communities in the West Valley have been ranked Arizona's best by the state's largest opinion poll, "Ranking Arizona: The Best in Arizona Business", produced annually by the Arizona Business Magazine. Sun City West's Corte Bella was tops for the second year in a row for the active-adult community category. Corte Bella opened in 2003 and has just over 1,600 homes and will close out by the end of the year. Sun City Grand in Surprise, PebbleCreek in Goodyear and Trilogy at Vistancia in Peoria also made the top 10.

West Valley developments ranked highly by magazine
http://www.azcentral.com/arizonarepublic/local/articles/0207wvactive0207.html

The second article, Scottsdale custom home sites opening soon, from the East Valley Tribune, reports that Sereno Canyon, a Crown Community Development project containing 122 estate-sized lots will begin accepting reservations for lot sales this week. The Sereno Canyon development is located on 330 acres near Alameda Road and the future alignment of 122nd Street. It will have lots averaging 2.5 acres and cost from the $700,000s to $2 million. "Hundreds of people have shown interest," said Jim Buckley, director of sales for Harvard Realty services. "It's literally the last best piece of undeveloped property in Scottsdale." The first phase will have 46 lots and take three or four years to build out, Buckley said. The homes will range in size from 3,500 square feet to more than 10,000 square feet, with home costs from about $2.5 million to more than $5 million.

Scottsdale custom home sites opening soon
http://www.eastvalleytribune.com/index.php?sty=83612

Arizona top of the nation

2007-01-24T09:00:00.000-08:00

The article, Arizona economy expected to topple national numbers, from The Phoenix Business Journal, reports that Arizona will topple the expected U.S. growth rate of 3 percent in 2007 thanks to it's continuing population boom, according to ASU economist Edward Prescott, the keynote speaker at yesterday's Arizona Bank & Trust Economic Summit 2007, "Trends to Bank On". "The Arizona trend dominates," Prescott told the more than 300 who attended. Katie Pushor, chief executive and president of the Greater Phoenix Chamber of Commerce, said the state is the second destination for domestic migration next to Florida and the eight internationally. "People want to move to this state," she said. "There is an overwhelming perception of opportunity here." Unemployment is the lowest in 25 years, hovering under 4 percent, but escalating housing prices are keeping some workers from moving here, Pushor said. "Affordability is really an issue for the work force," she said. Also included is an article on this same speech from the Arizona Republic titled Arizona likely to outpace nation. In it, Edward Prescott is quoted as saying "there's got to be another 20 years of rapid growth, and then health thereafter."

Arizona economy expected to topple national numbers
http://phoenix.bizjournals.com/phoenix/stories/2007/01/22/daily16.html?t=printable

Arizona likely to outpace nation
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/business/articles/0124biz-economy0124.html

Camelback building sells for 75 Million!

2007-01-19T17:11:00.000-08:00

The first article, Construction still hot in East Valley, from the East Valley Tribune, reports that millions of square feet of office, industrial and retail development are slated to be developed in the Valley, and many of the hottest development areas to watch in 2007 are in the East Valley, industry observers say. An estimated 4.2 million square feet of office space alone will be under construction this year Valleywide, commercial brokerage Grubb & Ellis reported. Another 6.4 million square feet of industrial space could be under construction by year's end, and overall retail inventory is projected to grow by more than 7 million square feet. Some of the East Valley development areas cited were Scottsdale Airpark, where just under 2 million square feet of office space is planned with a quarter of it scheduled to open in 2007; Williams Gateway with Paragon Properties planned 902-acre industrial and mixed-use development, Chandler Municipal Airport, with hundreds of thousands of square feet of office and industrial uses planned; Riverview at Dobson retail development; Tempe Marketplace and Chandler Fashion Square.

Construction still hot in East Valley
http://www.eastvalleytribune.com/index.php?sty=82527

The second article, Camelback building sells for $75 mil, from the Arizona Republic, reports that the nine-story Camelback Center at 2355 E. Camelback Road sold this week for $75.62 million, or $325 per square foot. The seller, Crown West Realty, purchased the building in November 2004 for $32.35 million. This was the latest in a flurry of sales in the area, one of the most desired office locations in the Valley. Current rents at Camelback Center are about $25 per s.f., but the market is averaging $35 per s.f., and some buildings are getting over $40 per s.f. Shows that our commercial market is strong and is drawing interest from institutional investors.
Camelback building sells for $75 mil
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0119biz-camelback0119.html

The third article, December U.S. home construction climbed, from MSNBC.com, reports that the pace of U.S. home construction climbed 4.5 percent in December, the second straight monthly increase that ran contrary to analyst expectations. Economist had forecast December housing starts to be below Novembers pace. For all of 2006 housing starts totaled about 1.8 million, down 12.9 percent from 2005 totals, the biggest decline since 1991. But the good news is that starts climbed for the second straight month, and according to yesterday's NAT NEWS article, Home builders feel they have weathered the storm, index suggests , from the USA TODAY , home builder sentiment improved in January to its strongest since July, as price cuts, lower mortgage rates and incentives fostered demand.
U.S. home construction climbed in December
http://www.msnbc.msn.com/id/16686772/

Home Builders feel they have weathered the storm

2007-01-18T09:40:00.000-08:00

Home builders feel they have weathered the storm, index suggests, from the USA TODAY, reports that home builder sentiment improved in January to its strongest since July, as price cuts, lower mortgage rates and incentives fostered demand, the National Association of Home Builders said Wednesday. The NAHB/Wells Fargo Housing Market index rose to 35 in January, up from 33 in December, marking its highest reading since 39 in July. "Builders are starting to see that the worst is behind them and that buying conditions have improved to the point that greater optimism is warranted," said NAHB Chief Economist David Seiders. The upturn in demand reflect lower mortgage rates since mid 2006, energy prices that sank from record highs, solid employment and household income growth, home price reductions and builder incentives, he added.
http://www.usatoday.com/money/economy/housing/2007-01-17-home-builders_x.htm
The second article, Office rents in parts of Phoenix top $40/sq. foot, from the Arizona Republic, reports that some office buildings in Phoenix at Camelback and 24th Street are commanding rents of more than $40 per sq. foot, rivaling rates of better known addresses in Chicago and Newport Beach, Calif. The Phoenix market average for Class A office space was $26.75 per sq. foot in the fourth quarter of 2006, according to Cushman & Wakefield of Arizona. Competitor CB Richard Ellis listed the Valley's Class A space at $29.21 per sq. foot. Across the Valley, the average asking rates for leases climbed between 15 percent and 20 percent in the past year, according to broker reports. Absorption of office space hit a new record, as nearly 3.5 million sq. feet were leased. The demand was based on strong job creation in 2006. Scottsdale Airpark showed the most job creation, followed by midtown Phoenix, according to the Cushman report. Larry Downing of Cushman & Wakefield says "the West Valley will be the submarket to watch in the next two to five years. Recent residential growth in the area and the addition of amenities like the University of Phoenix Stadium have helped position this submarket for future commercial growth."
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0118biz-office0118.html

2007-01-05T09:32:00.000-08:00

The first article, Santan Freeway fuels job market, from the Arizona Republic, reports that the Santan Freeway will deliver big developments and a large number of jobs to Gilbert in 2007. Retail centers from clothes to cars, office towers, and a hospital expansion are all expected to open this year in an area around Val Vista Dr. and the freeway. "We had planned over the years for that to be a center of employment for Gilbert as well as a revenue generator for sales tax," said Kathy Langdon with the Gilbert Chamber of Commerce. Several of the projects coming to Gilbert this year include Santan Motorplex, Mercy Gilbert Medical Center, Rome Towers, San Tan Village and Main Street Commons. Shows that growth follows the freeways!

Santan Freeway fuels job market
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/gilbert/articles/0105gr-jobs0105Z12.html

The second article, Home buying, selling made easier with hybrid agents, from the Arizona Republic, reports that some Valley Realtors are getting into a new trend, becoming "hybrid agents"-- professionals who double as Realtors and loan officers. Jim Decker, an associate broker with West USA Realty in Peoria, decided to venture into lending as a way to become more versatile and better inform his clients. "I was tired of some of my clients getting bad deals from mortgage companies", Decker said. "It's a huge step in buying a home, and if I can give then the answers they need, the whole transaction goes smoother." To learn the lending side of the industry, Decker teamed up with JSSmith Mortgage, a Scottsdale-based company that offers a training program to help Realtors like Decker make the transition to a hybrid agent. Out of about 70,000 licensed agents in the state, a few hundred double as loan officers. "This seems like a brand new idea, but in a decade, it will be everyday practice," said Jeffrey Smith, president of JSSmith Mortgage.

Home buying, selling made easier with hybrid agents
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/westvalley/articles/0105gl-loan05Z20.html

The third article, Old, new in Rancho Ventura, from the Arizona Republic, reports that soaring home values in Arcadia the past five years have sparked interest in nearby neighborhoods that are being rediscovered and redeveloped. That includes the 50-year old Rancho Ventura neighborhood, southwest of 44th Street and Thomas Road, which has large, irrigated lots with a mix of well-kept homes and others that show their age. "it's a sleeper of an area in terms of value," said Katherine Coles, a planner for Phoenix's Camelback East Village area. But bargain properties are starting to disappear as interest in the area rises. Median home prices in Arcadia's ZIP code 85018, increased 145 percent to $490,000 between 2001 and 2006. By comparison, the median home price was $218,500 last year in 85008, up 29.3 percent from 2005 and up 100 percent from 2001. That ZIP code is from Thomas Road to Van Buren Street, between 64th and 24th Streets.

Old, new in Rancho Ventura
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/scottsdale/articles/0105sr-biz0105realestateZ8.html

Phoenix property values expected to rise 11% in 2007

2007-01-05T09:29:00.000-08:00

The first article, Phoenix property values expected to rise 11 percent in 2007, from the Phoenix Business Journal, reports that property values in Phoenix are expected to rise 11.1 percent in 2007, according to a fourth quarter survey by Arizona Tax Liens.com. Buyers and sellers projected an average increase of 10 percent statewide, citing the large number of people immigrating to Arizona, fueled by high-tech and biotech job growth in Tucson and Phoenix, low housing costs and baby boomers buying retirement homes. Of the 5,000 people surveyed, 59 percent planned to buy real estate in Arizona in 2007 and 32 percent planned to sell.
http://www.bizjournals.com/phoenix/stories/2007/01/01/daily11.html?t=printable

The second article, Tax lien sales likely to drop at '07 auction, from the Arizona Business Gazette, reports that Maricopa County Treasurer David Schweikert says that "we believe we'll have 20,000 liens to offer this year", which is down from past years when as many as 28,000 properties were on the auction block. "We're doing a better job at collections", Schweikert said. "It's the right thing to do, to collect as much as possible, but it does represent a huge change for us." In early December, the Treasurer's office sent out 35,000 final delinquency notices carrying information about all delinquent taxes affecting a specific property. Schweikert's advice to homeowners, "open your mail". Potential bidders can go to the Treasurers web site for more information about the upcoming tax lien auction. Arizona Tax Liens.com provides real estate investors with online access to Arizona tax lien lists. http://treasurer.maricopa.gov/index.htm.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/abgnews/articles/0104abg-taxlien0104.html

2007-01-02T13:40:00.000-08:00

The first article, Western states see rise in home resales as mortgage rates dip, from the Phoenix Business Journal, reports that existing home sales in the West rose 0.8 percent to an annual pace of 1.32 million in November but were 17.5 percent lower than a year earlier, according to the National Association of Realtor's latest housing report. The median price in the West was $351,000, down 0.8 percent from November 2005. "As the housing market recovers from its correction, existing home sales should be rising gradually during 2007- it looks like we may have reached the low point for the current cycle in September," said David Lereah, NAR's chief economist. "We've entered a more sustainable period of home sales now, and we expect greater support for prices over time as inventory levels are eventually drawn down," he added. Mortgage rates remain low, with the 30-year mortgage rate sitting at 6.24 percent in November, down from 6.33 percent in November 2005.

http://www.bizjournals.com/phoenix/stories/2006/12/25/daily25.html?t=printable

The second article, 6 developments are moving Surprise growth north, east, from the Arizona Republic, reports that a cluster of six new housing developments comprising more than 20,000 acres will account for Surprise's next growth spurt to the north and east, according to Surprise city planners. The communities are: Desert Oasis with 3,250 units; Austin Ranch with 2,481 units; Asante with 6,703 units; Tierra Verde with 538 units; Asante North with 8,962 units and Burke property, with 741 units. Desert Oasis is already underway, and plans for the Burke property and Asante North are heading to city council. Previously, most of Surprise's growth took place on the city's western area, near Sun City Grand and the Loop 303.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/westvalley/articles/1230gl-nwvdedication30Z20.html

Recovery is here? Be the first to read the news!

2006-12-23T12:35:00.000-08:00

Recovery is here for real estate
Dec. 24, 2006 12:00 AM

Economists don't usually top the list of most desirable holiday party guests, but this year has been different. My popularity has ratcheted upward because the No. 1 topic among Arizona homeowners (as well as lenders, builders and real estate agents) seems to be: "How long before real estate markets recover?"My answer, that real estate markets have recovered, usually sends them to the punch bowl. The frenzy-driven appreciation increases are over. The slowdown in new-home building accompanied by stable home prices show that the market is getting out of bubble mode. In my view, we have recovered now that the pace of sales of both new and used homes is back onto a sustainable steady growth path. As an analogy, consider a patient with a raging fever, rushed into the emergency room. After successful treatment, we want the fever to be gone and the temperature normal. Of course, we don't want a stone-cold corpse. Like that patient, the Arizona housing market has recovered to a more normal temperature, with a good prognosis.

Far from stone coldAnd the market is far from stone cold. As of now, it looks like resales of single-family homes in the Greater Phoenix area will approach 70,000 for 2006. Although resales will be down by a third from the 110,000 record set in 2005, this year still will be the fourth-strongest ever for resales. Assuming Arizona job growth and population flows remain strong, 2007 shouldn't be much different.Single-family permits for new homes also are down by about a third for 2006, as builders have pulled back. But new-home buyers are still active, inventory is being worked off, and actual sales will be down at most 15 percent from the torrid pace of 2005. Homeowners bemoan the sudden stagnation in appreciation. But the reality is that a conflux of unusually strong demand and easy mortgage money triggered price rises that could not be expected to continue.In the 12 months from midyear 2004 to summer of 2005, prices were up 30 percent on single-family resales, according to the Arizona index of housing prices from the Office of Federal Housing Enterprise Oversight in Washington, D.C. Appreciation like that won't be repeated anytime soon, perhaps for many years.Consider that 12-month jump of 30 percent in the context of the past two decades. If a family bought a new home in Phoenix in 1985, that property increased in value at the glacial rate of about 2 percent per year for the following 10 years. The gain in value was 26 percent for the whole decade of 1985-95. From 1995 to 2000, the typical Arizona home appreciated again by almost the same amount, 27 percent. Then, it took half the time, five years, as markets were bolstered by the economy of the roaring '90s.Fast-forward from 2000 to now: Home values have doubled. Prices increased more in the past five years than in the previous 15 years combined.Although most analysts expect that reported sales prices averaged over the whole Phoenix market may temporarily dip somewhat (5 to 10 percent) over the next year, these meager declines are coming off inflated values of magnitudes unseen in the previous two decades. New-home buyers in Arizona shouldn't worry that price declines will wipe out value. In our growing economy, prices will continue to rise, albeit along a more stable growth path in the future. But don't expect a 30 percent gain in any future 12-month period. Another concern is whether the residential slowdown will lead the economy into recession, as we saw in 1991 and 2001. There are some differences now. Compared with those previous slowdowns, Arizona population growth is stronger. The annual increase today is about 3 percent, which translates to about 180,000 new residents per year and creates a base demand for housing. In 1991, population growth fell to 1.7 percent and weakened real estate demand.
Economic strengthAnother difference is strength of the overall economy. Job creation came to a halt in Arizona in the recessions of 1991 and 2001. According to the most recent figures, Arizona leads the nation in job growth, although the pace has moderated as 2006 comes to a close. But as of now, construction employment is at an all time high (253,100 workers) and is still the fastest growing sector of the Arizona economy. During the second half of the 1980s and through 1992, construction lost jobs for five consecutive years. Through the first nine months of 2006, construction employment was up by more than 10 percent over last year. Construction jobs are growing because, although new-home building is slowing down, other building categories are expanding. In the '80s, 1991 and 2001, the residential downturn was accompanied by absolute drops in commercial and industrial building. But those two components, along with infrastructure (light rail, schools), are robust today.The Blue Chip forecast for Phoenix from Arizona State University's W.P. Carey School of Business projects that over 3 million square feet of office space will be added in 2007, along with 6 million square feet of retail space. These are increases over 2006 building.
Residential marketWhat pain there is in the local real estate sector is felt most in the residential market. Those suffering are home builders with too much inventory, who will cut back on new starts next year. Suppliers for home builders will be caught in the undertow. And those residents who bought homes in the past couple of years and now want to sell may take a loss, either in real terms or relative to what they thought they would get. Other effects of the deflating bubble are yet to play out. Adjustable-rate mortgages that reset may put a squeeze on some households. And home equity withdrawals to support consumer expenditures are dwindling. As 2007 unfolds, the volume of home sales and prices in the residential market will gradually move back onto a steady, sustainable trend line. Annual price appreciation will be in the 4 to 5 percent range recorded from 1985 to 2000, rather than 30 percent per year. Compared with the go-go markets of the past couple of years, indicators will all be dialed back. In my opinion, that signals the market is getting back to normal, and I call that a recovery.Lee McPheters is director of the JP Morgan Chase Economic Outlook Center at the W.P. Carey School of Business, Arizona State University.

This is a must read on Greater Phoenix: History & Outlook

2006-12-21T09:58:00.000-08:00

Here is a link to Elliott Pollack's latest power-point presentation titled Greater Phoenix: History and Outlook, that he gave to El Dorado Holdings. Elliott is very positive on the future growth of metro Phoenix and the housing market because of the continued population and job growth.

Greater Phoenix: History and Outlook
http://www.elliottpollack.com/WEBSITE%20SLIDES/El%20Dorado%20Holdings_121806.pdf

Look at the second article...what's happening in Scottsdale & Paradise Valley

2006-12-13T08:31:00.000-08:00

Nov. housing market in the Valley held steady, from the Arizona Republic, reports that Metropolitan Phoenix's housing market continues to show a steady pulse, with prices for existing homes edging up less than 1 percent in November to $259,000. 5,040 homes sold in November, up from the 4,985 sales recorded in October 2006, according to the latest housing report from the Arizona Real Estate Center at ASU. Last year, nearly 7,200 homes sold in November. "Instead of being overactive, or no pulse, it's running at a normal pulse," said Jay Butler, who heads the Real Estate Center. "It's a good, strong pulse. It's just not the pulse people like." Butler added that sales and prices are much more sustainable than those recorded in 2005. Sellers have been able to get about the same price for their homes for the past several months. Prices varied throughout the Valley, with Scottsdale showing a median resale price increase of 5.9 percent from November 2005 to November 2006, while Goodyear saw prices drop 11.9 percent over last year.
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/1213biz-
hmresales1213.html

Resale home price tag jumps 15%, from the Arizona Republic Scottsdale, reports that Scottsdale's resale home market surged 15%, recent from October to November to a median price of $630,000, according to the Arizona Real Estate Center at ASU. Prices were up 6 percent from a year earlier. November's median price was the highest for Scottsdale since June when it peaked at $640,000. North Scottsdale's median price was up 12.6 percent from October to November, and South Scottsdale's prices were up 10 percent month-over-month. Paradise Valley's median price of $1.69 million, highest in the metro area, is down 2.7 percent from October.
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/scottsdale/articles/1213sr-homes1213Z8.html

Could the economic news save you thousands?

2006-12-13T08:21:00.000-08:00

Economic News That Could Save You Thousands
Fed Chairman, Ben Bernanke, and other policy makers at the Federal Reserve met today and decided to leave fed-controlled interest rates unchanged for a fourth consecutive meeting. In a survey of economists by Bloomberg, 74% believe that this policy decision will hold through the first quarter of 2007.
In spite of the Fed's decision to hold rates steady, long term interest rates - including home loan rates - have fallen to their lowest levels of the year!
You May Qualify for a Reduction in Interest PaymentsAt the end of each year, Fannie Mae and Freddie Mac release their maximum loan limits for the coming year. These limits identify the maximum amount you can borrow while still qualifying for conforming loan products, which offer lower rates than alternative loan programs.
Many in the real estate industry had been concerned that these limits would be lowered as property values in many areas have been declining.
Good NewsConforming loan limits will remain unchanged for the remainder of this year and throughout 2007. The loan limits for first home loans will hold firm at:
$417,000 for home loans on one-family properties;
$533,850 for home loans on two-family properties;
$645,300 for home loans on three-family properties; and
$801,950 for home loans on four-family properties.
Could This Benefit You? Ask Yourself These Five Simple Questions:
Was your current home loan initially closed with a jumbo/non-conforming interest rate or with a rate higher than 6.50%?
Do you have a Home Equity Line of Credit with a balance on it?
Do you have an ARM scheduled to reset in 2007?
Do you owe more than $10,000 on revolving accounts or credit cards?
Do your retirement accounts require additional funding to meet future financial needs?

The Housing Hangover news from Elliott Pollack

2006-12-13T08:20:00.000-08:00

The first article, The Housing Hangover: Take Two Aspirin and Call Me in 2008, from the Elliott Pollack website, reports on local economist Elliott Pollack's latest report on the housing market. Elliott points out that people forget that housing is cyclical. In 2004 and 2005, there was an explosion of roughly 123,000 single-family permits pulled in the metro area, yet demographics for that same time period supported only 84,000 to 90,000 units were needed. That led to an oversupply of between 15,000 to 25,000 units, and has led to the current "inventory correction". Elliott states that historically based on population inflows, we should be doing 43,000 to 44,000 new homes in the Valley, and that we will need to go through a period of under-production to get rid of the excess inventory. He says that the worse 2007 is in terms of new home permits, the better off we will be and the quicker we will pull out of this oversupply market. Very good article for a true representation of the market.

http://www.elliottpollack.com/word_docs/ASU%20Speech%202006_final%20presented.pdf

The second article, Mobile-home parks falling to builders, from the Arizona Republic, reports that development pressure is killing off old mobile-home parks as developers take advantage of their close-in locations for new housing. There were 601 mobile-home parks in the Valley in 1985. That number has fallen to 555, says Kammrath & Associates, a Phoenix commercial real estate firm. The value of the parks increased 157 percent in the two decades through 2005. Steven Happel, an expert on winter visitors at Arizona State University, said even without developers grabbing the land, mobile-home parks would be under pressure. "It's kind of lost its appeal. The older crowd, the pre-baby boomers, are now dying off. Baby boomers aren't going to move into those parks. They're going to buy more upscale stuff," he said. Susan Brenton, executive director of the Manufactured Housing Communities of Arizona, said she hasn't seen a new mobile home park open in the Valley in about five years. Developers are attracted to parks that already are zoned for residential, making them naturals for condos or apartments. Apartment rents are at record levels, and vacancy is low, at 7.7 percent. That is creating more pressure to find construction sites.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/news/articles/1209mobilehome.html

Land sale plan raises ire in Scottsdale

2006-12-13T08:16:00.000-08:00

The article, Land sale plan raises ire, from the Arizona Republic, reports that Tempe-based SunCor Development Company has applied to the State Land Department to purchase a 1,713-acre tract of land northeast of Scottsdale and Happy Valley roads. This has angered Scottsdale leaders who want to preserve that land as open space. But a price tag of nearly $500 million could put it out of Scottsdale's reach. "This is so premature," Scottsdale Mayor Mary Manross said Monday, adding that the city had not expected this land's sale for at least five years. The 1,713-acre tract stretches all the way to Pima Road and Dynamite Blvd., and has a wash and power line cutting across it that will limit how much can be developed. It is zoned for low-density housing of no more than one home per acre. The land has not been appraised yet but State Land Commissioner Mark Winkelman roughly estimates that it could bring in close to $300,000 per-acre. The auction for it is not likely for 9 to 12 months, he added. "Bringing it forward does not prevent Scottsdale from purchasing it," Winkelman said, adding that the city will have to prioritize which lands it wants most for its preserve.
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/local/articles/1212suncor1212.html

Lots of Builder Spec homes available....Is it time to buy?

2006-12-04T10:22:00.000-08:00

The first article, With 25,000 spec homes, now may be the time to buy, from the Arizona Republic, reports that as many as 40 percent of the contracts on all new homes in the Valley during 2005 and early this year have fallen through. That translates to 25,000 spec homes, according to a new survey from housing analyst RL Brown. Many new home deals fell apart because buyers couldn't sell existing homes, but there also were many investors who pulled out of new-home deals after seeing they couldn't flip the homes for hefty profits. Now builders are offering huge incentives to get the inventory sold. So if you looking for the best deal on a new home, it might be now. Housing analysts also
say supply and demand in the resale market has to get back in sync before the home building market will rebound. Realty Executives President John Foltz said many of his agents ask where all the home buyers are in this "buyers market". His answer: "They're living in overpriced listings."

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/1203biz-catherine1203.html

The second article, Arizona knocks off Nevada as top job market, from the Phoenix Business Journal, reports that Arizona knocked Nevada out of the top spot in job growth for October with a gain of 4.7 percent, or 121,200 jobs, since October of 2005. Among metropolitan markets with a work force of more than 1 million, the Phoenix area retained the top position in nonagricultural employment for October 2006 over October 2005, with a 5.2 percent gain, representing 94,500 jobs. Overall, the US economy grew by 1.92 million nonagricultural jobs from October 2005 to October 2006-- a 1.4 percent increase.

http://phoenix.bizjournals.com/phoenix/stories/2006/11/27/daily39.html?surround=lfn

A century of water for Buckeye

2006-11-28T09:11:00.000-08:00

A century of water: Study confirms Buckeye has enough groundwater to sustain growth, from the West Valley View, reports that a recent 1,665-square-mile Lower Hassayampa Sub-Basin Hydrology Study concludes that Buckeye has a sufficient groundwater supply to meet the town's development needs for the next century. "It means that we now have assurance that if we properly manage our groundwater supply, we can provide water for the growth of Buckeye," said Scott Lowe, Buckeye Public Works Director. The water study was funded by the town and developers/landowners in the study area, including Belmont, Festival Ranch, Douglas Ranch, Elianto, Tartesso and Trillium. Approximately 30 percent of the water accounted for in the study will come from recharge, or treated water that is released back into the ground. This study will support the development of the area of Buckeye north of Interstate 10 and should make this area a continuing hot spot for real estate development in the Valley.

A century of water: Study confirms Buckeye has enough groundwater to sustain growth
http://www.westvalleyview.com/main.asp?SectionID=2&SubSectionID=1&ArticleID=24325

Scottsdale Development Update

2006-11-27T15:07:00.000-08:00

================================================================================
Scottsdale Update - Development Focus ================================================================================
Scottsdale Development Update
A weekly newsletter from the City of Scottsdale
November 28, 2006
*****************************************************************************************
TELL A FRIEND -- If you know others who would be interested in receiving 'Development Update', please forward this subscription address and tell them to click on Development Update -- http://www.scottsdaleaz.gov/listserve/default.asp

===== HEADLINE NEWS (What's New in Planning & Development)
-- City to initiate process to review sign ordinance regulations
-- Process to update R1-7 section of zoning ordinance continues to move forward
-- Citizens invited to Nov. 30 open house to review proposed changes for fences in R1-7 districts
-- Stormwater Impact Mitigation process previewed at Nov. 29 & Dec. 14 community meetings
-- Process underway to acquire trail easement near Mescal Park.
-- Improvements planned for Central Groundwater Treatment Facility
-- City to host meeting for residents to review plans for TPC desert course and clubhouse
-- Downtown Town Hall update
-- Downtown speaker series resumes Jan. 11, 2007
-- City's inspection services information now available in Spanish
===== PUBLIC MEETING CALENDAR
-- Nov. 29 Planning Commission meeting, 5 p.m. in the City Hall Kiva, 3939 N. Drinkwater Blvd. Agenda available at: http://www.scottsdaleaz.gov/boards/pc/documents.asp
-- Dec. 13 Development Review Board, 1 p.m., City Hall Kiva ¡V when finalized, the agenda will be available at: http://www.scottsdaleaz.gov/boards/DRB/documents.asp

===== DEVELOPMENT ACTIVITY UPDATE
-- Projects being proposed/considered and those under construction

===== AT YOUR SERVICE -- HELPING YOU DO BUSINESS IN & WITH THE CITY
-- City services geared towards simplifying the planning & development processes and encouraging neighborhood reinvestment

===== PROGRAMS FOR YOU
-- Free classes and monthly lectures highlight solar and green building topics

==================
HEADLINE NEWS
==================
CITY TO INITIATE PROCESS TO REVIEW SIGN ORDINANCE REGULATIONS. In response to City Council direction, staff is initiating the process to review regulations related to temporary signs that are located in the public right-of-way and/or on private property. The proposed changes will include options to further limit and in some cases prohibit the location of temporary signs which include political signs. This issue was most recently reviewed as part of a proposed 2004 text amendment (http://eservices.scottsdaleaz.gov/cases/casesheet.aspx?caseid=28263). As part of the broad city-wide outreach on this issue, stakeholders are invited to attend the following community open houses:
Wednesday, December 6 from 4:30 to 7 p.m. at the city Water Campus and
Thursday, December 7 from 4:30 to 7 p.m. at the Granite Reef Senior Center, Room #8 The proposed public hearing timeline for this issue includes Planning Commission review in January and City Council review in March.

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PROCESS TO UPDATE R1-7 SECTION OF ZONING ORDINANCE CONTINUES TO MOVE FORWARD. This section of the Zoning Ordinance applies to approximately 14,000 residential properties in southern Scottsdale. In the first phase, staff is addressing issues relating to non-conforming structures (approved by the Council on Nov. 21) and walls/fences, which is scheduled for a community meeting to gather input on Nov. 30. The second phase will address carport conversions, setbacks, accessory building location and corner lot height. The third phase will focus on alleys as well as building heights and second stories. While the process is underway, staff has provided five site plans with ideas for residents wanting to maximize buildable space under current zoning requirements. These plans are online at: http://www.scottsdaleaz.gov/codes/Zoning/R1-7

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CITIZENS INVITED TO NOV. 30 OPEN HOUSE TO REVIEW PROPOSED CHANGES FOR FENCES & WALLS IN R1-7 DISTRICTS. Residents are invited to provide input from 4:30 to 6:30 p.m. at the Granite Reef Senior Center, 1700 N. Granite Reef Road, Room #11. Additional information about the R1-7 update process is available on the city's web site at: http://www.scottsdaleaz.gov/codes/Zoning/R1-7/default.asp

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CITY HOSTS TWO COMMUNITY MEETINGS TO INTRODUCE PROPOSED STORMWATER IMPACT MITIGATION PROCESS. The city is hosting two community meetings to preview a proposed new process related to mitigating stormwater impacts.
** Nov. 29 meeting at the city's Water Campus, located at 8787 E. Hualapai from 4 to 6 p.m. to learn about a proposed new process designed to provide an objective review of stormwater impact for proposed projects.
** Dec. 14 meeting at the city's Water Campus from 5:30 to 7 p.m. At these input meetings, staff will:
Highlight a proposed new review process --Stormwater Impact Mitigation Analysis (SIMA) that identifies options for implementing a third party review of stormwater impacts. The goal of this process is to require proposed projects located in areas of special concern to go through a new, additional review process to ensure no adverse impacts on neighborhoods. Background information related to the city's drainage review process is available at: http://www.scottsdaleaz.gov/bldgresources/DevProcess/drainage/default.asp
Upcoming public participation opportunities are highlighted on the city's web site at: http://www.scottsdaleaz.gov/projects/OpenHouse/Default.asp

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PROCESS UNDERWAY TO ACQUIRE TRAIL EASEMENT NEAR MESCAL PARK. Staff is continuing the process to acquire a public trail easement along the public utility corridor between 68th Street and 68th Place from Mescal Park, north to the existing trail on Cactus Road. As part of the acquisition process, there will be an informational open house for the 35 affected property owners from 6 -7:30 p.m. on Wednesday, Dec. 13 at Cocopah Middle School, 6615 E. Cholla. Information, project maps and the Trails Master Plan will be made available at the open house along with a brief presentation to further explain the project.

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IMPROVEMENTS PLANNED FOR CENTRAL GROUNDWATER TREATMENT FACILITY. In January 2007, the City of Scottsdale will begin making improvements to Central Groundwater Treatment Facility (CGTF), the water treatment plant located at Thomas and Pima Roads. This project will complete rehabilitation improvements to the facility that are required prior to and in conjunction with the removal and replacement of the packing of the existing air-stripping columns. Improvements include re-coating the supply lines and column walls to prevent corrosion, replacing blowers and valves and installing surge protection. A community meeting will be held for residents to learn more about the project and facility from 6 to 8 p.m., Tuesday, Nov. 28 at the Granite Reef Senior Center, 1700 N. Granite Reef Rd.

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CITY TO HOST MEETING FOR RESIDENTS TO REVIEW PLANS FOR TPC DESERT COURSE AND CLUBHOUSE. The City is currently designing a series of improvements to the Tournament Players Club (TPC) Desert Golf Course and Clubhouse. Construction is scheduled to begin in January 2007 prior to the FBR Open, and the course will reopen in November 2007. An open house will be held from 4 to 6 p.m., Wednesday, Dec. 6 at the current TPC Desert Course Clubhouse located at 17020 N. Hayden Rd. Plans for the clubhouse and the updated golf course design will be on display, and members of the design team will be available to answer questions.

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UPDATE ON DOWNTOWN TOWN HALL MEETINGS. The city, in conjunction with the Arizona Town Hall, held a series of Town Hall discussions focusing on the future of Downtown Scottsdale on Nov. 15, 16 and 20. The Town Hall event was the kick-off for a comprehensive community process to update the Downtown Master Plan. Roughly 100 Scottsdale stakeholders, including residents, investors and business owners met to discuss what programs, services and facilities will be needed in Downtown's future. Next steps include gathering the information from the three meetings and compiling it into a summary report that will be presented to the community in January. The city will periodically update the Downtown Town Hall Web page to provide the most recent information related to this process. Here's the address: http://www.scottsdaleaz.gov/projects/downtown/townhall.asp

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DOWNTOWN SPEAKER SERIES RESUMES JAN. 11. As part of the ongoing community dialogue involved with updating the Downtown Plan, the city will be hosting a series of speakers who will highlight issues related to urban environments, design, and public open spaces. The next speaker will be Vern Swaback, a nationally recognized architect and Taliesin West graduate who will discuss his recent book, "Designing for the Future," from 7 to 9 p.m. Jan. 11 at the Human Resources Pinnacle Room, 7522 E. Main St. For more information call (480) 312-7990.

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CITY'S INSPECTION SERVICES INFORMATION NOW AVAILABLE IN SPANISH. Scottsdale's Inspection Services division has Spanish-speaking staff members available from 8 a.m. to 4:30 p.m. weekdays to provide assistance to customers. In addition, the city's automated inspection request line -- (480) 312-5796 -- can accommodate inspection requests from Spanish-speaking customers. On-line inspection scheduling as also available at: http://eservices.scottsdaleaz.gov/permits/permit_keycode_lookup.asp
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DEVELOPMENT ACTIVITY UPDATE
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National Economic Trends:
** The U.S. leading index increased 0.1 percent in September, following two consecutive declines. From March to September, the leading index fell by 0.9 percent (a -1.7 percent annual rate) and has declined in five of the last eight months. Weaknesses have offset strengths among the leading indicators in recent months. The slowing of housing permits and of manufacturers' new orders of nondefense goods made the largest negative contributions to the leading index from March to September, offsetting positive contributions from consumer expectations. The leading index has fallen 1.0 percent below its most recent high reached in January. At the same time, real GDP growth slowed to a 2.6 percent (annual) rate in the second quarter, following a 5.6 percent gain in the first quarter. The behavior of the leading index suggests that economic growth should continue at a slow rate in the near term.
** The Consumer Confidence Index, which increased in September, edged down in October. The Index now stands at 105.4 (1985=100), down from 105.9 in September. October's dip in confidence was prompted by consumers' mixed assessment of present-day business conditions and a less favorable view of the job market," according to Lynn Franco, Director of The Conference Board Consumer Research Center. "Consumers' short-term expectations posted a slight improvement, but the outlook for the labor market remains mixed. Overall, [October's] readings continue to suggest a moderate pace of economic growth and more of the same for the first few months of 2007." Consumers' assessment of present-day conditions was less favorable in October than in September. Labor market conditions also were less positive than last month, while consumers' short-term outlook was moderately more optimistic in October than in September. The outlook for the labor market, however, was mixed, and the proportion of consumers expecting their incomes to increase in the months ahead edged down to 19.6 percent from 20.2 percent in September.
** The Consumer Price Index for All Urban Consumers decreased 0.5 percent in September, before seasonal adjustment. The September level of 202.9 (1982-84=100) was 2.1 percent higher than in September 2005.
** The Nation¡¦s Employment Increased in October, and the Unemployment Rate Dropped to 4.4 Percent. Nonfarm payroll employment grew by 92,000 in October following gains of 148,000 in September and 230,000 in August (as revised). In October, job growth continued in several service-providing industries, while employment declined in manufacturing and construction. Also, average hourly earnings rose by 6 cents over the month. A year earlier, the number of unemployed persons was 7.4 million and the jobless rate was 4.9 percent.
Arizona Economic Trends:
** Arizona Hotels, Restaurants Miss 5-Star List Again. Despite an abundance of luxury resorts in the state, no Arizona properties appear on the prestigious Mobile Travel Guide five-star list for the fourth year in a row. Mobil's ratings are widely considered the most rigorous in the business. Five stars is the highest a property can receive based on facilities and customer-service inspections. Eight local hotels and restaurants retained their four-star status. The resorts are the Boulders Resort and Golden Door Spa in Carefree; Four Seasons Resort Scottsdale at Troon North; the Phoenician in Phoenix; and Ritz-Carlton Phoenix. The restaurants are Mary Elaine's in Phoenix; Ventana Room in Tucson; and Acacia and Vu, both in Scottsdale. Hotels can lose their status if they fail to invest enough in facilities, human resources and training, he added. The Four Seasons is a five-diamond resort according to the AAA rating system released earlier this month.
** Median home price down in Scottsdale. Scottsdale's median home price fell in October to $548,500, down 2 percent from a year ago and 5 percent from September, according to the most recent monthly newsletter update from the Arizona Real Estate Center at Arizona State University. Sales of existing homes picked up a healthy 23 percent from September to October, but was still off 27 percent from a year earlier. The median price of an existing home in south Scottsdale was $300,000 in October, down $20,000 from September and $10,000 from a year earlier. North Scottsdale's median price in October was $635,000, a decline of $43,000 from the previous month and off $20,000 from a year earlier. Sales of Scottsdale condominiums and townhouses last month were off 41 percent from a year earlier, but prices were up 3.4 percent year-over-year, to $253,350. Paradise Valley's median home price was $1.74 million, up 4 percent from a year earlier, for a median-size home of 3,755 square feet, or about $463 per square foot.
** Arizona Ranks Last in Ranking of Smartest States. For a second consecutive year, a survey ranks Arizona dead last in the nation when it comes to the intelligence of its population. The list is put out by Morgan Quitno Press, a private research and publishing company in Kansas that also puts out annual rankings on the most livable, safest and healthiest states. Vermont came in at the top of the list as the smartest state, followed by Massachusetts, Connecticut, New Jersey, and Maine. Arizona is preceded by Nevada, Mississippi, California and Alaska. The ratings are based on 21 elementary and secondary education indicators, ranging from graduation rates and test scores to teacher pay and class size.
PRELIMINARY APPLICATIONS TO BE REVIEWED:
623-PA-2005-2 -- Development Review for Covered Parking Canopies at AJ's 31313 N. Scottsdale Rd. Request to construct 107 shaded parking spaces for AJ customers.
866-PA-2006 - Abandonment request for residence at 5745 Quail Track Dr. Request to abandon 57th St. Between parcel 212-11-007-D and 212-11-009-K. Applicant owns lots on either side of 57th St. One parcel has a 20' ROW dedication along 57th St. along with a likely GLO.
868-PA-2006 - Development Review for Scottsdale Crossing at 15101 N. Scottsdale Rd. Request to develop this site into a mixed use project consisting of retail, residential, offices, and restaurants.
876-PA-2006 - Preliminary Plat request for Brusally Ranch at 11600 N. 84th St. Request to sub-divide this 5.73 acre site into 5 lots. The existing home will remain intact on a 73,226 square foot lot.
879-PA-2006 - Development Review request for '4333' at 4333 N. Scottsdale Rd. Request for five-story mixed use project, consisting of retail, office and residential (.38 acre parcel.
KEY PROJECTS UPDATE:
-- UPDATED KEY PROJECT FACT SHEETS AVAILABLE ¡V at: http://www.scottsdaleaz.gov/projects/ProjectsInNews/

-- NEW DEVELOPMENT CASES SUBMITTED November 20 through November 22. Click on the Case Name to go to the on-line Case Fact Sheet; click on the coordinator name to submit comments.) http://eservices.scottsdaleaz.gov/cases/weeklyreports.aspx

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AT YOUR SERVICE -- HELPING YOU DO BUSINESS IN & WITH THE CITY
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ATTENTION SINGLE-FAMILY HOMEOWNERS SOUTH OF INDIAN BEND ROAD. You are invited to participate in Scottsdale's 4th annual Design Day Event being held Saturday, Feb. 10 from 8 a.m. to 2 p.m. at Saguaro High School, 6250 N. 82nd Street. Volunteer architects, landscape and interior design specialists will be on hand to provide one free, 45-minute consultation to each pre-registered participant who is planning a home renovation or landscape redesign. Local home improvement businesses will also be present to provide information about additional services and products available that can assist you in the home remodeling process. City staff will be on hand to discuss city incentives, waivers, rebates, programs and services. To register call the City of Scottsdale at (480) 312-3111 or email Neighborhoods@ScottsdaleAZ.gov Registered participants are encouraged to bring sketches, photos, measurements and design ideas to your pre-assigned consultations.

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FOR ACCESS TO CITY OF SCOTTSDALE ON-LINE MAPS, VISIT THE CITY'S DIGITAL MAP CENTER at http://eservices.scottsdaleaz.gov/dmc/

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SAVE TIME AND MONEY USING THE DIGITAL PLAN SUBMITTAL PROCESS. Scottsdale offers a digital plan submittal process for single-family and tenant improvement projects that eliminates the need to visit city offices. For additional information visit: http://www.scottsdaleaz.gov/bldgresources/Digital/Default.asp

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CITY OFFERS EXPEDITED TENANT IMPROVEMENT REVIEW PROCESS. Find out how the city is streamlining the tenant improvement review process at: http://www.scottsdaleaz.gov/bldgresources/TI.asp

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CHECK YOUR PLAN REVIEW AND PERMIT STATUS ON-LINE. Any day, any time - plan and permit status is available on-line at: http://eservices.scottsdaleaz.gov/permits/planlookup.asp
http://eservices.scottsdaleaz.gov/permits/permitlookup.asp

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CUSTOMER SERVICE ALTERNATIVES (including self-service options) are highlighted on the city¡¦s web site at: http://www.scottsdaleaz.onestopshop

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AWARD WINNING WEB SITE. Find out what's going on in your neighborhood (permits, crimes, construction projects and more) by visiting http://www.scottsdaleaz.gov/projects/myneighborhood/

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HOW ARE WE DOING? Your input helps us better address your reads. Customers are encouraged to fill out an electronic survey at: http://www.scottsdaleaz.gov/bldgresources/Survey/Default.asp

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PROGRAMS FOR YOU
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-- FALL/WINTER GREEN BUILDING LECTURE SERIES now available on-line at: www.scottsdaleaz.gov/greenbuilding/Lectures/
www.scottsdaleaz.gov/projects/OpenHouse/

-- DECEMBER 7 -- FREE GREEN BUILDING LECTURE, 7 to 9 p.m., Location at Community Design Studio, 7506 E. Indian School Road. Discussion: Natural Building Materials. For more information visit the Green Building web site at: http://www.scottsdaleaz.gov/greenbuilding

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TELL A FRIEND - If you know others who would be interested in receiving 'Development Update', please forward this subscription address and tell them http://www.scottsdaleaz.gov/listserve/default.asp
To access past issues of Development Update, log on to the listserve archive at: http://www.scottsdaleaz.gov/listserve/archive.asp?mode=browse&ListID=72
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You can view a video version of Scottsdale City Update each day at 4:55 p.m. on Cox Channel 11, the City of Scottsdale municipal cable television channel. =========================================================================
To reach Scottsdale Development Update, mailto: rmeinhart@ScottsdaleAZ.gov or call (480) 312-2647. _____________________________________________________________________________

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Growth factors remain strong

2006-11-27T14:33:00.000-08:00

Growth factors remain strong, from the Arizona Republic, reports on local economist Elliott Pollack's take on the local economy. He states that Phoenix has been a well-established growth area for virtually the entire 20th century, and the trend has continued into the 21st century. He states that the primary reason he is optimistic about the areas future is because people and businesses will continue to migrate to the area and prosper. The long-term outlook remains favorable, and in the short-term, he states that the current business cycle has a couple of good years left in the tank. Pollack addresses the current housing market and says that we need to work ourselves out of the current market imbalance created by the exuberance of 2004 and 2005, as we may have constructed roughly 20,000 more homes than the population inflows would normally demand, and that as of early fall, we have not begun absorbing these excess units. He states that this needs to occur at some point, so expect some adjustment pains in this sector.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/1126biz-bizaz-mytakepollack1126.html

2006-11-16T09:26:00.000-08:00

The first article, GM sale could invigorate east Mesa, from the Arizona Republic, reports that the development of the GM Proving Ground will shape southeast Mesa's future look and personality. "The General Motors property is probably the most attractive property in the entire Southeast Valley for development," said Wayne Balmer, a land-use consultant who helped plan the area. "This property will set the tone and character for southeast Mesa's future and how it is developed." A recent land-use study of the airport and the 50-square miles around it by the Urban Land Institute reinforced belief that some housing should be part of the development mix near the Williams Gateway airport and that could be part of the mix with the GM Proving Grounds. Sources identified the buyer of the GM property as Scottsdale based DMB Associates, known for its high-end projects, including residential communities.
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/mesa/articles/1114mr-gmsale1114-ON.html
The second article, Phoenix OK's increase in development fees, from the Arizona Republic, reports that the Phoenix City Council approved increasing impact fees in the growing northern and southern flanks of the city. The fees in Ahwatukee rose to $17,500 per home, and nearly $24,000 in North Black Canyon City. Impact, or development fees, are fees charged for each new home to cover costs for parks, libraries, police and fire protection, and water and sewer infrastructure. The city assesses these fees in growth areas where the cost to bring in these services is higher than in infill areas. Builders usually pass these fees onto the homebuyer in the form of higher housing prices.
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/local/articles/1116phximpact1116.html
The third article, $10 million sets Scottsdale house sale record, from the East Valley Tribune, reports that a house sold on Tuesday for what may be the highest price ever paid for a residential property in Scottsdale. The home, located at 9422 E. Happy Valley Road was sold for $10 million, according to Bob Hassett, a broker with Russ Lyon Realty. The buyer plans to resell the house and subdivide the 20-acre lot into smaller lots for construction of two more luxury homes, Hassett said. The 27,000 square-foot house has six bedrooms, eight baths, four fireplaces, an eight-car garage, two separate guest apartments and an indoor swimming pool and tennis court. It was built in 1994 by Kitchell Custom Homes and cost more to build 12 years ago than it was sold for on Tuesday, Hassett said. The owner originally sought $35 million for the property but the price was reduced to sell. RL Brown, the Valley's housing guru, said he was not surprised that the seller had to lower the price because the high end of the market has been affected by the same pressures as less elaborate homes. He said the Scottsdale property appears to be more of a land deal than a housing deal.
http://www.eastvalleytribune.com/index.php?sty=78980

High-end homebuyers attracted to condos

2006-11-15T12:04:00.000-08:00

High-end home buyers attracted to condos, leaving homes behind, from the Arizona Republic, reports that many high end homeowners are selling their homes to move into luxury condos closer into the city and amenities such as shopping, dining and entertainment. The article talks about two such buyers; one couple who moved into the Optima Biltmore condo project, the other couple buying a condo at Kierland Commons, and their reasons for doing so. Condo sales have slowed along with the Valley's home market, but the luxury sector has been more stable than the overall market. Through early October, 2,031 homes priced at $1 million or more had been sold in the Valley. That is on pace to top last year's total of 2,285. With luxury condos selling for $1 to $4 million, or roughly $400 to $800 per square foot, the pool of potential buyers is a fairly elite group.
WE are the experts in high-end luxury condo living in Phoenix and Scottsdale. Visit us at at Scottsdale Fashion Square.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/1115biz-condos1115.html

Is the market settling?

2006-11-09T13:15:00.000-08:00

The first article, Home resale market up last month in Valley but off from a year ago, from the Arizona Republic, reports that there were 4,985 resales in October in the Valley, up slightly from 4,875 the previous month but down nearly 41 percent from October last year, according to the Arizona Real Estate Center at ASU. The median price stayed flat, rising to $257,000, up from $256,900 in September. At $257,000, the new median resale price is just 1 percent lower than in October of last year. Jay Butler, head of the real estate center, said the market is struggling to shake a hangover from last year, trying to find its footing at a more reasonable pace.

Home resale market up last month in Valley but off from a year ago
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/1109biz-talker1109.html

The second article, Median home price down in Scottsdale, from the Arizona Republic, reports that Scottsdale's median home price fell in October to $548,500, down 2 percent from a year ago and down 5 percent from September, according to the Arizona Real Estate Center at ASU. Sales of existing homes picked up a healthy 23 percent from September to October, but were off 27 percent from a year earlier when 575 homes were sold. The median price of an existing home in south Scottsdale was $300,000 in October, down $20,000 from September and down $10,000 from a year earlier. North Scottsdale's median price in October was $635,000, a decline of $43,000 from September and off $20,000 from a year earlier. Paradise Valley's median price was at $1.74 million, up 4 percent from a year earlier.

Median home price down in Scottsdale, from the Arizona Republic
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/scottsdale/articles/1109sr-homesales1109Z8.html

Greenspan Slump will NOT worsen

2006-11-07T09:29:00.000-08:00

The article, Greenspan: Slump will not worsen, from MSNBC.com, reports that former Federal Reserve Chairman Alan Greenspan said that "the economy is obviously going through a significant slowing period, which as best I can tell is more than likely temporary". Greenspan said that while the housing market is not out of the woods yet, the current slump may not worsen. "I think that while we are past most of it there are a lot of negatives... but it is no longer subtracting from the (gross domestic product) growth," the former Fed chairman said. Greenspan also touched on the potential adjustment in loan costs for home buyers with nontraditional mortgage products. While some individual buyers may feel the pinch as payments rise, Greenspan said those changes were "very unlikely to have a macroeconomic effect."

http://www.msnbc.msn.com/id/15591349/

Mortgage rates drop....the market is better than you think

2006-11-03T17:06:00.000-08:00

The first article, City warned fees may stunt growth, from the Arizona Republic, reports that noted state economist Elliott Pollack warned the Goodyear City Council that raising impact fees too high could stunt the city's future economic development. Pollack was commissioned to do an economic analysis after developers and city staff were concerned that the fee increases proposed in a July report were too steep. The study produced by an independent economic consulting firm suggested that Goodyear triple its impact fees from $9,000 per home to about $27,000. That number shocked many, including Goodyear officials. After some additional debate, the fee increase recommendation was lowered to $21,000 per home. Pollack said that if the fees are too high, developers might take their projects to neighboring cities that have lower impact fees. That could have Goodyear lose regional commercial developments that could generate huge sales-tax revenues for the city. Avondale is considering raising impact fees to about $18,000, while Surprise has talked about boosting theirs to $21,000. Developers pay impact fees to cities in order to build infrastructure for resident services, but builders just pass these fees on in the price of the home.

City warned fees may stunt growth
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/swvalley/articles/1103swv-impact03Z5.html

The second article, Mortgage rates dip to 6.31 percent, from MSNBC.com, reports that rates on 30-year mortgages dropped this week to the lowest level in a month as financial markets viewed new evidence of a slowing economy as a sign that inflation will decline. Rates for 30-year, fixed-rate mortgages dropped to 6.31 percent this week, down from 6.40 percent last week. The article also states that in an effort to dispel some of the gloom surrounding housing at present, the National Association of Realtors announced that is beginning a series of newspaper ads proclaiming "it's a great time to buy or sell a home." The ads, which were to start appearing in newspapers on Friday, noted that mortgage rates have been falling recently and the near-record level of unsold homes means that buyers have more homes to choose from. The ad quotes former Fed Chairman Alan Greenspan as saying that "most of the negatives in housing are probably behind us." Tom Stevens, the Realtors president, said, "The market is much better than you might hear or read." Mortgage rates dip to 6.31 percent
http://www.msnbc.msn.com/id/7148582/

2006-10-30T08:54:00.000-08:00

The first article, How will the USA cope with unprecedented growth?, from the USA TODAY, reports that the USA is growing faster than any other industrialized nation in the world and is expected to add 100 million more people around 2040. The next 100 million people will create 73 million new jobs, about 70 million new homes and 100 million square feet of non-residential space, according to the Metropolitan Institute at Virginia Tech. The article discusses where all these new residents will live and the growth patterns that will come into play. Urban town centers was one of the growth trends discussed, so that people can work closer to where they live. Redeveloping brownfield sites, promoting infill development, going vertical and increasing rail lines and transit villages were also cited. The article states that the percentage of American households that will want and will get their single-family detached house on a lot will remain high.
http://www.usatoday.com/news/nation/2006-10-26-100-million_x.htm?POE=click-refer
The second article, Luxury-home sales soar around Valley, from the Arizona Republic, reports that luxury homes are selling well and at higher prices across the Valley. There has been a sharp spike in the number of million-dollar properties sold since 2000, but the bigger story is the increasing number of deals for $3 million, $5 million and much higher. Land is a key piece of the price equation. With land prices rising and larger, more elaborate houses set in super-elite areas, the entry level for luxury in now more like $3 million. Many of the most desired areas are built out or have few available lots. There were 440 sales of houses costing at least $1 million in 2000. Through Oct 10th this year, there were 2,031, an increase of more than 360 percent.
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/news/articles/1030luxury1030.html

Who are you gonna believe? Don't end up in the land of missed opportunities!

2006-10-26T11:53:00.000-07:00

The first article, Existing home sales keep falling, from MSNBC.com, reports that in further evidence of a sharp slowdown in the once-booming housing market, sales of existing homes nationwide fell for the sixth straight month in September and the median price dropped by a record amount. Sales fell by 1.9 percent in September and the median price of a single-family home fell to $219,800, a drop of 2.5 percent from the price in September 2005, according to the National Association of Realtors. "The worst is behind us as far as a market correction-- this is likely the trough for sales," said David Lereah, NAR's chief economist. "When consumers recognize that home sales are stabilizing, we'll see buyers who've been on the sidelines get back into the market," he added. Other economists are not as optimistic. "The housing slowdown is just over a year old. It probably has another year to run," said Patrick Newport, U.S. economist at Global Insight. "The market will probably not turn around until at least the second half of 2007."

http://www.msnbc.msn.com/id/15412842/

The second article, Is housing out of the woods?, from MSNBC.com, reports that a recent stream of encouraging data has some prominent economist changing their tune about the housing market. One of the first was Alan Greenspan, who said on October 7th that "the worst may well be over." A growing number of economist and analysts have come around to the ex-Fed chief's view. "The point of maximum deterioration in housing activity has probably passed," says Jan Hatzius, chief economist at Goldman Sachs. Others maintain that the housing downturn still has a long way to go. In an Oct. 9th speech, San Francisco Fed President Janet Yellen painted a gloomy picture. Yellen spoke of a major homebuilder who calls Phoenix and Las Vegas "the new ghost towns of the West." According to Yellen, price cuts "appear inevitable." Others are taking more of a middle of the road approach, saying that while the housing slowdown has a way to go, the declines may be fading somewhat.

http://www.msnbc.msn.com/id/15416909/

The third article, Cooldown catching up with builders, from the Arizona Republic, reports that homebuilders revenues and profits are down, and slower sales and cancelled deals are pressuring builders to start layoffs and unloading or revaluing land they bought in the housing boom. Pulte said Wednesday that third-quarter income fell by more than 50 percent. Meritage Homes cancellation rate hit an all-time high at 37 percent. The latest new-home data from analyst RL Brown shows a market seeking, but not yet finding a bottom. "We're bumping along the bottom," he said. "The builders are kicking it in the tail, marketing their inventory. When you cut a $195,000 house down to $118,500, that attracts buyers. That will move inventory out, and the permits will come up as builders need to start producing again."

2006-10-20T09:44:00.000-07:00

The first article, Housing vote could change east Mesa, from the Arizona Republic, reports that two large, upscale master-planned communities that could alter the face of north and northeast Mesa are going through the approval process with the Mesa Planning and Zoning Board. Stonebridge Mountain is a 717-acre development at Ellsworth and McKellips that will have 304 acres of open space. The developer, Pinnacle Ridge Holdings, LLC, includes Jeff Blanford who developed Las Sendas. Blanford's application says the community is intended for the development of executive housing, a need in Mesa. Lehi Crossing, south of Thomas Road and west of Val Vista Drive, would convert citrus groves near Mesa's historic and rural Lehi community into a master-planned community with 971 lots on 267-acres. It will also have a school site and 44-acres of open space. Mesa planners support both developments. Once approved by Planning and Zoning, it will go before the Mesa City Council for final approval.
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/mesa/articles/1019bighouses1019-ON.html
The second article, Home values easing in slump, from the Arizona Republic, reports that despite slumping sales activity, the West Valley's median price for houses rose during the first eight months of 2006, anywhere from 10 to 30 percent, according to an analysis by the Arizona Republic. But the figures may be deceptive, say several real estate experts. First, they do not capture the slowing pace of sales after August, when for the first time in a decade, median prices for resale homes fell compared with the same time last year. "We've had a major correction," said Lyn Truitt, a real estate broker in Surprise. "The market has slowed considerably. The new-home market is impacting the resale market." New-home builders are loading up on incentives for buyers that artificially maintain the price. While it is taking longer to sell a home, those who have owned at least three years still stand to do well for themselves if they sell, says Margie O'Campo de Castillo, a broker who owns Arizona Dream Realty. "If someone experienced a 40 percent increase in equity last year, and it drops 8 percent this year, you're still doing very well," she said.
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/westvalley/articles/1020gl-homevalues20Z20.html

2006-10-20T09:41:00.000-07:00

The second article, Home values easing in slump, from the Arizona Republic, reports that despite slumping sales activity, the West Valley's median price for houses rose during the first eight months of 2006, anywhere from 10 to 30 percent, according to an analysis by the Arizona Republic. But the figures may be deceptive, say several real estate experts. First, they do not capture the slowing pace of sales after August, when for the first time in a decade, median prices for resale homes fell compared with the same time last year. "We've had a major correction," said Lyn Truitt, a real estate broker in Surprise. "The market has slowed considerably. The new-home market is impacting the resale market." New-home builders are loading up on incentives for buyers that artificially maintain the price. While it is taking longer to sell a home, those who have owned at least three years still stand to do well for themselves if they sell, says Margie O'Campo de Castillo, a broker who owns Arizona Dream Realty. "If someone experienced a 40 percent increase in equity last year, and it drops 8 percent this year, you're still doing very well," she said.
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/westvalley/articles/1020gl-homevalues20Z20.html

Reverse Gold Rush...the press has good news!

2006-10-19T10:59:00.000-07:00

The first article, Reverse Gold Rush, from Retailtrafficmag.com, reports that with cheaper housing and job growth to be found in the rest of the Southwest, Californians are conducting a reverse gold rush to Arizona, Nevada and New Mexico. According to the University of Southern California Office of Demographic Research, 250,000 Californians move out of California each year. That's what's behind projections that the population in Arizona will double in the next 25 years, growing from 5.7 million to 10.7 million. In fact, three out of five new residents moving to Las Vegas and Phoenix each year come from California. In addition, many California based companies are moving their operations out of state to Arizona and Nevada because of their proximity to California, allowing these companies to move products quickly to California markets and executives to fly in and out in a day. Reza Etedali, CEO for Irvine based Reza Investment Group, expects this trend to continue for the foreseeable future. "Over the next 10 years, there will be incredible growth in the Southwest," he predicts, noting that about one-third of his clients are now looking for opportunities outside the state. "The region could go through ups and downs, but long term, it's poised to grow."
http://retailtrafficmag.com/mag/retail_reverse_gold_rush/index.html
The second article, Sept. housing starts rose, inflation eased, from the Arizona Republic, reports that housing construction rebounded in September from a three-year low, and falling energy prices led inflation to slow, suggesting growth may pick up while letting the Federal Reserve keep interest rates steady. Housing starts rose 5.9 percent in September according to the Commerce Department. Th figures, along with the most recent report on retail sales and the labor market, diminish concerns that falling home prices will cause the economy to stagnate. Builders broke ground on more homes last month after cutting prices and offering incentives to clear out inventories of unsold homes. An index of home builder confidence increased this month for the first time in a year, led by rising sales expectations for the next six months. "We're nearing the end of the slowdown, but we're not quite there yet," said Michelle Meyer, an economist at Lehman Brothers Holdings Inc. in New York.
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/1019biz-economy1019.html

Four new neighborhoods in Vistancia and New Cave Creek Development approved

2006-10-18T17:22:00.000-07:00

The first article, Vistancia debuts homes in 4 new neighborhoods, from the Arizona Republic, reports that Vistancia, Peoria's largest master-planned community, just opened four new neighborhoods featuring homes from T.W. Lewis, Ashton Woods, Roseland Homes and Trend Homes. Trend will be building a new attached product on smaller lots that will appeal to first-time buyers, with prices starting in the $180,000's. T.W. Lewis will be building homes from 2,741 s.f. to 4,008 s.f. Ashton Woods will be building homes from 1,585 to 2,767 s.f. and priced from the $280,000's. Rosewood will be building homes from 1,846 to 3,028 s.f. priced from the mid $300,000's. Since Vistancia opened in 2004, buyers have purchased 2,342 homes. Beautiful development!
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/1018biz-gl-vistancia1018.htmml

The second article, Large Cave Creek development OK'd, from the Arizona Republic, reports that the Cave Creek Town Council approved the final plat for Cahava Springs, a 230-lot community on 945-acres between Spur Cross Ranch Conservation Area and Maricopa County's Cave Creek Regional Park. The development will be Cave Creek's largest. The developer, Mark Sapp, has worked closely with the town over many years to get approval and received praise from the council for following through on all of his commitments. The homes are expected to sell for more than $1 million each. Construction could begin in February.
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/scottsdale/articles/1018sr-cccouncil1018Z8.html

2006-10-16T16:22:00.000-07:00

The first article, Projects would build up Pinal City, from the Arizona Republic, reports that Casa Grande has three megadevelopments planned on the northwest side of the city that would end up having more residents than the city's current population. The three developments; the Legends, Grande Valley and Copper Mountain Ranch-- would encompass more than 30 square miles and have 74,000 homes with nearly 250,000 people. "We're not seeing a cooling like other communities in Pinal County," said Casa Grande Mayor Chuck Walton. "Maricopa and Johnson Ranch are gridlocked, so people are looking to Casa Grande. Developers are swarming us every day," he added. The city of Casa Grande will soon annex Copper Mountain Ranch and the Legends developments. Grande Valley was annexed in April. Look for this area to continue to boom due to their better transportation system.

Projects would build up Pinal City
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/local/articles/1016casagrandedev1016.html

The second article, Scottsdale to consider stricter condo rules, from the East Valley Tribune, reports that the city of Scottsdale is considering more regulations on condominium conversions, but some say its too late. Last year, during the go-go days of home selling, Scottsdale received conversion applications from 19 apartment complexes totaling 3,426 units. Scottsdale is considering raising the application fee, imposing stricter health and safety codes and requiring condo conversion projects to go through a public notice process. Scottsdale stands to lose nearly $800,000 in rental tax revenue if condo conversions continue.

Scottsdale to consider stricter condo rules
http://www.eastvalleytribune.com/index.php?sty=76653

The worst of the housing market may be over according to Greenspan

2006-10-10T10:27:00.000-07:00

The first article, Scottsdale reaches critical mass for growth, from the East Valley Tribune, reports that four new Scottsdale projects were previewed at a Scottsdale open house event last week. These projects will cover thousands of acres and cost a couple billion dollars. The projects include One Scottsdale, Silverstone, The Senior Living Community at the Fairmont Scottsdale Princess Resort and the final phase of DC Ranch. These four developments not only add to the residential housing stock, but provide pockets of commercial use instead of strips through the community. "I think if there was any kind of general observation you can make, it's with the growth of residential, you need commercial services," said Robin Meinhart, Scottsdale planning department spokeswoman. "It's basically some of the last vacant parcels in Scottsdale and they were identified to support the residential in the area," she added. The most ambitious project is the One Scottsdale complex, a 120-acre commercial, retail and office space, 400 resort and hotel rooms, and 1,100 residential units that DMB is building. Silverstone is a 60-acre development at the former Rawhide site that will have 976 homes.

http://www.eastvalleytribune.com/index.php?sty=76115

The second article, Greenspan: Housing market worst may be over, from MSNBC.com, reports that former Fed Chairman Alan Greenspan said the the U.S. housing market appears to be emerging from its recent travails and the "worst may well be over." " I suspect that we are coming to the end of the downtrend, as applications for new mortgages, the most important series, have flattened out," he said. "There is a good chance of coming out of this in good shape, but average housing prices are likely to be down this year relative to 2005. I don't know, but I think the worst of this may well be over," he added. Greenspan made his comments at the BMO Financial Group event in Calgary, Canada.

http://www.msnbc.msn.com/id/15198805/

Local Housing Market slow but not on life support

2006-10-09T11:44:00.000-07:00

The first article, Local market is slow but not on life support, from the Arizona Republic, reports that the figures that the local market news is based off of makes seems look worse than they really are. The article focuses on the importance of looking at what is currently on the market. According to Greg Swann, Broker for Bloodhound Realty, the nature of this market is that people are still seeking prices for their homes that would have been outrageous a year ago, as we neared the end of our housing boom. Whatever they might say, these people are not motivated to sell their homes right now. "The best-kept houses at the low end of the price spectrum will sell. The others will not. They won't even be shown."

Local market is slow but not on life support
http://www.azcentral.com/community/surprise/articles/1006gl-swann06Z1.html

The second article, FDIC: A Wealth of Housing Data, from MSNBC.com, reports that the FDIC just released its quarterly report, which breaks down housing and economic conditions in each state. Although written for banking experts, the FDIC report is for anyone interested in the housing market. You can view Arizona's FDIC profile at http://www.fdic.gov/bank/analytical/stateprofile/SanFrancisco/Az/AZ.xml.html This is a great tool to help you see the strengths and weaknesses of our Arizona Market.

Builders offering more and more incentives....

2006-10-06T17:20:00.000-07:00

Homebuilders are offering more WOW for your money!
Don't miss out! Valley Homebuilders are offering up to $70,000 + Savings for You! Incentives up to $45,000, Zero mortgage Payments for 1 year Plus Zero Down payment and Zero Closing costs! Free Pool and Landscaping!
Some of the incentives also include, Covered Patios with Stucco Columns - Low E-Glass Insulated Windows - Separate Tub & Shower in Master Bedroom Suites - Vaulted Ceilings (Per Plan) - Pre-Wired for Ceiling Fans in Every Bedroom & Family Room/Great Room.
Selected communities have ready- to-move-in homes closing in 2006 that qualify for this program. The homebuyer must simply qualify for a loan through the homebuilder's mortgage and almost all loan programs are eligible.
Hurry! A limited number of selected homes are available. Contact me for Details.
If you're in the market for a new home, now is an excellent time to get involved. If you're timeframe is 6 to 9 months out, that's ok too - that's just about what it takes to complete or build your new home.
Current interest rates plus great homebuilder incentives make this a time to take notice!

Don't end up in the land of missed opportunities

2006-10-05T11:06:00.000-07:00

IT’S A BUYER’S MARKET!
Don’t end up in the land of missed opportunities…..

The press has given considerable coverage to the reluctance of consumers to spend money during what is perceived to be challenging economic times, especially in the housing industry.

You can’t believe everything you read. The experts are sometimes wrong. The opportunity may pass you by if you continue with the “wait and see” attitude.

For Example:

Time Magazine reported, “The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline.” THEY WROTE THAT IN 1947.

Business Week said, “The goal of owning a home seems to be getting beyond the reach of more and more Americans.” When they WROTE IN 1969, THE AVERAGE PRICE OF A HOUSE WAS $28,000.

The Miami Herald wrote, “If you are looking to buy, be careful. Rising home values are not a sure thing anymore.” That sage advice came in 1985.

Money Magazine said, “Most economists agree….a home will become little more than a roof and a tax deduction, certainly not the lucrative investment it was.” That was their best advice in 1986.

Now, like Paul Harvey would say, “here’s the rest of the story”………

Real estate is and will be one of the safest and best investments most people have. Open your eyes to the truly wealthy of our world and you will see the proof.

Phoenix is still an ideal destination. We are blessed with pleasant weather and a lack of natural disaster. Compared to other areas in the country, our economy and future prospects are bright. Companies will continue to relocate here. Look at our job market, number 3 in the country.

It won’t be long again until it is bitter cold again in Buffalo, Chicago, Minneapolis, New York, Calgary, and hundreds of other cities in North America and abroad. They all watch tv, read our newspapers, and yearn for our sunny, clear weather and our reputation of friendliness and western hospitality.

The housing market has not crashed, the sky is not falling. Real Estate is a sound investment. There may be no better time than now to buy. Interest rates are relatively low. There are lots to choose from, good pricing, and great incentives abound.

It may be time to get off the sidelines, release your “wait and see” attitude, and get back in the game. Because one thing is for sure….. hindsight is 20/20 in the land of missed opportunities.

2006-09-29T11:26:00.000-07:00

The first article, Mortgage rates at lowest level in six months, from MSNBC.com, reports that rates on 30-year mortgages dipped this week to the lowest level in six months, standing at 6.31 percent for a 30-year fixed-rate mortgage, down from 6.40 percent last week. The downward trend is occurring because financial markets became more convinced that a slowing economy will keep inflation contained. Such a slowdown will allow the Federal Reserve to keep interest rates on hold. Many analysts believe rates will hover around current levels for the rest of the year, which is expected to help the housing industry level off after sharp declines in recent months. "Both lower interest rates and a moderation in house price growth should lead to increased housing affordability," said Frank Nothaft, chief economist for Freddie Mac.

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

The second article, New-home permits still falling in Valley, from the Arizona Republic, reports that new home permits fell 15.9 percent from July to August in the Valley, recording just 3,014 new permits, according to the latest Phoenix Housing Market Letter produced by local housing analyst RL Brown. The 3,014 new-home permits in August is down 46 percent from a year earlier. Closings fell 15.9 percent to 4,055 last month from a year ago. Buyers purchased 7,322 existing homes last month, down 46 percent from August 2005. New home permits through August are 33,578, down 23.4 percent from 2005. Last year, the Valley set a record with 63,570 new home permits. Builders are beginning to react to the market and getting rid of inventory. "If the housing industry reacts with the skill that we have seen recently exhibited... (then) this market correction will be short-lived," said RL Brown.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0929biz-homebuilding0929.html

The third article, Homes to rise west of Loop 303, from the Arizona Republic Glendale, reports that Kohner Properties plans to develop a 452-acre parcel of farmland into a new master-planned community called Turning Leaf at the Meadows. The land, located near Northern and Cotton Lane, will have 1,100 single-family homes, parks, trails and a school. It is Glendale's largest residential project in more than a decade. "People used to consider the (Loop 303) as 'way out west', but it isn't anymore," said Shawn Kohner. "Eventually, it will be its own suburb with a mall, commercial sites and car dealerships. It is truly an area of town that will become its own metropolitan area." Construction should begin in about 18 months after the city approves construction plans.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/glendale/articles/0929gl-leaf29Z20.html

In the News!

2006-09-27T13:35:00.000-07:00

The first article, South Mountain Freeway is called vital to W. Valley, from the Arizona Republic, reports that West Valley leaders are concerned that a delay in the Loop 202 freeway could increase freeway gridlock in the W. Valley. They see the Loop 202 as critical to their transportation needs to relieve pressure on Interstate 10 and link to several roadway projects slated for the area. Some are concerned it will get scrapped altogether. "If it doesn't get done, it will be a serious distraction from our plans to develop a regional transportation plan for the Valley," said Goodyear Mayor Jim Cavanaugh. The South Mountain Freeway is being touted as a bypass around downtown Phoenix. It will also give the West Valley a more direct link to the East Valley. But it faces stiff opposition from Ahwatukee residents and environmentalists concerned about damage to South Mountain Park.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/local/articles/0927wvdomino0927.html

The second article, Rising land costs prompt builders to wedge homes into smaller lots, from the Arizona Republic, reports that as land costs continue to rise, builders are looking at smaller lots to build affordable homes for the housing consumer. The average size of a residential lot for a new production home in Maricopa and Pinal counties shrank 1,000 square feet in the past six years, to about 7,400 square feet, according to Hanley Wood Market Intelligence. The closer you get to the Phoenix core, the more likely lots are to be 3,000 or 4,000 square feet. "A lot of new products (lots) are 32 by 100 feet deep," said John Fioamonti, managing director of Hanley Wood. "You can go to Coolidge and Florence and still see the 6,000 to 7,000 square-foot standard lots we are used to. As you get closer into town, you find these vertical podium builds, very narrow two-to three-story almost town homes. They have been doing this in California for years." Some homebuyers don't mind the smaller lots, as they mean less maintenance. Most cities and towns have been approving these small-lot developments to give residents more affordable homes and also to encourage more of a community feel. Look for this trend to continue.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0927biz-smallyards0927new.html

The third article, 55-plus housing big in SW Valley, from the Arizona Republic, reports that major master-planned communities aimed at "active adults" are expected to bring thousands of new homes and several golf courses to the Southwest Valley over the next decade. At least three communities have opened or are planned in Buckeye alone: Sun Valley South, Sundance and Sun City Festival. In Goodyear, Robson Communities has seen success in the past two decades with its PebbleCreek community. Nearly a quarter of Goodyear's residents are 55 or older, and about a fifth of Buckeye's residents are over 55. "With the baby boomers coming, the numbers are so large that we can't satisfy the needs of people who want to live in age-restricted communities," said Gary Sorrels, sales manager for Sundance. "It is a great part of the market to be in."

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/swvalley/articles/0927swv-seniors27Z5.html

Is it time to buy? Some say YES! A Bubble or a Value?

2006-09-25T12:22:00.000-07:00

The first article, Roads are clogged on Valley's edges, from the Arizona Republic, reports that Pinal County has just completed its Small Area Transportation Study that gives recommendation to alleviate the traffic problems facing this booming market area. The study will be a blueprint to guide Pinal County planning for the next 20-years. Two of the more congested areas of Pinal County are the Hunt Highway area south of Queen Creek and the Maricopa-Casa Grande Highway. The study predicts that these areas will be at maximum vehicle capacity in the coming years unless they are expanded and additional roads are built. The study suggests transit options like park-and-ride facilities, bus service and commuter rail service. It recommends hundreds of miles of road improvements, including expanding many of the county's two-lane state highways to six lanes, at a cost of about $1.56 billion. Engineering studies for the county's high-priority roads will begin soon and will lead to road construction beginning in about 18 months.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/local/articles/0923pinaltransportation0923.html

The second article, West Mesa on the rebound, from the East Valley Tribune, reports that West Mesa, one of the more depressed areas of Mesa, is in a transition mode with nearly $1 billion worth of projects planned, under construction or newly completed. Those projects include new retail developments such as the Riverview shopping center at Dobson and Eighth Street, redeveloping sites such as the Broadway 101 commercial center at the former Motorola site and institutional projects such as the new Banner Children's Hospital at Dobson and Southern. There are even some infill residential projects such as the El Pedrigal condo development on North Alma School Road. The area has a great location close to freeways and light rail service. "It's location, location, location, " said Teri Killgore, Mesa's interim economic development director. "People are going back and looking at centrally located older parts of town. It makes economic sense."

http://www.eastvalleytribune.com/index.php?sty=74888

The third article, A bubble Or a Value?, from Motley Fool, reports on the national housing market and the inventory glut facing homebuilders nationally. The article suggests that the glut of inventory homes may not be as large from a historical perspective, citing that the number of homes on the market at the end of July was 568,000, about a 6.5 month supply. That's lower than the 11.6 months supply back in April 1980, or the 9.4 months supply in January 1991. The article says since supply is by no means excessive and the key to what happens next lies with buyer behavior. Personal incomes are rising at the fastest pace in six years, and with falling home prices and still low interest rates, homebuyers still have the ability to purchase. The article summarizes by saying that the housing market still looks pretty sound, notwithstanding this period of softness. With the big discounts builders are offering, now is the time for buyers to make their move and get off the sidelines.

http://www.fool.com/Server/printarticle.aspx?file=/news/commentary/2006/commentary06091903.htm

What the fed rates mean to you

2006-09-25T10:28:00.000-07:00

Special News Alert About Your Finances!
Policy makers at the Federal Reserve, including Chairman Ben Bernanke, elected to leave interest rates unchanged at the latest meeting of the Federal Open Market Committee. This news met expectations in the bond markets as it appears the Federal Reserve is going to wait for additional economic data before deciding to increase interest rates further.
This leaves the Prime Interest Rate, which banks and lending institutions use as a benchmark for setting many interest rates, at 8.25%.
Those with Adjustable Rate Mortgages scheduled to adjust or reset soon still need to be prepared for an increase in interest rates. Some borrowers with ARM loans are already experiencing rates of over 8%. Home Equity Lines of Credit, also known as HELOCs, now carry interest rates that may exceed 10.25%. I have even seen some cases where clients have had HELOCs with interest rates in excess of 11.00%!
Credit card interest rates, which are often tied to the Prime Rate, remain at recent historic highs. I've worked with several clients who have had credit card interest rates that exceeded 23.90%!
What should I do now?
For those who are interested in either buying a new home or restructuring their finances, consider looking into a mortgage with Low Closing Costs or No Closing Costs. With each of these options, the mortgage comes with an interest rate that is slightly higher than a normal market rate. However, in both cases the lender pays either a portion of or all of your closing costs depending on your loan amount and credit situation.
For those who are looking to take advantage of lower interest rates in the future or expect to be moving within four years, the savings can be significant!
More importantly, the majority of the closing costs you pay are not tax deductible. Home mortgage interest, on the other hand, is tax deductible in most cases. So, not only could you pay less money by choosing the No or Low Closing Costs option, any additional amount you pay in the form of interest could then decrease your taxes.
Interest Rates for Fixed Rate Mortgages are still very attractive!
Fixed interest rates are at their lowest levels since mid-May. This may offer you the best opportunity to grab the lowest remaining fixed rates of the year as some experts predict rates will go higher.
If you're considering purchasing a home or investment property, this is the time to do so. Waiting could lead to higher monthly payments for the same piece of real estate.
Consolidate higher interest rate loans and lines of credit into an affordable fixed rate loan, complete with lower monthly mortgage payments. Some customers have saved over $700 a month by refinancing.

Time to buy? Will the good deals will go away?

2006-09-23T15:33:00.000-07:00

The first article, Economist says builders should take lead in housing correction, from the Phoenix Business Journal, reports on yesterdays Greater Phoenix Chamber of Commerce Economic Outlook 2007 held at the Arizona Biltmore. Local housing analyst RL Brown gave a blunt talk on our housing market, saying that to bring the housing market into balance, Phoenix area home builders need to shrink their inventory and home sellers need to realize they won't get top dollar for their homes. "It's time to take some corrective action," RL said. Resales are controlling the market, he said, as many sellers continue to seek top dollar for their homes as they did during the housing boom of late 2004 and all of 2005. As a result, Brown said, fewer houses are selling. That combined with large home builder inventories, has slowed the market. "We need to achieve a more realistic balance between supply and demand," Brown said. Brown had advice for resale sellers looking to sell: "They are probably going to have to realize they aren't going to get what Jim three houses down got." RL did say that the market is still one of the best in the nation and all the fundamentals are still in place, population and job growth, for a bright future.
http://phoenix.bizjournals.com/phoenix/stories/2006/09/18/daily47.html?t=printable
The second article, Analyst: Adapt to slowdown, from the Arizona Republic, also reports on RL Brown's presentation yesterday. It states that Brown gave a "come to Jesus" talk to the audience stating that sellers and home builders need to get real. Neither is going to capture the abnormally high real estate prices seen last year. If a more realistic approach isn't taken, the market will continue to slug along. So far this year, resales in the Valley are off 30 percent, and new home sales are off 23 percent. http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0922biz-realestate0922brown.htmlThe third article, Propping up the economy, from the Arizona Republic, also reports on yesterdays presentation. Elliott Pollack, another presenter, said that the Valley is expected to create 80,000 jobs in 2006, and 60,000 in 2007. As many as 130,000 people will move to metropolitan Phoenix this year. On housing, it quotes RL Brown as saying "I thought we would have seen the housing market stabilize by now. Now home builders have a surplus and no lines at their sales offices. Reality set in for them a month ago." On commercial, it quotes Pete Bolton of CB Richard Ellis as saying "We need more industrial space. Until we get it, the Valley will lose more jobs as companies go where there's space." More than 8 million square feet of warehouse space is under construction in metro Phoenix. About 3 million square feet of office space will go up in the Valley this year. On the retail end, Ron Barness of Retail Brokers, Inc. stated that "it wasn't long ago that high-end East Coast retailers weren't interested in Phoenix. The opposite is true now." The Valley retail vacancy rate is 5 percent, lower than it's ever been. Currently, 6.6 million square feet of retail space is under construction in the Valley.http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0922biz-realestate0922intro.htmlThe fourth article, Survey predicts higher home prices, from the Arizona Republic, reports on a Cox survey that was done on viewers T.V. sets allowing viewers to respond to questions using their remote controls. The results were presented at yesterdays Economic Outlook 2007. In the survey, nearly half the respondents said they thought housing prices will increase over the next year, 29 percent said they would stay the same, and 22 percent think they will decline. On the economy, 44 percent said they believe the economy will perform better this year than last year, and 34 percent think it will be worse.http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/scottsdale/articles/0922sr-biz0922realestateZ8.html

BUY NOW! Wow a positive real estate story!

2006-09-21T11:13:00.000-07:00

'Buy now!' Conventional wisdom says the time is right to take advantage of home incentives
The Business Journal of Phoenix - September 15, 2006
by Christia Gibbons
The Business Journal
Jim Poulin/The Business JournalDavid Gunn, a real estate expert with Standard Pacific Homes, on site at The Villages at Sonoran Mountain Ranch in Peoria, stands in front of barren yards where incentives could help make the sale. Housing inventory is high so far this year.
Contrary to today's popular wisdom to ride out the current market correction in single-family home sales, some experts say: Buy now.
Incentives, from swimming pools to cash offerings of up to $100,000, eventually will come to an end.
"Most of the pricing incentives are geared to get closings by the end of the year," said Pat Moroney, president of Standard Pacific Homes. His company is offering $25,000 to $100,000 off new home sales, depending on the house.
Standard Pacific homes, without incentives, range from the high $100,000s in Maricopa and other parts of Pinal County to the low $400,000s in Queen Creek, Gilbert and Peoria.
"It's a better time to buy now than this same time last year," Moroney said. "A lot of people are waiting to see the bottom of the market and, in my opinion, we're almost there."
The home builder said the excess inventory -- mostly spec houses built when sales were booming in late 2004 and through 2005 -- is being absorbed quickly.
Prices are lower now, Moroney said, because much of the excess inventory has come from cancellations, backlogging builders.
Michael Chasse, a home builder specialist with Scottsdale-based Land Advisors Organization, said builders now are in a position to offer special deals because today's prices are based on 2004 land prices. He said there usually is a two-year period between when the land is bought and houses get built.
Two things are happening. First, the acceleration of land prices in 2005 will impact home prices next year.
"If (prices) follow the trend," Chasse said, "I would expect '07 prices to be higher."
Second, the higher prices for homes during the boom period, coupled with the lower land prices in 2004, provides, in essence, a kind of wiggle room for today's home builder in which to offer incentives.
Chasse also pointed out that for the first half of 2006, the Multiple Listing Service reported new listings of 3,000 to 4,000 per month.
In July, however, only 1,300 new homes were added to the MLS, and just a little more than 500 were added in August for a total of 46,028 from January through August of this year.
"This is significant in that resale homes on the market appear to be reaching a peak," Chasse said. "Hopefully, this trend will continue and we'll reach the tipping point where listings on the market will start coming down to a more reasonable level, which will also establish less sales competition for the new home builders."
John Graham, president of Scottsdale-based Sunbelt Holdings, said in a healthy market, 15,000 or fewer homes are on the books.
Keith Mishkin, a broker with Cambridge Properties, echoed the sentiment of others, saying people can take advantage of "the temporary moment."
"For those saying 'Oh, I missed the market,' here's your chance," Mishkin said.
Graham, warned, however, that people shouldn't expect to get just any home with loads of incentives. Home builders are trying to get rid of excess inventories in various spots, not everywhere.
"It's a little deceptive," Graham said. "I always say, if you buy a house or a car -- anything because it's cheaper -- you may want to think about it. You might not get your dream house now, but if you like the house, the neighborhood, the schools and you get incentives, then it's a great time to buy."

Daily real estate news

2006-09-15T14:09:00.000-07:00

$450M residential resort planned near Camelback and 44th Street, from the East Valley Tribune, reports that Phoenix-based M3 companies plan to redevelop a 17-acre site at the northwest corner of Camelback and 44th Street with a boutique hotel, retail, office and residential uses. The project, called CamelSquare at 44th, would replace the 12-building CamelSquare complex that was built in the 1970's. It will have 950,000 s.f., including three 9-story condominiums. The residential portion will offer a range of luxury housing, from single-family lofts to single-family homes on 14,000 s.f. lots, with prices ranging from $500,000 to $3 million. Developers hope to have city zoning approval in February. The project is expected to take five-years to build out.

http://www.eastvalleytribune.com/index.php?sty=74126

Tiny home lots in demand, from the Arizona Republic, reports that as land cost continue to rise and new homes get more expensive, a new type of urban housing that is more common in California and the East Coast is starting to appear in Chandler and Ahwatukee. The product is a normal sized home on a small lot with virtually no yard and narrow side yards. One example is the two-story, closely spaced homes at Woodside Homes' new Tapestry at Club West development near Liberty and 17th Ave. in Ahwatukee. These new homes on small lots cost less than competing homes on larger lots, and are attractive to people with no children who want less maintenance. In Chandler, the product is being built at Randall Martin Home's Portello at Dobson Crossing, on Queen Creek Road between Arizona Ave. and Alma School Road. "There definitely is a demand for this," said Dennis Herring, vice president of sales and marketing for Randall Martin. "If there wasn't we wouldn't build it. It lets the builder provide a finished home at a lower overall cost." Some of the lots are 32 feet wide by 100 feet deep, and allow for eight to nine homes per-acre.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/chandler/articles/0915ar-smalllots0915Z6.html

East Valley Article - The real story about real estate as an investment.

2006-09-15T13:56:00.000-07:00

The sales of St. Joseph statues across America appear to have tripled. Faithful sellers are relying on the “Patron of the Family and Home” to help stimulate real estate closings. The press has also given considerable coverage to the reluctance of consumers to spend money during what is perceived to be challenging economic times. You can’t believe everything you read. The experts are often wrong. Time Magazine reported, “The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline.” They wrote that in 1947. Business Week said, “The goal of owning a home seems to be getting beyond the reach of more and more Americans.” When they wrote that in 1969, the average price of a house was $28,000. The Miami Herald wrote, “If you are looking to buy, be careful. Rising home values are not a sure thing anymore.” That sage advice came in 1985. Money Magazine said, “Most economists agree . . .a home will become little more than a roof and a tax deduction, certainly not the lucrative investment it was .” That was their best advice in 1986. As Paul Harvey would say, here’s the “rest of the story”. Real estate is and will be one of the safest and best investments most people have. The doom and gloom folks are doing their best, but time will prove, as it has time and time again, that they are wrong. They are entitled to their opinions, but there are other facts you should know. Many industry experts see the 2006 real estate market as a mirror of the 2003 market. By some standards, that’s disappointing. But, the truth is that 2003 was the second best real estate market metropolitan Phoenix has ever seen. 2004 and 2005 was frenzied and unrealistic, so anything “normal” seems slow by comparison. Even with some projected market adjustments, 2006 and 2007 may well become some of our best historical markets. There have been recent reports that real estate agents are leaving the business in record numbers. I heard that ten percent of the agents scheduled to renew their dues and licenses in July left the biz. They’re back to their old jobs, or on to something new. We all wish them well. Realistically, real estate is a tough and serious business. During the good times, people flock to careers in real estate looking for easy money. This is certainly not the time for casual opportunists to pursue or continue careers in real estate. I find it fascinating that no one was capable of predicting when the market would heat up in 2004. It was almost of if someone flipped a light switch in a room to the on position and demand exceeded supply instantaneously. By the same token, everything was going relatively smooth in 2005. The only voices of concern said that astronomical appreciation rates were unsustainable. They expected demand to continue with sellers moderating their pricing expectations. The same light switch was flipped from on to off, and listing inventories soared and days on the market went from hours to months almost overnight. As the market continues to adjust from frenzied to normal, some people are reluctant to become players. The press is full of stories of reluctant buyers not sure of the ultimate direction of the market. No one is talking about the future. They’re stuck in idle rather than taking any leadership. No one has bothered to pay attention to the reports of 1947, 1969, or 1985. Here’s what we know. Phoenix is still an ideal destination. We’re blessed with pleasant weather and a lack of natural disasters. Compared to other areas in the Country, our economy and future prospects are bright. Companies will continue to relocate here. It won’t be long before it is bitter cold again in Buffalo, Chicago, Minneapolis, Calgary and hundred of other cities across North America. They all watch TV and read newspapers, and will yearn for our sunny, clear weather and our reputation for friendliness and western hospitality. There may be no better time than now to buy. Interest rates are relatively low. There are lots of listings to choose from and prices are more realistic. Before we know it, we will be in another boom for Arizona real estate. No forms of radar will show it coming, it will just happen like it has before. The economists and PhD’s can only issue reports in hindsight. Time proves they are mostly wrong. Do me a favor. Clip my column and put it in a baggie and stick it in your scrapbook box, so we can retrieve and read it ten years from now. I’m absolutely confident prices will be higher, and we all will have wished that we had bought more real estate.
Thank you…..Gary Shapiro, CRB, CRS, GRI, is a Platinum Quality Service Certified• real estate broker associated with Coldwell Banker Residential Brokerage at 9035 E. Mountain View Rd., Scottsdale, AZ 85258-4410.Gary Shapiro, CRB, CRS, GRI, is a Platinum Quality Service Certified• real estate broker associated with Coldwell Banker Residential Brokerage at 9035 E. Mountain View Rd., Scottsdale, AZ 85258-4410.

Median Prices Up? Down?....It's a Buyer's Market out there!

2006-09-13T12:21:00.000-07:00

Foothills sees resale-price slide, from the Arizona Republic Ahwatukee, reports that Median home resale prices in Ahwatukee and the Southeast Valley are being driven down by a record number of homes on the market and incentives by new-home builders. The Ahwatukee median resale price fell to $360,000 in august, down from $399,950 in July. The Ahwatukee area has about 1,000 homes for sale, including condos, according to the Arizona Regional MLS. Condo prices in Ahwatukee also fell to $181,990 in August, compared with $267,500 a year earlier. "Right now there is plenty of supply," Ahwatukee real estate agent Pete Meier said. "I have never seen this much supply ever in this market. That leads to a softening of prices."

Foothills sees resale-price slide
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/ahwatukee/articles/0913ar-homeresales0913Z14.html

Home resale prices up, from the Arizona Republic Chandler, reports that resale Chandler homes rose in August to $308,000, up from $300,500 in July and $289,600 in August 2005. But not all areas of Chandler shared the gains equally. Gina McKinley, a Chandler real estate agent, said prices have been coming down in East Chandler but seem to be holding their values in south and west Chandler. But the number of homes sold in Chandler was almost half what it was last summer, with 410 sales in August 2006, compared with 780 in august 2005. Condo sales fell from 100 in August 2005 to 40 in August 2006.

Home resale prices up
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/chandler/articles/0913cr-resales0913Z6.html

Market glutted, median resales at '06 low, from the Arizona Republic Gilbert, reports that the median price for a Gilbert resale home dropped $15,000 to $320,000, according to the Arizona Real Estate Center at ASU. The number of homes sold in August was at 355, up slightly from July, but down from August 2005 665 sales. The inventory of homes for sale in the Southeast Valley continues to set records every month, hitting 17,550 in July, according to the ARMLS. Jay Butler, director of the Real Estate Center at ASU, said Gilbert should be able to hold its high values because it's a family-friendly community with good freeway access, good schools and a growing number of stores.

Market glutted, median resales at '06 low
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/gilbert/articles/0913gr-resales0913Z12.html

Median home price drops, from the Arizona Republic Mesa, reports that the median resale home price in Mesa dropped to $240,000, matching January's median price, as prices are being driven down by excess inventory and new-home incentives. The median resale price in July was $249,900. Trent Powell, an east Mesa real estate agent, predicted that prices will fall more because of the competition from new-home builders in east Mesa, Gilbert and communities farther to the east who are offering tremendous incentives. Condo sales in Mesa fell from 325 to 165 from August 2005 to August 2006, but condo prices rose from $138,000 to $159,950.

Median home price dropshttp://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/mesa/articles/0913mr-homesales0913Z11.html

Buyer Alert-Surprise Condos

2006-09-11T11:03:00.000-07:00

Condos near stadium offers buyers sneak peak, from the Arizona Republic, reports that construction is almost complete on the 258-unit Park Place condo project at Grand Ave. and Reems Road in Surprise. The resort-style complex will have walking and jogging trails, a dog park, guest suites, private garages, a clubhouse, concierge service and other amenities. Prices for the Tuscan-style condos start around $200,000 and go up to $285,000. There will be nine floor plans ranging from 846 to 1,645 square feet. Prospective buyers will have a chance to snatch up some of the first units at a presale next week. "This is one of the first resort-style condo communities in Surprise," said Jimmy Foster, president of Blue Tipping Group, the sales and marketing company for the developer, Diversified Real Estate Group. "That's why we're seeing so many buyers show up at our doorstep." http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/westvalley/articles/0909gl-condo09Z20.html

SURPRISE?!

2006-09-08T12:16:00.000-07:00

Growth has Surprise in 'different league', from the Arizona Republic, reports that the city of Surprise now has a population of 100,000, joining the ranks of Phoenix, Scottsdale, Mesa, Glendale, Peoria, Chandler and Gilbert as a Valley city with at least 100,000 residents. Surprise's rapidly growing population bolsters its reputation among major retailers, restaurant chains and companies looking to expand. Surprise's commercial properties were worth about $61 million in 2005, a dramatic increase over the $7 million they were worth in 1996 when the city's population was only 11,395. In the real estate market, Surprise homes have stayed hot while others around the Valley have cooled. The Maricopa County Assessor's Office pegs the median home value in Surprise at $186,000, up from last year's $123,500. What a success story Surprise has become!

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/westvalley/articles/0908gl-nwvpop08Z20.html

Marley Park still selling fast and Mortgage rates dropping again

2006-09-07T15:26:00.000-07:00

The first article, Marley Park filling up fast, from the Arizona Republic, reports that of the 499 homes released so far in the first phase of Marley Park in Surprise, 98 percent have been sold. The 956-acre master-planned community is being developed by DMB Associates, who also built DC Ranch in Scottsdale and Power Ranch in Gilbert, and offers buyers several architectural styles of homes, such as Spanish, Monterey, Craftsman, Bungalow, Cottage and others. Many models feature front porches, in addition to garages that face the side or back of homes.By the end of the year, attached housing will also be available in Marley Park with the 157-unit Frank Residential development featuring lofts, carriage houses and townhomes. Marley Park's theme is diverse neighborhoods with a close community feel. At build-out between 2010 and 2013, Marley Park will contain 3,500 homes.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/glendale/articles/0901gl-marley01Z18.html

The second article, Mortgage rates down for sixth week in a row, from MSNBC.com, reports that rates on 30-year mortgages fell for a sixth straight week, providing homebuyers with more relief from an earlier rise in rates. Freddie Mac said Thursday that 30-year, fixed-rate mortgages dipped to 6.44 percent this week, down from 6.48 percent last week. That's the lowest level since they averaged 6.43 percent in the first week of April. "Mortgage rates continued to drift lower this week in large part because of the cooling in the housing market and in consumer confidence, thus giving financial markets reason to believe that economic growth will moderate and inflation will remain in check," said Frank Nothaft, chief economist at Freddie Mac. Rates on 15-year, fixed-rate mortgages fell to 6.14 percent, down from 6.18 percent, and rates on five-year adjustable-rate mortgages fell to 6.11 percent, down from 6.14 percent last week. Good reason to get your buyers to make an offer this weekend!

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

Arizona ranks second for job growth

2006-09-07T15:25:00.000-07:00

Arizona ranks No. 2 for job growth, from the Phoenix Business Journal, reports that Arizona held the No. 2 spot for job growth among states in July behind Nevada, according to the most recent Blue Chip Job Growth Update released Tuesday. Arizona had 2.58 million jobs as of July 2006, up from 2.47 million in July of 2005. That's a 4.75 percent increase, much higher than the national average of 1.3 percent. Arizona ranked No. 1 in two job categories; trade with a 5.37 percent gain and hospitality with a 5.82 percent increase. Good news for our future real estate market-- as long as we have population and job growth our real estate market will be strong.

Arizona ranks No. 2 for job growth
http://www.bizjournals.com/phoenix/stories/2006/09/04/daily7.html?t=printable

Tempe condo craze continues & More custom homes in development

2006-09-07T15:23:00.000-07:00

The first article, Townhome proposals go before council, from the Arizona Republic Tempe, reports that the Tempe condo craze continues as proposals for condo developments large and small continue to roll into the city. The city council will hear seven of those proposals regarding condominiums or townhomes during its formal meeting tonight. All of the projects are scheduled to go in or near downtown or in north Tempe. They range from nine to 100 units. They include Ash Avenue Condominiums, 9 units at Maple and Ash; Campus Edge Condominiums, a 100-unit project at 922 E. apache Blvd.; Dorsey Place Condominiums, 90-units at 1275 E. University; Miller-Curry Townhomes, 11-units at 1245 N. Miller Road; and Roosevelt Court, a 10-unit townhome project at 323 S. Roosevelt.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/tempe/articles/0907tr-condos0907Z10.html

The second article, More custom homes for East Valley, from the East Valley Tribune, reports that a partnership formed by Taber and Lyle Anderson bought 200-acres at 118th Street and Dynamite Road in Scottsdale and plan to develop about 50 custom homes. The property is next to The Golf Club Scottsdale and has dramatic views of the golf course and surrounding mountains. The land has been approved as a subdivision in Scottsdale, said Taber Anderson. It is one of the few parcels left in North Scottsdale. Anderson is unsure of when the lots will be ready for market. "My wish list would include completing all the site improvements, gate house, entry features, all the perimeter walls along the scenic corridors, the landscaping. My objective would be to get it all done before I start selling anything."

http://www.eastvalleytribune.com/index.php?sty=73479

Are foreclosures on the rise in Arizona?

2006-07-20T07:28:00.000-07:00

The article, Foreclosures on rise in Arizona, Valley, from the Phoenix Business Journal, reports that home foreclosures are on the rise in Arizona as the housing market continues to cool down and as interest rates rise. Foreclosures.com, a No. Cal.- based real estate investment advisory firm, reported that more than 8,000 properties went into foreclosure in Arizona during the first six months of the year. Maricopa County accounted for the bulk of the foreclosure activity with 5,215 foreclosure notices during the first six months of this year."Too many people have been using their homes as ATM machines to manage consumer debt. Now that interest rates are coming back up to normal levels, the refinance window is closed to these people and they are being squeezed by rising home payments," said Alexis McGee, Foreclosures.com president. McGee also said homes prices will not crash like they did in the early 1990's. "Back then, overbuilding by developers led to excess inventory and what we call competitive liquidation of unsold new homes. This time, the inventory just isn't there," she said. For more, go to www.foreclosures.com.

Homeowners settling and Homebuilders regroup

2006-07-19T07:42:00.000-07:00

The first article, Valley homeowners may have to settle into homes, from the Arizona Republic, reports that the 50 percent rise in home prices last year had people buying and selling houses like dot-com stocks, thinking strictly about profits. This year, with the market slowdown, houses are lingering on the market longer and many are selling for less than their asking prices, a return to the days where people bought homes as a place to live. "Buyers have to look at a house now as something that they're going to move into and live for a while instead of something that they will hold for a few months and sell for a $100,000 profit," said Neil Brooks, an agent with Century 21 Arizona-Foothills. "People now have to look at their house as a home, not as an ATM." The fast-money speculators who helped drive up the home prices have taken their money and run. That leaves the pool of Valley buyers dominated by rank and file consumers and long-term investors who will hold the property for its rental income. Buyers are being cautious and holding out for the best deal with all of the inventory on the market.

Valley homeowners may have to settle into homes
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/news/articles/0717piggybank0717.html

The second article, Builders regroup in Valley, from the Arizona Republic, reports that a year after they set records for revenue and income and their stocks lit up Wall Street, homebuilders are scrambling to recover from a downturn that has sent their share prices plunging and forced them to reassess their strategies to increase sales. Some builders are slashing prices on existing inventory. Builders are circling back to their subdivisions, running demographic profiles and realizing that their customer can no longer afford the houses that were within financial reach before last year's boom, said local housing analyst RL Brown. The median sales price of a new home in the Valley sits at $297,000 in May, up more than $76,000, or 35 percent, from the same month last year.

Builders regroup in Valley
http://nl.newsbank.com/nl-search/we/Archives?p_action=doc&p_docid=112E8ECAF9CDF940&p_docnum=2&p_theme=gannett&s_site=azcentral&p_product=ARPB

Mesa ranks third in nation

2006-07-19T07:39:00.000-07:00

The article, Three East Valley cities named top places to live, from the East Valley Tribune, reports that Money magazine announced that Mesa ranked third on its list of "Best Big Cities" in the U.S., following number 1 Colorado Springs, CO and number 2 Austin, TX. It was one of several East Valley cities to make the cut in the financial magazine's 2006 list of the top 100 cities in which to live. The magazine ranked Gilbert as the 16th best city of any size, and Scottsdale came in seventh. Although Mesa ranked higher among cities with a population of 300,000 or more, it came in 93rd when all city sizes were considered. Every year, the magazine selects the best places to live based on a number of criteria, including ease of living, crime rates, education, leisure and culture, weather, health and transportation. Mesa was boosted by its relative affordability, Scottsdale by its golf courses and recreational opportunities, and Gilbert by its exceptional job growth. Great article to send to your out-of-state clients looking to buy here.

http://www.eastvalleytribune.com/index.php?sty=69834

June weather was hot....but sales were cold....it's a buyer's market!

2006-07-13T11:01:00.000-07:00

The first article, June resale home sales fall to near 2000 levels , from the Phoenix Business Journal , reports that June resales fell to a six-year low with 5,460 recorded sales, according to the Arizona Real Estate Center at ASU. June's activity is down from the 6,870 sales recorded n May. So far this year, there have been 36,290 resales, while year to date resale totals last year were at 58,030. However, Arizona Real Estate Center Director Jay Butler noted that the current level of activity is very comparable to year-to-date recorded sales in 2003, which wasn't too bad of a year. The article gives a city-by-city breakdown of the June 2006 resales and prices, compared with June 2005.
June resale home sales fall to near 2000 levels
http://phoenix.bizjournals.com/phoenix/stories/2006/07/10/daily29.html?t=printable

The second article, June was a cold month for resales , from the Arizona Republic , also reports on the June resale numbers from the Arizona Real Estate Center at ASU. It quotes Jay Butler as saying "It was a lot weaker than I thought it would be. I see a lot of for-sale signs staying up. I'm seeing homes that are on their third agent. Homes are getting initial drive-by activity from buyers, then nothing." For the year, sales are down 38 percent from 2005's record levels, and down 25 percent from 2004 sales levels. The median sales price in June rose to $267,000. John Foltz, president of Realty Executives, thinks sales prices will fall 10 to 12 percent this year but said that prices rose 40 percent last year. "This is a very healthy adjustment", he said.
June was a cold month for resales
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/news/articles/0713resale0713.html

The Arizona Republic also has articles from all of the SE Valley community sections specifically discussing the resale numbers in each city, which we have included in the following links:

Ahwatukee home resales plummet
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/ahwatukee/articles/0713ar-evresales0713Z14.html
Home resales plummeting in Chandler
Dive 'a surprise' but prices up from June '05
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/chandler/articles/0713cr-resales0713Z6.html

Gilbert home resale prices up slightly
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/gilbert/articles/0713gr-resales0713Z12.html

Mesa median home price increases
But sales numbers decline in traditionally strong June
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/mesa/articles/0713mr-resales0713Z11.html

Scottsdale Home resales slide 13 percent
Scottsdale prices inch up as market cools
http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/scottsdale/articles/0713sr-homesales0713Z8.html

Phoenix still continues to grow, plus cottage concept to be built in Ahwatukee

2006-07-11T14:08:00.000-07:00

The first article, Cottages planned for Ahwatukee, from the Arizona Republic, reports that Montevina Estate Homes plans to build 15 "cottages" on a 2-acre infill parcel at 3510 E. Lakewood Parkway West in Ahwatukee. The Cottages at Lakewood will be classified as condominiums. "We call it a cluster project. You see this all the time in Orange County," said Jason Kush of Montevina Estate Homes. The homes will be 1,900 to 2,200 square feet, with prices from the mid $400,000's Kush said it took about a year to get plans approved by Phoenix because of the unusual concept.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/ahwatukee/articles/0710evcottages0710.html

The second article, It's official, Maricopa County Keeps on Growing, from the Maricopa Association of Governments, reports on the latest Census population numbers and shows that Maricopa County added more than 600,000 residents over the last five years! That's over 20% growth in just five years. The article gives a link that shows the population for each city and town in Maricopa County. The fastest growing cities were El Mirage, Queen Creek, Buckeye, Goodyear, Surprise and Youngtown. Shows that people are still moving to the Phoenix metro area in great numbers.

http://www.mag.maricopa.gov/detail.cms?item=6189

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

2006-06-29T12:15:00.000-07:00

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

2006-06-24T08:08:00.000-07:00

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!

2006-06-21T10:10:00.000-07:00

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