Construction Pinch Threatens Valley Economy

The Arizona Republic reports further on the effects of the hurricanes and material costs on our local economy.

The article states that due to the enormous demand for building materials and labor to rebuild hurricane stricken areas, prices of building materials could rise 10 to 20 percent, local contractors say. If home builders pass along their cost increases to consumers, it could throw a wrench in the Valley's economic machine that depends on relatively affordable housing to attract new residents and fuel growth.

Builders are already seeing consumer resistance to new home prices that have already increased an average of $62,000, or 28 percent, so far this year. The median new home price in August was $235,716. Prices for lumber, copper pipes, drywall, cement and asphalt are already rising and in short supply.

The magnitude of those shortages depends on how quickly the federal government proceeds with rebuilding. Relaxing restrictions on imports such as lumber from Canada and cement from Mexico could help. More...

Construction Roadblock

With materials and labor in short supply, the fast-growing Valley is straining to build its future...

The Arizona Republic reports the ripple effects of Hurricanes Katrina and Rita are spilling outside the Southeast, with the intensified labor and material shortages arriving in their wake likely to affect everything in the Valley from home building to freeways and area quality-of-life projects.

Construction prices for materials, such as concrete, steel, lumber and labor are already going up due to shortages in these areas, and the trend is expected to continue. Homebuilders say they are already nervous that soaring home prices (up nearly 30 percent this year) may deter potential buyers. More...

Anthem Arizona Selling Faster Than Anticipated

The Arizona Republic reports that Pulte/Del Webb's Anthem development is projected to sell out by 2007, well ahead of its original 20-year build out that was projected when the project started in 1999.

At build-out, Anthem will have 12,000 homes. "It's pretty remarkable," said Jacque Petroulakis, Arizona director of public affairs for Pulte Homes. She attributes the development's success to the area's commercial amenities. Homes in Anthem are selling from the mid $200,000's to more than $500,000 and range from 1,200 to 4,400 square feet. More...

$400 Million Chrysler Land Sale An Arizona Record

Sprawl squeezes Chrysler Proving Grounds out and sets a record dollar amount for a land sale in Arizona...

The Arizona Republic reports that the 5,500-acre Chrysler Proving Grounds north of Surprise was sold for $400 million to what market watchers are saying is an investment group with Las Vegas and Los Angeles ties. Plans are for a new master-planned community like the West Valley's Verrado development. The land won't have any homes for at least two years. More...

Central Arizona's New Homes Market Cooling

Central Arizona's new homes market shows slight signs of cooling...

The Phoenix Business Journal reports that there was a slight downtick in new home permits in August, according to the latest Phoenix Housing Market Letter from R.L. Brown. "We sense a change in the pressures on the new housing market may have occurred, and we are relieved," Brown stated.

Permits for August were at 5,548, down 3.7 percent from August 2004. Through August, 43,825 permits were issued, up 6.6 percent from 41,102 issued for the same eight month period in 2004. In the resale market, 12,573 homes were sold in August, up nearly 20.8 percent from August 2004. Through August 2005, there have been 94,012 resales, up 27 percent from the same time period in 2004. More...

Looks like another new record this year!

Scottsdale Arizona Growing Pains

This post has been moved here:
Scottsdale Arizona Growing Pains

Learn more about Scottsdale real estate and homes for sale here.

Economists Bullish On Central Arizona

Natural disasters may bring even more new residents...

The Arizona Republic reports on yesterday's SRP Economic Forecast 2006 that was held at the Arizona Biltmore. ASU economist Stephen Happel was the keynote speaker, and he said that Arizona's vibrant economy won't slow down much in 2006 due to continued population and job growth, which from July 2004 to June 2005 ranked second in the country.

His biggest concerns with the economy is inflation and long-term interest rates. He also mentioned increasing costs for building materials, such as lumber and cement, as concerns. More...

Overall, a very positive forecast for our local economy.

Phoenix Arizona Is Tops For Entrepreneurs

The Phoenix Business Journal reports that Entrepreneur Magazine has ranked Phoenix as the best city in the country for starting a new business.

The magazine listed housing as a main asset for the area, noting that housing prices in Phoenix are "substantially" lower than those in most other metro markets.

The article also states that Maricopa County had the biggest population boost from 2003 to 2004, adding 112,233 people to exceed 3.5 million. More...

Homeowners Could Handle Price Drop

The Arizona Republic reports that Fed Chairman Alan Greenspan said that most homeowners are in a fairly good position to weather a shock if housing prices fall.

"The vast majority of homeowners have a sizable equity cushion which to absorb a potential decline in house prices," Greenspan stated yesterday via satellite to a banking conference in Palm Desert, Calif. Less than 5 percent of home borrowers were highly leveraged, according to one measure, he said. Greenspan added that the quicker turnover of second homes, such as for investment or vacation purposes, appears to be feeding the surge in house prices.

Greenspan's comments came after the National Association of Realtors reported that sales of existing homes in August posted their second-highest level on record, and while home prices increased by the largest amount in 26 years. The median home price in the nation sits at $220,000, a gain of 15.8 percent from the same month a year ago. That was the biggest 12-month gain since July 1979.

Greenspan did, however, still caution about "froth" developing in some local housing markets that may be driving house prices to "unsustainable levels," such as California. More...

Fissure Problems Run Deep In Arizona

No state survey funds means home buyers are at the mercy of old data...

The Arizona Republic reports that land fissures are an increasing problem in growth areas throughout Arizona, yet state officials have not been able to map the worst areas because they can't come up with the $50,000 it would take for a comprehensive survey.

The problem came to light with the fissures that occurred in Queen Creek. Other areas of Pinal County and around the White Tank Mountains were also noted as having fissure potential, according to the article.

Ray Harris, a research geologist with the Arizona Geological Survey in Tucson, said fissure that have been backfilled near Casa Grande are beginning to open up again. Harris predicts litigation is on the horizon for homeowners who are watching ceilings crack and driveways crumble. More...

More Open House Signs Are Popping Up

The Arizona Republic reports that for the first time in months, open house signs are popping up in the Valley as more properties go up for sale and stay on the market longer.

There were 15,597 homes on the MLS as of Friday, according to the ARMLS. Six or seven months ago, there were only about 7,000. According to Gregg Swann of Phoenix based Bloodhound Marketing Group, inventory is still only 50 to 60 percent of what it would be in a balanced market.

Most homes that are well maintained and appropriately priced from the start are selling within days. More...

High Priced Homes In Scottsdale Arizona

Our resort town, Scottsdale Arizona, is becoming less and less affordable...

The Scottsdale Arizona Republic reports that it now takes an annual income of at least $103,200 to qualify for a home costing $667,450, the median sales price in August for houses north of Indian Bend Road in North Scottsdale.

Citywide, the Scottsdale median sales price was $555,000, according to the latest report from the Arizona Real Estate Center at ASU. A buyer would need an income of nearly $90,000 per year to afford that $555,000 Scottsdale home. The income estimates show just how difficult it is for middle class buyers to afford homes in Scottsdale Arizona, our resort town. More...

The Next Hot Housing Markets

MSN.com reports on the nations hottest housing markets in terms of affordability and appreciation, with Phoenix coming in at number one and Tucson making the list.

The article states that jobs are one of the top reasons Arizona is growing. It also states that retirees and second home buyers are factors as to why Phoenix and Arizona are boom areas. More...

More positive national press for Arizona's real estate market!

Phoenix OKs High-Rises For Trump And Biltmore

Phoenix's Camelback Corridor is growing UP...

The Arizona Republic reports that the Phoenix City Council, in a three-hour meeting Wednesday night, approved new height limits on the Trump and Biltmore Fashion Park projects, approving 140-foot height limits.

Trump was looking for 150-feet. The vote was 5 to 4.

"If we don't start looking at the big picture and taking advantage of the developers... we'll find ourselves in a situation where retail is moving out, our residents are following that retail out and we're facing more sprawl," Councilman Claude Mattox said.

The decision angered many in the crowd. They had lobbied to limit the height to 86-feet for the Camelback Corridor (traditionally known as "The Biltmore Area") and wanted a complex set of rules for planning the area, but the developers couldn't live with those restrictions.

Jay Morris, the zoning attorney for Trump, said "five years from now, we'll be reaping the economic benefits and we'll see the vitality of the urban core and the truth that Phoenix can build up and not just out." More...

If you are interested in investing in Camelback Corridor homes, contact us now at 602-404-9700. Or if you are interested in having a look at the homes for sale in the Camelback Corridor - visit our website and search the MLS. This area is set to explode as these two giant developers get started on their new high rise projects!

New Home Building Drops For 2nd Month

The Arizona Republic reports that construction of new homes in the U.S. slipped for the second straight month, providing fresh evidence that the nation's housing boom may be cooling.

The Commerce Department reported a 1.3% drop in August, which followed a 1.5% decrease in July. Even with the declines, housing construction totaled 2.01 million units in August. "We see a flattening of housing starts and the beginning of a cooling process," said David Seiders, chief economist at the National Association of Realtors.

A survey of builder sentiment dropped in September for the third straight month to the lowest level it has been in two years.

Ken Simonson, chief economist for the Associated General Contractors of America, forecast that the price of building materials will rise by 10 percent or more next year. More...

Randall Martin Homes Starts 3 New Developments

The East Valley Tribune reports that a new Scottsdale based homebuilder, Randall Martin Homes, is starting its first three East Valley developments. Founded last year, the company specializes in building homes "that have more unique, interesting and defining spaces. Front porches, finished closets, larger second bedrooms," said Randall Bury, the firms chief executive officer and founder. "We're more of a move-up builder... the product that we're developing in Chandler and Gilbert appeals to those buyers," Bury said.

Called Portello at Dobson Crossing and CastleRock and StoneBridge at Higley Park, the combined projects will encompass 455 homes with square footages ranging from 1,600 to 2,900 square feet and priced from $300,000 to $400,000. More...

Downtown Chandler New Housing Project

The Chandler Arizona Republic reports that DR Horton is planning a new type of neighborhood on a 49-acre parcel of land northeast of Arizona Avenue and Ray Road. The site is in an older area of Chandler and is part of a redevelopment that will have higher density housing.

Multi-colored, three story row houses with rear-entry garages are one of the styles proposed for the site, along with detached homes, front porches and rear garages. There will be unique color variations. The site will have about 440 homes when completed. DR Horton said designs will start to go to the city later this month and construction on the first phase should begin by next summer. Prices have not been set.

Real estate developer Michael Pollack stated "In order to revitalize downtown, we need more homes, not more industrial and retail...I think it's absolutely brilliant to put single-family housing at this location, and it shows incredible foresight by the city to allow it." More...

Camelback Corridor Zoning Changes Stir Ire

The Arizona Republic report that some local Camelback Corridor residents are angry over last weeks Phoenix Planning Commission approval of height limits up to 150 and 165 feet. Others are saying that the city should address the entire corridor instead of deciding on individual projects. One of the concerns is that high-rises could eventually march eastward along Camelback and create a canyon made of condos.

One spot to watch is the SW corner of Camelback and 24th Street, where Houston developer Hines has put up for sale its eight story, 300,000 square foot office building, but retained a 2-acre parcel where they are considering a future condo tower. More

Lofts-Style Housing Set For Phoenix

The Phoenix Business Journal reports that Artisan Homes Collection by Engle Homes is planning to start its second phase of Artisan Lofts on Central in early to mid 2006, and plans a similar project in Chandler. The second phase of Artisan Lofts on Central will be just north of the first phase and will have 60 to 80 residences in four to six stories.

Pricing has not been released, but units are expected to range from 950 to 1,400 square feet. The Chandler site is on the north side of Chandler Blvd., just east of Kyrene and will have 85 units. Development is to start late next year. More...

Planning Commission OK's Heights For Trump Hotel

The Phoenix Business Journal reports that the Phoenix Planning Commission approved a 150-foot height limit for the Trump International Hotel & Residences Phoenix project at the southeast corner of Camelback Road and 26th Street. The commission also approved a 165-foot limit for a residential tower proposed at the Biltmore Fashion Park by Westcor.

"We got everything we asked for," said former Arizona attorney general Grant Woods, who in April joined the legal team of New York developer Donald Trump and partner Bayrock Group. Trump plans to start construction within a year of city council approval. The existing height limit of 56 feet has existed for years in the corridor. Trump's original proposal was for 190-feet, but those numbers were lowered to 150 feet earlier this week. More...

Scottsdale Airpark: No Where To Go But Up?

As land vanishes around the Valley Of The Sun...

The Scottsdale Arizona Republic reports that Scottsdale Airpark is running out of developable land. This leaves developers with only one option, tearing down older structures and building up.

Currently, Scottsdale Airpark has a 36-foot height limit, and developers are asking the city to raise this to 65-feet. They cite the fact that the city of Phoenix has allowed an 11-story building, Westin Kierland Resort, on its side of Scottsdale Road. The Airpark is in the early stage of redevelopment, with only about 100-acres of undeveloped land remaining. More...

In the past two decades, Scottsdale Airpark has grown from 2.58 million square feet of buildings with 5,320 employees to 20.5 million square feet and 47,218 workers.

Central Arizona Resale Home Market Still Growing

The Phoenix Business Journal reports that resales improved slightly in August with 10,700 recorded sales, 500 more than July. However, August's figure was below last year's 11,275 recorded sales.

So far in 2005, there have been 78,935 sales, compared to 68,020 for the same period in 2004. The median price set another record, now sitting at $258,700, up from July's median resale price of $255,000. This was a 46% increase over last year's $177,500. The information came from the Arizona Real Estate Center at ASU. Last month, 20 percent of all recorded sales were for homes priced from $125,000 to $199,000, 38 percent for $200,000 to $299,999, and 36 percent for homes priced over $300,000. The article gives a breakdown of sales and prices by city. More...

Population Growth Supports Valley Home Prices

The Phoenix Business Journal reports that according to the latest Arizona Blue Chip Economic Forecast, the biggest factor supporting our housing market is a growing population brought about by an availability of local jobs.

"While mortgage rates are largely driven by national forces, including monetary policy, there are strong local elements that influence housing prices, and it is these local factors that account for variability in the risk of falling prices," said Lee McPheters, Arizona Blue Chip contributing editor. McPheters speculated that Arizona home prices will continue to move higher, although perhaps at a more moderate rate. More...

Groups Call For Fissure Disclosure Legislation

The East Valley Tribune reports that Tom Farley, a lobbyist for the Arizona Association of Realtors, said the Association is working with state agencies to legislate increased disclosure of earth fissures, similar to the disclosures required for military airports. This stems from the recent cracks and earth fissures that have occurred in the area south of Queen Creek. The current land fissure maps are 11 years old, and the Association would like to have better maps and info regarding these fissures. More...

If you are doing business in this area, you need to get up to speed on this issue.

Affordable Housing Is Statewide Problem

Arizona homes: value increases have outpaced wages...

The Arizona Republic reports that the housing affordability crisis is spreading to smaller cities and towns across the state. Home prices in the state's rural areas are climbing so high that many teachers, firefighters, police officers, nurses, government employees and retail workers can't afford to live there, according to a new Arizona Department of Housing study.

High housing costs are making it difficult for Flagstaff to attract city employees. Payson can't recruit enough new police officers. The increases in prices are attributed to second home buyers, investors and California transplants. In Flagstaff, the median home price is $252,000, Payson at least $163,000, and Sedona is at $454,500.

Greg Holmes, president of Scottsdale based Stardust Development, said "If people have to make long commutes to find affordable housing and pay $3.19 a gallon for gas, they will leave Arizona. This is a statewide crisis that could weaken our economy." More...

Scottsdale's Last Ranch?

This post has been moved here:
Scottsdale's Last Ranch?

Learn about Pinnacle Peak real estate and homes for sale here.

Arizona Real Estate Market To Remain Strong

The Arizona Republic reports that even though new home permits fell in July, market experts are not predicting a decline in the gangbusters real estate market.

The dip in permits may have been related to the lack of lots that are ready for a new home as well as the difficulty in keeping up administratively with the permit requests, according to local real estate analyst RL Brown.

Other signs of strength in the market include that 72 percent of homes listed in July 2005 sold within 30-days, compared to 33% in 2004, according to ARMLS statistics. More...

King Ranch Plan Finally Gets Goodyear Green Light

The Arizona Republic reports that the long-awaited 2,000-acre King Ranch master planned community was approved by the city of Goodyear, allowing for the development of up to 3,900 single-family homes.

The first phase will have nearly 1,960 single-family homes on more than 1,040-acres. Two commercial parcels are slated for stores. A 36-acre community park is planned with baseball and soccer fields, and a 20-acre recreation center with hiking areas is also planned. Sonterra Partners is the developer. King Ranch has become the talk of Goodyear residents. Some sources suggest that it's already considered the primo place to eventually be. More...

Central Arizona Real Estate Outlook Is Upbeat

Commercial real estate side is up with the economy...

The Arizona Republic reports on Metro Phoenix's improving commercial real estate market. Speakers at a recent forum sponsored by the Arizona School of Real Estate & Business were generally upbeat about the Phoenix-area commercial market.

Pete Bolton, a managing director at CB Richard Ellis, broke down the market as follows. Office vacancy was at 14.5 percent, compared with 18.38 percent at the end of 2003. Residential condo development is hot, and higher land prices are driving conversion of existing buildings into office condos. Downtown Phoenix is now a hot office market. Retail is hot and will stay that way as population growth and new housing create demand for new shopping centers. Retail vacancy fell below 6 percent and could drop below 5 percent by the end of the year. The Industrial market is challenged by increasing construction costs, a limited supply of affordable land and constraints in rail capacity.

"Any place that has Phoenix's new light rail system is going to see a lot more stuff coming to them," Bolton said. Investment brokers said Phoenix has become a national headliner as an investment market, especially since the stock market has lagged. Investors like the stability of big-name tenants that they expect to be in business for a long time. More...

Paradise Valley Arizona New Homes Too Big?

This post has been moved to:
Paradise Valley Arizona New Homes Too Big?

Learn more about luxury real estate in Paradise Valley.

NAR Helping Katrina Victims

The National Association of Realtors is reaching out to victims of Hurricane Katrina...


Click here to donate! 100% of your donations will be used for the victims. NAR has vowed to absorb ALL of the administrative costs involved with the donations so that every penny you donate will go directly to those in need!

Join us today in the effort to bring relief to those affected by Hurricane Katrina.

Sincerely,

Matthew Pellerin
Proud REALTOR

Arizona & Nevada Home Prices Rise At 'Striking' Rate

The Phoenix Business Journal reports that the Office of Federal Housing Enterprise Oversight released a report Thursday that showed the average home price in the US shot up 13.4% from April 2004 through June 2005. That's the biggest increase for a comparable period in more than a quarter century.

The report also showed that prices in Arizona and Nevada continue to show "striking appreciation rates." Nevada posted the highest appreciation rate of all states, where home prices increased 28.1 percent over the last year and 5.5 percent for the second quarter. Arizona posted the second greatest annual home price growth, up nearly 10 percent in the second quarter alone.

The article gives a link to the 79-page report, which contains great charts and tables showing the appreciation rates of all states for the last year, the last five years and since 1980. More...

Fissure Concerns Swallow Land Sales

The East Valley Tribune reports that the earth fissure that opened up in an area straddling Hunt Highway has cooled some land sales there and prompted buyers and real estate agents to research fissures. In e-mails and phone calls to the Tribune, agents and sellers said buyers were reneging on offers after learning of the cracks.

Ray Harris, a research geologist for the Arizona Geological Survey, said the known fissure zone straddles Hunt Highway in Chandler Heights, so people buying in Queen Creek proper or far outside the zone probably needn't worry. Southeast Valley real estate agencies are working to educate their agents about the huge land cracks caused by subsidence that occurs when groundwater is pumped out of aquifers.

The Arizona Department of Real Estate is also investigating the fissures. One of its priorities is developing reliable and updated information on fissure locations, said Mary Utley, spokeswoman for the department. There is a public meeting on the fissure issue scheduled for 6 PM tonight at the Southeast Regional Library, 775 N. Greenfield Road in Gilbert. More...