Scottsdale And Camelback Heating Up

Six major projects near Scottsdale Road and Camelback Road are expected to begin pushing the accelerator on the economics and dynamics of downtown Scottsdale.

The first to start was Scottsdale Waterfront, a mixed-use development at the intersection's southwest corner with retail and office space and two residential towers. Construction of the retail and office components started last summer. Construction of two residential towers with 198 units is expected to start this year.

Second out of the ground and the first of its type in Arizona is Optima Camelview, which city planners believe will set a new standard in urban living for the region. Optima Camelview, the work of Chicago architect and Optima Inc. President David Hovey, will feature 720 condos in 11 buildings on 14 acres at Goldwater Boulevard and Scottsdale Road.

Eileen Hovey, designated broker of Optima Realty Inc. and co-founder of Optima Inc., said she and her sales staff have reservations for half the residences. About 30 of the residences will sell for more than $1 million each, and three others are priced at nearly $3 million each. Prices range from $300,000 to $4 million, and sizes range from 800 to 5,000 square feet. "This is going to do so much for downtown Scottsdale," Eileen Hovey said.

Optima Camelview is just north of Scotts­dale Fashion Square. Each of the new development's six- and seven-story buildings will have 55 to 65 residences. The first phase is scheduled for completion by mid-2006.

The development will include a 24,000-square-foot fitness center with an indoor swimming pool, interior racquetball and basketball courts, locker rooms, and steam room; two water features; a putting green; and other amenities.

The Hoveys said they aren't surprised at the high interest buyers are showing in the condo-style developments cropping up in Phoenix, Scottsdale and Tempe. The Hoveys have been in the business of high-density developments in Chicago for 28 years.

The Hoveys' first such development in the Valley was Optima Biltmore, a 15-story condo development near the southwest corner of 24th Street and Camelback Road. The 230 units have sold out, and construction is about 30 percent complete.

Eileen Hovey said she and her husband are opening a regional office in Phoenix because of the strong interest in condo-style developments.

Riverwalk Square
About a block south of Optima Camelview and on the northeast corner of Scottsdale and Camelback roads is another residential community. Developer Chris Camberlango said the proposed name, Riverwalk Square, will be changed before work starts this summer.
The 4.9-acre site was home for many years to the Safari Hotel, which was demolished several years ago for redevelopment. Camberlango and partner Mike Trailor are proposing 215 residences in nine buildings, and each building will have from eight to 30 units. A price range has not been determined.

All of the units along the street will be live-work space for accountants, attorneys, architects or other professionals.

The development will be new, but Camberlango and Trailor want to preserve a piece of the land's history by including the name of the former hotel in the new community.

"Our site plan has a street in it, and we're working with the city so we can name that Safari Lane," Camberlango said. "It was the original high-end location in Scottsdale, and we think it will be reinvented into a new high-end location."

W Hotel
Just east of Scottsdale and Camelback roads you'll find the site of the W Hotel, a 225-room boutique hotel topped by 25 residential condos. W Hotel is a component of Starwood Hotels and Resorts Worldwide Inc. The proposed seven-story hotel includes a spa, restaurant and two bars.

Owners of the W Residences atop the hotel will have access to hotel services, including room service, housekeeping and concierge.

Tentative opening date is 2007. The hotel is a collaboration of Starwood Hotels and Triyar Hospitality Scottsdale LLC. The 2-acre site is south of Camelback, between Brown Avenue and Buckboard Trail.

Portales Place
North and west of Goldwater Boulevard and Scottsdale Road is a 10-acre parcel where Grace Communities is planning a high-end development called Portales Place. Construction will start as soon as the sale is complete in June, said Grace Communities partner Ryan Zeleznak.

Zeleznak said he has a list of "several hundred" interested buyers. Because some of the buyers have expressed interest in high-end residences, the 140 units in the original design have been reduced to 131 in three buildings to accommodate those buyers "who don't mind spending $3 million to $5 million on a unit," Zeleznak said.

The size range is 1,500 to 5,000 square feet, and the price range is $650,000 to $5 million. Portales Place will have up to five stories. The contractor is The Weitz Co., and the architect is VVG Associates in Phoenix. The current architectural designs are undergoing minor changes, Zeleznak said. More...

New Home Market Takes a Breather

The Arizona Republic reports that the number of new home permits fell less than 2% in April, meaning building stayed essentially flat from April 2004 numbers. This is the first decline since December. The information was presented in RL Browns May Phoenix Housing Market Letter. There were 5,294 houses permitted in April 2005, down 105 from April 2004, but permits are up 18.9 percent year to date.

"We're in a period where we should be very watchful, but I don't think we can declare an unhealthy condition off of the same month last year," Brown said. "Sales activity has been so strong, builders have intentionally tried to slow the sales pace by smaller releases so sales pace can match the capacity to build the homes in the field," said Mark Upton, executive VP of Engle Homes. The median new home price in April was $209,552, up from $183,462 a year ago. Builders say Phoenix still looks affordable compared to other cities in the West. More...

Condo's For Chandler Mall

The Arizona Republic, reports that Westcor and Signature Properties are planning a 20-acre parcel of land near Chandler Fashion Center, and the plan could include high-rise condos. Signature Properties is the company who recently won approval to build a 10-story Renaissance ClubSport Hotel where the top two floors will house 27 luxury condos. The article states that high-rise condos are building momentum in Phoenix and Tempe. Chandler Mayor Boyd Dunn said Chandler is ready to tap into the trend. As the city builds out, planners are looking for opportunities to "build up". More...

Traveling The Long Road Of Growth

The Arizona Republic, reports on the growth in Queen Creek and the changes to its once rural lifestyle. Queen Creek is expected to explode from 20,000 to 100,000 over the next ten years. As in many growth market areas, residents who moved there years ago for the equestrian rural lifestyle are facing the impending growth. The equestrian community is also letting city planners know that they want more trails and preservation of their rural setting. Planners are listening, asking developers to set aside more open space and equestrian corridors. More...

Phoenix Wages Fare Well In Comparison

The Phoenix Business Journal, reports that Greater Phoenix is holding its own when compared to wage growth in other similar-sized metro areas, according to an analysis in the current issue of the Bank One Arizona Blue Chip Economic Forecast. Cities in California, Colorado, Florida, Nevada, New Mexico, Oregon, Texas, Utah and Washington-- Arizona's primary development competitors-- were used in the analysis conducted by Elliott Pollack. "The Phoenix area ranks about 6% below the average of its competitor cities in terms of compensation before adjustments," Pollack writes. "Compared to the U.S. as a whole, unadjusted compensation for Phoenix is 3 to 7 percent below average, depending on the data used." Pollack added, "however, Phoenix's position improves significantly after adjusting for cost of living with ACCRA figures. Compensation for Phoenix is about 4 percent greater than the average of competitor cities." More...

Existing Home Sales Even Hotter In April

The East Valley Tribune, reports that existing homes were sold in August at the fastest pace in history as the nation's red-hot housing market just kept getting hotter. The National Association of Realtors reported Tuesday that existing home median price in the nation rose 15.1% over the past year. That's the biggest 12-month gain since 1980, adding to the concerns of a housing bubble. Dr. Jay Butler at ASU still believes housing is a good long-term investment, but it remains to be seen whether the market can continue at its current clip."We've got two good things--low interest rates and a reasonably good economy," Butler said. "People have great expectations for the coming year and that is where the problem is going to be," he said. If housing prices go up another $40,000 owners or speculators may want to get out and put a property on the market. For the most part, Butler says Valley residents shouldn't be alarmed. "If you live in it, it's not really an issue because the housing market does improve over time." More...

Office Space Shortage Anticipated

Downtown Phoenix will need to build about 320,000 square feet of office space every year for the next 10 years to keep up with anticipated demand. The information was given to the Downtown Phoenix Partnership Inc.'s board of directors from Elliott Pollack. The findings were the first phase of an office market competitive analysis that will help guide future development strategies for downtown. Central to the redevelopment of Downtown Phoenix is a planned 15,000 student campus for ASU, perhaps 10,000 new housing units, roughly 700,000 square feet of new retail, restaurants and entertainment space, an expanded Phoenix Civic Plaza, light rail, open space and more. Rick Merritt, senior vice president at Pollack, says that the downtown's 9.7 percent share of the metro office market is down from roughly 12 percent in past years. He also states that the demand for additional office space valley wide is being fueled by the roughly 67,200 jobs that are going to be added annually.

Rising Home Prices Across The U.S.A.

The Business Journal of Phoenix, reports that the Phoenix area has seen home prices jump more than 20% during the first three months of this year, compared with first quarter 2004 figures. ASU's Arizona Real Estate Center show the median price of a home in the Phoenix area is now at $221,000 as of the end of April. However, home prices are rising elsewhere. According to a USA Today analysis published Monday, 65 of 136 U.S. cities posted double-digit price increases over the year. 8 of the top 10 cities posting the largest increases were in Florida. According to the USA Today figures, the Phoenix area ranked 14th in terms of home price gains. Tucson was 21st. Overall, the median price of a home in the U.S. as a whole rose 9.7 percent over the year. More...

Prasada - Surprise, Arizona

The Arizona Republic, reports that the 4,200-acre all-in-one master-planned community called Prasada, located in Surprise, is expected to become an economic hub for the city. The development will have thousands of homes, a regional mall, two power centers, restaurants and an auto mall. Plans also call for an office corridor and possibly a hospital. The landowner, Suburban Land Reserve of Salt Lake City, will develop the community with Phoenix-based mall developer Westcor, Tempe-based Fulton Homes and Scottsdale-based RED Development, LLC. The group hopes to have the land entitled by the end of the year, zoning attorney Paul Gilbert said. More...

Old Paradise Valley Estate...

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Original Paradise Valley Estate

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President And CEO Of Realty Executives

Bill Powers Named President and CEO of Realty Executives International

PHOENIX, AZ – May 20 – Rich Rector today announced the promotion of Bill Powers to the position of president and CEO of Realty Executives International. Powers, who has held the position of vice president and chief operating officer for the privately held company since 1987, will assume his new responsibilities effective immediately.

As part of his announcement, Rector stated that he will remain as chairman of the company’s Board of Directors. Rector is the son of Realty Executives’ founder Dale Rector, and is, along with his wife Robyn Lee Dependahl, majority shareholder of Realty Executives International, as well as owner of its Phoenix franchise, one of the nation’s top 10 real estate brokerage firms.

“Bill’s professionalism and performance have been instrumental in our company’s growth over the past five years,” said Rector. “Under his leadership, I am confident that our brand will continue to enjoy unprecedented success.”

In his expanded role with the company, Powers will continue to be the driving force behind the growth and development of Realty Executives International, providing support to its global franchisees through the worldwide headquarters leadership team and staff. Since being named COO in 1987, Powers’ strong leadership abilities have contributed to the growing of the Realty Executives system from 600 Executives (agents) to nearly 14,000 today.

In his tenure with the company, Powers has been involved in franchise sales, regional development, marketing, human resources, finance and technology. Through his new position Powers will be able to further increase the company’s presence internationally.

“I couldn’t be more proud of our current path,” said Powers. “I look forward to the challenge and responsibility placed upon me to take us to new heights as an international real estate brand.”

Powers, like Rector, has been a licensed real estate broker for more than 30 years. Therefore, they are, perhaps, unusual among today’s real estate industry leaders who are largely brought into real estate from other industries. To illustrate Powers’ impact on industry policy, he was just last week featured in both USA TODAY and on CNN speaking on behalf of traditional real estate brokerages.

Realty Executives International, the nation’s first 100-percent commission company, has been perfecting its business model for 40 years and is one of the fastest-growing real estate franchises in the United States, having experienced a 260-percent increase in the growth rate of its number of offices over the past year. The Phoenix-based, privately held firm has nearly 800 offices in eight countries, including offices in the United States, Canada, South Africa, Mexico, Australia, Israel, Indonesia and Singapore. Just recently, the company announced its expansion into the United Kingdom. Publications like Entrepreneur, Success and Inc. magazines have regularly ranked Realty Executives International, Inc. as a leader based on franchise growth, management stability and financial soundness.

Learn more about Realty Executives at our Web site.

New Freeway Development Set

The Solanna Group and Fordon Partners announced a $250 million commercial development on 90-acres where the Loop 101 and Loop 202 meet, east of McClintock and south of McKellips Road.

The development has plans for up to 1 million square feet of mixed-use commercial space, a hotel, a high-tech office and international trade park, and a specialty retail, premium outlet and entertainment complex. David Fordon states "naturally the 101-202 has to be one of the prime, major freeway-to-freeway interchanges probably in the United States and it's a prime, visible location. You're a five minute drive away from Arizona State University and 10 minutes away from Phoenix Sky Harbor International Airport.

The area is primed for this kind of activity in the way the growth is going in the Valley. Unlike the Mesa Riverview project and the Tempe Marketplace projects that were political hot potatoes, Fordon says that it is unlikely the project will either draw controversy or become political.

Riverview Project Passes In Mesa

The East Valley Tribune , reports that the much publicized Riverview at Dobson retail center passed by a comfortable margin yesterday, clearing the way for the 250-acre site to develop with a Super Walmart, a Bass Pro Shops Outdoor World, theaters, auto dealerships, retail, restaurants and a business park. Mesa voters were willing to rebate about $80 million in sales tax revenue to Kimco Development and DeRito Partners Development. More...

Look for this announcement to help revitalize this area of Mesa, Arizona that has been somewhat depressed.

Largest Land Deal In Central Arizona

The Phoenix Business Journal, reports that Arte Moreno and Bill Pope are selling their Estrella Mountain Ranch master-planned community in Goodyear to Newland Companies, one of the nation's largest development companies.

The article states that the deal gives Newland annual options over the next five years allowing it to own more than 18,000 acres. The first transaction involving 3,750 acres includes a payment of about $250 million, according to records files with the Maricopa County Recorders Office. Full sales price details were not given, but it could be the highest-valued transaction in Arizona history. Estrella Mountain Ranch has only developed 2,150 acres of its total 20,000 acres. Newland has created 60 master-planned communities in 11 states, and also developed Mountain Park Ranch back in the 1980's.

Realty Executives In The News

Realty Executives' Bill Powers Says, "VOWs Aren't About Fees!"
by Blanche Evans of RealtyTimes.com

Suddenly Bill Powers, COO of Realty Executives, finds himself to be the go-to pundit for media covering the investigation of the Department of Justice (DOJ) into NAR's online policies. During the NAR's mid-year governance meetings last week, CNN and USA Today both tapped Powers to be the counterpoint to the media's position that NAR is in the wrong to fashion an online listings policy for MLS subscribers.

"We have plenty more education to get through to the people that this issue is not about fees," says Powers. "It's about data rules."

Calling the DOJ's investigation into the NAR's virtual office Website (VOW) policy "misguided," Powers maintains that the real estate industry is "one of most competitive as well as being the most cooperative" of industries.

"What other industry shares its data to help the consumer with other competitors?" asks Powers rhetorically. "We have IDX (Internet Data Display), and we can put some of the information onto the Web and give that to consumers. That's a plus, but there is a lot of information that has no business being on the Web."

"We have no rules, and we have been trying to come up with [something] that doesn't stifle but increases competition, maintains a level of security, and offers consumers choices," he says.

Powers complains that the media spin is that somehow real estate data should be in the public domain, and that consumers are being prevented from having choice.

"It's preposterous that a USA Today reporter would have to share his notes and stories with all his competitors," suggests Powers. "He should imagine that when he hits the submit button to his editor that it also goes out to the Wall Street Journal, Time Magazine, and all his other competitors. And that when they post his story, he has to pay them for advertising his story!"

While the publishing industry has copyright laws preventing the illegal republication of intellectual content, the real estate industry has no such provisions, says Powers.

"You have to have rules," he maintains. "This is not a fee deal - that's the way it's being spun. We've had discount brokers for decades. The VOW and IDX rules have nothing to do with fees. The only ones who should be discussing fees are the broker and his client."

Powers continues with a spirited defense of the National Association of Realtors. "The 1.1 million Realtors who are members of the NAR include a lot of discount brokers," explains Powers. "NAR has never asked me what my fees are, and it's none of their damn business. The fee is decided by the consumer and the broker at the time they list the house, and market forces play a huge role. Fees have been dropping, and critics say, 'What about the appreciation? You are getting paid more money.' In boom markets there tends to be downward pressure on fees. As soon as the market corrects itself, and it will, pressure on fees will subside, because houses will be harder to sell."

"The NAR doesn't want to touch fees! If NAR was so anticompetitive, the '100 percent' concept would have been railroaded out of town. Now 40 percent of brokerages have it. I'm sure when Dale Rector (Realty Executives founder) and Dave Liniger (RE/MAX founder) got started - they didn't get grief from NAR - they got it from other brokers.

"When these guys and gals (discounters, third-party referrers) are losing and misleading the public by spinning this as a big industry attempt to squash new ideas, nothing could be further from the truth. They have been welcomed - that's what NAR is about, but NAR's idea is that everyone plays by the same set of rules."

Free Summer Concerts In Scottsdale

Free Sunday Night Concert Series
May 8th - July 10th

FREE concerts every Sunday from 7:30 – 9:00pm beginning May 9th and running through July 11th. Bring a blanket or chair to hear a variety of favorite local bands. Train and carousel rides are available throughout all concerts for $1.00 per ride, children under three ride free with a paying adult. Food will also be available for purchase. Sunday May 8th, 15th, 22rd, 29th, June 5th, 12th, 19th, 26th, July 3rd, 10th.

More information including concert schedule...


All pictures and information courtesy of TheRailRoadPark.com, Scottsdale Arizona.
7301 E. Indian Bend Road, Scottsdale, AZ. 85250 - (480) 312-2312

Teardowns Wrapped In Red Tape...

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TearDowns Wrapped In Red Tape

Visit our other site for more information on Paradise Valley luxury homes.

Home Builders Showing More Interest In Infill Sites

The Phoenix Business Journal, reports that Valley home builders are looking closer in at infill sites as the growing population causes more demand for housing closer to the city core. Pulte Homes and Meritage Homes are cruising Phoenix' central corridor for land for high density developments. Infill sites are becoming harder to find, which makes them more expensive. The builders look for high density to offset the high land price. As commutes get longer and growth spreads out to the fringe, it puts a strain on the transportation system. "I think that's one of the issues creating the interest in living in the inner city," said Don Dillon, Chief Executive of local design firm CMX. If the current trend continues-- where more housing developments are added an hour's drive from central Phoenix-- the area will start resembling metropolitan Los Angeles, he said. More...

Esplanade Towers Set Arizona Sales Record

The Arizona Republic, reports that the original towers at Camelback Esplanade sold for a record $162.5 million, or $310.50 a square foot. The average office building in Valley is selling for $124 a square foot, according to Bob Kammrath of Kammrath & Associates. The deal includes the Esplanade I and II office buildings and the retail space that includes Morton's, Houston's, the Steakhouse and Franco's Italian cafe. The Esplanade complex commands the highest rents in the Valley with some space leasing for as much as $32 a square foot. The average office rent for the Valley is $21 a square foot. The article states that both large institutional investors and small private buyers have been paying record prices for the Valley's commercial real estate during the last year, driven by the population and job growth the area is experiencing. More...

10,000 New Home Permits

The Arizona Republic reports on the continuing new home building boom in Pinal County, which is on pace to issue nearly 10,000 new single-family home building permits in 2005. Leading the way is the city of Maricopa, which is on pace to issue over 6,000 new home permits this year. Coolidge, which issued 15 permits in 2004, is on pace to issue close to 1,000 new home permits in 2005! The Pinal County market is capitalizing on the lower land costs, which means lower housing prices. As home values continue to rise rapidly in Maricopa County, look for Pinal County to continue as one of the areas hottest new home markets. More...

First Time Central Arizona Home Buyers

The Arizona Republic, reports that the median price of an existing home jumped to $221,000 in April, a 35% rise since April 2004 , according to the Arizona Real Estate Center at ASU. In the same time frame, incomes rose only 2%. For those looking to get into a home for the first time, times are getting tough. With housing prices rising and incomes flat, more and more people are being priced out of the market. Many people are stretching themselves to buy a new home, hoping that their incomes rise. The rising prices are forcing more and more people to the fringe areas (Pinal, western Maricopa County) to get into a home.

More...

Bubble Or Not, High Home Prices Can Hurt

USA Today, reports on the rising home prices nationwide, and states that the high housing prices are keeping buyers out of the market, making it harder for firms to attract workers in pricey markets and breeding high consumer debt and speculative buying. Many economist warn a major swath of the market is at risk for a price correction. Nationally, home prices have jumped an average of 50% in the past five years, doubling in California and rising about 80% in Nevada and Hawaii, according to the Office of Federal Housing Enterprise Oversight. In an April USA TODAY poll of 55 top economist, three-fourths called the housing market overheated, though they differed on whether they expect a gradual cool-down or a sharp drop in sales and prices. Nationally, an NAR survey shows affordability still in a healthy range. But some cities, the rising prices are affecting not only the lower income buyers, but the middle class too. The cities with the highest prices are in California and the east coast cities. Very interesting article to get a national perspective of the housing market. More...

Chandler Arizona Home Prices Soar

The median price for used homes sold in Chandler rose 51% from April 2004 to April 2005, with the median resale price sitting at $253,335. Gilbert's median resale price went up 49% in the last year, Ahwatukee Foothills prices went up 48%, Mesa went up 30%, Scottsdale went up 30% and Tempe median resale price went up 28%. The article gives the current median resale price for each of these cities. More...

Real Estate Industry Not Overprotective

By Bill Powers
Realty Executives - COO

Allegations that organized real estate is trying to "squash" low-fee Internet competition couldn't be more misleading. The industry is one of the most competitive (and cooperative) in the United States. And the National Association of Realtors (NAR), the industry's trade association, was established on the premise of increasing ethical behavior.

My company and others like it insist that U.S. franchisees be NAR members. For consumers, the benefit lies in knowing that their agents are NAR members (while a number of low-fee and limited-service providers are not) and are, therefore, held to higher ethical standards. In no way does NAR affect the fees charged to consumers. Each broker is responsible for establishing a fee structure.

Companies within the industry have long had what is known as "menu pricing," or different fees for different levels of service, though Realty Executives does not. These are determined not by NAR but by a combination of the brokerage, consumers and market conditions.

The charge that the real estate industry fights new business models is also false. Innovative ideas have always been a part of the evolution of real estate sales. Low-fee and limited-service providers have been around for decades. The only distinguishing difference with today's new providers is the introduction of the Internet and the increased amount of capital flowing into this effort.

Low-fee providers typically surface in strong seller's markets. But, because these providers do not rely on customer service, they tend to disappear in weaker markets that require more work to sell properties.

The proposal that real estate brokerages should share hard-earned, qualified leads is no more preposterous than suggesting USA TODAY share all current and future article leads and sources with its competitors.

Most Internet low-fee providers do not employ licensed agents to actually sell the properties they market, making it necessary for consumers to find licensed agents to act as buyer representatives. For this reason, a significant number of agents across the country are currently working with these Internet service providers — instead of trying to eliminate them to protect their own fees.

The goal of the industry is to create a level playing field. Through the innovative and changing spirit of the industry, both the brokerages and consumers stand to benefit.

Bill Powers is chief operating officer of Realty Executives International, a real estate franchising firm based in Arizona.

I have to add that I am proud to be associated with Realty Executives of Paradise Valley. I have been a full associate there for since 1994, and have never even considered going elsewhere!

Matt Pellerin - Proud Realty Executives Associate.
The Paradise Valley Realty Executives Office is located at:
11211 N. Tatum Blvd. Suite #130 Paradise Valley, Arizona 85028

Realtors' Web Ban Must Get Past Feds

John Handley
Chicago Tribune
May. 10, 2005 12:00 AM

RePrinted in the Arizona Republic:

CHICAGO - A battle appears to be heating up between Realtors, who want to be able to block access to listings via the Internet, and the U.S. Justice Department, which regards the practice as anti-competitive.

Consumers shopping for property as well as sellers have major stakes in the issue.

The National Association of Realtors, the 1.2 million-member trade association of full service agents, wants to allow brokers to limit listings on the Internet and therefore access to those listings by online brokers, who often charge less than the traditional full-service 6 percent commission.

"The Antitrust Division is investigating the potential competitive impact of certain rules involving the display of residential real estate data over the Internet," Gina Talamona, a Justice Department spokeswoman, said Monday.

The Realtors association plans to implement its new rules via a change in its bylaws that would go into effect in July.

The Justice Department also sent warnings to state legislatures this spring not to pass bills that would squeeze out low-cost brokers by changing requirements for holding a brokerage license. And Justice has sued a real estate regulatory agency in Kentucky for prohibiting rebates on sales commissions.

"The antitrust question is whether the NAR's policy keeps real estate commissions higher," said Steve Bochenek, legal counsel for the Illinois Association of Realtors.

The Realtors association, Bochenek said, contends that its members have the right to protect their property, the listings.

"That may have to be decided in court," he said.

"NAR wants to allow brokers to pick and choose which listings will go on the Internet. But consumers want to see all homes on one site," Lashinsky said Monday.

"Sellers want their home to be seen by the most potential buyers in order to get the most for their home," Lashinsky continued. "Consumers lose if the listing is not shown everywhere. I think consumers will take an interest in this NAR bylaws change.

"Real estate listings used to be closely guarded by agents, who had a near-monopoly in uniting buyer and seller.

The Internet promised to make house hunting easier and faster. That has happened. The Realtors association reports that more than 70 percent of buyers use the Internet in their home search.

Ed Watts, an agent at Prairie Shore Properties in Wilmette, Ill., said he can flag a listing so that it does not go on the Internet.

"But I don't know why any agent would not want a listing on the Internet," he said. "There's no such thing as bad exposure.

"But some brokers, especially smaller ones who don't want to risk losing part of the commission on a property, want to protect their listings.

One issue is the usual commission charged by traditional brokers, usually 6 percent of the sales price.

"We're not against discounting. This is America. It's commerce," said Judy Gardner, president of her own real estate firm in Plainfield, Ill.

"I'm the queen of tech, but real estate sales require a high degree of the human factor in negotiating. Online discounters say they are going to help you sell your house. But most people need a guide, a professional on their side," Gardner said.

"As far as online listings, the genie is out of the box. Most listing information already is out there on Realtor.com," Gardner said.

Arizona Traffic Seems Bad To Locals

Gridlock continues to plague Valley commuters, with the average motorist spending 49 hours stuck in traffic during 2003, according to the annual Urban Mobility Report from the Texas Transportation Institute. Locals are complaining, but people moving here or visiting from other large metropolitan areas don't feel the same. Most saying that the traffic here is quite bearable, especially with the nice, clean roadways we all enjoy here in the Valley of the Sun!

Despite the area's rapid growth, the travel delays stayed about the same compared to previous years. This points to a well managed roadway system in Central Arizona. Overall, Phoenix ranked 18th among all urban areas, and 12th among the 13 largest metropolitan areas. While there is hope with ADOT soon embarking on the first phase of a 20-year Maricopa County Regional Transportation Plan approved by voters in November (Prop 400), the reality is that with all the projected growth, travel times will increase.

No Boom In Arizona Housing Market?

Federal banking regulators say a rising number of U.S. cities are experiencing booming housing markets that could turn to busts, but those conditions do not exist yet in Arizona. No Arizona cities meet the FDIC's list of boom markets- those showing 30 percent total price gains, inflation-adjusted, over the past three years. Arizona homes prices rose about 30% on average from 2002 through 2004, but after inflation, the three year gain was closer to 21%.

Various cities in California, Florida, New England and along the east coast dominate the latest boom list, along with Las Vegas, Reno and Honolulu. Stephen Happel, an economics professor at ASU, warned that any sudden increase in long-term interest rates could significantly curb demand.

Hope For Those Priced Out Of The Market

The Condominium Conversion Market

Converting apartments to condos is one way that people who cannot afford a single family home are getting into the housing market. The Valley's steady population growth and rising home prices are driving the conversion trend.

Last year, 1,580 apartments in Metro Phoenix were converted to condos, according to CB Richard Ellis. They predict that number will triple this year to round 4,500. Only Florida and Southern California will lead Phoenix this year in condo conversions. The conversion of apartments to condos is also helping the apartment market by taking inventory off the market and improving vacancy rates.

New Scottsdale Hotel And Condo's Approved

The Scottsdale Development Review Board approved the site plan for the seven story "W Scottsdale Hotel" that will have a 225-room hotel and 25 luxury condos. The new hotel will be located at Camelback Road, between Brown Avenue and Buckboard Trail. Groundbreaking is set for June 20th, with construction completion estimated in mid 2007.

This is not the first project like this in Old Town Scottsdale. Many other companies have proposed new condominium projects for the area, some have even begun construction already. Most are sold out before the construction even begins!

There is a sort of revitalization going on down there. Especially at the Fifth Avenue Shops where new boutiques and nightclubs have been springing up and doing quite well!

Rio Verde Foothills "Rural" Plan

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Rio Verde Foothills "Rural" Plan

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Home Buyers Actually Camp Out Overnight

Many Valley homebuyers are camping out overnight to be one of the first in line when new home lots are released in a subdivision. The affordable housing product is in high demand and short supply. In one Pinal County subdivision along the Hunt Highway, more than 50 people were in line the morning for nine lots that were to be released that day. Some builders are turning to the internet to end the lines, notifying interested buyers via e-mail and putting them into a lottery for the home sites. Dr. Jay Butler at Arizona State University (ASU) doesn't think the home-buying craze will last too much longer, yet I (and many of my peers) think we are just beginning to correct to where prices should be for a place that has as much to offer as we do here in the Greater Phoenix area, also known as "The Valley Of The Sun". Dr. Jay Butler also said that home buying could begin to slow as early as this summer, primarily because of issues like rising gas prices, rising home values combined with stagnant paychecks, lengthening commutes to affordable housing and stricter lending policies.

Valley Office Condos

Office condominiums that offer tenants ownership and tax advantages continue to grow in popularity, especially in the suburbs. Office condo's are popular with businesses such as doctors offices, law firms and real estate companies that stick around for years and don't normally expand. Colleen McPherson with CB-Richard-Ellis said that investors are also jumping on the office condo bandwagon. "The Southeast Valley (Ahwatukee Foothills, Chandler, Gilbert and Mesa) is a very hot condo market", McPherson said.

In the fourth quarter of 2004, there were 56 office condo complexes in the Southeast Valley, with 20 more in the works and five under construction. However, Bob Kammrath, owner of Kammrath-Associates, said the Valley may be on the verge of overbuilding office condos. "There's an awful lot of these being built in a short period of time", Kammrath said. "The resale market for these types of properties is untested."

Paradise Valley Arizona

This post has been moved to:
High Dollar Home Sale In Paradise Valley, Arizona 85253

Visit our Paradise Valley site for more information on Paradise Valley Luxury Real Estate.

The City Of Phoenix Arizona Has New Goals

More jobs and less commuter traffic are cities goals...

Valley cities are pushing for more employment along freeway corridors so that commutes will take less time and traffic congestion will improve. This quote from Peoria's economic specialist James Mason who points to the Superstition Freeway from Tempe through Mesa and ending at the Superstition Mountains (where the Lost Dutchman's Mine is) as a transportation corridor that should never be used as a model for good urban planning. Too much of the Superstition is lined with backyards of houses and apartments, and the concentration of residents contributes to freeway congestion. Most who have lived here for awhile have knicknamed this freeway "The Superstition Parking Lot". West Valley cities like Litchfield Park, Glendale, Surprise and Peoria are working on planning their freeways with more commercial development, hoping to attract major employers so area residents can work closer to their homes. The same is in the works for the hub of The Valley of the Sun, Phoenix. Look for new tax breaks, and the easing of regulations and laws to help attract more high tech and high paying jobs to be the wave of Central Arizona's future.

Agritopia Homes, Subdivision in Gilbert Arizona

More than 200 people showed up Saturday morning at Agritopia, located on Ray Road in Gilbert, for a drawing on 30 lots that were released. Names drawn are placed on a list and called in order as lots are released for sale. So, 30 lucky new homeowners will wait their turn for 8-10 months while their new homes i being built! This is becoming more and more popular as builders simply can not keep up with demand for new homes Valley wide. The homes at Agritopia are priced from $220,500 and up. The week before, 476 people registered for a drawing for larger square footage homes at Agritopia, with 50 lucky names being drawn.

This illustrates the strong demand and lack of supply that the Central Arizona real estate market is experiencing.

Trust Land Bought For Double The Appraised Value

Local reports show that a 175-acre state trust land parcel in Mesa, Arizona was sold on Wednesday 4/27/2005 for $42 million, or $240,000 per acre , to a group headed up by homebuilder Randall Jackson.

The property is located northwest of Signal Butte and Guadalupe Roads. The property was recently appraised at $22 million for this purchase! The property is zoned for medium density residential and could be used for custom home sites. This shows the high demand for land and that builders/developers are willing to pay higher and higher land prices due to the high demand for housing in this market!

Look for this trend to continue as Continental Homes (CHI) paid double the appraised value for a parcel at the North East corner of Cave Creek Road and Pinnacle Peak Road just over a year ago.

Housing Costs Outpace Wage Gains

The Center for Housing Policy, a coalition pushing for more affordable housing, released a report today that said in the past five years, the number of low and middle income working families (nationwide) paying more than half their incomes for housing has increased 76 percent. In 2003, 4.2 million working families spent more than half their income on housing, up from 2.4 million in 1997.

Housing prices are outpacing wage increases in many areas, meaning this trend will continue. In the Phoenix area, the cost of a home jumped almost 25% during the past year, while household incomes rose only 2%. This is a dangerous trend that we need to watch in our Phoenix real estate market!

Phoenix Real Estate Agent - Matthew Pellerin

Welcome to my Central Arizona Real Estate News Blog!


A quick note about the publisher, me!

Hello!
For those of you who have found this blog on your own and do not already know me, my name is Matthew Pellerin, but I usually go by Matt. I am a real estate agent in Phoenix Arizona for Realty Executives. I have three websites to serve the Greater Phoenix real estate market, my sites are PhoenixHomes.com, ScottsdaleHomes.com and ParadiseValleyLiving.com. The PhoenixHomes.com site covers the entire "Valley of the Sun", but is highly focused on the areas that my team and I specialize in. We specialize in residential land, lots and homes in Carefree, Cave Creek, Phoenix' Central Corridor, North Phoenix, Pinnacle Peak, Rio Verde Foothills and North Scottsdale real estate listings.

Though I grew up in Chicago, I have lived here in Central Arizona since 1978. We first landed in Mesa to live with my aunt for about 3 months, at a time when the Superstition Freeway was being built and did not even come close to Power Road yet! We then relocated to Central Phoenix near Encanto Park for about a year and 3 months. After that we relocated to North Phoenix and I have called it "home" ever since then.

I began my real estate career in 1994, training under one of Realty Executives' top producers named Jim Todd (who now sells real estate in Madison Wisconsin). I became a full associate of Realty Executives in March of 1995 and have enjoyed working for this company every day since. I really can't imagine my life without real estate. So, on that note I thought I would begin this journey called blogging. Welcome to my first entry of many to come as I will be trying to update this news blog daily during the week! Sorry, I need the weekends to show homes, so no new news will be published over the weekends.

I hope you enjoy this Central Arizona Real Estate News Blog!