Current Arizona Real Estate News

Real Estate Tip: When purchasing a home always have a qualified home inspector do an inspection!

Thunderbird plans homes, apartments, retail, an article from The Arizona Republic, reports that land owned by Thunderbird School of Global Management around the school was zoned for educational and business park uses.  For nearly 20 years, the school marketed the property for research-type uses without success.  Now, the school wants to build homes and apartments, possibly expand its hotel and eventually develop offices, restaurants and stores.  The rezoning amendment was unanimously approved by the Glendale City Council and the school will now sell land to two Valley real-estate developers.  Scottsdale-based home builder, Cachet Homes, said the next steps would include going through the design-review process with the hope of breaking ground in early 2009.  The builder is planning three types of homes: traditional, condos and duplexes.  Trammel Crow Residential will buy a smaller parcel and can build as many as 270 apartment units.
http://www.azcentral.com/community/glendale/articles/2008/05/16/20080516gl-councilfolo0516-ON.html

Housing starts post surprising rebound, an article from MSNBC.com, reports that during the worst downturn in housing in more than two decades, construction of new homes posted the biggest increase in more than two years in April.  According to the Commerce Department, housing construction rose by 8.2% in April to a seasonally adjusted annual rate of 1.03 million units.  The growth came from a big increase in apartment construction.  Apartment building, defined as two or more units, jumped by 36% to a seasonally adjusted annual rate of 340,000 units, while the larger single-family sector dropped by 1.7% to an annual rate of 692,000 units.  Considered a good sign of future activity, applications for building permits also recorded an increase in April, rising by 4.9% to 978,000 units.  This was the first gain in permits in five months.
http://www.msnbc.msn.com/id/24664672/

Thunderbird plans homes, apartments, retail, an article from The Arizona Republic, reports that land owned by Thunderbird School of Global Management around the school was zoned for educational and business park uses.  For nearly 20 years, the school marketed the property for research-type uses without success.  Now, the school wants to build homes and apartments, possibly expand its hotel and eventually develop offices, restaurants and stores.  The rezoning amendment was unanimously approved by the Glendale City Council and the school will now sell land to two Valley real-estate developers.  Scottsdale-based home builder, Cachet Homes, said the next steps would include going through the design-review process with the hope of breaking ground in early 2009.  The builder is planning three types of homes: traditional, condos and duplexes.  Trammel Crow Residential will buy a smaller parcel and can build as many as 270 apartment units.
http://www.azcentral.com/community/glendale/articles/2008/05/16/20080516gl-councilfolo0516-ON.html

Housing starts post surprising rebound, an article from MSNBC.com, reports that during the worst downturn in housing in more than two decades, construction of new homes posted the biggest increase in more than two years in April.  According to the Commerce Department, housing construction rose by 8.2% in April to a seasonally adjusted annual rate of 1.03 million units.  The growth came from a big increase in apartment construction.  Apartment building, defined as two or more units, jumped by 36% to a seasonally adjusted annual rate of 340,000 units, while the larger single-family sector dropped by 1.7% to an annual rate of 692,000 units.  Considered a good sign of future activity, applications for building permits also recorded an increase in April, rising by 4.9% to 978,000 units.  This was the first gain in permits in five months.
http://www.msnbc.msn.com/id/24664672/

New businesses boost downtown Glendale, an article from The Arizona Republic, reports that the redevelopment of Glendale Avenue has been a top priority for Glendale leaders.  Two recent developments include a Fresh & Easy grocery store preparing to move into a vacant building at 51st and Glendale avenues, while a health-care business, Southwest Ambulance, has opened in a formerly vacant building at 62nd and Glendale Avenues.  City Council members plan to visit Southwestern cities this spring that have revitalized their city cores.  From there, ideas for revitalization should go to public forums before being refined and implemented in 2009.  Glendale Mayor Elaine Scruggs said, "People in the area are really looking for more day-to-day shopping opportunities.  That is pretty exciting."
http://www.azcentral.com/arizonarepublic/business/articles/0429biz-gl-redevelop0429.html

  10 Steps to Bolster Selling Appeal, an article from RISMedia.com, reports that selling a home in today's market is a challenging job.  There are thousands of properties for sale, buyers know they have leverage, and they’re using it.  They search a number of homes in a quest for the best combination of amenities and price.  According to a report from the National Association of Realtors, sales of existing homes have dropped by 19.3% in the past year.  Real estate appraiser Joel Greenberg said, “When the market was hot, buyers were willing to overlook things.  Not anymore.”  One very important part of preparing a home for sale is increasing the curb appeal.  The home should look fresh, get rid of any debris, weeds or toys in the yard.  Consider trimming the hedges so that they’re not hiding windows and plant colorful flowers.  Another way to make the home more attractive to buyers is to upgrade the lighting.  It is an inexpensive way to improve the look and mood of a house. Replace the fixtures, install dimmers and use soft-wattage light bulbs.  Finally, make certain the patio area is clutter-free.  Set up the grill and create an environment that allows potential buyers to see themselves relaxing outside and enjoying the backyard.

http://rismedia.com/wp/2008-04-25/10-steps-to-bolster-selling-appeal/

'Jewel' community to rise at proving ground site, an article from the East Valley Tribune, reports that according to developers of a prized east Mesa property, they are on track to turn 3,200 acres of dirt into a "jewel of a destination" for the East Valley.  John Bradley, vice president of DMB Associates said, "Nothing's been done before that's quite like this in the Sonoran Desert."  The Scottsdale developer is planning to turn the General Motors Proving Ground into a shining example of 21st Century urban development.  One goal of the developer is to acquire the city's special "planned community zoning district" designation, allowing greater leeway for projects that include a mixture of land uses.  Bradley said, "That affords a certain amount of flexibility needed for something this large."
http://www.eastvalleytribune.com/story/114368

Luxury retirement community set for north Scottsdale, an article from the East Valley Tribune, reports that according to Katherine Hutton, Scottsdale's economic vitality department director, demand for luxury projects is rising as the population ages.  Hutton said, "You're dealing with a generation that over time has amassed more wealth than any other generation before them."  More developers have been calling and showing interest in that market segment in recent years, she added.  Maravilla is scheduled to open in early 2011 and will feature a mixture of 350 independent living residences and 60 assisted living and memory care units.  According to city statistics, Scottsdale has 41,000 people who are 65 or older - approximately 17% of the city's population.  Maravilla executive director Tim Cowen said the initial entry cost will likely range from a little less than $300,000 to more than $800,000, with units ranging in size from about 900 square feet to nearly 2,100 square feet.
http://www.eastvalleytribune.com/story/113311 

NAR: Existing-Home Sales to Level Off, an article from Realtor Magazine Online, reports that according to the latest forecast by the National Association of Realtors, little change is expected in existing-home sales over the next few months, before improving notably during the second half of the year.  Lawrence Yun, NAR chief economist said, “Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure.  We’re looking for essentially stable sales in the near term, before higher mortgage loan limits translate into more sales in high-cost markets.  The wider access to affordable credit should increase sales activity notably this summer as pent-up demand begins to be met.”  With relatively weak activity in the first part of the year, existing-home sales for all of 2008 is forecast at 5.39 million, increasing 6.6% to 5.74 million in 2009.
http://www.realtor.org/rmodaily.nsf/pages/News2008040801

Colliers' 2020 Vision pegs Phoenix-area growth hot spots, an article from The Business Journal of Phoenix, shares key findings from a new report published by Colliers International.  According to the report, key growth areas in the near future for commercial and mixed-use real estate are downtown Phoenix, the light rail corridor, downtown Mesa and the southwest and southeast areas.  The areas in and around downtown Phoenix's bioscience community and along the 20-mile light rail system (from northwest Phoenix through downtown to Tempe and Mesa) are expected to experience the most immediate growth.  There is more than $3 billion in public and private redevelopment projects currently underway in downtown Phoenix.  Downtown Mesa is expected to see growth in the areas of back-office, industrial and education.  "By 2010, a new downtown campus for Mesa Community College, in conjunction with NAU and Mesa Public Schools, will be well under way on 4 acres at the southeast corner of University and Mesa drives," according to the report.
http://phoenix.bizjournals.com/phoenix/stories/2008/03/31/daily56.html?b=1206936000^1614440 

Real Estate Outlook: Market is Stirring, an article from RealtyTimes.com, reports that affordable mortgage money is what it will take to pull the real estate market out of the woods and it could be happening soon.  According to the Mortgage Bankers Association of America, interest rates plunged last week by nearly a quarter of a point on 30-year fixed-rate money, from 5.98% to 5.74%.  There was also a big jump in new loan applications from people looking to buy houses.  They were up by almost 11% for conventional conforming loans.  Other positive signs that appeared last week include the total inventory of unsold houses dropping by 3% and new homes for sale dropping 2.1%.  It may not be the end of the down cycle as a whole, but it's certainly pointing to a more active spring season.
http://realtytimes.com/rtpages/20080403_realestateoutlook.htm

Ritz developer wants public to view plans, an article from The Arizona Republic, reports that on Thursday, the developer of the proposed Ritz-Carlton, Paradise Valley Resort will hold an open house for the public to learn more about the project.  According to David Schmid, vice president of development for Scottsdale-based Five Star Development, the open house will give the project's neighbors and town residents one last look at the plan before an April 10 public hearing.  Five Star Development's plans include a 225-room Ritz-Carlton resort, plus 15 one-acre estate home sites, 46 luxury detached homes and 100 resort patio homes on about 110 vacant acres.  Schmid said many of the project's local consultants will be at Thursday's open house to answer questions, and the public will be able to view exhibits.http://www.azcentral.com/community/scottsdale/articles/0401sr-pvritz0402-ON.html

   Is There Room For DotHomes?, an article from RealtyTimes.com, reports that Douglas de Jager launched an American-version of DotHomes.  DotHomes uses super-powered search algorithms to pump out listings of homes as fast as you can type in a ZIP code.  Instead of relying upon brokers, agents and multiple listing services to supply listings, often for a fee, DotHomes has its own search machine to reach out and grab listings from wherever they appear online.  In order to help pay for the site, De Jager hopes to persuade the real estate industry to advertise with Dot-Homes.  According to De Jager, a new business model is just what the market needs.

Valley urban-retirement communities on the rise, an article from The Arizona Republic, reports that British Columbia-based Avenir Group is building the Arté in Scottsdale, the Diamond in Surprise and potentially the Palms in Chandler, a project that is still pending city-staff review.  Avenir's Valley projects will be about four stories high.  In Surprise, the Diamond will rise in the city's future downtown, walking distance from its spring-training stadium and a soon-to-be 17-acre strip of main-street-style shops, restaurants and entertainment venues.  In Chandler, the Palms would be a three-mile shuttle ride to the city's popular art walk and downtown boutiques and restaurants.    
http://www.azcentral.com/arizonarepublic/business/articles/0321biz-urbanretirement0321.html

  Mortgage relief proposals gain momentum, an article from MSNBC.com, reports that with the mortgage meltdown threatening to grow into a wider economic disaster, plans for a more aggressive approach are beginning to take shape on Capitol Hill.  Up until now, the government’s primary response to the rising tide of foreclosures has been the Hope Now Alliance, a voluntary association of lenders and community groups set up to streamline communication between borrowers and their lenders.  Rep. Barney Frank, chairman of the House Financial Services Committee, proposed legislation to authorize the Federal Housing Administration to provide up to $300 billion in loan guarantees for new mortgages to replace old loans gone bad.  The Hope for Homeowners Act has been introduced by Sen. Christopher Dodd, D-Conn., who heads the Senate Banking Committee.  Both proposals have some significant differences, but the plans share some common ground.  The general idea would be for the government to identify problem loans and ask the investors who hold them to book a loss that, in many cases, they’ve already taken.  The government would then sell the loans back into the credit markets at a lower price, while offering new, more affordable loans to the borrowers. The new loans would reflect the true, current value of the home and give homeowners a chance to begin building equity again.
http://www.msnbc.msn.com/id/23729202/

  Retirement community plans include 9-story building, an article from The Arizona Republic, reports that Gilbert's Design Review Board is considering a retirement community that would include a 9-story building.  According to Jason Israel, president of Hayden Properties, the project's owner and developer, construction could begin this summer on the development near Mercy Gilbert Medical Center with the first phase including a 4-story care and specialized medical building.  The second phase would include a 9-story building and two 4-story buildings housing independent and assisted living, a spa, a health club and an outdoor pool. 
http://www.azcentral.com/community/gilbert/articles/0313gr-designo0313.html

  Build your dream house now, an article Money Magazine, reports that behind the dark clouds hanging over the housing market is a very compelling silver lining: The cost of building the home of your dreams is coming down.   Jim Haughey, chief economist at Reed Construction Date said, "If one or two years ago it cost you $300,000 to build a custom home, today it should cost tens of thousands of dollars less."  One reason it should cost less is the price of some construction materials has started to decrease.  Framing lumber is now 18% cheaper than it was 18 months ago and drywall is selling for 40% less.  Also, land prices in some areas have fallen more than 20% in the past year or two due to developers purchasing too much land during the boom.  If you've always wanted a custom-designed home and are willing to do a lot of work, today's market makes it easier and cheaper to realize your dreams.
http://money.cnn.com/2008/03/10/real_estate/build_home.moneymag/index.htm?postversion=2008031218

Scottsdale home permits dip, commercial sites up, an article from the East Valley Tribune, reports that figures show fewer new homes and condos are being built in Scottsdale, but interest in commercial projects and home remodels has continued to increase over the past few years. A growing number of new offices and other commercial ventures, along with remodels of older homes, has pushed up total permits.  According to Michael Clack, the city's chief development officer, there is an increase in home additions, new garages and roofs and other repair maintenance that require city permits.  "We're still busy, we're just busy differently now," Clack said.  Total permits have increased 33% since 2005.  Those numbers have increased from 2,751 in 2005 to 2,968 in 2006 and 3,647 in 2007.http://www.eastvalleytribune.com/story/110418

  Housing Affordability Push for Veterans, an article from Realtor Magazine Online, reports that on Thursday, the National Association of Realtors testified in Congress that the Veterans Home Loan Guaranty Program should continue to be a valuable asset in helping the nation’s veterans achieve homeownership in a way that is safe, fair, and affordable.  Tony Agurs, a member of the NAR Board of Directors said, “It is our duty as a country to make sure that our retired and active duty veterans and their families are given every opportunity to own and keep their home if they have the basic means and desire.”  The VA Home Loan Guaranty Program offers protections for borrowers if they encounter financial difficulties by offering a variety of supplemental loan servicing programs to help military families avoid foreclosure.   
http://www.realtor.org/rmodaily.nsf/pages/News2008022902

Green construction getting boost, an article from The Arizona Republic, reports that state and federal governments, utility companies and some municipalities are providing economic and procedural incentives for green building.  Most take the form of financial incentives offered for renewable energy and energy efficiency, and some cities offer faster plan review and processing to builders on their green projects.  Currently, Phoenix does not provide any green tax incentives for residential or commercial developments or tracking of residential or commercial projects with green features.  According to Sina Matthes, a city spokeswoman, builders do seek certification under international Leadership in Energy and Environmental Design guidelines when building city offices and recreational centers.  In Scottsdale, the city's green building manager Anthony Floyd said, "About 23 percent of single-family residence permits for 2007 were for green residential housing."
http://www.azcentral.com/community/phoenix/articles/0226phx-greenincentives0227.html

  The Value of Successful Home Staging, an article from RealtyTimes.com, reports that as a real estate agent, you know that staging your real estate listings will result in a faster and more profitable sale.  If you are looking for expert and objective home staging guidance, you might seek the assistance of an Accredited Staging Professional (ASP) in order to compete in today's buyers market.  In the current market, staging is not about selling the property for more, but about selling the property, period.  A stager can see your listing as buyers will, and they'll set the scene so that buyers can imagine living there.  REALTORS® and sellers can hire stagers by the hour or the room and typically pay from $200 to $3,000 depending on the level of service required.  Effective staging creates an atmosphere that makes people want to linger and imagine themselves living in the space.
http://realtytimes.com/rtpages/20080227_homestage.htm

Arizona has first new-home auction, an article from The Arizona Republic, reports that Arizona's first new-home live auction was held on Sunday, where first-time home buyers, retirees, families and investors went head to head to snatch up discounted properties in Buckeye and Flagstaff.  At the auction, 37 homes in the Verrado and Flagstaff Ranch communities were sold in less than two hours.  Auctioneer Dean Cullum said to the attendees, "You are the marketplace.  You are going to determine what the homes are worth."  Several homes sold for about $100,000 less than the previous asking price.  Rhett Winchell, president of Kennedy Wilson auctions, said that around the country, new-home auctions are becoming more popular as builders seek to unload empty homes.  He said he'd expect others in Arizona soon if the market slump continues.  "It's what buyers are waiting for and what sellers need to do," Winchell said.
http://www.azcentral.com/community/swvalley/articles/0226swv-auction0227.html

3 Important ‘Rs’ of Home Finance in the Home-Buying Process, an article from RISMedia.com, reports that among the most important business resources any Realtor develops are those they form with mortgage providers.  Professional Realtors can provide valuable insight to the home buyer for just about every aspect of the transaction, but the biggest difference brought to each home sale is the buyer’s qualifications for financing.  For this reason alone it is important both to the Realtor and the home buyer to find a mortgage provider whose business embraces the three “Rs” of home financing.  The first "R" of home finance is Responsive.  The responsive mortgage provider asks a lot of questions and clarifies the customer’s answers until together they reach an agreement on an appropriate loan.  The second "R" is Reliable.  One way to communicate reliability is integrity; fulfilling the promises that are made.  And the final "R" of home finance is Resourceful.  A resourceful mortgage provider will be prepared to have an alternate source for financing that provides the same rate and terms as promised should an unexpected event happen during the home buying transaction. 
http://rismedia.com/wp/2008-02-25/3-important-rs-of-home-finance-in-the-home-buying-process/

  Business development picking up pace in Gilbert, an article from The Arizona Republic, reports town figures show that in January, permits were pulled for nearly four times the amount of commercial development space as in January 2007.  Permits were issued last month for about 257,000 square feet of industrial space and about 195,000 square feet of retail buildings.  Mayor Steve Berman said, "Retail is incredibly important to the town of Gilbert.  I would like to see Gilbert become a shopping destination for people."  Greg Tilque, Gilbert's development services director, said they expect to see more projects like Greer Towne Center, a Vestar project that will bring about 450,000 square feet of retail and restaurants to the town and is projected to open in 2010.
http://www.azcentral.com/community/gilbert/articles/0212gr-permits02131-on.html

  Rising foreclosures pressure housing prices, an article from MSNBC.com, reports that a growing share of home sales are from foreclosures, especially in states hardest hit by the housing bust.  Real estate experts say the growing proportion of foreclosure sales is both a symptom and cause of worsening conditions in the weakest housing markets.  Their reasoning is that homeowners who aren’t on a deadline to sell are pulling their properties off the market, and the remaining inventory is increasingly held by banks eager to unload foreclosed properties at fire-sale prices rather than carry the costs on their books.   Although foreclosure sales are bad news for homeowners in neighborhoods with high foreclosure rates, they are a boon for well-financed buyers looking for properties at bargain prices.  And in broad terms, economists view them as part of getting back to more realistic prices after years of excess.  Walter Molony, National Association of Realtors spokesman, said in an effort to get a handle on the scope of the problem, the National Association of Realtors is conducting an informal survey of the issue and is planning to release findings later this month.

Mesa centers will offer retail, office, living, an article from the East Valley Tribune, reports that on the drawing boards in Mesa are two mid-rise hotels, a movie theater, a major department store, office suites and apartments.  The proposed Red Mountain Commons, Val Vista Retail Center and another unnamed center will bring to market nearly 800,000 square feet of space, roughly the size of a regional mall.  Val Vista Retail Center is the largest of the three developments at 427,000 square feet.  A planned apartment project is also part of the plans for this development.  Red Mountain Commons will include 150,000 square feet of retail space and 84,000 square feet of offices with a 120-room hotel.  This development will be located near the Red Mountain Commerce Park, a project expected to be begin this summer that will bring two hotels, high-end office buildings and retail stores to a 25-acre lot.  The development yet to be named will encompass about 130,790 square feet and include a 103-room, four-story hotel.
http://www.eastvalleytribune.com/story/108289

 Where to Advertise Your Home For Sale, an article from RealtyTimes.com, reports that Mike Simonton, Senior Director at Fitch Ratings estimates that 30% of help-wanted classified advertising is now publicized online and while the real estate and auto classified advertisements are significantly lower, around 15% to 20%, they will soon likely catch up to the help-wanted classifieds.  Simonton explains, "There are some obvious benefits to some of the online search tools that are unavailable in a print product."  Things such as being able to target geographic locations, target price range and the features they want make searching online for a home easier and faster.  Consumers can filter out homes they don't want and search specifically for what they do want "in a much more sophisticated way than you're able to do in a print product," says Simonton.  
http://realtytimes.com/rtpages/20080206_advertonline.htm

Resale market gains steam in Pinal County, an article from The Business Journal of Phoenix, reports that according to Realty Studies, Pinal County's resale housing market picked up steam toward the end of 2007, going from 625 transactions in the third quarter to 1,145 in the fourth.  Jay Butler, director of Realty Studies, said lower prices have made homes more affordable and even attractive to investors that foresee strong appreciation in the coming years.  The median price in Pinal County has steadily dropped from $220,000 in fourth quarter 2005 to $193,000 in the third quarter 2007 and $174,000 for the fourth quarter.  One year ago, the median price was $191,500.
http://www.bizjournals.com/phoenix/stories/2008/01/28/daily51.html?surround=lfn

Worried Sellers Splurge On Home Renovations, an article from RealEstateJournal.com, reports that with the housing market continuing to weaken, many sellers are going beyond the usual cleaning, painting and "staging" with flowers and pillows, by taking on big-ticket projects.  According to experts, sellers are unlikely to get their money back from extensive renovations. However, owners often feel they have no choice if they want to sell, especially when builders of newly constructed homes are throwing in hardwood floors, finished basements and other free upgrades.   An online poll of 445 contractors conducted last week by ServiceMagic for the Wall Street Journal indicates last-minute renovating is supporting a sizable chunk of the remodeling industry.  The poll shows that 26% of contractors said they had been contacted in the past year by prospective home sellers looking to do substantial work.  Of those contractors, 48% said such work had boosted their business by 20% or more. 
http://www.realestatejournal.com/buysell/tactics/20080204-fletcher.html