S.W. Valley is The Hottest Spot for Housing this Year...

S.W. Valley is the hottest spot for housing this year, from the Arizona Republic, reports that the S.W. Valley's housing growth is racing along and it will be one of the area's hot spots in the coming year. Double-digit increases in housing permits are expected in Avondale, Goodyear and Buckeye. Housing experts point to the area's available land as the reason for the growth. Buckeye issues a mere 77 building permits in 2000 for single family homes. Compare that with this year's anticipated 9,600. Local housing analyst RL Brown shows the S.W. Valley with 25 percent of the Valley's new home permits issued over the last 12 months, with the Northwest Valley getting 20 percent. Pinal County led the way with 26 percent of all home permits issued over the last 12 months. "It's going to be neck and neck between the northwest and the southwest. Those two are neck and neck with Pinal County. Those are the hot spots. There's no question about it", Brown said. However, concerns over transportation issues, rising construction and labor costs and rising gas prices have some in the housing industry worried that sales could soften.

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Loop 303: W. Valley Expects a Bonanza!!!!

, from the Arizona Republic, reports that developers have been snatching up property along the Loop 303 corridor from Surprise to Goodyear as this area is expected to generate the majority of the housing and population growth in the Valley. Retailers are salivating at the prospect of locating along the loop, said David Larcher of Vestar Development Corp. "With well over 50 percent of the housing starts happening in the West Valley, we have been very bullish along the 303," he said. Over the next two years, Vestar plans to break ground on two new projects along the Loop 303, and are currently developing Lake Pleasant Towne Center near the Loop 303 and Happy Valley Road. The Loop 303, also known as the Estrella Freeway, will be a 38-mile loop linking Interstate 17 and Interstate 10 in the far West Valley, helping to ease some ofthe congestion that is sure to accompany the masses of new residents flocking to the region. The six-lane freeway won't be completed until 2014.

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'Affordable' Townhomes...

Former mayor touts 'affordable' townhomes, from the Phoenix Business Journal, reports that former Phoenix mayor Paul Johnson is developing a 195-unit townhome project on 13.75-acres at Van Buren and 32nd Street, the site of the former state prison for women. The townhomes will be "affordable" housing, with prices starting below $200,000. "There's just a small number of homes under $200,000 available in Phoenix," Johnson said. The townhomes will be from 1,195 to 2,100 square feet and priced up to $250,000. Permits are expected in six months, with occupancy slated for a year from now. In October, Johnson's company, Old World Homes, broke ground on another infill project, the 54-unit Berkana on Glenrosa, at Glenrosa and the Black Canyon Freeway. That was the first of eight developments planned by Johnson on several infill sites across Phoenix and Glendale.

http://phoenix.bizjournals.com/phoenix/stories/2006/01/30/story4.html?t=printable

Central Phoenix Site, 20-Story Condo's...

Central Phoenix site could become 20-story condo, from the Phoenix Business Journal, reports that a 20-story residential building is proposed south of Third Street and Indian School by local developer Kevin O'Neill. O'Neill has hired noted architect Will Bruder to create the design for the new project, which will have about 250-units. Sizes of the condo units will be 650 to 2,400 square foot with prices starting at about $300 per square foot. Construction could start in a year. O'Neill also developed Project Miller, a 16-unit condo project at 1501 N. Miller Road in Scottsdale.

http://phoenix.bizjournals.com/phoenix/stories/2006/01/30/newscolumn1.html?t=printable

To Pay or Not to Pay Off Your Mortgage...

(January 27, 2006) -- Experts urge home owners with mortgage rates of 6 percent or less to sink their money into other investments.

Some home owners might be considering repaying their mortgage early in an attempt to shed the debt they accumulated via cash-out refinancings or home-equity loans at a time when property prices were rapidly appreciating. But that may not always be the best use of their money.

Anthony Webb, economist for Retirement Research Center, says home owners can achieve higher returns through IRAs, 401(k)s, and other tax-deferred accounts. Young home owners would be wise to put their extra cash toward retirement, adds Torrance, Calif.-based financial planner Phillip Cook.

However, those with excessive loan balances might want to pay down their mortgages to a more manageable level. Home owners nearing retirement age — who do not have adequate savings, do not plan to move, and do not need a mortgage deduction because they will soon be in a lower tax bracket — also might be good candidates for prepayment.

Source: USA Today, Mindy Fetterman (01/27/06)

Real Estate: Buy, Sell, Hold????

Real Estate: Buy, sell, hold?, from CNNMoney.com, reports that over the last four months, asking prices have fallen 5 percent or more in Boston, Cleveland, Los Angeles, Miami, Phoenix and Washington D.C., according to blogger Ben Engebreth's Housing Tracker Web site, which compiles weekly data on 49 cities. Across the U.S., the number of existing homes sold fell 1.7 percent in November while the supply of homes continues to tick higher. The article also states that condo crazed towns like Phoenix and Fort Lauderdale , where more than 15 percent of recently purchased homes are owned by investors, could be more vulnerable to steep declines than areas heavy with owner-occupied homes, since investors may be more likely to sell at the first whiff of trouble.

http://money.cnn.com/2006/01/19/real_estate/homestrategies_money_0602/index.htm

New-Home Market Stays on Fast Track...

New-home market stays on fast track, from the Arizona Republic, reports that Metro Phoenix's new-home market charged into another record last year with 63,570 new home permits, according to local housing analyst RL Brown who spoke yesterday at the annual Phoenix Housing Forecast at the Desert Ridge Marriott. He expects the market to slow to 60,000 permits this year, and he wouldn't be surprised to see permits hit the 65,000 milestone in the next five years as the population expands. Brown based his expectations on continued growth in jobs and population and house prices that appear affordable compared with other Western cities. Brown said that the median price for a new home rose $98,000 in 2005, sitting at $299,000. He said that type of increase is not sustainable and predicts that new home prices will only rise 4 percent in 2006. Brown cited soaring land and material prices as reasons for the big increase last year. Brown also commented that he believes only 15 to 20 percent of the high rise condo projects will ever be built. His concerns for "deal busters" in the market include terrorism, further erosion in affordability, interest rates rising above 8.5 percent, a dumping of properties by investors and growing transportation snags.

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AAA to create 1,100 jobs in Glendale...

AAA to create 1,100 jobs at Glendale hub, from the Arizona Republic, reports on more good news for our local economy . The AAA travel and financial services club will locate up to 1,100 new jobs over the next three years in Glendale as it creates a regional customer service and information technology center in the West Valley. Roughly 500 of the jobs are considered high wage positions paying more than $75,000 a year. Greater Phoenix Economic Council (GPEC) helped broker the deal. When fully staffed, the facility will employ up to 1,400 and will be one of Glendale's largest employers. The project is expected to pump $42 million into Glendale's economy over the next 10 years. Glendale's recruitment of AAA comes after the state Department of Economic Security said last week that 97,700 jobs were created in Arizona in 2005, the most since 1995. Arizona was ranked number 3 in the nation for employment growth. As long as we keep creating jobs and attracting new population, our real estate market will do well!

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Pinal County is Wreaking Havoc...

Counties toiling to catch up from lack of regional plans, from the Arizona Republic, reports that faster than expected growth in Pinal County is wreaking havoc on its largely rural road system, and the county doesn't have the resources or expertise to plan and build the roads and freeways it needs. State and local leaders, meanwhile, were slow to react as parochialism, civic rivalries and failure to plan across county lines have kept Pinal County out of the regional transportation mix. Pinal county will face a difficult game of catch-up with the ongoing growth. A September 2003 MAG study said foreseeable transportation needs in Northeastern Pinal alone would cost the county $5 billion. Until the county and ADOT come together with a future transportation plan for Pinal County, they will always be playing catch-up.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/news/articles/0123pinalfreeways.html

Phoenix's Housing Market Comes Down to Investors...

As speculators go, so goes area housing market, from the Arizona Republic, reports that the future of metro Phoenix's housing market comes down to investors. Investors hyperinflated home prices in 2005 by at least 25 percent with their purchasing sprees, new research shows. And what they do this year will determine whether the Valley's housing market sags, keeps climbing or stabilizes. Forecasts call for everything from a 10 percent increase in Valley home prices, to a 10 to 15 percent drop."In a normal housing market without the froth that investors brought, Valley home prices wouldn't have climbed nearly as high," said Jay Butler at ASU. His research indicates that the median price for an existing home would have likely hit a high of $205,000 last year, rather than the $263,000 it peaked out at in September. "Phoenix is going to burn off some investors during the first half of this year," said John Burns, a national real estate consultant. "We will see how many investors can't hang on and need to sell. As long as a bunch don't start dumping, the market will be all right." Investors accounted for at least 25 percent of all Valley home buyers last year, according to property records and real estate agent reports. If investors slash asking prices to sell, there will be pressure on all Valley home prices. Valley home listings have climbed from a low of about 6,000 in February to 30,000 now. Prices dipped in some areas last year as the number of homes on the market increased.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/news/articles/0121slowdown21.html

Land Sells at $1 MILLION Per Acre...

Land sells at $1 mil per acre, from the Arizona Republic , reports that a 32-acre State land parcel in Desert Ridge sold yesterday for $33.45 million, or about $1 million per-acre. The buyer was apartment builder Gray Development, which plans to build more than 800 high-end apartment and condos on the site. It was the first of five residential parcels in Desert Ridge that the Land Department plans to auction this year. "There's still tremendous demand for land," said State Land Commissioner Mark Winkleman. The state land department has sold more than $550 million of trust land in Desert Ridge during the past few years. Arizona has more than 9 million acres of State Trust land, much of it in remote areas where it is leased to ranchers or other users. The State Land Department is planning its next big development in Metro Phoenix, Superstition Vistas, on 275 square miles in the Apache Junction-Florence area.

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Growth Fuels Job Market...

Growth fuels job market, from the Arizona Republic, reports that Arizona gained 97,200 jobs last year for a 4.1 percent job growth rate, the state Department of Economic Security reported Thursday. That was the highest number of new jobs for the state since 1995. The figures also place the state among the top in the country for job growth. Population gains were also a big factor behind the job growth. The state added about 200,000 residents last year , and many of them came in search of jobs. But they also helped create jobs. The home building and construction industry accounted for about one of every four new jobs in the state last year, while the hiring rate in education and health services continued at a torrid pace.

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Condo Conversions Booming...

Condo conversions booming, from the Arizona Republic, reports that soaring home prices has spawned a wave of condo conversions that has forced tens of thousands of apartment dwellers to search for new homes. Nearly 7,000 apartment units Valleywide were being converted to condos last year, and the trend is continuing, said Brad Johnson, a researcher with CB Richard Ellis. That is forcing renters to buy their converted apartments for roughly $100,000 to $300,000 or find a new place to rent, often at higher prices. Valley home prices spiked upward last year to $240, 500 Valley-wide, $330,000 in Ahwatukee and $600,000 in Scottsdale. That has forced buyers to turn to the more affordable condo market. Investors and developers, recognizing the demand, started buying up apartment complexes and putting up for sale signs/ Last year, sales of converted apartments were brisk at times, with some companies selling out hundreds within hours. But researchers like Johnson of CB Richard Ellis says there is less "froth and enthusiasm" in today's condo conversion market. He predicts that about 20,000 apartments will be converted to condos before the trend slows in a few years.

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Homeowners Cash in & HOPE Market Cools off...Don't do IT...

, from the Arizona Republic, reports that some homeowners are selling their homes because they believe the market has topped out. The idea: get your money out near the top and wait until the market drops to get back in. The question is what to do with your money while you wait for the market to drop. "There's no place screaming for you to put your money in," said Kurt Nishimura, who recently sold his home in the Willo district and is renting an apartment waiting for the next wave. Terry Feinberg, president of the Arizona Multihousing Association, says the decision to sell depends on where you are now. "Real estate goes in cycles, and there are peaks and valleys, but each valley is higher than the last, and each peak is higher than the last," he said.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0115rent15.html

Home Prices & Sales Hit Highs...

Home prices, sales hit highs, from the Arizona Republic, reports that the number of used-home sales climbed 8 percent in 2005, to hit 110,835, according to the Arizona Real Estate Center at ASU. Monthly sales started to taper off in late summer. In August there were 10,700 resales recorded. In December there were 6,480. "The hype is off the housing market," said Jay Butler, director of the Real Estate Center. The median Valley home price hit a high of $263,000 in September and as of December, sits at $260,000. Metro Phoenix's housing market led the nation for price jumps during most of 2005, fueled by investors, move-up buyers, new residents, second-home buyers and first-time buyers. Affordability fell during 2005, causing concerns that a typical family cannot afford a new home.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0114resale14.html

W. Valley Housing Boom Won't Stop...

W. Valley housing boom won't stop , from the Arizona Republic, reports that the West Valley housing boom should continue well into 2006, according to local housing analysts and real estate brokers. Increasing demand, more upscale master-planned communities and shrinking vacant land in the East Valley will raise west-side home prices and send residents looking for affordable housing farther from the Valley's core. "People used to come to the West Valley to find the cheapest houses, but those days have past," housing analyst RL Brown said. The median resale price in Glendale is $247,200, with new home prices averaging $327,550. A typical home in Peoria now sits at $280,000, according to the Arizona Real Estate Center at ASU. New master-planned communities such as Vistancia and Verrado have contributed to the increased home prices, with prices from $300,000 to the mid $700,000 range. "There's no such thing as cheap dirt anymore," says broker Tom Traw. Brown and other housing analysts predict the West Valley and Pinal County will dominate the greater Phoenix market into the next decade.

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State economy looking ROSIER...

From the Arizona Republic. Reports that Arizona's economy continues to expand, with the strongest growth led by the state's producers, according to a report by the W.P. Carey School of Business at ASU. The report uses six subindexes to measure conditions: employment, production, new orders, purchases, purchased-materials inventory level and delivery times from suppliers. Dawn McLaren, a research economist with the Economic Outlook Center at ASU, says there are key areas to watch. "A lot of our economy hinges on the housing market, including job growth. We need to watch out for changes in the housing market," she said. "Investors from California drove the market up for a while. There was a lot of velocity in the market, with houses turning over quickly." When things slow, investors start moving into other parts of the country or other sectors, which could cause problems for Arizona. And as investors move out, prices drop. "With real estate, what happens is the length of time to sell gets longer, then people get nervous about the length of time, so they drop their prices," McLaren said.

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Former Rawhide parcel to be used for Community...

Former Rawhide parcel to be used for community, from the Arizona Republic, reports that the Scottsdale city council voted unanimously to approve zoning changes for the 160-acre former Rawhide site at Scottsdale and Pinnacle Peak Roads for a new planned community called Silverstone. The community will include a health care facility, residences, a public library, offices and commercial areas. Silverstone will have 976 housing units and an assisted living facility that will rise 45 feet. The developer, RHVT Limited Partnership, will be responsible for widening several roads in the area due to the increased traffic the project will generate.

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Pulte Buys Buckeye Land...

Pulte buys Buckeye land, from the Arizona Republic, reports that Pulte Homes paid at least $70 million for 4,100-acres east of the Sun Valley Parkway between Missouri and Northern Avenues. It plans to build one of its signature Anthem developments on the site. "It's a beautiful, natural environment, well positioned to the mountains," said Mike Brilz, vice president for land development for Pulte. Brilz said the Buckeye land is zoned for 12,500 units. This development will be an all-ages Anthem community- as Pulte is building its age-restricted Sun City Festival in the northern part of the Sun Valley area. Pulte is also developing property in the Tartesso master-planned community in Sun Valley, where the first homes in the area are under construction. At least 50 percent of the new homes to go up in metro Phoenix during the next few years will be in the West Valley, according to housing experts. "West of the White Tank is going to become a whole new city," said Nate Nathan of Nathan & Associates.

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Phoenix Places 2nd on SAFEST-CITIES List...

Phoenix places second on safest-cities list, from the Phoenix Business Journal, reports that the Valley ranks as the second-safest major metropolitan area in which to conduct business and avoid major natural disasters and terrorism. The new survey by Risk & Insurance magazine and AIR Worldwide Corp. ranked the safety of major U.S. cities based on their susceptibility to major business disruptions such as weather disturbances, earthquakes and terrorism. Sacramento came in first, followed by Phoenix, Rochester, N.Y., Columbus, OH and Buffalo, N.Y. Phoenix area economic developers and business leaders have for many years touted Arizona's lack of natural disasters and other major business disruptions as a top reason for businesses to locate in the Valley and not California, Florida or colder climates. Greater Phoenix Economic Council (GPEC) President and Chief Executive Barry Broome says that makes Arizona an attractive location for technology firms and data center operations that need to avoid interruptions. "The impact from hurricanes Katrina and Rita in the Southeast, as well as interruptions from winter storms, position Arizona as an attractive place to do business," he said. This survey bodes well for our real estate market as jobs and population growth are what will fuel our real estate market now and into the future .

http://phoenix.bizjournals.com/phoenix/stories/2006/01/02/daily6.html?t=printable

Quality of LIFE Expected To Be Key 2030...

Growth, quality of life expected to be key 2030 issues, from the Phoenix Business Journal, looks to the future to see what metro Phoenix will look like in 2030. Fifteen story buildings doting the suburban landscape from Apache Junction to Buckeye, condo and hotel towers line Copper Square, the Loop 303 corridor is booming with residential and commercial developments as the center of the Valley straddles the western boundaries of Loop 101. That's the vision of what greater Phoenix could look like in 25 years, according to Valley economic development and business leaders. "Within the next 25 years, we will see an enormous shift from horizontal to vertical development," said Pete Bolton, senior managing director for CB Richard Ellis. Glendale Economic Development Director Iain Vasey predicts a westward population shift. The most recent population projections call for 1.5 million new residents to inhabit the West Valley over the next 10 years, and the population center of the Valley will move from the Central Corridor significantly west. The strongest markets in 2030 will be in finance, insurance, real estate, professional and technical services, advanced business services, accounting and architecture, and the bio and medical fields will emerge as a big part of our economy. Gary Broome, president and chief executive of the Greater Phoenix Economic Council, says "Arizona will be a national leader in the development of science-based enterprises, with an emphasis in personalized medicine. Our semiconductor base will be rooted in nanotechnology, and Intel will remain a global industry leader."

http://phoenix.bizjournals.com/phoenix/stories/2006/01/02/story3.html?t=printable