Market News

August 2017

Phoenix Housing Market Sees Solid Growth
Despite Slight Dip In Homeownership

August 8, 2017 | prnewswire.com
by Ten-X

IRVINE, Calif. and SILICON VALLEY, Calif., Aug. 8, 2017 /PRNewswire/ — Ten-X, the nation’s leading online real estate transaction marketplace, has released its First Quarter 2017 Economic and Single-Family Housing Market Outlook Report for Phoenix, which reveals a strengthening housing market despite a slight dip in homeownership. In the first quarter, the region’s homeownership rate fell from 63 percent to 62.3 percent and continues to trail the national level, yet is still 120 basis points higher than the same period one year ago.

“It is taking a while for the Phoenix housing market to bounce back, but overall, its recovery remains impressive,” said Ten-X Executive Vice President Rick Sharga. “Home sales growth in the Phoenix metro region led the U.S. in year-over-year gains, yet prices are below their prior peak, which suggests there is still room for them to increase. We continue to see signs of long-term growth thanks to the area’s economic diversity, strong demographics and favorable quality of life. In fact, the region’s population grew at nearly triple the national rate, and employment is at an all-time high.”

Existing home sales in Phoenix edged higher in Q1 to a seasonally adjusted annual rate (SAAR) of 121,794, posting a 10.2 percent year-over-year gain that led the nation. Inventory of homes for sale in Phoenix ticked slightly higher from the previous quarter to 21,415 on a seasonally adjusted basis, yet inventory was down 7.8 percent from one year ago. The average time a home sat on the market dropped sharply to 48 days, a whopping 20 percent decrease from one year ago. Some inventory relief may be coming in the form of new home construction. Compared to one year ago, housing starts and permits were up 2.1 percent and 10.6 percent, respectively.

Phoenix home prices continued their impressive ascent with a 7.1 percent year-over-year gain, which is outpacing the U.S. average. The median home price climbed modestly to $236,440, which is still below the city’s prior peak before the 2008 housing crisis and may point to further appreciation ahead.

“Despite tight inventory and the likelihood of further rate increases, the Phoenix market remains affordable for most buyers. The region’s strong economy and relatively modest price increases are keeping homeownership attainable,” Sharga said.

Phoenix’s economy continued to expand at a solid clip during the first quarter. While payrolls contracted in late 2016, employment was up 2.5 percent year-over-year and remains near all-time highs. The region’s unemployment rate stood at 4.5 percent, near the U.S. average. Professional/business services remained the city’s strongest economic driver. In spite of job losses in three of the past five months, the sector saw an 1.8 percent increase in payrolls from one year ago. Employment in the financial services sector is up 5 percent from one year ago and continues to outpace the national rate.

Phoenix added 93,680 residents in 2016 to account for a 2.1 percent year-over-year increase, which is nearly triple the U.S. growth rate. Domestic in-migration comprised more than half of the increase, thanks to the metro’s strong labor market. However, the region has significantly fewer residents between 25 and 64 years old, which are a consumer’s prime homebuying years.

copyright © 2017 prnewswire.com


________________________________________________________________

July 2017

Hot Neighborhoods 2017Hot Neighborhoods
May 2017 | phoenixmag.com

by Wynter Holden

Most Popular: Arcadia Lite
Median Price Range: $410,000-$450,000
 

“You can fall in love at first sight with a place as with a person.”
— Alec Waugh, British novelist

The proverbial prom queen of Phoenix neighborhoods, Arcadia is perfumed with orange blossoms every spring – a throwback to the area’s early days as a citrus grove. The bad news? Homes average around $3.2 million, and new listings are scarce. “The livability and quality of life standards are off the charts,” says Nick Blue, owner of local developer Blue Sky Homes, citing the area’s “intelligent urbanization and city planning.”

Follow the floral scent south across the canal to Arcadia Lite and Lower Arcadia, however, and you’ll find an eclectic mix of midsize 20th century homes and McMansions in walking distance of trendy eateries like The Grind, Crudo and perennially packed pizzeria La Grande Orange. “Many of the original homes in Arcadia Lite… offered a tight and confined kitchen space with little to no storage and little in the way of covered parking,” Blue says. While you can still scoop up one of those vintage charmers for around $280,000-$350,000, developers have focused on giving East Phoenix’s trendsetters modern amenities like three-car garages and open-floor concepts. Case in point: The Villas at Baker Park, a 44-home gated community set on the former grounds of Baker Nursery. Starting price: $700,000.

• Homes sell for 97.7 percent of the asking price, on average, compared to 80 percent in the Valley proper
• Has a Big Lebowski-esque watering hole called The Bar
• Near San Francisco tech firm Zenreach’s upcoming Biltmore Corridor office

Life of the Party: Scottsdale Entertainment District
Median Price Range: $240,000-$280,000

“Partying is not a sane way to spend money, but it’s fun.”
— Markus Persson, Swedish video game programmer

Most of Phoenix rolls up the proverbial red carpet by 9 p.m. Meanwhile, Scottsdale’s youthful, stylish jet set is still rocking out at Stetson Drive’s clubs until the drinks dry up and it’s time to Uber home. To keep up with them, local developers are frantically erecting pricey condo complexes with trendy one-word names like ENVY and Inspire in the nightlife district surrounding Scottsdale Road between Camelback and Indian School. Their purpose? Providing comfortable, chic spaces that trust fund babies and future CEOs can be proud of. Even a small one-bedroom is out of reach for the $30,000 millionaires rocking Mommy’s discarded Lexus, but that’s not the demographic this area is trying to attract. “The Old Town area is really booming, and we’re seeing an influx of smaller boutique communities popular with young professionals,” says agent Andrew Birss of ScottsdaleCondoMania.com. According to Birss, you can score a unit in an older building for as low as $200,000-$250,000 right now, with larger units in high-amenity new builds such as Optima, ENVY and Inspire priced in the millions.

• Condo prices jumped an average of $32,000 from December 2015 to late 2016
• Near the new $75 million Andaz Resort
• ENVY owners score permanent VIP access at select Valley clubs

Most Creative: Roosevelt Row
Median Price Range: $390,000-$430,000

“Art is the lie that enables us to realize the truth.”
— Pablo Picasso

It’s the classic gentrification tale: Artsy girl meets affordable ’hood and they fall in love. Artsy girl makes the area trendy. Young professionals move in and price the artsy girl out. RoRo is in the midst of this Pygmalion-like drama, making now a perfect time to move into the funky, vintage-meets-modern home of Downtown’s renowned First Friday Art Walk. The 300-unit Broadstone Roosevelt, 150-unit Portland on the Park complex and shipping container apartments called theOSCAR are expected to open in 2017, making way for hundreds of new residents. “New developments are under construction now and many more are on the way, so the area will only continue to get better,” says HomeSmart agent David Otto.

Luckily, RoRo still offers flexibility while the area is in transition. You can score a cheap, albeit likely run-down, bungalow west of Seventh Avenue for $175,000-$250,000, while newer condos start in the $170,000s and go up to $1.2 million for a three-bedroom penthouse. Venture east of Central Avenue to find Craftsman bungalows and stately four-plex manor homes. According to Otto, RoRo’s single-family houses are skyrocketing in price due to their rarity. “A large three-bedroom, two-bath Craftsman-style can be found priced around $500,000,” he says. “And the prices go up from there.”

• Downtown will get its first grocery store – a Fry’s at Block 32 – in 2018
• Speakeasy swing dance nights every third Thursday at DeSoto Central Market
• Grid Bike rental station on Fifth and Roosevelt streets

Miss Congeniality: Anthem Parkside
Median Price Range: $144,990-$259,990
“Don’t wait for people to be friendly. Show them how.” — Anonymous

Strolling through Parkside is like taking H.G. Wells’ fictional time machine back to simpler days. Residents wave and greet travelers. Couples walk their dogs along tree-shaded greenbelts. Kids pretend to be mermaids in the splash pad. The small-town, Midwestern feel is what attracts families to this popular Anthem neighborhood. “There are an unlimited number of things for my family to do,” says Jodi Hale, who moved to the area with her three sons in 2005. “My kids have access to the Adventure Park with playgrounds, basketball and volleyball courts, and bike and walking trails, as well as over 30 neighborhood parks.”

Situated at the foot of Daisy Mountain in the extreme northern Valley, Parkside includes about 7,000 homes, as well as a 63-acre community park and numerous hiking trails. Around the holidays, community members become one big happy family, hunting for eggs at the annual Anthem Days festival each spring, listening to concerts in the park in May or waving flags in the Veterans Day parade.

“I love how Anthem provides a sense of community for residents,” Hale says. “Especially with annual events such as Music in May and the community light displays over the winter holidays.” On second Saturdays, her family can often be found hanging out with neighbors and listening to live music on the Anthem Civic Building terrace.

• Anthem’s crime rate is 26 percent lower than the national average
• Picked by Parenting magazine as one of the best places to raise a family
• Has a K-8 school onsite

Most Eclectic: North Mountain/Sunnyslope Foothills
Median Price Range: $230,000-$270,000

“In order to be irreplaceable, one must always be different.”
— Coco Chanel, fashion designer

Sunnyslope is a study in contrasts. Its first subdivision was founded in 1911 by area homesteader William R. Norton, whose daughter came up with the town’s name. Over the next 100 years, the town became a patchwork quilt of architecture, from Wendell Burnette’s space-age Dialogue House to the infamous Sunnyslope Rock Garden, a fantasy world (read: front yard nightmare) of glass-studded concrete mosaics. Jenna Alexander of 50 States Realty got a first look inside Sunnyslope’s historic architecture when she helped a client purchase a mid-century home there two years ago.

“The area has character. Some of the houses still have their original windows, but with modern touches like polished concrete floors,” she says. Far enough away from the hubbub of Downtown, the foothills area north of Dunlap Road includes many older, more affordable bungalows from the 1960s-1970s – including a few examples of two-story “upside-down” homes with the main living areas located upstairs. The views of North Mountain are lovely at sunset, especially along East Foothill Drive, where backyards meet the craggy greenstone hills.

• Within biking distance of the Arizona Canal Path
• Has its own local brewery, North Mountain Brewing, on Dunlap
• The iconic “S” painted on the side of Sunnyslope Mountain was awarded historic status

Most Athletic: Arrowhead Ranch
Median Price Range: $320,000-$360,000

“One man practicing sportsmanship is far better than 50 preaching it.”
— Knute Rockne, Notre Dame football coach

Tucked between Adobe Dam and New River in Glendale, Arrowhead Ranch is an epicenter for true sportsmen (and women) – i.e. those who prefer to participate in games and physical activities rather than just watch. “It’s an older community, so people are gutting the homes and bringing them up to modern cosmetic standards,” says former resident Nate Martinez, a real estate agent with RE/MAX Professionals. “Once someone moves in, though, they tend to stay.”

According to Martinez, who has more than 25 years of experience selling homes in the Phoenix area, the Arrowhead Lakes subdivision is especially appealing to outdoorsy types, while the newer Sierra Verde offers popular hiking trails. The community includes two golf courses and a fitness club, with easy access to gym chains Underground Fitness and Mountainside Fitness. Catch San Diego Padres or Seattle Mariners games at nearby Peoria Sports Complex, then warm up your pitching arm on the center’s 12 practice fields. Bikers hitting the 5.9-mile Deem Hills Circumference Trail can often be found tuning up their BMXs at Bicycle Depot of Arizona on Beardsley Road and 59th Avenue, while the strength training set has no shortage of CrossFit options on the community’s west side.
• 15-minute drive to University of Phoenix Stadium
• Free classes at the Arrowhead Fitness Club
• Borders the 1,185-acre Thunderbird Conservation Park

Most Likely to Survive the Zombie Apocalypse: Agritopia
Median Price Range: $335,000-$375,000

“If you believe you can accomplish everything by ‘cramming’ at the eleventh hour, by all means, don’t lift a finger now. But you may think twice about beginning to build your ark once it has already started raining.”
— Max Brooks, The Zombie Survival Guide: Complete Protection from the Living Dead

Founded in 2000 by engineer/restaurateur Joe Johnston, Agritopia’s 160-acre planned community boasts a level of sustainability and self-sufficiency that’s unparalleled in the Valley. We’re talking community gardens, parks, a produce stand and a 12-acre commercial farm, schools and a retro burger joint tucked inside Johnston’s childhood home – basically everything you need to survive post-apocalypse, minus a gun store (although this is Arizona, so just drive a town over). “I came here for the sense of community,” says resident Kelly Shaw, who relocated to Agritopia with her husband and two sons in October 2016. “You see everyone on their front porches socializing. It feels safe, like anyone can knock on their neighbor’s door asking for eggs or a cup of sugar.”

Yep, it’s Leave it to Beaver for the 21st century, with literal white picket fences and helpful friendly neighbors. There’s even a crafters’ market, Barnone, for locals to showcase their homemade goods. Though the community pays for outside water and utilities, we’re pretty sure these creative residents are up enough on the re-skilling movement to put together their own solar panels, water tower and defensive wall should the walking dead ever invade the city.

And unlike other communities, you wouldn’t have to worry about some Negan-type plundering half your supplies. “I love how much we support one another,” says Shaw.

• Urban chickens provide fertilizer for the gardens (and act as an emergency food source)
• Many of Agritopia’s 450 homes have basements (think underground bunkers)
• “Pay on your honor” system at The Farm Store (so old school)

Biggest Smarty Pants: Chandler Boardwalk
Median Price Range: $220,000-$260,000

“Education is not the filling of a pail, but the lighting of a fire.”
— William Butler Yeats

Though everyone talks big about Scottsdale and Paradise Valley schools, the Boardwalk area of Chandler zip code 85224 – from Elliot to Ray roads north-south, and the I-10 to Alma School Road east-west – includes more than a dozen top-rated public, private and charter schools. There’s Great Hearts Chandler Preparatory Academy for liberal arts education and character-building, Paragon Science Academy for budding Neil deGrasse Tysons and The Goddard School for little Einsteins, says agent Mindy Jones Nevarez of Amy Jones Real Estate Group at Keller Williams Integrity First.

According to Nevarez, popular subdivisions include Andersen Springs, Sandstone Place and the Tre Allagio and Via de Cielo condominiums. Many boast social activities for children and adults – for example, residents of Lakeside at Andersen Springs condos can sip and socialize at monthly wine meetings.

• Home values have risen 7.6 percent in the last year compared to 5.9 percent statewide
• Students can take free practice tests at Chandler Sunset Library
• Has a lakeside java joint called Coffee Rush

Most Inspirational: Maryvale
Median Price Range: $110,000-$150,000

“I’m gonna make a change, for once in my life. It’s gonna feel real good, gonna make a difference. Gonna make it right.”
— Michael Jackson

The dark horse of our ’hoods, Maryvale is Phoenix’s oldest master-planned community and one of the most densely populated areas of Phoenix. It’s also pretty expansive, around 35 square miles, with its main corridor spanning 27th to 99th avenues and Camelback Road to the I-10, north and south. The area is a mix of Latino-focused businesses, pockets of original 1950s-1960s ranches and newer builds like the desirable D.R. Horton’s new Vinsanto community at 75th Avenue and McDowell Road. According to real estate agent Jenna Alexander, Maryvale is a prime spot for investors. “They’re looking at these infill areas, and predicting that eventually all of Phoenix will undergo beautification. It’s an exciting time,” she says.

Like Judd Nelson’s character, John Bender, in The Breakfast Club, Maryvale has a bad rep. But, also like Bender, this part of town is in the midst of reform. Thanks in part to a million-dollar Neighborhood Safety Initiative partnership between Grand Canyon University and the City of Phoenix, the area known as the “Canyon Corridor” just north of Maryvale saw a 23.6 percent decrease in violent crime in 2015.

• Home values increased 14.3 percent last year
• Near Ak-Chin Pavilion and the newly renovated GCU Maryvale Golf Course
• The area’s diversity is reflected in its “Mural of Unity” on 75th Avenue

Cutest Couple: Verrado and Buckeye Proper
Median Sales Price: $277,750 vs. $188,000

“He was the toast to her butter.”
— Nicholas Sparks, The Lucky One

Verrado and the rest of Buckeye are the Green Acres of Phoenix couplings, with the same oppositional pull that drew alt-rock siren Gwen Stefani to country crooner Blake Shelton. Verrado’s Main Street could be a movie set with its tree-lined streets and iconic clock tower. “It’s very quaint, like where your grandmother grew up,” says Nate Martinez of RE/MAX Professionals. “It’s a little removed from the rest of Phoenix, but the freeway access makes it a prime location.”

Little ones are likely to be found neck-deep at Heritage Swim Park’s resort pool, while Mom planks her way to perfection at The Center on Main’s fitness facility. Meanwhile, Grandpa has his own digs nearby at Victory, a 55-plus community with a spa, onsite vineyard and the hot new Vic Bar + Kitchen.

Buckeye proper, with its wood-shingled Monroe Avenue stores and stucco homesteads, still has a bit of 1888 to dust off. While there are dozens of master-planned communities from the likes of Beazer and Maracay homes, there are also vacant lots and older stucco ranches for sale – with plenty of room for a bucking bronc or two.

• Verrado’s theft rate is 80 percent below the national average
• Buckeye has its own municipal airport
• The area also sits over the largest untapped aquifer in Arizona!

Most Likely to Succeed: Motor Mile
Median Price Range: $220,000-$260,000

“To change ourselves effectively, we first had to change our perceptions.”
— Stephen Covey, author and public speaker

You can still pick up a pretty sweet pre-owned Porsche on McDowell Road just east of Papago Park, but the drag’s heyday as an auto-retail hotspot ended when Acura and others decamped for North Scottsdale. In their stead: a spate of new single-family and multi-family developments, seductively poised between the protected wilderness of Papago and the emerging culture of South Scottsdale. “The price points are great, and at the end of the day you’re getting a Scottsdale address,” mortgage specialist Rob Binkley says. “It’s gentrifying and coming up.”

Skye on McDowell, from national development titan K. Hovnanian Homes, will include 55 single-family homes in addition to 81 semi-detached units. With more dealerships leaving for a new auto row on Salt River tribal land, the future looks bright for a residential makeover of SoSco.

• Papago Plaza is getting a complete $8 million revamp and merchandizing makeover
• Nearby ASU SkySong is the Valley’s most exciting public-private multi-use space
• Hiking and biking just a half-mile away at Pagago

Best Dressed: PV South
Median Price Range: $1 million-$1.2 million

“Fashion fades. Only style remains the same.”
— Coco Chanel

Technically split between the Biltmore Heights and Camelback East neighborhoods, this stretch of secluded ranch-style lots and hill-straddling mansions evinces the classic desert-chic “look” – lawns are few, cacti are many and the meandering mid-century streets have a genteel pacing. It’s Paradise Valley, but not quite Paradise Valley, as the occasional sub-$1 million home listing – some modest-size ranches even get down into the $700,000s – demonstrates.

“People love the area, especially as the Valley gets more central and trends back into Phoenix,” Binkley says. “You’re closer to the action than Paradise Valley, and it might be even less expensive than Arcadia, which now equals PV in terms of pricing. Plus, acre lots.”

Located north of Camelback Road from 32nd to 44th streets, roughly to McDonald Drive, the neighborhood is our best bet to maintain its fashionable status in the years to come.

• All the cultural hooks of 40th and 44th streets are right there, including restaurants Chelsea’s Kitchen, CRUjiente Tacos and The Henry
• Close to Phoenix Country Day School
• Homes leapt 7 percent in value over 2015

copyright © 2017 phoenixmag.com


________________________________________________________________

June 2017

Housing Market Sets New Records in Mayjune 2017
June 19, 2017 | housingwire.com
by Kelsey Ramírez

Home prices continued to increase in May as speed and competition hit new highs, according to Redfin, an online real estate brokerage.

Home prices increased 6.8% to a median home price of $288,000. Home sales also increased, rising 7.5% from last year, despite the continued shortage of supply. The number of homes for sale fell 10.9% to just 2.7 months of supply, the lowest level since Redfin began tracking the market in 2010. Six months is generally considered a balanced market between buyers and sellers.

A typical home went under contract in less than 37 days in May, breaking the previous record of 40 days set in April. More than 25% of homes sold at or above their listing price, the highest percentage Redfin recorded. The median sale-to-list price ratio also set a new record, hitting 95.4% in May.

“There is still a lot of momentum in home prices in many metros, not only on the coasts but also in places like Buffalo, Grand Rapids and Omaha,” Redfin Chief Economist Nela Richardson said. “Strong local economic growth and burgeoning demand from older Millennials are accelerating home-price growth in this very competitive, low-inventory pre-summer market.”

“The Federal Reserve’s latest announcement to raise short-term rates will have very little effect on buyer demand or on the overall housing market,” Richardson said. “If anything, it may motivate buyers to make their purchases sooner rather than later.”

copyright © 2017 housingwire.com


________________________________________________________________

May 2017

Despite Higher Home Prices,Despite High Prices
More Americans Say It’s a Good Time to Buy

May 8, 2017 | realtor.com
by Clare Trapasso

Home prices are steadily rising and mortgage interest rates are beginning to inch up again, but that doesn’t seem to be discouraging many potential buyers.

Nearly two-thirds of Americans, 62%, said April was a good time to buy a home, according to Fannie Mae’s monthly National Housing Survey. That’s just a tad more than the 60% who felt that way in March, and 61% in April 2016. The survey polls 1,000 Americans with more than 100 questions on their attitudes toward owning and renting a home, price changes in the housing market, and the health of the economy.

“Historically, low mortgage rates are a top reason Americans think it’s a good time to buy,” says Sarah Shahdad, a market insights researcher at Fannie Mae. Plus, spring and summer are typically when home buying kicks into high gear. “A lot of people are thinking about getting settled before their kids start school.”

The 27% of folks in April who said now is a bad time to buy cited high home prices, she says. However, the ranks of doubters were a bit thinner than March’s 30%, and 31% in April 2016. “Housing affordability is still a challenge for people,” Shahdad says. “Incomes have not been rising as rapidly as home prices.”

About 53% of those polled said they believe housing prices will go up in the next 12 months, and 62% said mortgage rates are likely to rise over the same time period as well. More than half, 52%, expect rental prices will also go up. Despite those higher price tags, fewer Americans in April (57%) said it was a good time to sell a home, according to Fannie Mae. Those bullish on selling made up 60% of respondents in March. However, April’s responses showed an upward trend year over year, with 52% in April 2016 and 46% in April 2015.

Those who think it’s prime selling time cited low mortgage rates, says Shahdad. This makes it easier on the budgets of existing homeowners who don’t have to pay quite so much when they purchase their trade-up residences or downsize into smaller abodes.

Overall, Americans are feeling more optimistic because the economy is doing better, says realtor.com®’s senior economist, Joseph Kirchner. About 88% of those surveyed by Fannie Mae said they weren’t worried about losing their jobs over the next year, while 25% said they’re making more money than they did last year. “People are going to make a long-term financial commitment to purchasing a home because they have the income, they have the job, and they are more confident they are going to be able to keep that job,” he says. “People’s fears and insecurities [that] they got during the recession are waning.”

copyright © 2017 realtor.com


________________________________________________________________

April 2017

Existing-Home Sales Hit Highestexisting home sales
Numbers Since Recession

April 21, 2017 | realtor.com
by Clare Trapasso

The spring home-buying market was off to a strong start in March as buyers closed on the highest number of existing homes in a decade. And that’s despite the lack of residences on the market.

Sales of existing homes (that is, ones that have previously been lived in) hit about 5.71 million last month, according to the seasonally adjusted numbers in the most recent National Association of Realtors® report. That was a 4.4% rise from February and a 5.9% increase from the same month a year earlier.

“Sales are the highest since the recession,” says Joseph Kirchner, senior economist of realtor.com®. The last time they were that high was in February 2007, when 5.79 million existing residences were sold. However, it’s still short of the peak of 7.25 million sales in September 2005, the height of the market. But “the supply of homes on the market is getting tighter and tighter,” he adds. “That means home prices will continue to go up and affordability will continue to go down, and it will be more difficult for home buyers to find a home that meets their needs.” However, the market is great for those sticking a “For Sale” sign in their front yards. “Their selling price will be high, and they’ll be able to sell very quickly,” Kirchner says.

And the climbing prices show no signs of slowing down. The median price on an existing home rose nearly 3.6% from February to March, according to the report. It was also up 6.8% from the same month last year. But existing homes are still significantly cheaper than newly constructed homes—by about 25.3%. They went for a median $296,200 in February, according to the most recent data available from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.

All types of homes are flying off the market. Buyers snapped up more single-family homes, those in-demand abodes that are often, but not always, standalone structures with yards out back. Sales were up 4.3% from February and 6.1% from the same month in the previous year. They sold for a median $237,800, up 6.6% over the same month a year earlier. Aspiring homeowners and move-up buyers also signed on the dotted line for more condos and co-ops. Both monthly and annual sales rose 5% in March. Prices rose even faster, at 8% annually, to reach a median $224,700.

“Although finding available properties to buy continues to be a strenuous task for many buyers, there was enough of a monthly increase in listings in March for sales to muster a strong gain,” NAR Chief Economist Lawrence Yun said in a statement. “Sales will go up as long as inventory does.”

Around the country, monthly and annual sales of all kinds of homes were also up—except in the West. The number of existing homes sold in the region, home to pricey cities like San Francisco, Denver, and Seattle, dipped 1.6% from February, to 1.22 million, according to the report. But they were still up 5.2% year over year. Prices in the West rose 8% annually to hit a median $347,500, making the West the most expensive region in the nation. Sales shot up the most in the Northeast, rising 10.1% from February and 4.1% from March 2016. The 760,000 homes sold for a median $260,800, up 2.8% annually.

The number of homes sold in the Midwest reached 1.31 million in March, rising 9.2% month over month and 3.1% year over year. The median price also rose 6.2% annually, reaching $183,00. Sales in the South reached 2.42 million in March, increasing 3.4% from February and 8.5% from the same month a year ago. Prices also went up 8.6%, hitting a median $210,600.

copyright © 2017 realtor.com


________________________________________________________________

February 2017

Tight Housing SupplyTight Housing Market
A Concern for Spring

February 6, 2017 | Realtor Market Insider
by Stacy Pingree

House hunters out this spring will have to pound more and more pavement to find their home sweet home.

The number of for-sale listings fell again in December to the lowest level since 1999, according to the National Association of Realtors. There were just 1.65 million homes for sale at the end of December, which at the current sales pace would take only about 3 ½ months to exhaust. A normal, balanced market has about a six-month supply.

This, as the busy spring market is already on the verge of starting. “To say early buyer demand is strong in early 2017 is an understatement — it is titanic. Redfin data shows that buyers are out touring in droves, ready to pounce on new listings that fit the bill,” said Nela Richardson, chief economist at Redfin. “The only thing missing is homes for sale to satisfy demand, because there just aren’t a lot of homes available to buy right now. We are in a real estate black hole until those listings show up again.”

In some local markets, the situation is more dire. The share of communities with supply at less than three months jumped from about 13 percent to more than 20 percent in the past year, according to a survey by Proteck Valuation Services, a real estate appraisal and analytics company. For example, in Dallas, the supply of homes for sale dropped by nearly 41 percent from December 2015 to December 2016.

“This means fierce competition for homes, where buyers that are able to act fast and pose less risk to the seller have the advantage. These ‘favored’ buyers would include those already pre-approved for a mortgage, those with larger cash down payments and those with no contingencies (like the sale of another home),” according to the Proteck report.

The shortage is being driven by surging demand and weak home construction. Single-family housing starts continue to rise, but very slowly each month. Builders are still operating at well below normal construction levels, and that doesn’t even account for pent-up demand from the housing crisis and growing household formation.

“The homeownership rate is at a near 50-year low, and it could remain at this level,” said Lawrence Yun, chief economist at the NAR. “I’m not sure if this is the trend that America wants.”

copyright © 2017 Realtor Market Insider


________________________________________________________________

January 2017

Metro Phoenix New-Home Pricesjanuary-2017
Ready to Rise in 2017

January 6, 2017 | azcentral.com
by Catherine Reagor, The Republic

New-home shoppers will likely see higher prices in metro Phoenix this year. Don’t expect a big jump, but home builders are poised to start raising prices to offset their rising costs.
home prices

Shoppers for newly built homes will likely see higher prices in metro Phoenix this year. Don’t expect a big jump, but builders are poised to start raising prices to offset rising costs of land and labor. Arizona housing analyst Jim Belfiore predicts new-home prices in the Valley will climb an average of 7 percent to 9 percent this year. In 2016, new-home prices in the area climbed about 2 percent.

“Appreciation is the biggest issue for the home-building industry now,” Belfiore told a packed room of home builders, developers and others in the real estate industry at his annual Valley housing forecast on Thursday. That’s because the cost of building has climbed 50 percent in the past two years,” he explained.

“The market’s recovery feels good now but not great,” said Meritage Homes Corp. CEO Steve Hilton. “Home costs are up, but margins are low.”

Valley builders are out of the bargain land they were able to buy during the housing crash in the Great Recession, and a shortage of construction workers has driven up building costs. The median price of a new Valley home was about $311,000 in November, according to RL Brown’s Phoenix Housing Market Letter. That’s only about $1,000 more than it was in June of last year.

Home builders also can likely raise prices more this year because demand from buyers has picked up. The new-home market’s recovery to boom levels is still years away, but about 18,000 houses were built Valleywide in 2016. That’s the most since the end of the boom when more than 60,000 were built during 2006-07. Based on what the builders said at the forecast, most of the new homes will be more affordable and geared toward first-time buyers, particularly Millennials.

Mark Moskal, division president of Gehan Homes, said rising interest rates mean buyers can afford less house. The average rate on a 30-year mortgage climbed from 3.5 percent in August to 4.3 percent last week, according to Freddie Mac. The home builders on the panel all agreed they would focus on more affordable homes to try to tap the growing number of first-time buyers in metro Phoenix this year.

“Millennials are the biggest opportunity that lies ahead for the housing market,” said Greg Abrams, vice president for Pulte Homes.

And rising rents are propelling more Millennials to buy. But it’s not clear yet how much more they are willing to pay for a new home. That’s the million-dollar question for Valley home builders now.

copyright © 2017 azcentral.com


________________________________________________________________

December 2016

Trends Redefine Corecityscape1
Assets In the Valley

December 22, 2016 | azbigmedia.com
by David McGlothlin

While some criteria for classifying a building as a core asset a decade ago still remain, changing trends in the market and tenant demands are recalibrating the way we think about core assets in the Valley. Property value, land scarcity and an institutional component originally drove market demand for core assets. The same is true today for the most part, but now tenants also look for an urban environment, walkability, amenities and features to help attract and retain employees to the area through the experiences being offered.

“A core asset is one whose value first-and-foremost is retained over time, with the expectation of reliable appreciation,” says Gary Linhart, co-founder and principal at ViaWest Group. Adding to the property’s value is location and limited supply of available land for new developments.

Older properties like the Esplanade and Biltmore Center, largely considered two of the Valley’s most prominent and well-recognized core assets, are starting to show signs of its age and required interior and exterior tenant improvements to keep up with today’s standards. “When it [Biltmore Center, formerly Biltmore Financial Center] was built, it was designed for the long-term, with the highest quality finishes at the time, at the top intersection in Phoenix,” explains Linhart. “However, in order for a core asset to stay a core asset, reinvestment is necessary to keep the building up-to-date with changing trends and tastes.”

So when his company purchased the building last year, its task was to transform the aging structure with upgraded features and amenities to meet current tenant demands. Whereas, newer buildings like Hayden Ferry Lakeside in Downtown Tempe and CityScape in Downtown Phoenix, already have the needed state-of-the-art features built in. Linhart identifies Downtown Scottsdale, Downtown Tempe, Camelback Corridor and Downtown Phoenix as the markets with core assets, which all have nuances that make them different.

“These core assets are in areas where the top companies want to and need to be,” he explains. “At any time, it has to offer to the top tenants in the marketplace the experience, technology and quality of space they demand.”

Today’s core assets are unique in the ability to transform a building and its surroundings into a premiere destination by creating a first-class experience for those entering it. “You have to look at each project holistically; how it ties to its natural surroundings, flexibility, and how people emotionally connect with said place,” explains Rory Carder, president of DAVIS. “Any core asset, no matter what city, requires walkability; it’s the essence of urbanization.” Although Phoenix is still a young city, she thinks it’s making strides in the right direction. “A core asset flourishes on the people that inhabit them,” explains Carder. “It thrives on the energy you feel from that specific piece of real estate.” Carder refers to her offices at Hayden Ferry Lakeside as an example of a core asset in Downtown Tempe where employees can explore any of the nearby businesses or enjoy a yoga session in the park overlooking Tempe Town Lake.

The old corporate environment of the 1980s and 90s is fading away. Instead, employees want options that fit their flex schedules and lifestyles. Linhart says, “The common areas, such as outdoor spaces with shaded seating areas, tenant lounges, fitness centers, on-site restaurants, coffee shops and lobbies are becoming vital components of a core asset.”

Back in the day, a strong institutional corporate tenant and a few nearby restaurants were enough to attract high-end tenants. State-of-the-art structural features were always expected and still are, but the delivery of a quality tenant experience is what sets these buildings apart from the others. Linhart explains, “In a wired-world in which people can work from anywhere, an office building that wants to attract paying tenants must provide an experience, particularly if the office building owners wish to command a premium rent.”

Kevin Calihan, senior vice president of CBRE, echoes that point. Companies need to be in a good position to compete for a quality workforce with a site that will attract Millennials and the educated employees.“Companies want to give their employees high quality of life, a great work environment and that’s what locations like The Galleria and Hayden Ferry Lakeside provide.”

The Galleria Corporate Centre in Downtown Scottsdale, an old mall converted into class A office space, is largely considered a core asset by today’s standards. Calihan says the change in demand to be in close promiximity to retail, entertainment and hospiliatilty options thrusted the Galleria into its current core asset status, which wasn’t the case for the failed mall ten years ago.

Downtown Phoenix’s CityScape is a prime example of a core asset for its location, proximity to nearby amenties, elegant finishes and sheer size, which contributes to its success and 95-percent lease rate. It has all the needed ingredients: amenities, growing urbanization, booming residential developments and entertainment venues. Location, prestige, supply and demand still remain important in securing high-level tenants at core assets, but today’s standards also require an atmosphere for those entering to remember and want, which differentiates a core asset from any other ordinary building.

copyright © 2016 azbigmedia.com


_____________________________________________________________________

November 2016

Why Tesla’s new solar roof tilespress_solar_roof
and home battery are such a big deal

October 31, 2016 | techcrunch.com
by Darrell Etherington (@etherington)

On October 28, Tesla unveiled its new solar roof tiles. Few of us in attendance, if any, realized the solar roofing tiles were actual functional solar panels until Elon Musk said so. Sure, it’s a neat trick, but what’s the big deal?

Why does it matter that Tesla is making a fashion statement when the point is green power and a future where we aren’t so dependent on fossil fuels?

I’ve heard from some people suggesting that this is nothing new, because of other similar previous projects, including Dow Chemical’s canned solar shingle project, for example. Others are wary of Tesla’s ability to sway consumers with a solar solution that sounds like it’ll still be quite expensive in terms of up-front (or, with payment plans, deferred but net) installation costs. Still others aren’t clear on Tesla’s goals with this product, or how it fits into the company’s overall strategy relative to its electric vehicles.

It’s easy to dismiss the aesthetic import of how Tesla’s tiles look, but it’s actually important, and a real consideration for homeowners looking to build new homes or revamp their existing ones. The appearance of the tiles, which come in four distinct flavors (Textured Glass, Slate Glass, Tuscan Glass and Smooth Glass) is going to be a core consideration for prospective buyers, especially those at the top end of the addressable market with the disposable income available to do everything they can to ensure their home looks as good as it possibly can.

As with other kinds of technologies that are looking to make the leap from outlier oddity to mainstream mainstay, solar has a hurdle to leap in terms of customer perception. Existing solar designs, and even so-called attempts to make them more consistent with traditional offerings like the above-mentioned Dow Chemical project, leave a lot to be desired in terms of creating something that can be broadly described as good-looking.

It’s like the VR headset — Oculus and Google can make claims about their use of fabric making their headsets more approachable, but both are still just options somewhere along the curve of things with niche appeal. Neither is very likely to strike a truly broad audience of users as acceptable, and neither are solar panels that don’t succeed in completely disguising themselves as such.

Tesla has been referred to as the Apple of the automotive world by more than a few analysts and members of the media, and if there’s one thing Apple does well, it’s capitalize on the so-called “halo effect.” This is the phenomenon whereby customers of one of its lines of business are likely to become customers of some of the others; iPhone buyers tend to often go on to own a Mac, for instance.

For Tesla, this represents an opportunity to jump-start its home solar business (which it’ll take on in earnest provided its planned acquisition of SolarCity goes through) through the knock-on effects of its brisk Tesla EV sales, including the tremendous pre-order interest for the Model 3. It’s strange to think of halo effects with big-ticket items, including vehicles and home energy systems, but Tesla’s fan base shares a lot of characteristics with Apple’s, and because they’re already purchasing at the level of an entire automobile, the frame of reference for what constitutes a valid halo purchase is actually appropriate.

Tesla, like Apple, scores well with customer satisfaction and brand commitment, and that’s something that no one trying to sell a solar home energy system at scale can match. As strange as it sounds, “buying a roof because you like your car” might be the new “buying a computer because you like your phone.”

Tesla’s solar tiles claim to be able to power a standard home, and provide spare power via the new Powerwall 2 battery in case of inclement weather or other outages. Musk says that the overall cost will still be less than installing a regular old roof and paying the electric company for power from conventional sources. But Musk’s claims about the new benefits of the new solutions don’t end there.

Tesla’s tiles will actually be more resilient than traditional roofing materials, including terra-cotta, clay and slate tiles. That’s because of the toughness of the glass used in their construction, making them theoretically more resistant to potential damage from elements like hail, or even debris like fallen tree branches. In fact, Musk also said at the event that the roofs should far outlast the standard 20-year life cycle common for roofing materials used today — by as much as two or even three times. Fewer roof tile replacements means more value, provided that’s not already factored into his estimates of the up-front cost.

There’s also the possibility that the new tiles could become more efficient than existing solar panel options. Though in their current form, Musk says they achieve 98 percent of the efficiency of regular panels. He said that the company is working with 3M on coatings that could help light enter the panel and then refract within, letting it capture even more of the potential energy it carries to translate that into consumable power.

The announcement of Tesla’s solar tiles does not guarantee a sweeping solar power revolution; far from it, since Tesla says it won’t start installing the product in any consumer homes until next year, and a lot can happen between now and then. But Musk also said with full confidence that he ultimately expects the Powerwall to outsell Tesla cars, and easily so.

Solar roofing, Powerwall and Tesla cars taken together represent a new kind of ecosystem in consumer tech, one that carries a promise of self-sufficiency in addition to ecological benefits. Tesla has already tipped its hand with respect to how it intends to make vehicle ownership a revenue generator for its drivers, rather than a cost center. You can see how it might eventually do the same for solar power using solar tile roofs combined with Powerwalls installed in series, giving homeowners surplus power generation and storage with a few different potential options for monetizing the excess (including, say, acting as a supercharger station for other Teslas, or selling back to the grid).

It’s tempting to look at Tesla’s unveiling last week and think that it’s more of an incremental development in the home solar industry. But it’s more likely a step toward a future where individuals have more direct control over power generation, leading to a big difference in how we think about renewable energy.

copyright © 2016 techcrunch.com


_____________________________________________________________________

September 2016

Phoenix Chalks Up Another Point Over CaliforniaBerkeley
As Easier Place to Get Mortgages!

August 24, 2016 | bizjournals.com
Eric Jay Toll, Phoenix Business Journal

This is not a good week for California economic developers.

In addition to bad press and a torpedoed effort to solve its housing crisis, CNBC has a report saying Californians in burgeoning high tech markets have the hardest time trying to qualify for a mortgage.

No wonder companies are starting to plant new offices and expansions in Arizona.

Add the CNBC cable channel to the national media piling it on the Golden State. The New York Times and Inc. — as well as us here at the Phoenix Business Journal — have reported on how a number of California businesses are adding staff in Phoenix, as well as other markets outside the Golden State.

On the CNBC list of 37 metros, Phoenix fell into the middle of the pack, ranking No. 17 on the list of “ easiest cities to get a mortgage.” It also ranked more affordable than the markets against which it competes the most.

Housing price differentials were not part of the ranking, but the New York Times story said that housing in Phoenix costs one quarter of the typical San Francisco home.

CNBC reports that in Phoenix, the average home buyer needs a FICO score of 743, and is going to borrow at a loan-to-value of 84 percent.

In the Valley’s top competing markets — Denver, Seattle, Bay Area and Los Angeles — in addition to substantially higher home prices, higher credit scores and bigger down payments are required.

Denver’s average home buyer needs a 754 credit rating and carries an 82 percent loan to value mortgage. In Seattle, ranked one spot lower, a FICO of 755 is reuqired and 81 percent loan-to-value.

CNBC ranked the top 37 markets, so Austin was not included in the mix.

The toughest markets to qualify for loans — in addition to housing prices — were Los Angeles, New York, and the Bay Area including Oakland, San Jose and San Francisco. Credit score averages ran from 758 in Los Angeles to 770 in San Francisco. Los Angeles averaged a 75 percent loan-to-value, dropping to a national-worst lowest loan-to-value of 72 percent in San Francisco.

Of the CNBC markets, Detroit was the easiest market in which to qualify for a mortgage with a 728 FICO and a 90 percent loan-to-value.

copyright © 2016 Phoenix Business Blog


_____________________________________________________________________

July 2016

Brexit Could be Boon forbrexit
Arizona Homeowners & Buyers!

July 3, 2016 | azcentral.com
Catherine Reagor, The Republic

Britain’s vote to exit from the European Union hurt U.S. stock markets temporarily, but it could help homebuyers. Both stock prices and U.S. interest rates started falling June 24, the day after Brexit – The average rate for a 30-year-fixed mortgage is now about 3.45 percent, the lowest it’s been since 2012.

“The uncertainty created with Brexit should keep U.S. rates down longer,” Arizona economist Elliott Pollack told me from Austria, where he is vacationing and getting a closer view of fallout from Brexit. “That’s good for housing.”

A little explainer:

When stock markets stumble, more investors opt to buy U.S. Treasury bonds. An increase in buyers pushes up bond prices but drives down their yields or interest rates. And the yield on 10-year Treasury bonds correlates the closest with mortgage rates.

“You get bad news and interest rates fall,” David Newcombe, a co-founder of Scottsdale-based Launch Real Estate, told me. He lived in London until moving to Phoenix in 2003. It’s still unclear how Brexit will shake out because the market rebounded by week’s end. Current lower interest rates mean homebuyers can afford a house that costs 8 percent more than they could at the beginning of the year, according to Realtor.com economist Jonathan Smoke. Homebuyers aren’t the only ones who benefit. If you are a homeowner, it’s a good time to think about refinancing. The monthly payment on a $250,000 mortgage with a 3.5 percent rate is about $220 cheaper than a loan with a 5 percent interest rate.

Stock market declines do often have a negative impact on housing. Last August, when stocks dove over concerns about an economic slowdown in China, luxury-home markets in the U.S. slowed. Metro Phoenix’s luxury market definitely did. Of course, that’s because many million-dollar homebuyers have bigger stakes in stocks than typical buyers.

“The sudden drop in the stock market will be negative for the luxury market,” Arizona housing analyst and British citizen Mike Orr told me. But he doesn’t expect the impact will last long. Orr does think the drop in interest rates could be a longer-term trend. U.S. stock markets started to rally on Wednesday and Thursday, something analysts attribute to an ease over concerns about Brexit’s economic impact. Maybe a $200 or more drop in a monthly mortgage payment can help ease the pain of a drop in our 401(K) accounts this month.

Maybe just a bit.

copyright © 2016 azcentral.com


_____________________________________________________________________

June 2016

Metro Phoenix Housing Market June2016
Has Best Month in a Decade

June 9, 2016 | azcentral.com

April just might have been the best month for metro Phoenix’s housing market in a decade. A look at key indicators and some national rankings show why the Valley’s housing market appears to be stronger than it’s been since the boom and crash. Foreclosures fell to the lowest level since 2006. Homebuilding continued to rebound. Phoenix kept its spot as one of most affordable big metro areas for homebuyers. And a national moving survey shows the Valley is one of the top 10 U.S. areas where people are moving. Also, many of the buyers needed for the Valley’s housing market to finally fully recover are here.

An April Street Scout survey of Valley homebuyers and sellers found Millennials and boomerangbuyers who lost houses to foreclosure during the crash are buying metro Phoenix homes at a pace the market hasn’t seen before.

– Home sales in metro Phoenix climbed to 9,041 in April, an almost 8 percent jump from last April, according to data compiled for this column by Arizona housing expert Mike Orr of The Cromford Report.
– Condominium sales reached 1,637 last month, up 1,514 from April 2015.
– The Valley’s median home price rose to $235,000, up from $215,000 a year ago.
– The median condo price reached $146,500 last month, compared with $142,000 a year ago.
– Banks foreclosed on only 231Phoenix-area houses in April, the lowest level since December 2006, according to The Information Market.
– Homebuilding in the Valley is up 25 percent from last year’s pace, according to RL Brown Housing Reports.

Despite home-price increases, metro Phoenix is still the eighth most affordable big U.S. metro area to buy a home, according to the latest quarterly ranking from national mortgage firm HSH.com. The Valley has held that spot for the past year. And finally, moving company U-Haul’s annual survey for the most one-way rentals in 2015 came out this week. Metro Phoenix ranked 10th nationally for the most popular place for people to move. Despite the upbeat signs for the housing market, Orr is careful in how he describe its current status. He told me the Valley’s housing market is a bit “complicated” now.

Orr’s quick take:

– For homes priced below $200,000, there’s an extremely low supply available for sale, fast price appreciation and low sales counts.
– For homes priced between $200,000 and $500,000, the supply of homes for sale is slightly low, there’s strong growth in demand and moderate price appreciation.
– For homes priced between $500,000 and $1 million, there’s a high supply available for sale, good demand and little to no appreciation
– For homes priced higher than $1 million, there’s excessive supply, weakening demand and flat to negative appreciation except for in a few isolated fashionable spots.

Tom Ruff of The Information Market said May’s home sales and prices are likely to be higher than April’s when all are tallied. Summer’s 100-plus-degree days deter some Valley homebuyers. If home sales and prices continue to climb In June and July, it will be a true testament to the market’s strength. If not, there’s always the fall.

copyright © 2016 azcentral.com


_____________________________________________________________________

May 2016

Rising Rents Spurring More Rising Rents
Metro Phoenix Homebuyers

By Catherine Reagor
The Republic | azcentral.com

Rents for homes, condominiums and apartments climbed sharply in many Valley neighborhoods during the past few years and are still on the rise. More Millennials and boomerang buyers bouncing back after foreclosure are purchasing metro Phoenix homes than ever.

But it’s not just because they want a place of their own. Rents for homes, condominiums and apartments climbed sharply in many Valley neighborhoods during the past few years and are still on the rise. Billy Day and Jessica Simms bought their first home earlier this year after their rent jumped in central Scottsdale. The couple were able to find a renovated home in their price range in the popular area so they could stay close to their jobs, favorite restaurants and places to hang out. “Our lease was coming to an end and upon evaluating the cost of rent, it was a better financial decision to purchase,” Simms told me.

For homes and condos, the average monthly lease rate in metro Phoenix rose 10 percent during the past year to $1,454, according to the Arizona Regional Multiple Listing Service’s April report. Apartment rents in the Phoenix area jumped 8 percent during the past year, according to the most recent Yardi Matrix report. The Valley ranks No. 7 for the biggest rent increase among major U.S. metro areas. The average apartment renter in metro Phoenix is paying almost $1,000 a month.

Rents are rising faster in some neighborhoods than others, particularly in central parts of Phoenix, Scottsdale and Tempe. Those areas, closer to restaurants, shopping, jobs and light rail are also seeing some of the biggest increases in home prices. The Midtown Phoenix neighborhood Cheery Lynn/The Yard in ZIP code 85014 saw home prices jump 50 percent during the past year, according to Street Scout Home Values, an annual analysis of metro Phoenix’s housing market done with The Information Market. That was the biggest jump for any Valley neighborhood.

It’s tough to find an affordable home in many central Valley neighborhoods now. The many investors who purchased Valley foreclosure homes on the cheap during the crash and turned them into rentals are reaping the reward of higher rents now, and most aren’t inclined to sell. Apartment developers are following buyers and renters. Anyone who has driven central Phoenix, Scottsdale, Tempe and parts of Chandler has seen the many apartment complexes under construction. Most of those developments are luxury complexes with higher-than-average rents. More available rentals in popular Valley neighborhoods will increase supply. If demand from renters doesn’t climb as quickly, then rent increases could slow.

copyright © 2016 The Republic | azcentral.com


_____________________________________________________________________

May 2016

Slow & Steady Wins the Race
By Molly Carson, VP Development
Ryan Companies US, Inc.

Ryan Companies USSome believe there are global and domestic issues to be concerned about in 2016 and the not so distant future: the pending presidential election, historically low oil prices and unstable Chinese economy, rising interest rates and so on. These concerns may keep you awake at night.

Why do I feel optimistic – specifically for Arizona? Because with all of the concerns circulating throughout the globe. Arizona continues to experience solid growth – slow and steady growth.

The recession recovery has been both weaker and slower for the nation past recoveries – for Arizona that’s not necessarily a bad thing. The recovery foe our state has not been led by the housing market like in years past it’s been grounded in something much more substantial. An increase in quality employment opportunities due to businesses expansion and new companies locating in Arizona has been very positive. Arizona has seen solid growth in jobs in financial services, professional and technical services fields; industries offering a measure of higher incomes and greater diversity to the state’s economy – issues and hospitality also continue to thrive. Typically the primary driver in an economy uptick, the Arizona housing market is recently starting to contribute in a meaningful way. Arizona’s housing market arguably entered 2016 with one of the largest backlogs ever – a double digits increase from 2015 in permits pulled is projected. A diverse foundation of growth means a continued and more stable recovery.

Is this just a stable recovery? Yes, and that’s ok by me.

The Arizona commercial real estate industry continues to experience positive net absorption in the office market, declining vacancy and rent appreciation. Bifurcated growth albeit, with urban markets like Tempe, South Scottsdale, Chandler and Metropolitan Phoenix are performing far better than (suburban/rural) areas – definitely a positive trend the underlying economic fundamental continue to help our commercial property market to a slow, sustainable growth. This is not the quick recoveries we have been accustomed to, but I believe this will led to a strong foundation moving forward with a decreased risk of sharp, future economic dip.

For the next few years, projection shows Arizona to have one of our nation’s fastest rates of job growth. The stable continues to improve in attracting firms rooted in technologies and innovation. ASU was named the number 1 school in the United States for innovation; it’s no wonder company’s like Go Daddy, Avnet, Amkor and Intel continue to invest in Arizona – our brand is stronger than ever. The Arizona’s time to flourish – I encourage all of you in the commercial market as well as other market, to keep the positive momentum going: Arizona it on its way to win the race.

As vice president of development, Molly is responsible for its selection and acquisition, municipal use permits and approves design and construction coordination, financial packaging and lease or sale negotiation.

copyright © 2016 Ryan Companies US, Inc.


_____________________________________________________________________

April 2016

How New Home Sales & Construction Permits
Compare to Last Year (and before the crash)

By Mike Sunnucks, Senior Reporter
Phoenix Business Journal
April 18, 2016

homeconstructionNew home sales and new residential construction permits are continuing their 2016 rise — at least when compared to 2015. But they are still down from pre-recession levels when builders were building and banks handing out mortgages that built toward a Hindenburg-scale bubble and crash.

Scottsdale-based RL Brown Housing Reports’ latest data batch shows new home sales were up 47.6 percent in March versus a year ago. Builders sold 1,408 homes last month versus 954 in March 2015. For the year, home sales are up 37 percent for the first quarter compared to a year earlier, according to RL Brown. Builders applied for 4,258 construction permits for new homes in the Valley during the first quarter. That is up 32.5 percent from the same period in 2015, according to the Scottsdale real estate research firm.

But how are the current numbers comparing to before Arizona’s calamitous real estate crash? The first quarter of 2005 saw builders pull 15,381 permits for new homes, according to RL Brown and a past Phoenix Business Journal report. Builders took out a record 63,570 permits in 2005. They pulled 12,868 permits in the first quarter of 2006.

The housing market has improved over last year but there is a marked difference between now and from when the bubble was about to burst. Existing home sales were up 8.7 in the first quarter of 2016 versus the same period in 2015 (21,736 homes sold vs. 19,995), according to RL Brown.

copyright © 2016 Phoenix Business Journal


_____________________________________________________________________

March 2016

Make $44,000? You Can Afford a
Median-Priced Home in Metro Phoenix!

By Catherine Reagor
The Republic | azcentral.com
March 4, 2016

Sale PendingDespite rising home prices, metro Phoenix is still the eighth most affordable big U.S. city to buy a home.

A homebuyer needs to earn about $44,000 a year to afford the $1,025 monthly payments on a median-priced Valley house costing about $221,000, according to national mortgage firm HSH.com’s latest analysis.

That salary is based on a buyer coming up with a 20 percent down payment, about $44,000 for a $221,000 house — the same amount needed in annual pay to buy that home. However, this study was done before the median price of a Valley home jumped $10,000 in December, a trend that could push the area down on the ranking if income increases don’t keep up.

Pittsburgh is the most affordable U.S. metro area. Homebuyers only need to earn $31,134 a year to afford the city’s median home price of $128,000. San Francisco is the U.S. least affordable city for U.S. homebuyers. The median home price in the northern California city is $781,600, and to afford that a buyer has to make at least a $148,000 a year.

First-time homebuyers can get Federal Housing Administration Mortgages that require much less than a 20 percent down payment — as little as 3 percent. Lower down payments mean higher principle balances and bigger monthly payments. A Phoenix homebuyer putting down 10 percent on a $221,000 house must make almost $52,000 a year to afford the payment, according to HSH.

The mortgage-research firm also tracks mortgage interest rates, property taxes and insurances cost by city for its affordability ranking.

copyright © 2016 The Republic | azcentral.com


_____________________________________________________________________

February 2016

Home Prices Accelerate at Fastest Pace in 16 Months!
By Andrea Riquier
MarketWatch
January 26, 2016

20160201134454869016000000-oTight inventory pushes home prices higher in November; San Francisco, Portland, Denver register 11% jumps
U.S. home-price gains picked up again in November, with several metro areas notching double-digit annual percentage increases.

The S&P/Case-Shiller 20-City Composite Index rose 0.1% in the three months ending in November, for a 5.8% yearly increase. That was up from a 5.5% yearly gain in the period ending in October, and marked the strongest reading since July 2014. Portland prices were the strongest, rising 11.1% compared with a year ago. San Francisco, at 11%, and Denver, at 10.9%, followed. Some 14 cities had stronger yearly price gains in November than in October.
While the composite index is still roughly 12% lower than the peak set in summer 2006, Dallas, Denver and Portland have all touched fresh highs. San Francisco prices have pulled even with the earlier peak. Only five cities had monthly price decreases, down from eight in October. Chicago was weakest, notching a 0.7% decline. It also had the smallest yearly gain, 2%.

“Low mortgage rates, tight supplies and an improving labor market” are pushing prices higher, said David Blitzer, chairman of the index committee at S&P Dow Jones Indices. Despite solid demand in the housing market, the economy faces headwinds, Blitzer noted, including a strong dollar and the slump in the oil patch.

City Monthly Change Yearly Change:

Atlanta -0.3% 5.7%
Boston -0.5% 4.7%
Charlotte 0.3% 5.3%
Chicago -0.7% 2.0%
Cleveland 0% 2.2%
Dallas 0.2% 9.4%
Denver 0.1% 10.9%
Detroit 0.1% 6.3%
Las Vegas -0.1% 5.2%
Los Angeles 0.3% 6.2%
Miami 0.8% 8.1%
Minneapolis 0.1% 4.8%
New York -0.3% 3.7%
Phoenix 0.3% 5.9%
Portland 0.3% 11.1%
San Diego 0.3% 6.0%
San Francisco 0.3% 11.0%
Seattle 0.5% 9.7%
Tampa 0.5% 6.0%
Washington 0.1% 2.1%
20-City Composite 0.1% 5.8%

Andrea Riquier: 415-439-6400; AskNewswires@dowjones.com

copyright © 2016 Market Watch


Where The Baby Boomers Live in Metro Phoenix
By Angela Gonzales
Phoenix Business Journal

Baby Boomers in PhoenixFor the first time in modern history, the U.S. Census Bureau projects that until the mid-2030s, the number of people age 65 and over will far exceed the number entering the 15-64 working-age population. By 2029, when all of the baby boomers will be 65 years and older, more than 20 percent of the total U.S. population will be over the age of 65, according to the U.S. Census Bureau.

This got Paul Johnson, founder of Phoenix-based Maps & Facts Unlimited Inc., thinking about what that means for the real estate industry in the Phoenix area. “Continuing until 2030, the population of residents 65 and older will grossly outnumber the 15-64 working population,” Johnson said. “The idea was that seniors will be selling their houses and the younger people won’t be able to afford to buy them.”

He expects to see single-family home prices nationally under pressure for quite a while.

“The dream of younger people buying a home and having a backyard and a dog and everything is going to be harder to achieve because they’re going to be burdened with the extra costs of supporting all these old people,” he said.

Looking at the Maps & Facts maps, Julie Johnson, executive vice president of GPE Commercial Advisors LLC in Phoenix, said she sees incredible opportunity for growth in the senior housing industry in the metro Phoenix area.

“People want to age in place as long as they can typically, but some of these new senior housing facilities are absolutely like the Ritz Carlton,” she said. “These places have every first-class amenity and every luxury that the baby boomers are used to and have been spoiled with, and are going to be demanding as they get older.”

She said more health care real estate investment trusts are investing in senior housing projects.

“Right now, about 50 percent of their portfolios are senior housing properties,” she said. That’s changed from years past when they were mostly interested in investing in medical office buildings.

But senior housing properties are less risky to them, she said.

“The operator is the secret sauce to a successful facility,” Julie Johnson said. “If its a high, 85 percent plus occupancy, that means everything is working well and the risk factors are gone.”

copyright © 2016 Phoenix Business Blog


_____________________________________________________________________

December 2015

Type of House Millennials Can Afford
By Steven Totten
Phoenix Business Journal

MillennialsIt’s no question that people my age aren’t buying homes as much as they used to.

More than 43 percent of adults under 35 were buying homes in 2005. In the third quarter of this year, only about 35 percent of millennials were doing the same.

But for those born between 1980 and 2000, living in Phoenix means you can get a heck of a lot of space.

Personal finance technology company SmartAsset looked at the median income and net worth of Americans under 35 in 23 of the nation’s largest cities, and applied average price per square foot of real estate in each city to determine how large a home each value represents.

The result? Phoenix millennials can afford a home worth $172,000 on average, or roughly 1,400-square feet, according to data from Zillow.

For Phoenicians across the age bracket, a salary over $43,000 means you can afford a house here.

Compare that to 135 square feet in San Francisco, or 165 square feet in New York, and living in Phoenix starts to look pretty ritzy.

copyright © 2015 Phoenix Business Blog


_______________________________________________________________________

August 2015

The Real Estate Report
local market trends

Read here: Phoenix Metro

________________________________________________________________________

May 2015

Mortgage Applications Rise 2.3%
By Diana Olick
cnbc.com

Buyers are returning to the housing market in ever growing numbers, as indicated by continued gains in loan applications to purchase a home.

Total mortgage application volume rose 2.3 percent week to week on a seasonally adjusted basis for the week ending April 17th, according to the Mortgage Bankers Association (MBA). The gain was driven largely by purchase applications, not refinances, even despite lower mortgage rates.

“Purchase applications increased for the fourth time in five weeks as we proceed further into the spring home buying season,” said Mike Fratantoni, chief economist for the MBA. “Applications for FHA [government insured] purchase loans remained strong as well.”

Mortgage applications to buy a home increased 5 percent from the previous week and are now 16 percent higher than the same week one year ago. Applications to refinance increased just one percent, but they are still up 41 percent from a year ago, when rates were considerably higher, around 4.25 percent.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) last week decreased to 3.83 percent, its lowest level since January 2015, from 3.87 percent, with points decreasing to 0.32 from 0.38 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans, according to the MBA survey.

Rates haven’t moved very much lately, which may be why homeowners have seen little incentive to refinance. “In general, there’s a pervasive air of dispassionate complacency,” wrote Matthew Graham of Mortgage News Daily, regarding what he called the “flatness” of rates. “It would be easy to assume that the gorilla will reach the room when the Fed Announcement comes out next Wednesday, but then again, markets might be let down by a lack of ‘clues’ regarding the Fed’s rate hike timeline.”

While most analysts expect rates to rise through the course of this year, some now believe they could go even lower, given how little overseas bond markets have to offer investors. If investors continue to buy U.S. Treasury bonds, and if a still slow housing market means fewer-than-average mortgages and mortgage-backed securities are issued, rates in fact could move lower.

copyright © 2015 cnbc.com


_______________________________________________________________________

March 2015

Renting is Now Twice as Expensive as Buying Houses in the US
By Jay Yen
usihomes.com

Renting is now twice as expensive as buying in the USAs rents all over the US continue to soar upwards, online real estate database Zillow has recently found out that renting a home is now twice as expensive as buying one.

According to their recent affordability report, in the third quarter of 2014, renters in the US were spending an average of 30 per cent of their monthly incomes on rent, while homeowners were spending just 15 per cent of their monthly incomes on their mortgage payment.

These findings shed light on a major shift that has occurred in the US housing market over the past few years. In the years before the real estate bubble, between 1985 and 2000, rent was usually more affordable compared to buying houses, in most US cities. Now, in most American metros, if you can just come up with a down payment, you are much better off buying your own house than renting.

Even in the cities which have always been famous for high rents — the likes of Boston, San Francisco, Los Angeles, Seattle and New York — renting was more affordable than buying before the US real estate market crashed in 2008. However, since then, rents have been on a steady upward trend across the country while the cost of buying a home has been falling in many parts of the country, to a point where renting is now the less affordable option — sometimes by a huge difference.

This trend of renting being half as affordable as buying a home is one of the reasons why many housing marketing experts believe 2015 will be the year that most Millennials finally break through and enter the real estate market to buy their first home. It is predicted that the persistently high rents will push many of these young potential buyers into homeownership as it continues to make less financial sense to continue renting if they can put together a down payment.

However, it won’t be easy for everyone – some renters, especially the younger ones, are spending so much of their monthly incomes on rent that they will struggle to put away any savings for a down payment, even if they want to take advantage of the current affordability of buying a home.

Copyright © 2015 usihomes.com


_______________________________________________________________________

January 2015

Price Gap Breaks Open Between New and Existing Homes
By Robert Johnson, CFA
morningstar.com

The gap is the widest in history as limited builder lots and a focus on higher-end homes has pushed up new-home prices. This week’s chart shows the median price of a home, one for new homes and another one for existing homes.

If you look at the graph, you can see in the early 2000s that a new home price was always more, but not that much more, than an existing home price. There was very little penalty for going out and buying a brand new home. But since the recession, things have really changed. The gap is the widest it’s been in history. In fact, a median new home price is $280,000 versus something like $205,000 for an existing home–a huge gap.

That gap has several causes. One is that builders haven’t got that many lots right now, because they shut down buying more lots when the recession hit and they focused on maximizing profits on existing lots and on higher-priced homes, not leaving much for the low end of the market. Also, the price of raw materials that go into a home, including labor, have begun to rise, making the cost of building a home go up as well. So now we have this very wide gap.

I think that gap will need to close; we really want to get the new home market going again. What will make that happen? I think builders will have to set up more developments and focus more on lower-priced homes before we’ll see the new-home market really explode yet again.

_______________________________________________________________________

November 2014 …


marketwatch.com

Borrowers’ access to mortgage credit is the greatest in at least three years, and standards may continue to loosen from stringent post-crisis criteria as banks adjust to new rules and look to pump up home-loan revenue, experts said Wednesday.

A gauge that tracks mortgage-credit availability ticked up to 114 in March — the highest reading in the series’s three-year history — from 113.5 in the prior month, according to the Mortgage Bankers Association. For context, MBA set the gauge to equal 100 in March 2012.

Despite recent gains, March’s credit-gauge reading is far below MBA’s estimate for a level of about 800 in 2007.

“I don’t think there’s any question that mortgage underwriting has gotten easier or is looser than it was two or three years ago, but it’s nowhere near where it was in 2005, 2006,” said Guy Cecala, publisher of the trade publication Inside Mortgage Finance. “We are talking about easing from extremely tight underwriting standards.”

Of note, not all buyers are equally benefiting from greater mortgage-credit availability. Many lenders are increasingly providing credit to borrowers who want jumbo loans. Jumbo loans are for greater amounts than the maximum that can be backed by federally controlled mortgage-giants Fannie Mae FNMA and Freddie Mac FMCC . It’s typically tougher to qualify for jumbos than other mortgages.

“Lenders are likely moving to create a broader range of jumbo products in order to capture the increasing demand for such financing in the market,” according to MBA.

It’s clear that buyers of greater means are having an easier time in this housing market. Annual sales of existing single-family homes between $500,000 and $750,000 recently rose 6.4%, while sales of homes that cost between $750,000 and $1 million rose 13%, according to the National Association of Realtors. Meanwhile, annual sales for properties up to $250,000, which make up the lion’s share of the market, dropped more than 7%.

An increase in mortgage-credit availability comes at an opportune time for a housing market that has suffered from an unusually harsh winter and rising mortgage rates. Some buyers are acclimating to the new pricier housing environment, which has seen rates rising since May and prices running higher. In February, applications for loans to purchase a home were down as much as 30% from a May peak, but that gap narrowed in recent weeks, and now the gauge is down 18% from May, according to MBA.

There’s been concern that new mortgage rules for lenders and borrowers in 2014 would cut credit access, especially for lower-income borrowers. Indeed, this year’s annual real-estate-lending report from the American Bankers Association showed that 80% of respondents expect new regulations to “have a measurable reduction in credit availability.” However, Bob Davis, an executive vice president at ABA, said standards may thaw once lenders become more comfortable with new rules.

“There will be a tendency for some liberalization over the course of the year,” Davis said.

Data signal that certain banks have already somewhat loosened standards. According to the Federal Reserve’s senior loan officer survey, 16.7% of large banks recently eased credit standards for prime purchase mortgages, while 5.6% tightened, and the rest left standards unchanged. Banks, which saw refinancing applications plunge last year as rates rose, are looking to make up that revenue elsewhere.

–Ruth Mantell

Follow Ruth on Twitter @RuthMantell

_______________________________________________________________________

March 2014…

Buying A Home Is Now 38% Cheaper Than Renting
forbes.com
March 5, 2014

Is renting or buying a better financial bet? Every six months, Trulia’s chief economist Jed Kolko runs the numbers to answer that question and help you stay on top of the trends. So what does Trulia’s Winter 2014 Rent vs. Buy Report tell us? Although the gap between renting and buying is narrowing across the U.S., homeownership is still 38% cheaper than renting.

Homeownership remains cheaper than renting nationally and in all of the 100 largest metro areas according to Trulia TRLA -3.42%’s latest Winter Rent vs. Buy report. Rising mortgage rates and home prices have narrowed the gap over the past year, though rates have recently dropped and price gains are slowing. Now, at a 30-year fixed rate of 4.5%, buying is 38% cheaper than renting nationally, versus being 44% cheaper one year ago.

The rent versus buy math is different in each local market. Buying ranges from being just 5% cheaper than renting in Honolulu to being 66% cheaper than renting in Detroit. But even for a specific market, the cost of buying versus renting depends on how much home prices rise (or fall) after you buy. Our model assumes conservative home price appreciation, but – as we all know after the last decade – home prices can unexpectedly rocket or plummet.

Even though prices increased sharply in many markets over the past year, low mortgage rates have kept homeownership from becoming more expensive than renting. Also, in some markets, like San Francisco and Seattle, rents have risen sharply; rising rents hurt affordability relative to incomes, but rising rents make buying look cheaper in comparison.

Will renting become cheaper than buying soon? Some markets might tip in favor of renting this year as prices continue to rise faster than rents and if – as most economists expect – mortgage rates rise, due both to the strengthening economy and Fed tapering. For each metro, we identified the mortgage rate “tipping point” at which renting becomes cheaper than buying, given current prices and rents. If rates rise, Honolulu would become the first metro to tip, at a mortgage rate of 5.0%. San Jose and San Francisco would also tip before rates reach 6%. But those are the extreme markets. Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.

Copyright © 2014 forbes.com


______________________________________________________________________________

January 2014…

Arizona Republic & ASU’s W. P. Carey School
To Host Real Estate Event
January 02, 2014

The new year brings new challenges for those who want to buy or sell homes in the Phoenix area. Do you know what to expect? The Arizona Republic and the ASU Real Estate Council at the W. P. Carey School of Business are hosting an event to help you find out what’s happening out there.

“Phoenix Housing Market Explained II” is slated for Saturday, Jan. 25, at ASU’s Tempe campus. The event will be similar to one held last spring, and it will feature an overview of the local housing market, including trends like employment and population growth, that can affect the housing industry. The experts will also answer submitted questions from the audience.

The speakers – all experts frequently quoted in the media – will be:

• Catherine Reagor, senior real estate reporter for The Arizona Republic

• Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business

• Mark Stapp, director of the Master of Real Estate Development (MRED) program at the W. P. Carey School of Business

“This is a chance for those thinking about buying or selling homes in the Phoenix area to hear about current price trends and other developments that may affect them,” explains Reagor.

The event will be held in the Business Administration C-Wing Building, or BAC, at 400 E. Lemon St. on ASU’s Tempe campus. Registration starts at 9:30 a.m., followed by the presentations and discussion from 10 to 11:30 a.m. The cost is $25 per person, with a $10-off discount available for subscribers to The Arizona Republic and ASU students and alums.

Parking is available just across the street at the intersection of Apache Boulevard and Normal Avenue. Signage will direct participants from the garage to room BAC 316 on the third floor of the BAC building.

Space is limited, and you can register at tickets.azcentral.com. More information about the event can be found at www.money.azcentral.com, www.wpcarey.asu.edu or by calling 602-444-4931.

More information on the Valley housing market is also available in the W. P. Carey School’s monthly reports at www.wpcarey.asu.edu/realtyreports.
Debbie Freeman, Debbie.Freeman@asu.edu
(480) 965-9271
Communications Manager, W. P. Carey School of Business

Copyright © 2010 Arizona Board of Regents


______________________________________________________________________________

THE LAND OF PLENTY

With several major multi-use projects currently in development, the City of Tempe is in the midst of a commercial real estate boom. While it would be easy to heap all the praise for this market resurgence — and the jobs it has brought with it — on Tempe Mayor Mark Mitchell, he would be the first one to spread the gratitude around.

“The recent success is not by accident,” says Mitchell, who was elected mayor in 2012 and has served on the City Council since 2000. “This has taken years of dedication and commitment from the council and employees of the city to attract economic development to the city. We’re seeing the investment that we’ve made in our community attract many opportunities.”

The city is proving to be a major player when it comes to attracting businesses. Many nationally-recognizable companies already have a presence in Tempe, including LifeLock, KPMG, Bank of America, Edward Jones and Medtronic. Additionally, GoDaddy currently has facilities under construction.

“The City of Tempe has done a wonderful job of promoting growth over the past several years,” says Glenn Smigiel, Senior Vice President at CBRE. “Their willingness to work with tenants and developers, demonstrated by a streamlined process for facilitating new projects, has been instrumental in bringing in a wide range of new companies to the market.”

Smigiel recently facilitated the $38.5 million sale of Centerpoint on Mill. The 127,027 square-foot mixed-use commercial project on the corner of Mill Avenue and University Drive was created through a unique public-private partnership between the City of Tempe and developer DMB.

Rather than draw attention to his tenure as mayor, which has seen Tempe add over 5,000 jobs since July 2012, Mitchell chooses to direct praise at current and former city council members, Tempe citizens, real estate professionals and city staff. Each group, according to Mitchell, continues to play an integral role in promoting Tempe as an economic hub in the Valley.

Mitchell points to successful rezoning and redevelopment deals of the past, like Tempe Marketplace and the revitalization of Mill Avenue, as evidence of what smart planning can accomplish. He also emphasizes Tempe’s plethora of qualities that are attractive to businesses, such as its engaged and educated citizenry, central location, proximity to higher education and the willingness of its leadership to work with business leaders to drive economic progress.

Multiuse

Tempe has several major multiuse projects currently in development, including Marina Heights and a third tower at Hayden Ferry Lakeside adjacent to Tempe Town Lake and Liberty Center at Rio Salado.

“To date, we have had $1.4 billion invested in and around the lake,” says Mitchell.

The Marina Heights project, which already secured State Farm as tenant, accounts for a bulk of that investment.

The design of Marina Heights takes its inspiration from the Salt River and the watershed, says Mike Davis, whose firm DAVIS designed the building. “We designed the complex around a plaza that takes its cue from the way the water starts up in the mountains and then runs down to provide for agriculture and other things that helped the city develop.”

DAVIS designed the building with light colored, reflective glass that will pick up the colors of the sky and fit well into the environment of the area.

Each project represents a facet of the city’s vision for development within its boundaries. Included in this vision is a heavy focus on the creation of state-of-the-art multiuse properties that can attract local and national businesses to the city. In order to realize that vision, the city has worked collaboratively with brokers, developers and other partners.

“We are honored to be affiliated with the developers who create job opportunities and change the face of our community through innovation,” says Cheri Brady, Vice President National and Commercial Sales for First American Title Insurance Company, who provided many of the title products and escrow services for many of the new projects in Tempe.

Hayden Ferry Lakeside, which currently features two completed phases with a third under construction, is operating at nearly max capacity, making the lakefront in Tempe one of the hottest destinations for business. Parkway Properties acquired Hayden Ferry I and II last year.

In the seven months following the acquisitions, Parkway nearly doubled the occupancy in Hayden Ferry I and brought Hayden Ferry II to 100 percent occupancy, says Parkway Properties Vice President and Managing Director Matthew Mooney.

Mooney attributes this success to Parkway’s proactive management of the property and Tempe’s status as a go-to locale for businesses. “We feel like there is somewhat of a shift happening,” Mooney says. “If you look at the recovery that’s happened here, the numbers are in Tempe’s favor.”

Just as ambitious is Liberty Property Trust’s Liberty Center at Rio Salado, which will offer a sustainable, mixed use property on over 100 acres with business, industrial, retail, restaurant and hotel space. The sizable site is being developed, in part, to meet the City of Tempe’s stated need for mixed use space. The demand is there and Liberty Property Trust has developed the site with the needs of the city in mind, according to John DiVall, Senior Vice President and City Manager for Liberty Property Trust’s Arizona region.

Mitchell and the City Council have worked with brokers, land developers and businesses to make Tempe an attractive site for economic growth, and the Mayor points to these public-private partnerships as a key factor in promoting that growth. “Whatever the market bears, we are going to figure out how we can work with that,” he says. “Because at the end of the day, it doesn’t do the city any good if those projects aren’t successful. So it’s in everybody’s best interest for us to work together, because our community will benefit from that.”

Tourism

Just down the road from the lake, another aspect of Tempe’s vibrant economy is spurring real estate growth through public-private partnership. With its sunny weather and central location, Tempe has a chance to further solidify its stance as a prime tourism destination in the Valley. In order to capitalize on this, city leaders have long sought to develop a conference center and attract a top-tier hotel to the downtown area, according to Mitchell. That vision is now coming to fruition with USA Place.

Mitchell has a tourism background, having worked in the industry after college, and understands what the industry can mean to a community. “I’m a big believer in tourism,” he says. “The number one industry in our state is technology and the second is tourism.”

But the site will function as much more than a conference center and hotel. USA Place will also serve as the national headquarters for USA Basketball, complete with a 4,500 seat arena.

USA Place fits into a larger vision for the future of Tempe, says Mitchell. By drawing in more out of state visitors through the conference center, hotel and basketball center, Tempe is giving itself a chance to attract more businesses to the city by showing off what a great locale it is.

Mitchell points to opportunities for collaboration between the forthcoming conference center and the different colleges at ASU and how that can positively affect the city. “Imagine if there is a conference center and someone from the Biodesign Institute comes for a 1,000 person conference, and we do a quick tour of downtown to show what we have to offer,” he says. “They see that they can open up a regional division for western states in Tempe and it’s easy to fly here because our proximity to the airport is phenomenal.”

To support his claims, Mitchell points to the positive effect the Fiesta Bowl had on Tempe in the past. He recalls a game in the 1980s when officials from Chase made the trip to watch the game. “The City of Tempe and DMB Associates used the opportunity to show Tempe off to Chase leadership and eventually convinced the company to move into the Centerpoint building on Mill Avenue. The partnership worked out well for the city, bringing about 2,600 jobs and the largest credit processing center west of the Mississippi River.”

“Centerpoint on Mill was originally conceived and master planned by DMB in a unique public-private partnership that spanned 28 years and was the impetus for redevelopment of the Mill Avenue District and downtown Tempe,” says Michael Burke, DMB’s Vice President of Development. “DMB’s flexible entitlements and its strong partnership with the City of Tempe allowed Centerpoint on Mill to be responsive to changes in the market and to meet the needs of its retailers and customers.”

Rezoning

The Mayor and City Council have also remained committed to looking at rezoning options for properties when appropriate and when brought up by the property owner. This allows the city to continually revitalize itself by rezoning properties for multiple uses that appeal to modern tenants.

This type of infill development is a necessity in Tempe because the city is landlocked and cannot expand outward. Rather than view that as a detriment, however, the city has been proactive in using its unique characteristics to develop unique projects and offer developers multiple options as they develop property.

“The one thing about Tempe that is noteworthy to me is it is the only landlocked city,” says Mooney. “As a government, they take a different approach than all of the other cities because they know the one thing they don’t have more of is land. And so they are just much more amenable to urban development and taking a different approach to development than a lot of the other cities, somewhat by necessity.”

Rezoning has helped Tempe aggressively pursue technology companies and fashion itself as a hub for the tech industry in Arizona. “Technology is the leading industry in our state,” says Mitchell. “We have the highest percentage of tech-related businesses out of any city in the Valley at over 20 percent.”

One promising project aimed at the tech industry is Discovery Business Campus, Wentworth Property Company’s forthcoming state-of-the-art complex near Elliot Road and the Loop 101 Freeway, or what Mitchell dubs “the Price Technology Corridor.” The new project integrates the sites previous owner, Freescale, and allows for further development of vacant lands at the site.

The completed plan at Discovery calls for the campus to include facilities for industrial, office, retail and hotel space. With its variety of uses, the site will be a complementary addition to the technology corridor, which already includes the ASU Research Park, the site of the new GoDaddy facility.

Multifamily

In order to house all of the employees that come with the economic boom, Tempe has fostered a progressive multifamily housing atmosphere to provide modern living arrangements for the large amounts of upwardly mobile young professionals the city is attracting from technology and other industries.

Companies like GoDaddy, State Farm and Allstate bring jobs to Tempe and, with that, a need for housing. “There is an opportunity here, because it offers something for people who want to live in Tempe but don’t want a house or a mortgage payment,” says Mitchell.

With the influx of demand, developers are responding. In addition to properties like USA Place that will feature residential, other communities are popping up around the city. Mark Taylor is currently developing a multifamily offering at Elliot Road and the Interstate 10, near the technology corridor. Additionally, there are already new multifamily offerings in the works for downtown Tempe and near the lake.

“There is a another area called Fountainhead Corporate Center near Priest Drive and Broadway Road that was a huge redevelopment area in the past. The property owner is looking at redeveloping that area to include residential units and multifamily,” says Mitchell.

The Future

Just like the mayors and councils of the past, the current leaders in Tempe are dedicated to assuring the city has a positive plan for the future. As a father to two daughters, Mitchell hopes to leave them a thriving community with a bright outlook. “I want my daughters to experience what I had in Tempe, but even better.”

The city is on the right track. Just a few years ago, Tempe had a $17 million transit fund deficit and had to cut $33 million from its budget, but, due to the work of the councils and mayors overseeing those problems, there is now a $5 million surplus in the transit fund and the city is budgeting smartly. The city’s leadership is now focused on responsible development and growth.

In order to make that growth happen, they are making sure to focus on the details that make Tempe an attractive destination for businesses.“All the stuff that is not sexy like infrastructure is important,” Mitchell says. “To attract companies, we need to make sure we have the proper infrastructure in place.”

Additionally, the city plans to continue rezoning and redeveloping old sites when appropriate in order to provide room for new businesses to come in and thrive. As an infill community with a finite amount of space to work with, this type of planning is crucial. “We’re going to continue working with redevelopment projects and relying on our staff like we always do to help us think outside the box,” Mitchell says.

Tempe is primed to take advantage of its recent economic successes and parlay them into future stability. With multiple high-profile developments set to see completion in the next few years, Tempe has the sound planning and leadership to achieve sustained, positive growth.

Commercial Executive Magazine © All Rights Reserved 2013


Ashwood Circle: a ‘Smart & Green’ North Central Phoenix community features eight energy efficient and technologically integrated homes ~ $875,000 & Up!

AshwoodCircle logo3Ashwood Circle represents Blue Sky Homes’ newest contribution to intelligent urbanization in North Central Phoenix. Just a quick ‘cruiser bike ride’ from stylish coffee shops, trendy restaurants, the light rail, boutique shops and other local hot spots in the rapidly improving central corridor, Ashwood’s residents will love leaving their car in garage to explore everything the area offers. With 3rd party verified ‘Five Star Energy Efficiency’ ratings and top of the line Smart automation features, Ashwood owners will enjoy significantly lower utility bills than other new builds in the area without compromising lifestyle. Each Ashwood home is built with quality and community in mind, which is why every home includes a front yard living space. Call us old fashioned, but we still believe people thrive when they spend less time in online communities and more time getting to know their neighbors.

Property Details

Price: $875,000 & Up
Address: N.E. Corner of N. 3rd St & E. Rose Ln
City: Phoenix
Zip: 85013
Subdivision: Ashwood Circle
Square Feet: Structure 3000 + / Lot 10,000 +
Pool: Upgrade Available
Fireplace: n/a
Bedrooms: 4 plus
Bathrooms: 3

View Map

 
Subdivision Details:

Ashwood Circle consist of 8 spacious lots on a private cul-de-sac street. You may reserve your lot today and customize the home of your dreams!

Lot sizes: 10,000(+) sq. ft.
Preliminary Reserved lots = 2*
Available lots = 6*
*Subject to change
 
Reserved Lots

Download Subdivision Map>>
 
Home Details:

Brand new 3,000(+) sq. ft. homes with integrated Smart and Energy Efficient features. On the exterior, a beautiful combination of brick, siding & stucco create a truly unique appearance. Each home will reflect a unique elevation from the neighbors, but still cohesive in terms of style. Beyond the front door you will experience a gorgeous open floor plan, vaulted ceilings, exquisite kitchen and spacious bedrooms. Not to mention, a luxurious master retreat that features a walk-in closet & spa-like master bath. To top it off, a backyard oasis can host an outdoor grill and a sparkling diving pool, if desired.

Note: Floorplans available with finished basement & three-car garage. Pool is not included in the current list price, but one can be added if desired.

Smart & Energy Efficient Features Included in Your Home:

★ Smart Home pre-wiring for complete home integration
★ Smart Home Ipad installed and ready to use
★ Solar ready
★ 220V in garage for EV charging purposes
★ Spray foam insulation
★ Insulated garage
★ Energy efficient HVAC system – 16 SEER
★ Tankless Water Heater
★ Factory built trusses
★ Nest® learning thermostats
★ EPA WaterSense faucets, toilets, shower features
★ Energy efficient windows
★ Energy Star rated kitchen appliances
★ LED Lighting
★ HERS Index score
★ No VOC paint
★ USB outlets
★ Weather-Sensing irrigation

Smart & Energy Efficient Available Upgrades:

★ Integrated Audio & Visual packages
★ Video Doorbell
★ Smart Lighting
★ Smart Lock & Keyless Entry
★ Voice Control Integration
★ Solar panels Installed
★ Security System
★ Reverse Osmosis water system for kitchen sink & refrigerator
★ Water softener system

General Features Included:

Kitchen

● Solid wood shaker cabinetry
● Durable quartz slab countertops
● Oversized island w/ breakfast bar
● Apron front porcelain sink
● Subway tile backsplash
● Stainless steel appliances including gas range/cooktop
● Extra deep shelving in pantry for additional storage
● Undercabinet lighting
● Pre-plumbing for Reverse Osmosis & Water Softener

Baths

● Subway tiled shower and tub walls
● Custom mirrors & hardware
● Dual sinks in Master Suite
● Luxurious Master shower with rainhead & organization niche
● Elegant freestanding soaking tub in Master Suite
● Tile floors in all baths

Interior

● Vaulted ceilings in family room & master suite*
● Engineered Hardwood flooring in main living areas
● Carpet in bedrooms
● Smooth drywall finish
● Laundry cabinetry & sink*
● Masonite® 8ft interior doors
● Ceiling fans in all bedrooms
● 16’ sliding glass door in family room

Exterior

● Professionally designed outdoor living spaces
● Fully landscaped front yard
● Covered back patio
● Concrete driveways and patios
● Modern, smooth texture stucco
● Foundation and home pre-treated for termites

*Available on most plans

Design Finishes:

Preliminary Renderings:

 
Local Hot Spots Aug 2017

10% Guarantee

Our 10% Guarantee Program is an ideal investment for:

  • Risk-Averse Individuals
  • Income-Focused Retirees
  • Anyone Seeking a Guaranteed Monthly Stream of Cash

10% Guaranteed Return on Asset Backed Loans

  • Contract is between Lender & Blue Sky Homes LLC
  • Loan is secured by deed of trust on Blue Sky properties
  • Monthly interest payments are paid on 1st of the month
  • Monthly interest payments commence one month following Blue Sky’s receipt of funds
  • Standard loan period is 12 months with an option to extend if both parties agree
  • Funds are repaid upon sale of property, refinance or expiration of loan term, whichever occurs first
  • Final payment includes full amount of initial loan plus accrued interest
  • Blue Sky Homes retains the right to pay off the loan early without penalty
  • Minimum Amount – $50,000
  • Maximum Amount – $3,000,000

Frequently Asked Questions (FAQ)

Since 2009, Blue Sky Homes has borrowed in excess of $75 Million and repaid its lenders with a 100% success rate, representing over $4.5 Million in returns!

For more information call Nick Blue at: 480.900.7252
Or send an email to: info@nickblue.com

Frequently Asked Questions (FAQ)

$850,000 Move-In Ready … New 4-Bed, 3-Bath Home w/ ‘3-Car’ & Basement in Arcadia Lite 85018!

20170705022819873549000000-o2017 5+ STAR ENERGY EFFICIENT NEW BUILD with a ‘HERS’ rating of 67 (lower costs, cooler summers & warmer winters!). Home features Camelback views & 3-car garage and an interior of vaulted ceilings, white-shaker cabinets, quartz counters, & bamboo flooring. Stunning kitchen boasts stainless appliances, butcher-block counters, bar seating, gas range & hood. Private upstairs master suite has large walk-in closet & spa-like bath with soaker tub, oversized shower & quartz topped vanity. Large basement provides cooler temperatures & space for games, movies, toys …

Property Details

Price: $850,000
Address: 4220 East Glenrosa Avenue
City: Phoenix
Zip: 85018
Subdivision: Dateland Lots
Square Feet: 2936
Pool: n/a
Fireplace: n/a
Bedrooms: 4
Bathrooms: 3

View Map

Project Map


Map Code:
Orange – Under Construction
Green – Active Listing
Yellow – Pending Sale

Upcoming Properties website(1)

 
Download>>

$475,000 Fall 2017 … New 3-Bed, 2 Bath Home w/ Pool & Casita in Phoenix’s Coronado District!

Coronado DistrictLocated in Historic Coronado, this beautiful custom new build features it all. Complete with a spacious main house, Casita, new pool, and 2-car attached garage. Conveniently located between Downtown Phoenix and Midtown. Coming soon Fall 2017!

Property Details

Price: $475,000
Address: 907 East Sheridan Street
City: Phoenix
Zip: 85006
Subdivision: Syndicate Place
Square Feet: Main House: 1,963 / Guest House: 224
Pool: Yes
Fireplace: n/a
Bedrooms: 3
Bathrooms: 2

View Map
 
Floor Plan
 
Sheridan

Testimonials

Mr & Mrs William K. Moore Kirk & Brenda … We had seen several Blue Sky Homes properties in person during different stages of remodeling and were so impressed with the quality, efficiency and timeliness of their operation, we decided to invest. It’s one of the best decisions we’ve ever made! It’s great to see those checks automatically deposited into our account every month, on time and guaranteed! Nick Blue and his team are hard workers, do a first class job on every house and the results are stellar. We highly recommend this investment opportunity!

SujayPatelSujay Patel … I am a Canadian physician and avid real estate investor. More recently, I have preferred more passive and fixed dividend income types of investments as my family life has become my focus. People who know me well know that I make my financial investments with a great deal of due diligence, and among my friends and colleagues I am a trusted financial adviser because of this. This has also been the reason for a lot of my success. I came to know of Blue Sky Homes after an exhaustive internet research in my hopes to find a reliable US real estate firm where I could invest a small amount of US money that I had saved. The investment opportunity that was presented on the Blue Sky Homes website encouraged me to take the step to email and phone the CEO, Nick Blue. Nick was not only prompt in his communications with me, more impressive was his genuine kindness, authenticity and warmth. It was also clear that he had a solid knowledge of real estate investing. I felt easily reassured that my investment would be safe in Nick’s hands even though I never met him in person. I told Nick that if I was happy, I would consider further investments. For that one year, Blue Sky Homes made investment payments into my bank account without any difficulties. Towards the end of the year, Nick’s team also helped me prepare information for my tax accountant. After a successful year, my wife and I decided we should meet Nick and his team, so we planned a trip to Arizona. Nick and his team, being as gracious as they are, organized wonderful accommodations for us and made sure we were looked after well. We got to meet Nick’s team and see some of their projects. The quality and efficiency of his setup was impressive. My family got to also meet Nick’s family, which was a wonderful experience. It was a pleasure to know that Nick and I were both enjoying first time fatherhood with new daughters. Nick was clearly grounded and seemed to really care that his investors (many of which are his own family) were happy and saw them as long-term partners. We were so encouraged that we have decided to invest more with Nick, knowing that our investment is not only secure but providing excellent returns.

JinHee & Nathan … Thank you so much for all your help with the air conditioner problem. You were genuine with your care and put forth a lot of effort to remedy the problem. We are very appreciative and we love our home!

Susy & HubbyRichard & Susan Favaro … We met the Blue’s about 5 years ago when they were buying a property from us. My wife Susy and I are both in our 60’s and I am retired. I supplement our income by working with realtors who have clients that cannot get traditional financing. Meeting Nick made this type of investing all but effortless. What Nick does differently than most realtors is he listens, he listens really well! I explained to him what my investing goals were and what risk I was willing to take. He came back to me with a menu of opportunities, all within my goals and let me pick the ones I felt most comfortable with. The other thing that impressed me about Nick was that he had no high risk opportunities. The type of investing and real estate deals he does are soundly firm and he doesn’t pursue get rich quick type of opportunities.

All the deals we do are through licensed title companies so I have legal documents for each deal Nick and I do. They even come to my home to do signings. He sets up payments to be automatically paid monthly to my banks savings account. In the five years I have been working with Nick not once was a payment late or something Nick promised me didn’t happen.

I do very few testimonials but the Blue’s and their team earned this one.


$785,000 Coming Summer 2017 … New 4-Bedroom, 3-Bath Home on 9,875 sq ft Lot in Arcadia Lite!

47th-2934Situated on a 9,800 sqft lot, this single story Ranch home has it all. Including a three-car garage, great room with 12 ft vaulted ceilings, a 16ft sliding door to the backyard, and private master suite in the back of the house. Walking distance to the beautiful 48th St green belt, Costco, and Fry’s Marketplace.

Property Details

Price: $785,000
Address: 2934 North 47th Place
City: Phoenix
Zip: 85018
Subdivision: Middleton Homes
Square Feet: 2650
Pool: n/a
Fireplace: n/a
Bedrooms: 4
Bathrooms: 3

View Map
 
Floor Plan
 
47th #2

Charity

Since the inception of Blue Sky Real Estate in 2009, we have been fortunate enough to share 5% of our profits each year with wonderful organizations near and far. Each organization has a special connection with the Blue Sky family and we proudly support the following charities:

Phoenix Children’s Hospital is held in particularly high regard at Blue Sky – This is where Nick and Adralyn’s gorgeous daughter spent the first weeks of her life in the Newborn Intensive Care Unit. The doctors, nurses, staff and facilities are second to none and save lives every single day right here in the Valley of the Sun. Built in 1983, Phoenix Children’s Hospital has grown to become one of the largest children’s hospitals in the country and a leader in providing hope, healing, and the best health care for children and their families. With a Medical Staff of nearly 1,000 pediatric specialists, Phoenix Children’s provides inpatient, outpatient, trauma and emergency care across more than 70 pediatric subspecialties, the most comprehensive pediatric care available in the state. Today, Phoenix Children’s Hospital is home to the state’s largest group of pediatric specialists and sub-specialists. This includes physicians, nurses, technicians and others who are dedicated 100% to the needs of children.

Founder, Dan West, started Heifer International nearly 70 years ago to end world hunger, poverty and to care for the Earth. By using the “teach a man to fish” philosophy, Heifer links communities and helps bring sustainable agriculture and commerce to areas with a long history of poverty. They provide these communities with various animals – those animals provide both food and reliable income, as agricultural products such as milk, eggs and honey can be traded or sold at market.

Better known as MSF, Doctors Without Borders was created on the belief that all people have the right to medical care regardless of gender, race, religion, creed or political affiliation, and that the needs of these people outweigh respect for national boundaries. Since 1980, MSF has opened offices in 28 countries and employs more than 30,000 people across the world. Since its founding, MSF has treated over a hundred million patients—with 8.3 million outpatient consultations being carried out in 2012 alone.

Carefund provides mortgage and rent support during a child’s extended health crisis. Designed to financially and resourcefully support Arizona families who endure financial hardship while experiencing extended illness or injury of their children. Carefund is an Arizona based organization that was founded in 2010.

$1,950,000 Coming Summer 2017 … New 4-Bed, 3-Bath w/ Pool, Fireplace & Guest House in Scottsdale!

00001
 
Main house will include 3,700 sq ft plus of living space, open indoor/outdoor style, salt-water pool & hot tub, and a half-acre of land. Comes with guest house & roof-top terrace with fire pit, offering the perfect spot to unwind while taking in views of Camelback.

Property Details

Price: $1,950,000
Address: 6201 East Calle Redonda
City: Scottsdale
Zip: 85251
Subdivision: Hidden Village
Square Feet: 3700 plus
Pool: Yes
Fireplace: Yes
Bedrooms: 4
Bathrooms: 3.5

View Map
 
Floor Plan
 
Calle Redonda