Waterfront Homes Raise...

Waterfront homes raise selling price in desert, from The Arizona Republic Ahwatukee, reports that lakefront houses in the Southeast Valley are so popular that they can cost $100,000 more than comparable homes. "It's considered a highly desirable amenity. There was a period of time where every community that came on line included lakes," said local housing analyst RL Brown. Jack Lavelle with the Arizona Department of Water Resources said that although some people disagree, the lakes do provide some important functions. They gather rainwater, prevent flooding and enable reclaimed wastewater to be used to irrigate golf courses and common area landscaping.



http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/ahwatukee/articles/0331ev-realestate0331Z14.html

Maricopa County Movin' On Up Millionaire List...

Maricopa County movin' on up millionaire list, from the Arizona Republic, reports that Maricopa County ranks fourth in the United States in the number of millionaire households. It counts 106,210, or roughly 8.2 percent of all households, as having $1 million-plus in net worth. In 2006, Maricopa County ranked sixth. The information is from a report prepared by TNS Financial Services, a British market research firm. Los Angeles County took the top spot with 262,800 millionaire households, followed by Cook County in Illinois with 167,873 households. "You're a large county to begin with, and I would imagine that a lot of people retire to places in Arizona, particularly the Phoenix/Scottsdale area because the cost of living there is a little more favorable than a place like San Francisco," said Jeanette Luhr, manager of the study.



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As More & More Residents Pour Into The City...

Arizona is a state that is blessed with amazing views and weather -- and a growing population that continues to feed the booming real estate market.

Just as in other parts of the country, spring time is when the real estate industry begins to build up steam. And Ahwatukee, Arizona, is no exception.

This city is home to 85,000 residents. Though part of Phoenix, Arizona, since the 1970's, most residents consider the market and the town itself to be a separate entity.

Buyers this year may be in for a bit of sticker shock when they see how much homes have appreciated in value over the last year. An entry price of $275,000 ($175,000 for condos/townhouses) or more in many neighborhoods is not unusual. Experts in the area note, however, that this is the time to buy -- before prices gear up in the coming summer months.

But 2006 might not be the record breaking year that some predict. One sign: fewer homes are selling.

Phoenix itself has a population of just under 4 million -- and a booming market has been seen for almost half a decade in the region. Why? This is due partly to the simple rule of supply and demand. As more and more residents pour into the city, sellers are finding they can hold out for better and better offers. Thus prices rise.

But as the rest of the nation's buyers begin to cool their heels -- on the tails of rising interest rates and buyer's trepidation over pending bubble bursts -- even booming Arizona could find that the market will cool.

Consumers Have Hit The " Price Wall "...

New home permits down 20% in Valley, from the East Valley Tribune, reports on local housing analyst RL Browns most recent Phoenix Housing Market Letter. It reports that new home permits fell to 3,729 in February, the lowest total in 24 months, and that resales dipped 11 percent to 7,774. RL Brown and Greg Burger, who compile statistics for the newsletter, said the numbers show consumers have hit the "price wall." "We're in an adjustment period and we anticipate the rest of the year will be relatively normal given normal conditions," Burger said. The median new home price rose to $268,232 in February. The good news is that RL Brown points to numbers that show 475 people move to Maricopa and Pinal Counties every day, a group that will require 190 to 215 dwellings every day, or between 68,000 and 78,000 a year!

http://www.eastvalleytribune.com/index.php?sty=61978

Perhaps a Signal That the Valley's New Home Market...

Valley's new housing market starting to slow, from the Phoenix Business Journal, reports that Valley new home permits in February dropped more than 20 percent from the same time last year, perhaps a signal that the Valley's new home market has started to slow. The 3,729 permits issued in February was the lowest total in the last two years, according to the numbers released by RL Brown in his latest Phoenix Housing Market Letter. RL states that builders are rolling out all sorts of incentives, including price discounts, and free or discounted upgrades. Brown doesn't see the current housing conditions as a precursor to any kind of disaster. "We're seeing the resale market begin to adjust," said Brown. "Housing prices reached a point to where the consumer said no more. I don't think it will be very long before the resale (price) is reflective of what consumers are willing to pay for a home," Brown added. The March average base price of all new home floorplans offered was $387,000, while the median closing price was $268,000, a big spread! "It was past time that the rapidly upward price pressure on the new housing market ended," Brown said. "I suspect that we can say they've ended."





http://phoenix.bizjournals.com/phoenix/stories/2006/03/27/daily12.html?t=printable

New Home Sales Plummeted in Feb...

New home sales plummeted in Feb., from the Arizona Republic, reports that national new-home sales took their worst drop in nearly a decade in February, and early indications are that it wasn't a good month for builders in metro Phoenix. New single-family home sales fell 10.5 percent in February. In the Valley, new-home numbers will be released this week. "Looking at the preliminary numbers, obviously February was a disappointment compared to last year and year-to-date," said RL Brown, publisher of the Phoenix Housing Market Letter, Builders are requesting fewer permits because they are trying to clear inventories or spec homes on which buyers didn't close, Brown said. "The bottom line is it is a market transition now," Brown said. The slowdown has put downward pressure on prices. Economist still believe that housing is likely to see a moderate slowdown this year rather than anything as severe as the bursting of a speculative bubble.



http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0325homes0325.html

The West Valley Saw The Number of Housing Resales...

Home resales down, prices up, from the Arizona Republic Glendale, reports that cities across the West valley saw the number of housing resales fall in February compared with the same time last year, though the median sales prices were higher. Peoria saw its median price rise to $275,000 in February, up from $212,000 in February 2005. Glendale prices rose to $250,000, up from $175,000 a year ago. Surprise went to $260,000, up from $198,000. Jay Butler, director of the Real Estate Center at ASU, said "all the signs are for a very good market. It won't be in a hyper mode, and there is no disaster mode sitting out there. It is a market that seems to be acting very normal."



http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/glendale/articles/0324gl-sales24Z18.html

Arizona Unemployment Rate Falls...

Arizona unemployment rate falls, from the Phoenix Business Journal, reports that Arizona added 36,800 new jobs in February and the state's unemployment rate fell 0.4 percentage points to 4.4 percent, another indication that the area continues to grow and attract new residents. Most of the new jobs created last month were in the government sector, a gain of 16,600. And three industry groups hit new record employment levels in February; leisure and hospitality, educational and health services, and construction. State economists also said that "given the degree of momentum in the economy, Arizona will most likely reach a record number of jobs in the next month or two."



http://phoenix.bizjournals.com/phoenix/stories/2006/03/20/daily46.html?t=printable

Time to Update Insurance...

Time to update insurance, from the Arizona Republic, reports that property insurers and regulators are calling on Arizonans to check their homeowners insurance coverage amid escalating residential prices and higher costs for building materials. The topic is timely because housing values have risen roughly 50 percent in the Valley over the past year. Yet residential prices aren't as critical, for insurance purposes, as the costs of lumber, wiring, metals, labor and other construction components. Marshall & Swift/Boeckh, a Los Angeles firm that tracks building costs, last year estimated that 59 percent of American homes were underinsured, by an average of 22 percent. This would be a great article to send to your past clients and sphere of influence!



http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0323Insure0323.html

Inventory Levels Have Continued To Grow...

Existing home sales volume retreats to 2004 levels, from the Phoenix Business Journal, reports that Valley resales fell by nearly 2,500 recorded sales from February 2005 to February 2006, according to the Arizona Real Estate Center at ASU. There were 5,455 resales in February 2006, down from the 7,935 in February 2005, but up from the 5,260 sales recorded in January 2006. The median resale price rose to $265,000 in February 2006, up from $257,000 in January. "As prices have stagnated since August, inventory levels have continued to grow, as we suspect an increasing number of speculators are placing their homes on the market," Raymond James analyst Rick Murray wrote to clients on Monday. The article gives a breakdown of the sales and median prices for each city.



http://phoenix.bizjournals.com/phoenix/stories/2006/03/20/daily16.html?t=printable

Resale Market Perks Up...

Resale market perks up, from the Arizona Republic, also reports on the housing market numbers released by the Arizona Real Estate Center at ASU. Jay Butler, the director of the Real Estate Center, said the market direction wouldn't be clear until the second quarter. Investors placing their homes on the market was again cited for the big increase in inventory. "We're getting a few more buyers coming out and looking around, but the inventory is going through the roof," said Floyd Scott, designated broker of Century 21 Arizona Foothills. "Investors are rotating out, going to Dallas and Austin. They bought the resale market last year, took the inventory right out of the market and everyone raised prices...We're still trying to find our legs on whether these prices will hold up or there will be a small decline this year. It might soften a little bit because of the price increase last year," he added.



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Former Copper Town Northeast of Tucson in Pinal County...

San Manuel set for growth, from the Arizona Republic, reports that San Manuel, a small former copper town northeast of Tucson in Pinal County, could become the site of 15,000 new homes and a luxury golf resort as part of a master-planned development proposed by Los Angeles based Lowe Enterprises. Lowe Enterprises envisions eight or nine neighborhoods, a high-end golf resort, commercial and retail development, and even light industrial as part of a mixed-use project. BHP Copper is the seller of the land, and chose Lowe over several other entities competing to develop the land. "It will be designed to appeal to every level of income from starter to move-up to second move-up to active adult," said Kent Merselis, a Lowe senior vice president. Between 4,500 and 5,000 people live in San Manuel, which sits below the Santa Catalina Mountains at about 3,500 feet elevation. The Pinal County supervisor who represents the area said he is in favor of the development because it will bring amenities and other benefits.



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Homebuilders Looking to Deal...

Homebuilders looking to deal, from the East Valley Tribune, reports that it only takes scanning the local newspaper ads to see some new homebuilders are dealing with a softer market in 2006. For many, its the first time in years that they have had to act more like car dealers by offering fat financial incentives. Engle Homes is offering $30,000 in upgrades, Shea Homes is offering new pools again, and Beazer has advertised price reductions as much as $40,000 on selected homes in its inventory. "The builders are back to marketing houses and marketing subdivisions, which they hadn't been because they had waiting lists for every lot they released," said RL Brown. "Things are getting back to normal, not abnormal. That's a positive sign." Some experts see the incentives as temporary and that builders will work through their excess supply of homes in the market quickly as more people move to the Valley. Part of the excess supply is from homebuyers and investors who are now cancelling contracts because home values have stabilized, or even dropped in some areas.



http://www.eastvalleytribune.com/index.php?sty=61421

Sunnyslope Gets New Look, Rising Interest...

Phoenix's Sunnyslope gets new look, rising interest, from the Phoenix Business Journal, reports that the Sunnyslope neighborhood, bounded by 19th Avenue, 16th Street, Northern Ave. to Peoria Avenue, has seen a renewed interest in its real estate, and rising home values. Two years ago, the average price of Sunnyslope homes ranged from $80,000 to $100,000. Now most sell over $200,000. Many of the homes are older, with about 1,200 to 1,500 square feet, one-car carports or garages, and few pools. This area is slowly redeveloping and is experiencing renewed interest due to its close in central location.



http://phoenix.bizjournals.com/phoenix/stories/2006/03/20/newscolumn1.html?t=printable

Metro Area 'Fringes' are Booming...

Metro area 'fringes' are booming, from the USA Today, reports that some of the fastest growing counties in the U.S. in 2005, including Pinal County, lie on the farthest edge of large metropolitan areas, stretching the definition of "exburbs" to the limit. "It's not just the decade of the exburbs but the decade of the exburbs of the exburbs," said William Frey, a demographer with the Brookings Institute. "People are leaving expensive cores and going out as far as they can to get a big house and a big yard. Suburbia is moving much further out," he added. The article cites Pinal County as the seventh fastest growing county in the U.S. with a 6.9 percent growth rate for the period 2004 to 2005. The article also cites Maricopa County as gaining 563,000 people from 2000 to 2005-- more than any other county in the U.S.



http://www.usatoday.com/news/nation/census/2006-03-15-census-growth_x.htm

The Nation's Third Largest County Behind...

Maricopa County: Here we grow again, from the Arizona Republic, reports that Maricopa County will soon be the nation's third largest county behind Los Angeles and Chicago's Cook counties. Census estimates to be released today rank Maricopa County No. 1 nationally in population gains for both the year ending July, 2005, and since the 2000 census. The estimated population of Maricopa County as of July, 2005 was 3,635,528. That is equivalent to the entire state's population in 1990! Maricopa county added 563,193 new residents since the 2000 census. 136,941 people are moving to Maricopa County each year, about 375 every day!



http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/news/articles/0315census-ON.html

Arizona Job Quality Ranks Low...

Arizona job quality ranks low, from the Phoenix Business Journal, reports that Arizona lags behind the national average in terms of job quality and wages, according to a new study released Wednesday by the W.P. Carey School of Business at ASU. Arizona ranks 23rd in terms of job quality due to its high number of jobs in lower paying industries such as food services, retail, hotels and back-office operations and lack of major employment clusters in high-paying scientific and technology sectors. The rankings come despite the fact that Arizona ranks second only to Nevada in terms of overall employment and population gains. The report on job quality in 2004 and the change between 2001 and 2004 is available on-line at www.wpcarey.asu.edu



http://phoenix.bizjournals.com/phoenix/stories/2006/03/13/daily36.html?t=printable

The Planning Commission of Cave Creek Voted Unanimously...

Condo-hotel craze spreads to Cave Creek, from the Sonoran News, reports that last Thursday, the planning commission of Cave Creek voted unanimously to continue the site plan and preliminary plat review for Cave Creek Resort & Casitas, a 252-unit condohotel project proposed for the northwest corner of Cave Creek and Schoolhouse roads. Developers favor the condohotel concept because it minimizes financing risks by shifting that risk to individual unit owners. Traditionally, construction doesn't start until 50 percent of the units are presold. Larry Lazelle, who represented the project to the commission, said this is the only way developers can afford to build hotels in this day and age. The two-story, pueblo-styled project will have three distinct villages with a centrally located pool, water slide and a lazy river feature.Even though they have not actively marketed the project, Lazelle said Russ Lyon Realty has received 300 calls. "It's not a timeshare", said Lazelle, "This is an ownership. But people can't stay for more than 30 days", to meet the definition of a hotel. "Their units are placed into a rental program where 50 percent of the revenue goes back to the owner."



http://www.sonorannews.com/headline1.html

Phoenix Cost of Living Remains Low...

Phoenix cost of living remains low, from the Phoenix Business Journal, reports that despite skyrocketing home prices, greater Phoenix is one of the most inexpensive major metropolitan areas in the U.S. to live, work and operate a business. Phoenix ranked eight among 29 major metro areas according to the latest statistics released Friday by the American Chamber of Commerce Research Association, the Council for Community and Economic Research, and the Greater Phoenix Chamber of Commerce. Greater Phoenix's 2005 fourth quarter index of 100.4 was slightly above the national average of 100, and lower than other metropolitan areas such as Las Vegas, San Diego, Seattle, Los Angeles and Chicago. The composite index is based on six components-- housing, utilities, grocery items, transportation, health care and miscellaneous goods and services. Greater Phoenix's affordability makes it an appealing target for relocating businesses and job growth. Global Insight Inc., a Massachusetts based economic forecasting company, named Phoenix, Las Vegas and Orlando, Florida as its leading cities for job growth in 2006.

http://phoenix.bizjournals.com/phoenix/stories/2006/03/06/daily64.html?t=printable

47-Acre Urban Village...

1-stop living for Avondale, from the Arizona Republic , reports that Oregon-based Parkland Development LLC is working with Avondale to create a 47-acre urban village featuring office buildings, lofts and shops. The proposed West 10 Corporate Center and the Shops at West 10 would sit on the southeast corner of 107th Ave. and McDowell Road, close to Gateway Pavilions. The project would include a 28-acre business park and about 20 acres for stores and lofts. The development is playing off the trend for urban mixed-use projects where people can work, live and play. Similar projects are popping up in other parts of the West Valley, including Buckeye and Glendale.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/swvalley/articles/0308swv-urbancenter08Z5.html

Home Builders Feel Ethnic Buyers' Impact...

, from the Arizona Republic, reports that as the size of the Valley's minority communities grow, the impact on home building and the real estate industry is creating a new dynamic in home selling. In the not-too-distant future, it may even change the way some houses are designed as builders take note of the needs of young families and extended families. Nationally, Hispanics, Asians and African-Americans make up more than one-third of all first time home buyers in 2003. Although local statistics are not available, it could very well be higher in Maricopa County, where members of those groups make up about 39 percent of Maricopa County's 3.5 million residents. "Just by surnames alone, I can tell you home ownership by Hispanics has soared and is a significant part of the current activity," said local housing analyst RL Brown. Another signal that minority home buying is ramping up is the number of real estate professionals across the Valley taking time to learn more about the customs and cultural nuances of various ethnic groups. This is a great market niche to hang your hat on!

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/business/articles/0308ethnicbuyers0308.html

Buyers Gain Upper Hand...

Buyers gain upper hand as homes sell less quickly, reports that the number of listings Valleywide are up, housed are taking longer to sell, and Buyers now have the upper hand in our real estate market. The number of homes on the market has nearly tripled in the past year, according to the Arizona Regional MLS. The reasons why? Speculative investors are selling after realizing gains of 40 to 50 percent. Prices are higher and buyers, including investors, are saying "no" to these higher prices. Mortgage rates have nudged higher, making housing even more expensive. Valley homes have not bee so difficult to afford since 1990. Incomes are not keeping pace with housing price increases.

Valley Tackles Cooling Market...

Valley tackles cooling market, reports that Metro Phoenix's housing market had big gains in the first half of 2005, but the market started showing signs of cooling in September, and by October, prices had dipped slightly. Increases of 30 to 50 percent were common in some zip codes as Metro Phoenix led the nation in percentage gain of housing price. The slowing has continued this year with resale listings exceeding 30,000 in January, nearly nine times the level for January 2005. Selling time has increased from 5 1/2 days to 49. Sellers are frustrated because they are getting few offers, and many are cutting prices. Most real estate watchers say the Valley's housing market is only reverting back to a stable one after last years frenzy. Jay Butler, head of the Arizona Real Estate Center at ASU says the housing market needs to "cool down to sustain the appreciation it gained last year. I wouldn't be surprised to see prices fall this year."

Valley Home Values, Buy? Sell? Hold?

On Sunday, March 5th, the Arizona Republic released its semi-annual housing market recap with a complete section on our housing market called Valley Home Values, Buy? Sell? Hold? . It contains eight articles about our real estate market and links to charts showing appreciation, median home prices, number of listings and information on each submarket area.

The link for this special section on our real estate market is http://www.azcentral.com/class/marketplace/homevaluesspring06/

The State's Economic Growth Rate in 2005 Was???

Arizona economy's job creation exceeds expectations, from the Phoenix Business Journal, reports that Arizona's economy was stronger than first reported in 2005, according to the Arizona Department of Economic Security (DES). The state's economic growth rate in 2005 was 5.3 percent, representing the creation of 125,000 new jobs, the best showing in a decade. This is higher than the earlier projection of 4.1 percent, or 110,000 new jobs. "What we're seeing even further, not just job growth, but recent data shows broad-based growth of wages as well," said Don Wehbey, an economist with DES. Wehbey said strong growth is expected to continue into 2006 and 2007. Official projections for 2006 and 2007 job growth will be released by DES on April 6th.

http://phoenix.bizjournals.com/phoenix/stories/2006/02/27/daily52.html?t=printable

Higher Material Costs Hang Over Construction Industry..

Higher material costs hang over construction industry, from the USA TODAY, reports that prices of construction materials have been rising because of demand from overseas and higher energy prices, and builders are passing these higher costs on to the consumer. Higher material costs mean higher home prices, higher rents on commercial projects, and changes to projects based on the material costs and availability. In December, steel prices were up 4.2% from the previous year, plastics were up 20.6%, cement was up 12.3% and gypsum wallboard was up 15.3%. The run up in construction costs is tied to higher crude oil prices, which make the delivery of goods more expensive, and, since oil is used to make plastic pipe and vinyl siding, those material costs have also risen. Steel and concrete have risen among shortages created by strong demand from overseas, especially China. "We see it in lumber, concrete, insulation, drywall and vinyl," said Jason DeBoer of DeBoer & Gabriel Builders. "Every week we see memos (from suppliers) of price increases of 5% to 10%."

http://www.usatoday.com/money/economy/housing/2006-02-28-building-costs_x.htm

Housing Resales Taking Longer to Turn...

Housing resales taking longer to turn, from the Phoenix Business Journal , reports that Valley resale homes are now averaging 40 days on the market, according to RL Brown and his Phoenix Housing Market Letter. The February issue indicates that the regional housing market is reacting to overpricing in the resale market and the resale "freefall" may be imminent for owners who wait too long to sell. "Market times will continue to move up until sellers reposition their pricing to market. Over-expectations by sellers are contributing to the booming rehab market," the newsletter states. Resale average prices peaked at $309,910 in January, up 27 percent from the $244,180 price tag a year ago. Median resale prices increased to $254,000 from $185,000 over the same period. "We anticipated a bumpy road for the early part of 2006," Brown said.

http://phoenix.bizjournals.com/phoenix/stories/2006/02/27/daily23.html?t=printable

Valley Draws Big Spenders to Elite Neighborhoods...

Valley draws big spenders to elite neighborhoods, from the Arizona Republic , reports that the Valley's luxury-home market is staying strong as wealthy buyers pay big money to move into the growing number of elite neighborhoods in the Valley. "The market is real strong", said Bob Hassett of Russ Lyon Realty. "We've got people looking at the $5 million, $6 million, $7 million stuff." There were more than 1,800 sales of houses worth at least $1 million last year according to the Arizona Regional MLS. That's an increase from nearly 1,000 in 2004. Paradise Valley had the highest median price in the Valley in 2005, with a median price of $1.39 million. Other areas seeing $1 million homes include North Scottsdale, Arcadia, Biltmore and North-Central Avenue. One area to watch is the West Valley with its large new planned communities with acreage set aside for luxury custom homes.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0301luxury0301.html