Scottsdale Real Estate Market Soars

Scottsdale Real Estate Market Booming...

The Scottsdale Arizona Republic reports that Scottsdale is starting to build "higher" as the area runs out of land and the quality of life continues to outpace any other town in Arizona.

The upward trend is a symptom of both the Valley's growth as a whole and Scottsdale being virtually out of new land to develop, said RL Brown, publisher of The Phoenix Housing Market Letter.

"This is primarily a population-driven housing market, and as long as people want to move here this will continue to be a booming housing market," Brown said.

Scottsdale and Valley-wide housing markets should fare about the same in the coming years, he said, though Scottsdale may not grow as fast as elsewhere because of its limited land supply and higher housing prices.

Scottsdale real estate and housing prices rose about 35 percent during the last year.

Several of the new high-rise condo projects are noted in the article.

More...

Arizona Record: $312 Million Land Deal

The Arizona Republic reports that Toll Bros., Meritage Homes and mall developer Simon Property Group have teamed up and purchased the 5,500-acre Chrysler Proving Grounds in the Northwest Valley for a record $312 million ($56,727 per acre).

They are planning a mixed use project that will include a variety of housing, employment and shopping, and possibly one of Simon's trademark big malls.

The land is between Arizona 74 and U.S. 60 near Wittmann. Surprise is expected to annex the property.

"We expect state of the art architecture and home design," said Scott Chesney, Surprise planning manager. It will take two to three years to plan and prepare the site for development, but it could contain up to 30,000 homes. RL Brown states "It's going to be interesting to see what the developer creates to make his marketing dream come true." More...

November Sees Dip In Home Permits, YTD Still Strong

The Phoenix Business Journal reports that building permits issued in November in Maricopa and Pinal Counties are down slightly from a year ago, according to the latest Phoenix Housing Market Letter released by local housing analyst RL Brown.

New home permits totaled 4,450 in November 2005, down 6.5 percent from the 4,761 issued in November 2004. However, through November, new-home permits totaled 58,491, up 4 percent from the same time frame last year, when we broke all records.

Great chance we will break the record set last year and possibly lead the nation again as the top new home market. Resales in Maricopa County totaled 9,256 in November 2005, down slightly from 9,328 in November 2004. But the year-to-date total is at 125,691 through November 2005, up nearly 22.2 percent from 102,890 for the same time frame in 2004. Again- we will break this record.

Overall, the metro Phoenix area is showing signs of a strong economy in 2006, Brown said. Population growth in metro Phoenix is expected to exceed 3.5 percent through 2005, and push toward 4 percent in 2006, he said. More...

2005 Was A Record Year For Arizona Builders

The Arizona Republic reports that through October, the number of new home permits issued were running 5 percent ahead of last year's record of 60,872 permits.

Demand exceeded supply all year, causing builders to hold lotteries. While that has slowed down in the last few months, home builders are not planning for drastic changes in demand.

Carl Mulac, President of Engle Homes, says "if 2005 was white hot, maybe we'll cool off to red hot in 2006." "What your seeing is a very good housing market combined with the nation's largest builders expanding their market share," said James Zeumer, a spokesman for Pulte Homes, which through nine months in 2005 reported $9.3 billion in revenues, a 31 percent increase over the same period last year.

Local housing analyst R.L. Brown says he wouldn't be very surprised if every top home builder did not have a record year in both sales volume and profitability. More...

Real Estate Official Predicts Robust 2006 For Arizona

The Arizona Republic reports on Bill Jilbert's (top official with Coldwell Banker Residential Brokerage) take on the real estate market for 2006.

He states that our overheated market six months ago is now moving back to a more normal level. He predicts a robust 2006 but nothing like he saw in 2005.

Affordability is a concern, with rising prices forcing growth out to the fringe areas of Casa Grande and Maricopa, along with a lot of apartment conversions into condos.

He sees a very strong and vibrant luxury market with no signs of softening.

On the "vertical" condo market, he states that he doesn't know how deep that market is but that they continue to move.

He does not have any "bubble" concerns and believes interest rates are still quite affordable. More...

I couldn't agree more with regard to today's interest rates. I remember when my parents bought a home in the 80's and had a 30 year mortgage with an interest rate in the low teens. In another example, my wife and I decided to buy a brand new home in 1995 because rates went down to 8.5 percent (yet we ended up with 7.25% on a 30 year fixed mortgage in Phoenix). Today's rates are outstanding, even if they jump into the 7's or 8's they would still be considered quite affordable in my book. And, with the great lifestyle Central Arizona offers, people will continue to relocate to Phoenix in the future.

Next Bet Placed On Future Hot Spot

The Arizona Republic reports that there is a lot of land speculation happening in Gila Bend and Stanfield, which some believe are the next home hot spots.

Developers are quickly and quietly pushing south and west of Maricopa, betting the growth explosion will sprawl toward Stanfield and Gila Bend, about 50 miles southwest of downtown Phoenix.

Several developers estimate Gila bend's boom is five to 10 years off, depending on the economy, fuel prices and transportation issues. But already major retailers such as Walgreens have contacted the town.

Town officials recently approved a 55,000 home master-planned community called Merrill Paloma Ranch. Another 8,000 home development awaits approval.

While land in some parts of Pinal County are selling for $100,000 to $200,000, land in Gila Bend were closer to $25,000 per acre. Gila Bend recently benefited by the improvements to State Route 85 and its access to Interstate 8.

Floodplain issues in Gila Bend and fissure/land subsidence issues in Stanfield were noted as possible concerns for future development in these two areas. More...

Merry Christmas

We would like to take this opportunity to wish you a very Merry Christmas from our family to yours.

Sincerely,

The Phoenix Homes Team

Another North Phoenix Condo Conversion

The Scottsdale Arizona Republic reports that The Taos condo complex at Tatum and Paradise Village Parkway just north of Paradise Valley Mall is being offered for sale starting in January.

The property, formerly Paradise Point apartments, is being marketed by Cambridge Properties. It has 136 condo units ranging from 714 to 1,046 square feet. Prices will start at $180,000. More...

People Fleeing Pricey Coastal States

USA Today reports that the quest for affordable housing and jobs is driving Americans from expensive coastal states to more moderately priced parts of the country, according to an analysis of Census population estimates out Thursday.

People continue to leave states such as New York and California and spill into parts of the Southwest, Southeast and Rocky Mountains. New York lost people for the first time, and California had 239,417 leave the state for other parts of the country.

The article has a link to show each states population estimate and its population growth, its percent change from 2004 to 2005, and percent change from 2000 to 2005.

Arizona had a 3.5% population growth rate from 2004 to 2005, and a 15.8% population growth from 2000 to 2005, one of the highest in the nation! More...

Arizona Nears Six Million People

The Arizona Republic reports that Arizona's population increased nearly 200,000 in one year, according to U.S. Census Bureau estimates released yesterday. That's the highest numerical growth in one year for the state.

Arizona surpassed Missouri in population during the year and is now the 17th in population with 5,939,292 population. "It's above anything we've seen lately," said Tom Rex, an ASU business research manager.

The jump amounted to an estimated 3.5 percent population increase from mid 2004 to mid 2005, which virtually ties Nevada for highest in the nation. The state is in a high period of its economic cycle, Rex said, and that means jobs are available for newcomers. More...

As long as we have population gains and job creation, our real estate market will do well.

More Students Buying Homes In Arizona

The Arizona Republic reports that a growing number of college students are taking the plunge in home ownership individually or as part of a real estate investment with their parents.

The pluses for both parent and student can be enticing: writing off mortgage interest, making an investment in real estate which will hopefully appreciate in value, and allowing students to gain a credit history.

Brad Schmidt, district director of Zip Realty, says the favorable lending environment is one reason parents and students are intent on exploring ownership.

In the past year, there's been a noticeable uptick in such deals by his brokerage firm in the Tempe area. "Anytime you have an opportunity to have a mortgage payment equal to or around a rental payment, it's attractive," Schmidt said. More...

New North Scottsdale Development

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New North Scottsdale Development

Learn more about North Scottsdale here.

Colangelo Joins Team To Develop Old Monastery Site

The Phoenix Business Journal reports that Jerry Colangelo is part of a team that plans to develop the 3.3-acre Monastery site at 4114 N. 28th Street into a mixed-use development consisting of 19 luxury lofts, specialty retail, new office space and an European restaurant. The project, called Il Cortile, will also have a one-acre interior courtyard in a park-like setting.

The six single-level lofts will have about 1,325 square feet and the two story residences each will have 1,800 square feet. The price range will be $600,000 to about $1.4 million. Start of construction is targeted for March or April. More...

Soaring Arizona Job Growth

The Arizona Republic reports that Arizona's job growth is at its highest level in six years, a 4 percent increase when compared to a year ago.

The information was released by the Arizona Department of Economic Security. The agency's job survey found employment gains in 10 of the 11 major industry sectors.

In all, the state added 97,400 non-farm jobs since November 1004. Even the construction sector, which usually fall in job numbers in the fourth quarter, saw 1,300 new jobs in November, further supporting the hot housing market. More...

As long as we have job growth and population gains, our real estate market will continue to do well.

Camelback Corridor Near Record Real Estate Deal

Camelback Corridor continues to amaze...















The Arizona Republic reports that the Hines Building located at the southwest corner of Camelback and 24th Street sold for a near record price, $107 million, showing the strong demand for class A office space in the Camelback Corridor.

Investors are paying top dollar for signature office buildings in the Camelback Corridor.

Driving the deals: the condo craze that is taking out potential office sites and a recovering economy that is improving the financial strength of companies looking for elite office space.

Hines retained control of a site just to the west that they plan to build a residential tower on in the future. More...

Prime Parcels Set To Fetch Millions

The Arizona Republic reports that the State Land Department plans to sell about 5,000-acres in 2006, up from the 2,550-acres it sold in 2005.

The department plans to sell four parcels in the Desert Ridge area, a parcel in Fountain Hills, several parcels in Peoria near the Loop 303, and the first piece of the Apache Junction Superstition Vistas project.

Land costs have soared with metro Phoenix's meteoric 55 percent run-up in home prices in 2005. In July, a piece of residential state land in Desert Ridge sold for $319,950 an acre. In early 2004, a similar piece of state land in the development sold for $260,000 an acre. More...

This article ties in nicely with this Arizona State Land article where developer 'Westcor' has major plans for some state land near Scottsdale Road and the 101 Freeway.

Mountain States Enjoy Hefty Home Price Gains

USA TODAY reports that real estate in the Mountain Region is a hot commodity, with numerous western cities posting impressive appreciation gains.

Cities such as Coeur d' Alene, Idaho saw home prices rise 29.9% in the last year, and St. George, Utah had a 31.6% increase. Boise, Idaho is also noted as having 20.5% of their home sales from January to September purchased by investors. More...

The article gives a link to a chart showing the home price changes in 265 metro areas which is good info to see what our competing market areas are doing.

Phoenix Area Real Estate Market Sets New Record

The Phoenix Business Journal reports on November resales findings from the Arizona Real Estate Center at ASU.

It reports that the Metro Phoenix resale market has set a new record with 104,360 resales recorded through November, breaking 2004's yearly record total of 102,115 resales.

The median resale home price of $263,000 is 42 percent above the $184,900 mark of a year ago.

"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.

Last month, 20 percent of all home sales were for homes priced from $125,000 to $199,999, 40 percent for $200,000 to $299,000, and 37 percent for homes priced over $300,000.

The article gives the total sales and median sales price for all the individual cities in the Metro Phoenix area. More...

More Phoenix Condos On The Way

The Phoenix Business Journal reports that another high-rise condo project is planned in downtown Phoenix at Third and Roosevelt Streets, which joins about 10 others that are proposed or under way in the area.

KML is the developer and the project is still in the design stage. It could be as tall as 40 stories. KML also owns another site in downtown- a six-acre parcel at the northwest corner of McDowell and Central, as well as a condo site in Tempe at Ash and University.

The Tempe site will be 17-stories tall with retail and a grocer on the ground floor and 150 to 200 units. The Tempe site is going for final approval in January and should break ground in mid 2006.

Two other condo projects expected to get underway soon in downtown. The M Tower will be a 23-story building with one level of retail, six levels of parking and 108 units. That project is located at the northwest corner of Third and Garfield.

The other is the Cosmopolitan Towers, a 16-story building with 88 units at 701 N. Third Street. The price range is $153,000 to $2.4 million. Construction is slated to start in January and about 60% of the units have been sold without any marketing, according to developer Richard Oehler at Arcone Associates.

Although reports about new condo buildings seem to surface almost weekly, suggesting a glut of condos in Phoenix, the condo developers simply are responding to a growing market fueled by buyers and investors familiar with high-rise living in other states, said CB Richard Ellis Director Pete Bolton. More...

Is Central Arizona's Housing Market Overvalued?

I, think not...

The Arizona Republic reports that the Phoenix region has landed on a list of extremely overvalued housing, but it's unlikely that the situation will lead to meaningful drops in home prices, several local housing analysts said.

The list was compiled by Global Insight and National City Corp., a Cleveland-based mortgage lender. Phoenix ranked 55th among 299 metro areas for overpriced housing.

Based on price-to-income ratios, the analysis estimated the Valley to be 35 percent overvalued. Markets determined to be overvalued by 30 percent or more were considered "at risk".

But the Valley's strong income gains and population growth make it unlikely that home prices will drop much in the near term, according to Richard DeKaser, chief economist with National City Corp.

***R.L. Brown stated "I would disagree with the premise we're overvalued in the literal sense of the word. The consumer doesn't think so or they wouldn't be standing in line to buy houses."

****Elliott Pollack states "What we have now is a severe supply-demand imbalance that created a frenzy. The frenzy is now over." More...

How Dense Can Tempe Get?

High-rise boom raising questions on congestion...

The Arizona Republic reports on the thousands of luxury condos, lofts and brownstones that are planned and being built in downtown Tempe and the congestion that this high density development will bring.

Northshore, a residential condo project on Tempe Town Lake will break ground this morning, and the developer just announced plans for another 15-story condo tower on the lake.

Tempe city leaders estimate 4,000 more units are coming in the next three years. Developers are banking on people's desire to be in the middle of downtown's density, said a specialist in urban real estate.

The effects of all the new development remain to be seen. As city leaders OK buildings as high as 30 stories, some long-time residents envision crowds and congestion that will keep locals and tourists away. More...

Slight Slowdown Predicted For Arizona's Economy

The Phoenix Business Journal reports that Arizona's economy is expected to grow in 2006 at a slower rate than in 2005, according to the latest Bank One Arizona Blue Chip Economic Forecast.

The panel of economic experts forecast job growth of 3.9% in 2006, compared with 4.2% this year. The forecast calls for 97,000 new jobs to come online in 2006. These job figures would rank Arizona among the top 5 states for employment gains.

The forecast also anticipates a slowdown in local home construction, but calls for a soft landing rather than a catastrophic event. More...

Arizona Growth In 2006 Likely To Mimic 2005

The Arizona Republic reports that Arizona's economy will grow in 2006 much like it did in 2005 and could even slow a bit, according to economist who spoke at Wednesday's 42nd annual ASU/Bank One Economic Forecast luncheon at the Phoenix Civic Plaza.

Growth in Arizona and across the country will be held back by rising energy prices and interest rates, plus a slowing in some housing markets and in consumer spending. But population spikes and a stable housing market in Arizona are expected to offset losses.

"It's going to be a year of stable, moderate growth," said Lee McPheters, an associate dean for the W.P. Carey School of Business at ASU.

Arizona's cooling housing market was a hot topic Wednesday. McPheters said the market is in for a soft landing, based on research by economist and local real estate investor Elliott Pollack.

"Houses are not selling the same day they're listed," McPheters said. "That doesn't mean in any way that the market has loosened up. Houses are still selling very, very quickly."

McPheters said job and population growth will continue to drive the housing market in 2006, however the affordability issue is worrisome as wages have not increased as fast as home prices. More...

Scottsdale Arizona's New City In A City

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Scottsdale Arizona's New City In A City

Learn more about art and culture in Scottsdale Arizona here.

Concerns Over Rentals Aired

Absentee landlords frustrate neighborhoods...

The Chandler Arizona Republic reports that 80 Chandler residents attended the third Congress of Neighborhoods last Saturday, and they told government officials that they should be doing more to prevent rental homes from becoming eyesores and landlords from skirting taxes and fees.

They also stated that absentee landlords are a big problem, the ones who are rookies and are only concerned with flipping the homes for a profit when the time is right.

The city of Chandler is rewriting its property maintenance code and participants urged the city to produce a condensed version of the city property rules in simple language and offer incentives for tenants to identify themselves and their landlords. More...

Look for the state legislature to address new rental laws in their 2006 session.

Valley Suburbs Hike New Home Impact Fees

The Phoenix Business Journal reports that Peoria, Glendale, Fountain Hills and Queen Creek have or are considering increased impact fees on new homes to help pay for growth and bankroll key projects and infrastructure.

All the new homes going up in the sprawling eastern and western suburbs require sewer, roads, water connections, parks, schools and police and fire services. Most Valley cities have some type of development impact fees that help local governments pay for costs associated with new housing and population growth.

Peoria raised its impact fee for the north part of Peoria from $12,942 per unit to $17,025. Glendale is considering raising its impact fee from $9,780 per unit to as much as $13,189 per house. Chandler, Mesa, Buckeye and Gilbert recently hiked their impact fees.

Home builders cwill most likely pass the extra cost on to homebuyers, driving up the cost of housing. More...

It Is A Suite Deal For Some Renters

Renters get 1st chance when apartments become condos...

The Arizona Republic Glendale reports that condo conversion of apartments is happening all across the valley due to their lower cost.

Real estate brokerage firm CB Richard Ellis predicts about 6,000 apartments in the Phoenix metro area will be converted to condos by the end of the year.

October figures for home sales in the Glendale and West Valley areas list the median condo sales price at $159,900, compared with $299,900 for a single-family home, according to the Arizona Regional MLS.

"It will offer an affordable alternative to someone who can't qualify for a new home," said Greg Burger of R.L. Brown Housing Reports. "It's a much better alternative than renting."

One of the west side apartment complexes that is being converted is The Springs at Arrowhead Towne Center, a 360-unit apartment complex in Glendale. Grand opening is slated for late January or early February with prices from $120,000 to $250,000. More...

Resort And Residential Project Planned For Verrado

The Phoenix Business Journal reports that Intrawest Corp. out of Vancouver, Canada, is purchasing 56-acres in Verrado to develop a resort village with up to 900 residential townhomes, golf villas and condominium hotel units.

The resort project will be designed and built over the next 10 years, with work on the first phase starting in 2007 and opening 2008.

The casitas and other residential units will be sold to individual owners. The residences can be used as primary homes, or the owners can place them into a management program in which the residences will be rented when owners are away.

The resort development will also have 40,000 square feet of commercial space for retailers and restaurants, a 35,000 s.f. conference center and a destination spa. More...

Millions Help Downtown Scottsdale Arizona

South Scottsdale real estate is booming...

The East Valley Tribune reports that from January 2003 to August 2005, the city of Scottsdale says $1.4 billion was pumped into downtown through the construction or renovation of hotels, condos and retail and office development.

More than 2,000 lofts and condos will be built in the area and there are several high profile boutique hotels on tap.

Projects noted in the article include the Hotel Valley Ho at $82 million, the W Hotel at $82 million, the Hacienda Resort at $6.5 million, the Optima Camelview Village (a 750-unit condo development) at $250 million and the Scottsdale Waterfront at $250 million.

If the rest of south Scottsdale is included, or the area from Pima to 64th Street, McKellips to Chaparral, the investment is more than $2 billion. More...