Home Sales Will Likely Cool Nationwide

Home sales will likely cool nationwide, but continue boosting economy...

The Arizona Republic reports that the national real estate boom is winding down to an expansion, according to a forecast released last week by the National Association of Realtors Conference and Expo.

Home sales remain at historic highs, and only modest cooling is expected in 2006, said David Lereah, the association's chief economist. Rising mortgage rates, while remaining below 7 percent next year, will cause slowing of the sales pace, he said. "As interest rates rise and home sales ease, it should help to bring the market closer to equilibrium between home buyers and sellers," said Lereah. "That is expected to take pressure off home prices and allow appreciation to settle to a more normal pace in 2006." More...

Scottsdale Where Valley's Jobs Are

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Scottsdale Where Valley's Jobs Are

Learn more about Fountain Hills real estate and homes for sale here. Fountain Hills is Scottsdale's neighbor to the east.

Locals Grab A Piece Of Real Estate Action

More out-of-state buyers edged out; Valley residents jump in for long haul...

The Arizona Republic reports that many of the investors today in the Phoenix market are local investors who are in it for the long run.

"The out-of-state investors who bought new homes and sold them at a profit the minute they were built are gone," said analyst R.L. Brown. "Home builders started limiting those deals early on, and that helped spur buying in the resale market." R.L. also said that more investors now are local long-term buyers and landlords who don't need to make a profit in 30 days.

The Valley's 50% run-up in home prices during the past year and a home builder ban on investors has put off some speculators that don't live here. In May, 26 percent of all home buyers were from out of state. In September, it had fallen to 20 percent.

Also, the number of homes on the market has jumped dramatically. In April 2005, there were less than 9,000 homes on the market. Now, there are 17,000 homes on the market, showing that the frenzy of investor purchases has eased and that many are putting their investment properties on the market to capitalize on the appreciation these properties have produced. More...

Ahwatukee Foothills Condos Get 1st OK

Village panel gives thumbs-up to developer...

The Ahwatukee Foothills Arizona Republic reports that Starpointe Communities LLC received approval from the Foothills Village Planning Committee to proceed with its 108-unit condo project on 10-acres at the northwest corner of Frye and 50th Street.

The project required a general plan amendment approval since the property was shown on the area land use plan as commercial and public use. No pricing or timing for start of construction was given. More...

Downtown Condo Plans Get OK

The residential developments offer an urban feel and are expected to appeal to young professionals...

The Glendale Arizona Republic reports that Vanguard CityHome LLC received approval from the Glendale Planning Commission for Glendale's first downtown residential developments in more than fifty years. The Art House development will go in at 7121 N. 57th Ave.

It will feature 26 townhomes and 30 condo units. Catlin Court Townhomes will be built at 7149 N. 58th Ave. It will have 18 townhomes. Prices on both projects will range from $250,000 to $400,000. Both are expected to be completed by either the end of 2006 or early 2007. More...

Freeway Plans Stir Emotions

The Ahwatukee Foothills Arizona Republic reports that last week, ADOT released aerial photos showing the land it might need to buy if the South Mountain Freeway is built.

Much to many residents surprise, dozens of homes would also need to be purchased by ADOT and razed to make way for the freeway. Many were aware of the possibility that a freeway could eventually displace them, but were betting that the freeway would go on Indian land. ADOT is still in discussions with the Gila River Indian Community about possibly moving the freeway south onto its land.

The earliest the freeway could start is 2009. ADOT will be discussing the plans at a series of public meetings across the Valley next month. More...

Rising Arizona Real Estate Prices Take Toll

The Arizona Republic reports that Metro Phoenix's fast rise in home prices could come at a high cost, forcing buyers and businesses to cheaper markets. Valley home prices have risen nearly 50% during the past year, pushing the typical Metro Phoenix area home to $263,000, which is $40,000 more than the national median home price.

The article looks at the housing markets of three Western cities; San Diego, Las Vegas and Denver, to show where they think the Central Arizona real estate market is headed. Significant home price run ups occurred in each of these cities in the past, causing job and population growth to slow and incomes to slip, followed by a cooling or even a dip in home appreciation. Can it happen here? "Phoenix's housing market is in transition. Reality is starting to set in," said David Lereah, economist for the National Association of Realtors.

The article goes on to profile each of the three other cities as to where they were at and where they are now with their housing prices. Analyst say that the recent slowdown in Metro Phoenix home price increases is a good sign. It means, for now, the Valley's affordability crisis won't get as severe as San Diego's. New home prices won't get slashed as they did in Las Vegas last year, and job growth won't slow as it did in Denver.

Phoenix still has the population and job growth that will make it one of the top two markets in the country. But with housing our top industry, we need to be aware that if prices climb too high, homebuyers will look elsewhere, which would cause a ripple effect throughout our entire economy! More...

The Arizona Republic had a special insert section in Sunday's newspaper (10/23/2005) called "Valley Home Values" in section AH. It is not on-line, but we recommend you get a copy of it, if you are interested, as it contains a map showing price increases Valley-wide by zip code.
-Matthew Pellerin

Million-Dollar Homes Pop Up In S.E. Valley

The Arizona Republic reports that across the SE Valley there are pockets of homes selling for more than $1 million.

Through Sept. 30, there were 34 million-dollar home sales in Ahwatukee, 31 in Mesa, 21 in Chandler and 11 in Gilbert, according to the Arizona Regional MLS. Mesa currently has 68 homes on the market with price tags over $1 million, and Chandler has 40 on the market. Ahwatukee and Tempe also have homes over $1 million, showing that this market has risen sharply over the last several years. More...

Million-Dollar Luxury Homes Booming

West Valley could catch east side in upscale market...

The Arizona Republic West Valley reports that high-dollar housing is booming in the West Valley, and experts say the upscale market is on track to rival North Scottsdale, Pinnacle Peak and Paradise Valley's luxury homes.

In Arrowhead Lakes, million-dollar homes have filled up most of the lots over the past five years. High-end housing is spreading along the 83rd Ave. corridor and out to Peoria at Vistancia and the Quintero Golf & Country Club. Some lots in Quintero's first phase went for as much as $1 million. R.L. Brown states that West Valley executive housing is in its infancy but estimates that in three decades the area will hit capacity in high-end mansions, thanks to spillover from the East Valley. "Thirty years from today, someone will be looking out at Wickenburg, and it'd be like they were standing out at Carefree," Brown said. More...

Tips From The Trenches

Experts share advice on buying and selling homes...

The Arizona Republic reports on local real estate experts and their tips on buying a home in one of the country's hottest housing market.

According to Duane Washkowiak, Century 21 Metro Alliance and president of the Southeast Valley Association of Realtors, "The home buying and selling frenzy is starting to cool, but some sellers still have unrealistic expectations about what their homes are worth."

Liz Stalford, Russ Lyon Realty in Phoenix states "Selling a home right now is just like playing poker. People have to know when to hold at current values and not try for just a little more."

R.L. Brown states "Buy in a community that offers the longest-lasting quality of life. Also, sellers should have sold last month." More...

I for one do not agree with R.L. Brown home builders. Our market is much more healthy today than it was jsut four or five months ago.

Greater Phoenix Resales For Third Quarter Finish Strong

The Arizona Real Estate Center at ASU reports that the local resale market slowed slightly in September 2005 with 9,815 recorded sales, down from the 10,670 recorded for August. It was, however, above last year's 7,780 sales. For the third quarter 2005, 30,715 sales were recorded.

So far this year, 88,750 sales have recorded, compared to the 75,800 recorded sales for the same time period in 2004. The median home price set another record in September 2005 at $263,000, up from $258,700 in August, and 47% higher than the $179,500 median price in August 2004.

Affordability is still a concern. The Resale Home Affordability Index for the Third Quarter 2005 stood at 78, which is the lowest value since the early 1980's. "In searching for affordability, people are moving to the outer fringes of the area where commutes are becoming increasingly expensive in light of ever-higher gasoline prices and longer commute times," states Jay Butler, Director of the Real Estate Center. More...

The article goes on to give resale numbers for each city in the Valley.

Million-Dollar Homes Spread Across Central Arizona

The Valley's luxury home market is growing...

The Arizona Republic reports that a home selling for $1 million or more in metro Phoenix used to be a big deal. Now, houses are selling for seven figures in most area communities. More than 1,600 houses with price tags for at least $1 million are listed for sale across metro Phoenix, according to the Arizona Regional MLS.

Nationally, for the first time, there are more than 1 million homes worth $1 million or more, according to the Census Bureau, During the first nine months of 2005, 1,405 homes priced at $1 million or more had changed hands in metro Phoenix, according to Coldwell Banker and the MLS. More...

Most of the Valley's million dollar homes are in Paradise Valley, the Biltmore area or North Scottsdale, but they are also showing up in all Valley communities.

Scottsdale Condos Sell Out In Hours

Scottsdale condos sold out in hours as buyers lined up overnight for the converted units...

The Scottsdale Arizona Republic reports that the former Scottsdale Cove apartment complex, which Montecito Property Company converted to condo units, completely sold it's 316-units last Saturday.

Close to 150 buyers and Realtors lined up overnight Friday to purchase units. The sale started at 7:30 a.m. and all 316-units were sold before noon. The units, built in the early 1990's, sold for an average of more than $190,000. More...

This demonstrates the demand for affordable housing in Scottsdale.

'Major' Google Site In Valley

Web giant's unaired plans for new facility are full of potential...

The Arizona Republic reports that Google is planning a "major" facility in the Valley that will employ 600+ people.

Google is currently advertising Phoenix-area positions in a variety of fields, from software engineers and developers doing code work and network security to operations, tech support and human services. "This will be a significant presence in the Google landscape," said Douglas Merrill, Google's senior director of information services.

Google's announcement to open facilities in the Valley sends a strong message. "It reflects how the Valley is becoming more of a tech center," said Brad Kidd, a local information technology representative. Phoenix, Tempe, Chandler, Scottsdale and Mesa all appear to have a chance at landing the facility. More...

Great news for the Valley's future!

HOA's Pitted Against Renters

The Arizona Republic reports that with more and more homes being rented in the Valley, homeowners and HOA's worried about blight are being increasingly pitted against renters who say they're treated like second class citizens.

Jay Butler, director of the Arizona Real Estate Center at ASU, estimates that 20 to 30 percent of people buying existing houses during the past year were investors who probably rented the homes out. Homeowners with renter neighborhoods say their experiences justify the negative image of renters. "Renters will do the minimum; they're in a house because they need a place to live; it's not theirs, and they usually don't care that much for keeping things up," said William Nagle, former president of Silverton Ranch HOA in Chandler.

HOA's are facing problems too, with many new neighborhoods experiencing a large percentage of renters and some problems. More...

Look for this trend to continue until investors sell their investment properties to owner-occupied users.

Phoenix, Arizona - Mecca For Entrepreneurs

Metro Phoenix is the number 1 large Metro area and Arizona is the number 1 state for new businesses and entrepreneurs, according to rankings of entrpreneurial hot sites from a national research organization.

Tucson ranked No. 2 behind El Paso among midsize cities, and Yuma ranked No. 4 among small cities, the National Research Policy Council said this week. The nonpartisan council ranked regions on their record for creating new businesses and for adding employees to existing companies over the past 14 years. It based its analysis on data for more than 17 million businesses nationwide. More...
Jane Larson
The Arizona Republic

Rates May Slow Sales Of Homes

The air might be starting to come out of the "housing bubble" (if there truely is one)...

On Thursday, a survey of housing lenders showed that the rate on 30-year mortgages rose above 6 percent for the first time since March. While it's bounced above that psychologically important threshold a few times in the past year, only to drop back, analysts say this time the direction looks to be headed in one direction - higher.

The article goes on to say that Realtors nationwide are also reporting a decline in demand. More...
Aleksandrs Rozens
Associated Press

New Trendy Stores Coming Soon To North Scottsdale

Just in case big spenders can't find enough places to drop some cash in North Scottsdale, there are more options on the way.

A hot, new shoe boutique, Scarpé, plans to shuffle into DC Ranch Market Street, Scottsdale Jean Company is gearing up for a November opening at Northsight Crossing, on the northeast corner of Northsight Boulevard and Raintree Road. The Capital Grille, nationally known for serving prime beef dry-aged on the premises and an extensive wine list, plans to open its second Valley eatery Nov. 7 at the Promenade. More...
Donna Hogan
Tribune

Hottest Big Metros For Jobs

Phoenix and Las Vegas get top rankings...

Las Vegas' workforce expanded by 7.7 percent during the past year, creating 62,700 jobs. No other major market grew faster than 5.6 percent.

Phoenix picked up 62,800 jobs in the same 12-month period and cut its unemployment rate by more than half a percentage point.

Washington D.C. came in at No. 3 and rounding out the top five are two Florida Markets, Sarasota and Orlando. More...

Google Set To Announce A Central Arizona Location

The Phoenix Business Journal reports that Internet giant Google will announce plans today on locating a major new operation in the Phoenix area.

Google is expected to open operations related to online auctions and expanded Internet and technology services. The location of the operation has not been disclosed, but some sources say either Tempe or Scottsdale. More...

The move is a huge development for Central Arizona's technology sector.

Google Bringing Jobs To Central Arizona

Central Arizona cities may battle to attract Internet giant...

The Arizona Republic also reports on the Google announcement and further states that it will create at least 600 new jobs-and possibly many more. More...

This is another feather in Phoenix's cap, and shows why we will continue to grow-- job creation, quality of life and a great place to operate a business!

Surprise Arizona Strives To Keep Up

Planners race to make sure city's infrastructure keeps up with rooftops...

The Arizona Republic reports that Surprise continues to grow at a rapid pace, with 35,000 single-family lots in the development pipeline and the city expecting to add more than 6,000 rooftops a year for the next five years. Also, in the next two years, the city will annex 18,400 acres.

Retail and commercial construction, including a large regional mall, are coming and will strengthen the city's tax base. The key to growth for surprise in infrastructure for the future development. More...

Look for this area to continue to be one of our real estate hot spots for years to come.

Sonoran Desert Visionary

The East Valley Tribune reports on local developer George Johnson, the father of Johnson Ranch, and how he saw a vision for a master-planned community in Queen Creek over a decade ago, beyond the edge of development. Everyone told Johnson that the area was too far away and that there wouldn't be demand.

"There was nothing out there at that time," Johnson said. "Everyone thought I was crazy." Johnson forged ahead and ten years later, Johnson Ranch is a huge success, with about 20,000 residents in the area.

The article further profiles Johnson and his other developments, his future plans and his problems with local officials on his La Osa project north of Tucson. The article gives a detailed history of Johnson Ranch and the obstacles Johnson had to overcome to make it successful. More...

Learn more about living in the Sonoran Desert here.

A Major Mall Is Coming To Mesa By 2007

The Arizona Republic reports that Tampa-based DeBartolo Development said it will build a 800,000 square foot shopping, dining and entertainment center in Mesa at Signal Butte and U.S. 60.

The $125 million project will be anchored by a 16-screen Harkins Theaters and big-box retailers. Offices and residences could also be part of the mix. The area's residential growth attracted DeBartolo to the far East Valley. "It is the growth path you hear us all talk about,: said Russell Posorske of the DeBartolo company. The shopping center is expected to be completed in the third quarter of 2007. More...

Proves the trend that retail follows the rooftops.

Cooling Real Estate Market Has Diverse Impact

The region's booming real estate market is showing some signs of slowing down, and this could have an impact on all of the professional service firms that are joined at the hip with developers and homebuilders.

There is evidence that the red hot real estate market has cooled, with homes sitting on the market longer, some high-rise condo project being put on the back-burner, and inflation and raw material shortages taking a bite out of new construction.

Real estate accounts for 226,000 direct jobs in construction, leasing, brokerage and property management. There are also thousands of other jobs tied to the sector in finance, law and other services.

Most industry observers see the recent slowdown as a market correction, but a true slowdown could have a negative effect on the local economy. More...

Where Is All The Vacant Land Going

Land barons have locked up empty fields from Mesa to Florence...

The East Valley Tribune reports on the tremendous land speculation that is going on in the Mesa to Florence corridor, and give a list of all of the major land players that have purchased land in the area for future development.

The article breaks down the players into three categories; old farm families who have owned land for years, traditional development companies that buy land and develop the property, and land speculators who buy the land, hold it and sometimes entitle it before selling it to a builder. More...

Developers Bring Eloy Promise Of Growth

The Eloy Enterprise reports that numerous new requests to rezone rural residential land into various residential densities is occurring in Eloy.

Most recently, Eloy approved recommendations for the development of the Campos La Palma master-planned community at Houser and La Palma. That property is controlled by The McRae Group. The development will have single-family residential, cluster housing and a 12-acre school site. The city council also annexed 482 acres at the southeast corner of Alsdorf and Toltec Buttes Road. More...

City Led Nation In Home-Price Appreciation

The Yuma Sun reports that home price appreciation in Yuma grew faster than any other city in the nation during the second quarter of this year, according to Realtor Magazine online.

Yuma experienced an average home-appreciation of 36 percent in the year ending in the second quarter of 2005, according to the Office of Federal Housing Enterprise Oversight's Home Price Index.

The city's home prices have appreciated 67.3 percent in the past five years. "I'm not surprised with the way the market has been," said Shelley Ostrowski, president of the Yuma Association of Realtors. Ostrowski said she personally closed on houses that sold for $135,000 a year ago that are now listed at more than $235,000. More...

Full-Block Development To Combine ASU, Residential, Office Uses

The Phoenix Business Journal reports that a $275 million project with a six-story building for ASU classrooms and offices, a 31-story residential condo tower, and a 12-floor office building is planned on one block in downtown Phoenix, between Central Ave. and Van Buren, Polk and First Street.

The players in this major development are Houston-based Hines, A&L Investments, ASU and the city of Phoenix. Construction is projected to start in late 2006, with completion 24 to 30 months later.

The property, currently used as a parking lot, is owned by A&L Investments. Mayor Phil Gordon said the combination of the project's residential condos, the office building and its ASU classrooms next to light rail will create " a true neighborhood in downtown." The 1.4 million-square foot development will be called Central Park East. More...

Towers To Create City's 'Urban Hub'

The Chandler Arizona Republic reports the 10-story hotel topped with condominiums and the 15-story residential and office tower that are planned for the south side of Chandler Fashion Center will create an urban hub in Chandler, according to the project's architect, Brett Oaks.

Keith Mishkin, a luxury condo broker, said people who purchase units to live adjacent to a mall would be those who want their surroundings to have an urban feel. Luxury high-rise condominiums are selling quickly in the Valley, he said, because "there's a strong backlog of demand for this product... the more of these communities out there, the more educated our market becomes, the more it becomes an accepted lifestyle." More...

Large Apache Junction Parcel Sale

AJ parcel sale will be the start of something big...

The Arizona Republic reports that the State Land Department is planning to auction a 1,650-acre parcel of land this coming summer located just south of the U.S. 60 in Apache Junction.

An additional 6,100 acres will be sold over time to complete the first master-planned community in the area on state land. The development is called Lost Dutchman Heights.

The state has hired an outside firm, Lend Lease Communities, to help plan the first auction of the 1,650 acres. Eventually, Pinal County state land sales are expected to generate as much as $10 billion. More...

Record Office Building Sale, Valley Market Thriving!

The Arizona Republic reports that Jim Fajan, the CB Richard Ellis broker who handled the sale of two Camelback Esplanade office buildings to Metropolitan Life Insurance Company for $155 million ($355 a sq, ft.) says the office market in midtown and beyond is looking rosy this year, with dropping vacancy rates and rising demand.

He states that the demand for residential condo projects has set up a situation where office developers are getting outbid for land from the residential condo developers. High-end residential condos are selling for more than $500 per square foot, where prime class A office space tops out in the mid $300's per square foot. The Class A office vacancy rate is 14.47 percent now, down from 16.37 percent at the beginning of the year.

He predicts that downtown Phoenix will be the next office hot spot, citing the new ASU campus and lots of amenities. More...

Buyers Priced Out Of Ahwatukee Foothills

Ahwatukee Foothills starter homes go for $250K, condos $267K...

Realtors say that affordable homes in Ahwatukee (located in South Phoenix) are virtually non-existent, with the median price of a home rising to $355,000.

A family wanting a starter home with three bedrooms and two baths has to spend at least $250,000, and compete with investors. Of the 288 homes listed in Ahwatukee by the Arizona Regional MLS last week, 11 were listed at $250,000 or less. Two of those were retirement homes and the rest were condos.

The most affordable area in Ahwatukee is zip code 85044. More...

Condo Conversions Do Brisk Business

More rentals are becoming owner occupied properties...

The Arizona Republic reports on Chandler's first large condo conversion, Lakeshore at Anderson Springs, located near Ray Road and Dobson. In the first two weeks that Lakeshore units have been for sale, 225 units have been reserved out of the 299 units. Starting prices at Lakeshore are $112,000 for a one-bedroom unit up to $164,000 for a three bedroom unit. Many of the sales have been to current residents of the complex.

The demand for these affordable units is being driven by the sharp rise in the cost of single-family homes. The conversion craze began in Phoenix in 2003, when 357 units were converted. That rose to 2,119 in 2004, and in the first half of 2005, 2,268 units have been converted. More...

Look for this trend to continue!

Central Arizona Fissures Generating Anxiety

Home buyers and real estate agents seek data...

News of the fissure danger in Arizona's fastest growing markets has prompted homebuyers and potential buyers to start asking questions they never new they needed to ask. Dr. Jay Butler at ASU said the issue is making waves in the housing market. "It's going to be a messy time, especially if your house sinks," Butler said.

Tom Farley, vice president of government affairs for the Arizona Association of Realtors, said the association wants buyers to be educated. He is looking for a state legislator to sponsor a bill that would ensure property buyers in subsidence areas are given an updated map documenting the location of fissures. Butler said the issue of fissures is contributing to a growing public distrust of the real estate industry. He predicted lawsuits. "I think the home builders will try to drag it out as long as they can, and nobody better break ranks and start buying homes back," he said. "It's not going to be nice." More...