5,500-Acre Chrysler Proving Grounds...

State record: $312 mil land sale, from 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."

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Housing was a Hot Topic in Gilbert...

Housing prices, retail carry headlines in 2005, from the Gilbert Arizona Republic, reports that the price of housing was a hot topic in Gilbert in 2005, with the median price for an existing home breaking the $300,000 barrier, holding at $324,500 in November, according to the Arizona Real Estate Center at ASU. There are signs that the market is returning to normal, such as the number of Southeast Valley houses on the market returning to near November 2003 levels. That's back when a typical house in Gilbert sold for $174,500. Retail growth also carried the headlines in Gilbert in 2005, with the opening of Crossroads Towne Center and Gilbert Gateway Towne Center, both home to Super Targets, and SanTan Village's power centers started to see tenants open. Gilbert also approved a General Plan amendment for developer Marty De Rito for a 68-acre retail center at the northeast corner of Gilbert Road and the San Tan Freeway called Gilbert Esplanade. Shows that retail follows the rooftops!


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People fleeing Pricey Coastal states for South West...

People fleeing pricey coastal states for South, West, from the 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!

http://www.usatoday.com/news/nation/2005-12-22-census-data_x.htm

Affordable homes vanishing,

From the Arizona Republic, reports that the Valley and other Arizona cities such as Flagstaff are having problems finding workers who can afford to live there because of high housing costs. Norther Arizona University is having trouble hiring professors, and Flagstaff is having a hard time hiring teachers, firefighters and police officers due to high housing costs. A report by the Arizona Housing Commission this fall tracked incomes, home prices and rents statewide. The study found that police officers, nurses, teachers and firefighters can't afford to buy a home in half of Arizona's biggest communities. Retail and restaurant workers can't even afford to rent in any of the 30 areas tracked, ranging from tiny Safford to sprawling Phoenix. The result is that many workers live farther away from work areas, adding to commute times. That is why people are moving to Pinal County who work in Phoenix, and why workers in Lake Havasu City are living in Mohave Valley and driving 100 miles round trip to their jobs. Projections show that half the jobs expected to be created in Arizona during the next five years won't pay enough for people to buy, or even rent in the communities where they work.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/news/articles/1218affordable.html

Home loans catch up to consumers,

From the Arizona Republic, reports that housing consumers who took out home equity loans and interest only loans are facing concerns over the higher interest rates and the slowing of the housing market. Almost 45 percent of all homes purchased in metro Phoenix through August were financed with interest-only loans, according to San Francisco based LoanPerformance. A growing number of people are so stretched that they are spending more than they earn. Valley homeowners who have already tapped most of their equity can't count on another huge run up in home values to get buy. Almost 34 percent of all Arizona homeowners were paying more than the recommended 30 percent of their income to cover their mortgages. The rampant run-up in housing appreciation has ended, and prices have even dropped in some areas. At the same time, inflation, interest rates and debt are climbing. The article states that if the equity party is over and homeowners can't afford to keep their primary or investment homes, or maintain their spending levels, it is bound to put a damper on the overall economy.

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Home Sales Return to BUYERS' MARKET

Home sales return to buyers' market, from the Arizona Republic Southeast Valley, reports that the number of homes for sale in the Southeast Valley has increased almost to the level of two years ago, before the market spiked into sellers' heaven. It's a buyers market again. There were 8,961 Southeast Valley homes for sale in November, almost as many as the 9,204 on the market in November 2003, according to the Arizona Regional MLS. "Buyers have more inventory to choose from. And we're not running into multiple offers on homes and bidding wars," said Gina McKinley, a Chandler Realtor with Re/Max 2000. Median prices in November were 32 to 58 percent higher than a year earlier, depending on the city, according to the Arizona Real Estate Center at ASU.

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Ariz. Job Growth Soaring...

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

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Camelback Building SOLD for near RECORD...

Camelback building sold for near record, from 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.

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Mountain Region is a hot commodity...

Mountain states enjoy hefty home price gains, from the 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. 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.

http://www.usatoday.com/money/perfi/housing/2005-12-12-ofheo-metro-prices.htm

High-Rise Boom Raising Questions on Congestion...

How dense can Tempe get, from 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 Tom Tokoph, a broker who specializes 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.

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State growth in '06 likely to mimic '05...

State growth in '06 likely to mimic '05, from 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.

Housing slump is forecast...

Housing slump is forecast, from the Arizona Republic, reports that a study prepared by UCLA says that there will be a sustained decline in the U.S. housing market next year, costing the nation as many as 800,000 jobs. The slowdown is likely to last several years, with as many as 500,000 construction jobs and 300,000 financial-sector jobs lost, the quarterly "Anderson Forecast" predicted. The "Anderson Forecast" said eight of the past 10 economic recessions were started by housing-market slowdowns. Michael Bazdarich, who wrote the forecast said "the remaining questions are how hard the fall will be and when will it begin." A significant slowdown in metro Phoenix's home-building industry would be a blow to the area's economy because no other major U.S. city relies as much on the housing industry for its economic well being.
Economists expect 'sustained decline'

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NE Valley's City in a City

NE Valley's city in a city, from the Arizona Republic, reports that Westcor plans to build a new cosmopolitan city within a city on 2,200-acres at Scottsdale Road and the Loop 101 that will include the states most upscale shopping, restaurants, high-rise condos, single-family residential, golf courses, and a boutique hotel. The development, called Palisene, will likely break ground in 2007 and open in 2009 at the earliest. The regional mall component will have 1 million square feet of space. "This is going to be a have-to-see place," said Robert Williams, a Westcor senior vice president. "This is going to set the tone and set the bar for upscale development not only in the region but in the country." The land that the development is slated to go on is controlled by the State Land Department. The 72-acre commercial core is expected to be auctioned by the state Land Department in 2007. But Westcor has been creating a master-plan for the area with Phoenix for about a decade, leaving a slim chance for any other developer to make a successful bid. :The goal of this project was really to be a hub of a new community," said Bob Tindal, president of Callison Architecture. The big thing that will separate this project is that ... it will be a destination for people within the region and a destination for a really lively place to live."

Planned urban hub to include high-end stores, residences
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Valley suburbs hike new home impact fees

Valley suburbs hike new home impact fee, from 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 can pass the extra cost on to homebuyers, driving up the cost of housing.

http://phoenix.bizjournals.com/phoenix/stories/2005/12/05/story1.html?t=printable

It's suite deal for some renters...

It's a suite deal for some renters, from 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.They get 1st chance when apartments become condos

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Downtown Scottsdale Explodes...

The Bottom Line: Millions help downtown Scottsdale bloom, from 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. Project 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.

http://www.eastvalleytribune.com/index.php?sty=54253

Sellers, buyers see tables turn

New-home lull shifts the rules, from 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.

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Home sales totals on record pace

Home sales totals on record pace, from the Phoenix Business Journal, also 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 new homes is $251,000 and the median price of a resale home is $249,000, according to his report.

http://phoenix.bizjournals.com/phoenix/stories/2005/11/28/daily8.html?t=printable