Builders Look Inward For Housing Projects

The Arizona Republic reports that several homebuilders are looking at infill sites in response to a demand for housing that is closer into the city centers.

The article talks about former Phoenix mayor Paul Johnson and his homebuilding company, Old World Homes, and his plans to build on 11 infill sites. Johnson states "we see there's a market here for a niche, and we are going to play to that niche." Johnson says the timing is right with commutes to new communities hitting one hour.

The anticipated ASU downtown campus and light rail are making downtown increasingly appealing to residential development.

Studio Ma is another infill developer noted in the article that is looking at five small infill developments in the Phoenix area. More...

As Arizona Grows, So Does Number Of HOAs

The West Valley View reports that homeowner associations are continuing to grow in numbers in the valley and state, with an estimated 10,000 HOA's in the state of Arizona.

The article discusses the pros and cons of HOA's.
*The main "pro" is that HOA's help keep the value of the homes up because the appearances of them are maintained.
*The major "con" is that HOA's are non-democratic and many times are overzealous in their enforcement of CC&R's and guidelines, restrictive rules and fees.

The article gives several HOA information resources to call on for more info on HOA's. More...

Home Sales Totals On Record Pace

The Phoenix Business Journal reports on R.L. Browns latest Phoenix Housing Market Letter.

It reports that resales totaled 116,435 through the end of October 2005, up nearly 24.5 percent from the 93,562 sold during the first ten months of 2004.

Brown said that the 30 percent increase in the median price of new homes and the 43 percent jump in the median price of resale homes over the last 12 months had to begin slowing. The median price of Phoenix new homes is $251,000 and the median price of a resale home is $249,000, according to his report. More...

Phoenix Homes Priced 20% Above Nation

The Arizona Republic reports that according to the National Association of Realtors, metro Phoenix's median price of an existing home is about 20 percent, or nearly $44,000 higher than the national median price for a previously owned home.

According to the NAR, the median price of a Valley resale home is $259,900, compared with the median price of a existing single-family home in the U.S. at $216,200.

"The simple reality is we can't sustain the pace we've been at," said Jay Butler, director of the Arizona Real Estate Center at ASU. He adds, "historically Phoenix homes have been below the national median, but we've moved ahead. It raises issues of affordability." More...

Phoenix Leads Price Rise Charge

CNNMoney reports that Phoenix Arizona real estate recorded a 55.2 percent increase in house prices over the last 12 months, according to the National Association of Realtors third-quarter report.

Orlando, Florida was second at 44.8 percent, and Cape Coral-Fort Meyers, Florida was third at 42.5 percent.

Some formerly white-hot markets slowed a bit. San Diego recorded a 6.3 percent gain after growing nearly 30 percent between 2003 and 2004.

Las Vegas, which soared 48.7 percent during the 2003 to 2004 period, grew only 10.5 percent over the latest 12-months. More...

The article gives the median price and appreciation for 147 metropolitan areas.

New-Home Lull Shifts The Rules

The Arizona Republic reports that demand for new homes in the Valley has fallen, changing the rules where the sellers had the upper hand just a few months ago. Price increases for new homes are slowing, lotteries are fewer, commissions are rising and incentives are coming back.

None of this means that the Metro Phoenix new home market is near collapse. Housing analyst R.L. Brown says the market is on track for a performance similar to last years record, though it has hit a bottleneck issuing building permits. "There's no question that the market is changing," said Brown, publisher of the Phoenix Housing Market Letter, "The biggest proof of that is price increases have really started to moderate. When they stop walking in the store, you stop raising prices."

Another reason cited for the slowdown is that many of the investors have left this market for places like New Mexico and Texas. More...

Thanksgiving 2005

Happy Thanksgiving...
to all our loyal readers!

We hope you and your family have a wonderful holiday!


More Arizona Real Estate News on Monday November 28th, 2005.

Coolidge And Florence Feud Over Annexation Plans

The Arizona Republic reports that Coolidge and Florence are in an annexation battle around the Coolidge airport southeast of Coolidge.

Florence officials claim Coolidge isn't playing fair by muscling them out of annexing land already within their general plan and water and sewer provision for annexation. Coolidge officials contend they're just looking out for their own economic-development interests by gaining control of land around their airport so that land-hungry Florence's developments can't interfere with flight paths and the planned eventual opening of another runway.

Coolidge recently files to annex 4,100 acres around the airport, but within Florence's general plan. Coolidge is positioning the area to be it's major business center due to the airport, a potential major freeway link and the businesses and people that will bring, translating into tax revenues for the city.

Tiny Vegas Home Sits At Center Of Housing Craze

MSNBC.com reports on the Las Vegas condos craze...

You think Phoenix has a lot of high rise condo projects planned for the future? Well Vegas has 93 luxury condo projects, totaling 175 towers, proposed, planned or under construction. Fifteen projects representing 10,000 units are expected to be completed by the end of the year.

Developers tout the boom as the Manhattanization of Las Vegas, the move to "vertically" instead of sprawl. They promise an urban lifestyle, skyline views and celebrity neighborhoods. They court the young, the rich and out of town. About 85% of the condo buyers are non-Nevada residents or investors.

The article profiles Manual Corchuelo's home, a small 700- square foot home that sits right in the middle of all the condo development occurring on the strip. He bought the home for $30,000 in 1978 and is now trying to sell it for $1.2 million. He is banking that a Las Vegas developer will give him his price for another high rise development. More...

Photo courtesy of: Jae C. Hong / AP

Contact us today if you would like to buy a small home in downtown Phoenix and "Roll The Dice", so to speak. Phoenix Homes For Sale - (602) 404-9700

Buyers Want Condos

The Phoenix Business Journal reports that condo developers believe that they are giving the housing consumer what it wants with the development of all of the condo projects in the Valley.

Condo developers such as Optima Inc. Founder and President David Hovey and W Developments President David Wallach, both of Chicago, and Patrinely Group President C. Dean Partinely of Houston-- come from cities where vertical living is a major option in residential living. In metro Phoenix, condo life is just five years old.

The philosophy of these condo developers is that if housing consumers have no choice but to buy what the builders offer, and if they all offer white houses, buyers will choose white houses. The condo developers are offering a fresh housing product, and the hectic sales pace is a clear sign that the condo builders "are giving the home buyers what they want." More...

Apartments To Condos In Scottsdale

This post has been moved to:
Apartments To Condos In Scottsdale

Learn all about relocating to Scottsdale Arizona here.

Central Arizona Housing Tax Rebates Probed

Investors may be cheating the system...

The Arizona Republic reports that real estate investors who falsely claim their rental houses as "owner occupied" are potentially draining millions from the state treasury and soon could face criminal charges. Maricopa County Attorney Andrew Thomas launched an investigation this week to find homes and owners that have claimed homes as owner occupied when they were rentals.

Owners of homes that are designated as "owner occupied" get a 35 percent "aid to education" tax rebate subtracted from the school portion of their property tax bill each year. That amount, an average of $200 a home, could be costing the county millions of dollars in tax payments. Intentionally claiming a rental as "owner occupied" is a felony!

The problem is that the County Assessor doesn't have anyone checking the affidavits of values and following up with owner addresses to see if there are homes being falsely classified.

The state Department of Real Estate earlier this year issued a warning to agents not to encourage clients to lie about rental status on affidavits of value and threatened disciplinary action against those who do. More...

44 Monroe, Phoenix' Tallest Residential Building

44 Monroe is coming...

Weitz Co, has started site work on a 34-story residential condo tower in downtown Phoenix, which when completed will be the tallest residential structure in Arizona, named 44 Monroe.

The site at 44 W. Monroe (northeast corner of Monroe and First Avenue) will have 202 residents. The developer is Grace Communities (Jonathon Vento and Donald Zeleznak). Prices range from $480,000 to $3.2 million. Completion is set for early 2008.

Excerpt from 44Monroe.com:
With 44 Monroe, Grace Communities has launched an unprecedented 34-story high-rise residential tower destined to be a monument on the Phoenix skyline forever. Located at the corner of Monroe and 1st Avenue, 44 Monroe is at the epicenter of the vibe in downtown Phoenix by day or night. Distant work commutes are now reduced to a walk, as are trips to your favorite local restaurants, art galleries, shows, museums, and sporting events. You can enjoy the eighth floor pool and spa framed by sky views, an outdoor terrace and sundeck, a rejuvenating fitness center, business center, community center and conference room. All 202 residences will be outfitted with SmartHome technology and balconies with views of the mountains and Phoenix skyline. Enjoy the ease of taking an elevator ride to the first floor gourmet market to shop for groceries, wine and necessities. Never worry about parking downtown again, eight floors of secured parking will be provided for you. Phoenix's premier lock and leave lifestyle awaits you at 44 Monroe.

Please contact us today if you would like to reserve a condo at 44 Monroe by using this link to our website or by calling us direct at (602) 404-9700. We will be glad to gather all the information you need and set up an appointment for us to go over the floorplans and other choices you have with the builder.

More information on 44 Monroe is available here.

Monterey To Build Homes For Silverstone, Scottsdale

The Phoenix Business Journal reports that Monterey Homes Luxury Communities has been selected to build about 700 homes in the Silverstone development, which is on the former Rawhide site in North Scottsdale.

Developer RHVT is developing the 160-acre site which will include commercial and retail uses. Monterey's plans for Silverstone will range from one to three stories in villas and patio home configurations. No pricing or timing was released. More...

Valley's Home Market No. 1

But big price increases likely thing of the past...

The Arizona Republic reports that home prices in the metro Phoenix area rose 55.2 percent from September 2004 to September 2005, according to a report released by the National Association of Realtors, the largest increase in the nation.

Nationally, home appreciation reached 15 percent for the September 2004 to September 2005 period. The article states that the biggest home price run-ups are behind us, as evidenced by a slight sales price drop in October, more homes on the market, and rising interest rates.

"A lot of sellers don't get it yet, but Phoenix is in a transition period," said David Lereah, chief economist for the N.A.R. He and other housing analysts are not calling for metro Phoenix home prices to continue to deflate. The consensus is for housing appreciation to level out as the number of homes on the market continues to climb, giving buyers the upper hand.

"The air is starting to come out of the national housing balloon, but Phoenix has a good job market and strong in-migration, so it won't experience a bubble bursting," said Lereah.

The article states that the big price increases over the last year can be attributed to investors, move-up buyers, new residents, second home buyers and first-time buyers all trying to get a piece of the action. Jay Butler at ASU states "The Valley's housing market couldn't keep going at that pace. The cooling is a good sign."

John Foltz, president of Realty Executives, is forecasting home prices to climb 5 percent to 10 percent next year. More...

Toll Brothers Nabs Big Parcel Off Central Ave.

The Phoenix Business Journal reports that Toll Brothers plans to develop a high-rise, luxury condo project on 3.3-acres at Central and Thomas Roads in the heart of Phoenix.

The project will have several hundred residences and will be similar to Toll Brothers' project in Scottsdale called Residences on Main.

The site was marketed by Michael Lieb for $7.2 million, and the escrow is expected to close later this month. The site received a lot of interest because of its location at a major downtown intersection and its proximity to the new light rail.

The project could go up as high as 250-feet. No pricing or plans have been announced yet. More...

Downtown Tempe Arizona Reaches For The Sky

The East Valley Tribune reports Tempe is poised to reshape the East Valley's skyline with buildings of 30-stories or more.

Centerpoint Residential Towers will have three 30-story towers in the downtown area as part of a luxury condo development. "People are starving for that urban lifestyle," said Ken Losch, a principal at Avenue Communities, developers of the Centerpoint project. "We've been behind the curve on this whole urban living thing."

Losch and Tempe planners envision a city where 10,000 residents or more will live in a vertical urban setting. They'll give up their cars most of the time and walk or take light rail. They'll eat at bistros and quirky restaurants. They'll shop at gourmet markets.

Chris Salomone, who oversees downtown development efforts, says tall buildings have exploded in other communities as people clamor for urban life. "I saw it happen in San Diego and it blew me away," said Salomone. "I think it's going to blow people away here." More...

'Vertical Communities' Central Arizona's New Housing

The Phoenix Business Journal reports that new vertical housing developments are coming to various Valley areas.

Including the anticipated development of Westcor's San Tan Village Mall where site work is expected to start on the residential condo project that will be built on top of the shopping mall's parking structure.

Kierland Commons also has residential condo's on top of retail and parking.

Developers believe that the demand for vertical communities in central city areas is strong because that lifestyle appeals to buyers who want to live in an area close to jobs, restaurants and cultural activities. Other buyers want a second home close to amenities.

The article also states that KB Homes has formed a new urban infill division, KB Urban, and is looking for infill sites to develop high density housing product. More...

Central Arizona Ranks Among Top Sprawl Areas

The Arizona Republic reports that Metro Phoenix ranked 12th among the nation's 20 most sprawling areas. According to a study called "Sprawl costs: Economic Impacts of Unchecked Development", that was prepared by the Center for Urban Policy Research at Rutgers University.

Los Angeles took the top spot, and Washington-Baltimore was number 2. The five-year study looked at population, job and development patterns in an area, then estimated how much fringe growth would cost people living there between 2000 and 2025.

The study suggests that Metro Phoenix could save $15 billion of its sprawl costs by shifting a quarter of its fringe building to infill development. More...

Price Of Median Resale Home Declined In October

The Phoenix Business Journal reports that for the first time since December 2003, the Valley's median home price declined in October.

October 2005 had 8,420 recorded sales, down from 9,815 in September and 10,670 in August. Year-to-date, resales totaled 97,165, above the 84,555 year-to-date sales for the same period in 2004.

The median resale price fell in October to $259,900, down from $263,000 in September, but still 44% above last year's price of $180,000. The information came from the Arizona Real Estate Center at ASU.

"Because it is difficult to sustain the levels of activity evident in the last year, the cooling is a good sign for the sustainability of the market," said Jay Butler, director of the ASU Real Estate Center. "The primary key to sustainability is for the market to return to its more normal or typical pattern of sales activity and home price movement. However, with some slowing in the growth price rate, people may be bringing their homes to the market to lock in their profits." More...

If too many sellers come into the market at once it would cause great problems for our real estate market, and our local economy.

Housing Market Cools... Along With Weather

MSNBC reports that in addition to the cooling real estate market, the seasonal changes in real estate markets this time of year is also kicking in.

Phoenix real estate executive Rich Rector (of Realty Executives Arizona) has been seeing something unusual lately as he makes his rounds: “Open House” signs. A few months ago the market around Arizona’s biggest city was so hot that homes sometimes sold “within a matter of minutes” after they were listed, Rector said. There was rarely any need for real estate agents to drum up business as they typically do in most places -- by sitting in an empty house and waiting for would-be buyers to walk in off the street.

Mike Englund, chief economist for Action Economics, points out that the housing market tends to go into a seasonal slowdown every year at this time. Spring is a far more popular time to buy a home, so the strongest demand and price gains typically are seen in the second quarter.

Looking at sales of existing homes from 1968-2005, the median sales price typically has risen 15 percent in the second quarter, risen 8 percent in the third quarter and then fallen 5 percent in the fourth quarter.

The article has many references to the Phoenix market, quoting R.L. Brown as saying "we are seeing a decline in the rate of increase in housing prices here, and that is a very positive development for the sustainability of the housing market." More...

Phoenix Is Courting Google With Its High Tech Center

The Phoenix Business Journal reports that Phoenix is adding to its high-tech roster with the announcement from several technology firms of new operations in the city.

eBay, Inc. is locating a data center facility at Third Street and Indian School Road with 55 initial jobs. eBay acquired the site earlier this year.

In addition, Santa Monica based IPower is locating 100 jobs and web hosting operations in Phoenix at 9th and Jefferson Streets.

Florida based Lydian Data Services is locating a new $5 million operation and hub and 150 workers at Central and Virginia Avenues.

All of the Central Phoenix tech activity comes as Google Inc. scouts the region for a site for new offices that will house 600 workers. Mayor Gordon wants to attract Google to downtown or Central Phoenix, but is competing with Tempe, Scottsdale, Chandler and Mesa for the future site. More...

All of this new high-tech employment bodes well for the Valley's economy, which is looking to create more high paying tech jobs.

Sales Begin On Third Phase Of Scottsdale Luxury Condos

The Phoenix Business Journal reports that Optima Camelview Village has announced the opening of the third phase of sales for the luxury condo project located just north of Scottsdale Fashion Square.

Nearly one-third of the mid-rise luxury condos are left to sell in the development that consists of 11 buildings on 14-acres.

"We started Optima Camelview Village only nine months ago," said David Hovey, president of Optima, Inc. "We have sold more than 500 homes in that short period of time. This is a new record for Optima and I believe it sets a precedent for luxury condos in the Valley."

Sales at Optima Camelview Village started in the $300,000s and have gone into the millions. Nearly 15% of the condos have sold for more than $1 million. More...

Elite Luxury Neighborhoods Command Top Dollar

Celebrities shell out for land...


The Arizona Republic reports that the soaring land value in the luxury neighborhoods of Paradise Valley, North Scottsdale and the Biltmore area have led to record prices for Arizona luxury homes.

Land prices have doubled in these spots in the past five years, experts say, as elite buyers bid up properties that give them privacy and views and space for a destination yard, a big guest house and the multi-car garage.

Agents say the typical price for an acre in Paradise Valley, with or without a house, now runs $1.25 million.

In North Scottsdale, an acre can average from $500,000 to $750,000.

Tony Calvis of Calvis Wyant Luxury Homes, thinks the big jump in land prices will eventually moderate but isn't looking for the market to tank. "I don't think anything's dropping," Calvis said. "Over the next eight to 10 years, we are going to do really well in the overall market. It's just not going to be the nutso growth that we have seen." More...

Arizona Offers Haven For California Firms

The Arizona Republic reports that California companies such as Google and eBay are expanding into Arizona.

Seeking a haven from earthquakes and the high costs of doing business, and economic development leaders say the trend can only grow as the two states' economies become joined at the hip. Other California firms that have made a move into the area include DHL Systems, Countrywide Financial Corp., and Intel, which has begun building its third chip plant in Chandler.

At the Greater Phoenix Economic Council (GPEC), California related business makes up about one-third of its projects. GPEC reports that they are seeing more California firms expanding operations into Arizona.

The idea is to position Arizona as a base for expanded operations, as a supplier of goods and services to California companies, or as a source of investment opportunities for firms there.

Some of the reasons cited for California firms expansions into Arizona include the quality of employees available, either from firms in their industry or from universities; access to a large international airport; and a quality of life that enables them to attract and keep talented employees. More...

Look for this trend to continue and expand in the future.

Major Home Builders Look To Valley For High-Rise Condos

The Phoenix Business Journal reports that Metro Phoenix's condo market could heat up even further as some of the nation's major single-family homebuilders jump into the game.

The latest to target Phoenix is KB Urban, the new division of KB Homes. KB Urban President Jeffrey Gault says "in the case of Phoenix, I have a high degree of interest. I'm actively looking for sites now."

KB Urban isn't alone. Engle Homes began cruising the region in mid 2004, when the company and Artisan Homes agreed to merge. Since the merge, the new Engle division called Artisan Homes Collection have looked at 20 sites for Artisan condo projects. Engle Vice President Mark Upton says that high density residential condos are becoming a growing market in many major cities.

Another builder, Monterey Homes Luxury Communities, part of Scottsdale based Meritage Homes, is also planning attached homes within two or three story developments with up to 20 homes per acre in central Phoenix and in Scottsdale. Monterey currently has five sites under contract and design-- four in Phoenix and one in Scottsdale. More...

Pinal County Growth Expectations

Officials confer on development, impact on cities...

The Arizona Republic reported on the Pinal County Partnership meeting yesterday.

It reports that Coolidge wants creativity in its new housing developments, not just packing the houses in to make a quick profit.

Casa Grande wants to be a self-sustaining city.

Maricopa wants more schools and fire stations just as bad as developers want to build more and more homes.

Apache Junction is dealing with state land that will be auctioned off next fall, and wanted developers to know that they want nature-friendly planning and a variety of housing choices for families.

Florence wants to preserve the old downtown area so the large lots and wide streets can remind residents what the rural town use to be like before development.

There were also a few jabs thrown out by Florence Mayor Tom Rankin toward Coolidge, which is in an annexation battle with Florence. More...

Anthem Selling Faster Than Anticipated

Sell-out date moved up by 12 years to '07...

The Arizona Business Gazette reports that Anthem, which was expected to have a selling lifespan of 20 years when it began in 1999, is now projected to sell out by 2007.

The development includes the capacity for 12,000 homes and millions of commercial square footage. One reason for the development success is the increase in commercial amenities for Anthem residents.

"One of the things that makes Anthem very unique is that the commercial and retail services were not an afterthought to the rooftops," said Jacque Petroulakis, Arizona director of public affairs for Pulte Homes and the Communities of Del Webb. "The first kids who moved into Anthem had a school to go to that same year, and there was a grocery store within six months," she added.

The next retail center at Anthem will be at the intersection of Daisy Mountain and Galvin Peak Parkway and will include a Fry's grocery store.

In addition, an attached townhouse product, the Paseo at Anthem, became available in September.

Homes in Anthem are selling from the mid-$200,000s to more than $500,000 and range from 1,200 to 4,400 square feet. More...

Central Arizona Housing Industry At Risk?

Loss of affordable homes tarnishes Valley's appeal...

The Arizona Republic reports that with all the increases in housing prices over the last two years, Phoenix's image as an affordable housing hot spot is beginning to fray.

"I think we're at the beginning of seeing consumer resistance to price increases," said housing analyst R.L. Brown. Brown worries that rising prices will make Phoenix less attractive to house shoppers, especially those who can move anywhere and make their decision based on the price of housing. If Valley home prices become on par with other desirable housing areas in the country, it would pose an "immense threat" to large scale home builders in the area, Brown said.

Housing permits in the metro Phoenix area totaled 49,200 through September, putting the region 5.6 percent ahead of last year's record pace. But permits have dropped for three straight months, which Brown attributes to builders having only a small inventory of lots ready for construction and the slow processing time from emerging market cities such as Maricopa and Pinal County cities that are swamped by rapid growth. More...

The Next Real Estate Boom

In the coming 25 years, the biggest wave of development since World War II will turn America's major metro areas into giant "megapolitans" teeming with opportunity.

They cite the Metro Phoenix to Tucson area as one of those ten future "megapolitan" areas. The article starts out by talking about Mike Ingram, who runs El Dorado Holdings, and how he saw opportunity in land here nearly 20 years ago, and how he has turned his company's land holdings into a portfolio valued at nearly $1 billion.

The article references Buckeye and the explosive growth that is occurring there, and how land values have skyrocketed in this area.

The article also states that ..."few possess the kind of economic perfect storm for growth and profit that Arizona boasts. No other region offers such great volumes of buildable land at such low prices. An acre of dirt can still be had for as little as $25,000, compared with $1 million on the outer fringes of Chicago.

Land tagged for development will drive a near doubling of the Phoenix/Tucson region's population, and unlike Los Angeles, the area has enough water-- from underground rivers, aqueducts, and nearby mountains-- to support all the new residents." Local land broker Nate Nathan states "The country is swarming Phoenix. This place is on fire." More...

The $25 Trillion Land Grab

CNN.com reports that there has been an impressive amount of construction in the United States over the last three centuries: All told, we've built more than 300 billion square feet of homes, offices, factories and other structures.

But according to new studies from the Brookings Institution and Virginia Tech urban planning professor Robert Lang, we're about to pick up the pace -- it will take just 25 years to erect the next 200 billion square feet, which we'll need to accommodate 70 million more people and to replace homes and offices erased by everything from disasters like Hurricane Katrina to plain old obsolescence.

If you think the real estate boom of the past decade was bounteous, peek a little further over the horizon: Researchers estimate that the massive buildout will constitute a $25 trillion development market by 2030, more than twice the size of the U.S. economy today. According to Lang, the bulk of that money will flow into 10 major metro regions that he has christened "megapolitans." More...

A treasure map of opportunity is available on CNN.com. Click the "More..." link above to discover it!