Arizona Fastest Growth in U.S.

Arizona growth fastest in U.S., from the Arizona Republic, reports that Arizona ended Nevada's 19-year reign as the nation's fastest growing state, according to the lasted U.S. Census numbers. Arizona had a population growth rate of 3.6 percent in 2006, adding 213,311 people. That brings the state's population to more than 6.1 million and makes Arizona the nation's 16th largest state.



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State Transportation Board...

SEV freeway projects on fast track, from the Arizona Republic, reports that in addition to the West Valley projects that received fast-track status from the State Transportation Board, two SEV projects were also accelerated. The two SEV projects are:

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adding an HOV lane in each direction to five miles of the Loop 101 between Baseline Road and the Santan Freeway section of Loop 202 in Chandler.
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Purchasing right-of-way for Williams Gateway Freeway, a future five-mile corridor that swings off Loop 202 and out east to Meridian Road. This project was moved up to next year versus 2014. However, construction of the corridor is scheduled for several years away.

The Maricopa Association of Governments identified and approved the projects needing state appropriations, also known as the Statewide Transportation Acceleration Needs, or STAN, fund.





http://www.azcentral.com/community/gilbert/articles/1216gr-vote1216Z12.html#

Do Your Due Diligence...

Home buyer is suing seller in fissure flap, from the Arizona Republic, reports that one homeowner is suing her property's previous owners and real estate agents involved in the deal over fissures that have appeared on the property they purchased. It is the latest round in an ongoing battle between home buyers and developers over the growing fissure problem. The Etenhousers purchased a property near the Santan Mountains in February 2004 for $230,000, but nearly three years later, they feel the value of the home has plummeted because of three fissure cracks that have shattered their land, cracked their tile floors and separated walls and ceilings. The suit alleges that the sellers lied about known defects on the property and that the agents should have known that the property contained fissures. ADRE has recently changed its subdivision reports to include a separate section for fissure disclosure.



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30-Year Mortgage Rates Rise Slightly...

Rates on 30-year mortgages increased for the first time in about a month, rising slightly to an average of 6.12 percent this week from 6.11 percent a week ago. However, they remain close to the 2006 low of 6.10 percent reached during the week ending Jan. 19.

Freddie Mac chief economist Frank Nothaft says the small change was the result of mixed signals from recent data on job growth, retail sales, wage growth, and consumer sentiment. The Federal Reserve held interest rates steady once again this week; and many experts believe the central bank will continue to do so through May or June of next year, with hopes of achieving a soft landing.

Nothaft says he does not think a moderate rise in mortgage rates in the months to come would prevent a rebound in the housing market.

Scottsdale & Happy Valley Roads...

Land sale plan raises ire, from the Arizona Republic, reports that Tempe-based SunCor Development Company has applied to the State Land Department to purchase a 1,713-acre tract of land northeast of Scottsdale and Happy Valley roads. This has angered Scottsdale leaders who want to preserve that land as open space. But a price tag of nearly $500 million could put it out of Scottsdale's reach. "This is so premature," Scottsdale Mayor Mary Manross said Monday, adding that the city had not expected this land's sale for at least five years. The 1,713-acre tract stretches all the way to Pima Road and Dynamite Blvd., and has a wash and power line cutting across it that will limit how much can be developed. It is zoned for low-density housing of no more than one home per acre. The land has not been appraised yet but State Land Commissioner Mark Winkelman roughly estimates that it could bring in close to $300,000 per-acre. The auction for it is not likely for 9 to 12 months, he added. "Bringing it forward does not prevent Scottsdale from purchasing it," Winkelman said, adding that the city will have to prioritize which lands it wants most for its preserve.

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Elliott Pollack's Latest...

Local economist Elliott Pollack's latest report on the housing market. Elliott points out that people forget that housing is cyclical. In 2004 and 2005, there was an explosion of roughly 123,000 single-family permits pulled in the metro area, yet demographics for that same time period supported only 84,000 to 90,000 units were needed. That led to an oversupply of between 15,000 to 25,000 units, and has led to the current "inventory correction". Elliott states that historically based on population inflows, we should be doing 43,000 to 44,000 new homes in the Valley, and that we will need to go through a period of under-production to get rid of the excess inventory. He says that the worse 2007 is in terms of new home permits, the better off we will be and the quicker we will pull out of this oversupply market. Very good article for a true representation of the market.



http://www.elliottpollack.com/word_docs/ASU%20Speech%202006_final%20presented.pdf

Falling Mortgage Rates = Big Savings

Falling mortgage rates = big savings, from the USA TODAY, reports that mortgage rates have fallen for 10 of the past 13 weeks and are now averaging 6.11%, the lowest since January, according to Freddie Mac. Six months ago, the average rate on a 30-year fixed rate mortgage was 6.67%. The average this year is 6.44%. The unexpected but steady decline in rates could cushion falling home sales by making mortgage payments more affordable. Lower rates will also help the millions of homeowners with adjustable-rate mortgages that are resetting to higher rates. "These low rates really have come as a surprise, considering previous forecasts," said Greg McBride, a senior analyst at Baknrate.com. "And I don't see these rates going up by a significant measure anytime soon." "Lower rates should improve the affordability issue, which has really become a challenge to a lot of American homeowners," said LaVaughn Henry, an economist for The PMI Group, a mortgage insurance company.


http://www.usatoday.com/money/perfi/housing/2006-12-08-falling-mortgage-rates_x.htm

Arizona...Top Job Market That's A Fact...

Arizona knocks off Nevada as top job market, from the Phoenix Business Journal, reports that Arizona knocked Nevada out of the top spot in job growth for October with a gain of 4.7 percent, or 121,200 jobs, since October of 2005. Among metropolitan markets with a work force of more than 1 million, the Phoenix area retained the top position in nonagricultural employment for October 2006 over October 2005, with a 5.2 percent gain, representing 94,500 jobs. Overall, the US economy grew by 1.92 million nonagricultural jobs from October 2005 to October 2006-- a 1.4 percent increase.



http://phoenix.bizjournals.com/phoenix/stories/2006/11/27/daily39.html?surround=lfn

Supply & Demand In The Resale Market...

With 25,000 spec homes, now may be the time to buy, from the Arizona Republic, reports that as many as 40 percent of the contracts on all new homes in the Valley during 2005 and early this year have fallen through. That translates to 25,000 spec homes, according to a new survey from housing analyst RL Brown. Many new home deals fell apart because buyers couldn't sell existing homes, but there also were many investors who pulled out of new-home deals after seeing they couldn't flip the homes for hefty profits. Now builders are offering huge incentives to get the inventory sold. So if you looking for the best deal on a new home, it might be now. Housing analysts also

say supply and demand in the resale market has to get back in sync before the home building market will rebound. Realty Executives President John Foltz said many of his agents ask where all the home buyers are in this "buyers market". His answer: "They're living in overpriced listings."



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