A Home Buyers' Nightmare

Turner-Dunn Construction, Inc. is being investigated over a work stoppage on about 200 homes it was building in Casa Grande and Maricopa.

Turner-Dunn pulled 165 permits in Maricopa and has finished just 62 homes. At Casa Grande, just 37 homes have been finished from about 120 permits pulled.

The state Real Estate Department has been investigating Turner-Dunn for about a month. The Registrar of Contractors are also investigating.

In the meantime, hundreds of Turner-Dunn buyers are in limbo,with unfinished housed and deposits that most likely are gone. More...

Slight Decline In Interest Rates A Good Sign

The average rate on a 30-year fixed-rate mortgage fell slightly to 6.72 percent, from 6.80 percent last week, on Fed Chairman Bernanke's comments to Congress that the Fed believes a slowing economy would help reduce inflation.

Those remarks were seen as a signal that the central bank's long string of rate hikes could be drawing to a close.

"Mortgage rates drifted lower this week on indications that economic growth is moderating, inflation remains under control and the Fed just may pause raising rates for a while," said Frank Nothaft, chief economist at Freddie Mac.

Rates on 15-year, fixed rate mortgages fell to 6.34 percent, and rates on one-year adjustable mortgages dropped to 5.78 percent. A year ago, 30-year mortgages averaged 5.77 percent. More...

Density Worries Scottsdale Citizens

Residents in downtown Scottsdale are concerned with the increased traffic and noise that a 100-unit condo project called The Reflections on the Canal project will bring to their neighborhood.

The development is located at 7445 E. Chaparral Road, in an area of older homes east of Scottsdale Road. It will replace the old Hotel Waterfront Ivey.

Susan Bitter Smith, spokeswoman for the property owners, said the area is already zoned for multiple families, and the plans actually aren't as dense as they could be. "It's simply residential--identical to what is surrounding it," she said.

Plans are scheduled to go before the Scottsdale Development Review Board on August 24th. More...

Good News For Valley Freeways

A new $307 mil fund created by the state Legislature, called the Statewide Transportation Acceleration Needs account, or STAN, could push ahead major freeway construction projects by as much as 15 years to cope with the booming growth in the metro Phoenix area and around the state.

Valley freeways targeted by lawmakers for accelerated work include Interstate 17 north from Carefree Highway to New River Road; Interstate 10 west from Loop 303 to SR 85; and Interstate 10 south from Loop 202 to Riggs Road.

Maricopa Association of Governments (MAG) will ultimately decide where to allocate the funds based on recommendations from their transportation planners. "This is very positive, and we want to make sure we look at all the possibilities", said Eric Anderson, transportation director at MAG. "I think we're going to be looking at certainly I-17 and I-10 because these are gateway corridors." More...

This shows that state and local elected officials see the big picture on transportation and is very positive for our continued growth!

Del Webb's Success Story

The Arizona Republic reports on Del Webb's history of creating retirement communities, from the first Sun City in 1960, to today's new concept in adult living at Sun City Festival in Buckeye and Sun City Anthem at Merrill Ranch.

When the original Sun City opened in 1960, more than 100,000 people came to the development in its first weekend, over ten times what was expected, and the Del Webb success story began. Del Webb sold 1,300 homes in Sun City's first year of operation.

Capitalizing on the Baby Boomer growth, today's newest Del Webb communities cater to a new buyer who have different amenity wants, such as fitness centers, cyber cafes and a multitude of organized sports.

The nation's population of 55- to 75- year olds is estimated to reach 80 million by 2020. More...

This fast growing segment is so influential because of their spending power, and will have a big impact on the Valley's retirement and second home markets.

Cave Creek Arizona Homes

Sonoran News (Cave Creek), reports that 2005 Census figures show that Cave Creek is about half built-out with 2,228 housing units. Cave Creek is projected to have 4,300 homes somewhere around 2030.

According to Town Manager Usama Abujbarah, the areas of town that will experience the most growth in coming years will be the northwest and northeast parts of town.

At the Cahava Springs area west of Cave Creek Wash, 230 new Cave Creek homes will be built on 1,000 acres over the next 10 years.

The area between Fleming Springs and Grapevine Roads is another area that town officials believe could experience rapid growth in the next decade.

"Most of the growth will be in the northeast and northwest, on vacant state trust land and along Carefree Highway," said Abujbarah. He also said that the area along Carefree Highway will become crucial to Cave Creek because of potential sales tax revenue, and that it is the economic engine of the town.

The town manager also expects building on Black Mountain to double in coming years. More...

Avondale Is Hot

Money magazine in its latest issue ranks Avondale third in percentage job growth and second in home price appreciation in the U.S. The magazine even awarded the dubious "hottest city" honor to Avondale, which saw a 54.3 percent jump in jobs from 2000 to 2005.

"Everything that we have been working towards has come to fruition," said Avondale mayor Marie Lopez Rogers. "Things are looking up".

Mid-decade census numbers also show Avondale has more than doubled its population since 2000, rising from 35,800 residents to 69,300 residents. More...

This shows that the West Valley market is one of the hottest market areas of the Valley.

Soft Landing For Housing Market

Federal Reserve Chairman Ben Bernanke told Congress on Thursday that the once high-flying housing market appears to be experiencing a safe landing. One of the things that Bernanke and his Fed associates are keeping close tabs on is the extent to which a housing slowdown will put a damper on overall economic activity.

"We recognize the risk, ... and we are watching it very carefully," he said. The housing market has been a top economic performer. This sector of the economy has racked up record-high sales five years in a row.

Rapid appreciation in house prices has made homeowners feel wealthy and has powered consumer spending, helping the economy move solidly ahead. But the cooling of the housing market is expected to contribute to a slower pace of general business growth across America in the coming months. More...

Buckeye Is Booming

The town of Buckeye in the West Valley plans to annex an additional 108 square miles of land, the largest municipal annexation in Arizona's history. At 230 square miles now, Buckeye is already larger than Tucson, Mesa and Seattle.

Buckeye's "planning area" is 600 plus square miles. Buckeye, which had a population of 8,000 residents in 2000, has already grown to about 25,000 residents now. Town officials say that by 2025, Buckeye's population could be 1 million.

Buckeye has more than 30 master-planned communities either under construction or in the works, including Verrado, Tartesso and Festival Ranch. At build-out, Buckeye could be home to 2 million people. More...

Definitely one of the Valleys current and future hot spots for real estate.

Central Arizona's Rising Foreclosure Rate

Home foreclosures are on the rise in Arizona as the housing market continues to cool down and as interest rates rise.

Foreclosures.com, a No. Cal.- based real estate investment advisory firm, reported that more than 8,000 properties went into foreclosure in Arizona during the first six months of the year. Maricopa County accounted for the bulk of the foreclosure activity with 5,215 foreclosure notices during the first six months of this year.

"Too many people have been using their homes as ATM machines to manage consumer debt. Now that interest rates are coming back up to normal levels, the refinance window is closed to these people and they are being squeezed by rising home payments," said Alexis McGee, Foreclosures.com president.

McGee also said homes prices will not crash like they did in the early 1990's. "Back then, overbuilding by developers led to excess inventory and what we call competitive liquidation of unsold new homes. This time, the inventory just isn't there," she said. More...

Three East Valley Cities Named Top Places To Live

Money magazine announced that Mesa ranked third on its list of "Best Big Cities" in the U.S., following number 1 Colorado Springs, CO and number 2 Austin, TX. It was one of several East Valley cities to make the cut in the financial magazine's 2006 list of the top 100 cities in which to live.

The magazine ranked Gilbert as the 16th best city of any size, and Scottsdale Arizona came in seventh. Although Mesa ranked higher among cities with a population of 300,000 or more, it came in 93rd when all city sizes were considered.

Every year, the magazine selects the best places to live based on a number of criteria, including ease of living, crime rates, education, leisure and culture, weather, health and transportation. Mesa was boosted by its relative affordability, Scottsdale by its golf courses and recreational opportunities, and Gilbert by its exceptional job growth. More...

Buying A Home To Live In

Buying A Home To Live In... what a novel concept!

The 50 percent rise in home prices last year had people buying and selling houses like dot-com stocks, thinking strictly about profits. This year, with the market slowdown, houses are lingering on the market longer and many are selling for less than their asking prices, a return to the days where people bought homes as a place to live.

"Buyers have to look at a house now as something that they're going to move into and live for a while instead of something that they will hold for a few months and sell for a $100,000 profit," said Neil Brooks, an agent with Century 21 Arizona-Foothills. "People now have to look at their house as a home, not as an ATM."

The fast-money speculators who helped drive up the home prices have taken their money and run. That leaves the pool of Valley buyers dominated by rank and file consumers and long-term investors who will hold the property for its rental income.

Buyers are being cautious and holding out for the best deal with all of the inventory on the market. More...

More News About The Plaza Lofts At Kierland

The Plaza Lofts at Kierland Commons are more than half sold out on their next phase, consisting of 54 lofts, despite starting prices in the $700,000 price range.

Daniel "Buzz" Gosnell, Woodbine president and Plaza Lofts dweller, states "I'm real comfortable with where we are in the condo market cycle", adding that fewer investors are in the market now, "which is good". Woodbine has a buy-back provision for the lofts that gives the developer the option of buying back any units for the original sales price if they are sold within the first year of completion.

Two additional phases of homes are planned within Kierland Commons over the next few years. The preliminary plan is for another nine-story building north of the Tommy Bahama shop, with 30 condominiums of at least 3,000 square feet. And a dozen three-story townhomes will be built in the final phase along the northern edge of Kierland Commons. More...

June Resales Slower Than Expected

June resales fell to a six-year low with 5,460 recorded sales, according to the Arizona Real Estate Center at ASU. June's activity is down from the 6,870 sales recorded in May.

So far this year, there have been 36,290 resales, while year to date resale totals last year were at 58,030. However, Arizona Real Estate Center Director Jay Butler noted that the current level of activity is very comparable to year-to-date recorded sales in 2003, which wasn't too bad of a year.

The article gives a city-by-city breakdown of the June 2006 resales and prices, compared with June 2005. More...

Kierland Commons Plaza Lofts - Phase Two

Woodbine Southwest Corp. broke ground Tuesday on the Phase II tower of the Plaza Lofts at Kierland Commons.

Phase II tower is scheduled for completion in the fall of 2007. It will have 54 lofts ranging in size from 1,100 to 2,800 square feet, with five penthouses on the ninth floor ranging from 3,200 to 3,900 square feet.

According to Woodbine, sales began in March and the project is already more than 50 percent sold. More...

Contact us via email: Info at PhoenixHomes.com or visit our website: PhoenixHomes.com for more information on purchasing your own condo at Kierland Commons.

PayPal Moving To Scottsdale

San Jose-based PayPal, Inc. is expanding to Scottsdale and will bring over 300 new technology jobs to the Valley.

PayPal, a online payment system firm, is owned by eBay. It's new office in Scottsdale will be at 90th Street and Mountain View Road.

The move was lauded by both Scottsdale and state officials. The jobs are not low-level openings for a call center, but are higher-paying technology jobs. More...

This article shows that the metro area is still attracting firms to locate here, especially from California, and supports the strength of the local economy.

Condo Conversions Slowing

Buying apartment complexes for conversion to condominiums has been a hot trend, but developers have discovered the idea is no longer a ticket to quick riches.

Signs of slowing are evident at several Chandler complexes. The most successful one was the Lakeshore at Anderson Springs, which is 82 percent sold out. Elsewhere in Chandler, apartment to condo conversions are in various stages.

The former Stonegate Village, 234 units at 2225 W. Frye Road is now called Symphony, and sales will start in about a month. Units will range from 729 to 1,358 square feet, with prices from the $170's to the high $200's.

Cambric Court at Ray and Alma School has sold nearly 40 of its 168 units, which range from 723 to 968 square feet and priced from the $130's to the low $180's.

The median price of a condo in Chandler sits at $186,500, according to the Arizona Real Estate Center at ASU. More...

Housing Shifts To The West Along Critical Corridors

Over the next few decades, Surprise could become one of the largest cities in the state, spreading over 300 square miles with 400,000 residents.

Dozens of massive residential projects are being plotted or built along two important transportation corridors: Grand Avenue and the Sun Valley Parkway. Among them are Asante (14,000 homes) and Daimler Chrysler (21,161 homes) along Grand, and Fox Trail (3,000 homes) and Surprise Farms (2,129 homes) along Sun Valley.

Guided by a new vision from city leaders, developers are creating more self-reliant communities, with their own grocery stores, restaurants, job centers, schools and parks. The city is currently annexing more than 200 square miles of land stretching out to the Maricopa county line near Wickenburg. More...

Infill Condos - The New Wave?

Monterey Homes, recognizing a shift in housing demand, is launching a line of infill condo and townhome developments that could add 2,000 units to Scottsdale and the Valley over the next few years.

Monterey started last week on its first urban-living community called Sandalo, southwest of Scottsdale Road and Shea Blvd. It will contain 44 townhomes on 2.2 acres.

Construction of Monterey Ridge, with 189 condo units at 68th Street and Princess Blvd. is set to start construction in the fourth quarter of this year.

Monterey also plans to start three other infill projects in north-central Phoenix later this year. And about 450 units will be built on the former Rawhide site at Pinnacle Peak and Scottsdale roads starting in July 2007. Monterey has purchased five infill sites in the Valley and has another half dozen in the pipeline.

With land scarce in Scottsdale and condo prices hitting seven figures, Monterey decided to pursue centrally located sites for affordable condos and townhomes as an alternative to apartments converted to condos, according to David Walls, Monterey president. More...

USA To Hit 300 Million

Sometime in October of this year, the population of the USA will reach 300 million people. The nation has added 100 million people since 1967 to become the worlds third most populous nation behind China and India.

The biggest driver in this nations growth is immigration-- legal and illegal. About 53% of the 100 million extra Americans are recent immigrants or their descendants, according to the Pew Hispanic Center.

The nation is also getting older as the oldest baby boomers turn 60 this year. Since 1970, the share of the population age 65 or older grew from 9.9% to 12.4%, and the median age rose from 28.1 to 36.2 years.

The article notes metropolitan Phoenix and the town of Maricopa as areas where population growth has exploded, and notes that "fueled by a sunny climate, plentiful land and cheaper housing, fast and furious growth has been a fact of life around Phoenix for decades." More...

Home Builders, Neighbors Offer Stiff Competition

After last year's record 18,749 single-family new home building permits issues by Pinal county and its municipalities, 2006 is on pace to see 16,571 permits issues. Although lower than 2005, it still means more new, single-family homes in a single year than the county saw during some entire decades of the 20th century.

"This is a cooling like it was 113 degrees yesterday , and its 106 today," said Jordan Rose, a development attorney with clients in Pinal County. "It's still burning hot in Pinal County."

But as in other areas of the Valley, builders are now offering incentives to buyers to blow through the existing inventory, and existing homeowners are dropping prices of their homes, offering additional competition for builders.

Pinal County is still the future of the Valley's housing market, Jordan Rose said. It will attract about half of all new home buyers over the next 15 years, she predicted. More...

Happy Fourth Of July To You

Happy Independence Day!

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Matt Pellerin