| November 2006 News Articles | ||||||||||
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Pinal County home sales drop below 1,000 mark, from the Phoenix Business Journal, reports that single-family home resales in Pinal County dropped to 850 recorded transactions in the third quarter, compared to 1,180 in the second quarter and 1,110 in the first, according to numbers released by the Arizona Real Estate Center at ASU. The median home price in Pinal County in the third quarter was $199,900, down from $211,000 in the second quarter and $214,000 in the first quarter. The third quarter median price is 77 percent of the median price in Maricopa County, which sits at $260,000. Jay Butler, director of the Real Estate Center at ASU, attributes the drop in resales to the incentives that new home builders are offering on new housing, such as free pools, specially priced upgrades and gift cards. City warned fees may stunt growth, from the Arizona Republic, reports that noted state economist Elliott Pollack warned the Goodyear City Council that raising impact fees too high could stunt the city's future economic development. Pollack was commissioned to do an economic analysis after developers and city staff were concerned that the fee increases proposed in a July report were too steep. The study produced by an independent economic consulting firm suggested that Goodyear triple its impact fees from $9,000 per home to about $27,000. That number shocked many, including Goodyear officials. After some additional debate, the fee increase recommendation was lowered to $21,000 per home. Pollack said that if the fees are too high, developers might take their projects to neighboring cities that have lower impact fees. That could have Goodyear lose regional commercial developments that could generate huge sales-tax revenues for the city. Avondale is considering raising impact fees to about $18,000, while Surprise has talked about boosting theirs to $21,000. Developers pay impact fees to cities in order to build infrastructure for resident services, but builders just pass these fees on in the price of the home. Experts weigh in on market in Phoenix, from the Arizona Republic, reports that a number of local and national real estate gurus are tracking the Valley's housing market and here is what they have to say. There were 53,509 listings on the market on Nov. 1. That's 12 homes to every home buyer in the market now, according to Jay Haugen of Re/Max Anasazi Realty. More than 4,500 new homes, complete or nearly finished, sit unsold in Valley subdivisions, according to Belfiore Real Estate Consulting. Metro Phoenix has a 35 percent chance of falling prices, according to PMI's U.S. Market Risk Index, but 24 other areas, including Las Vegas and San Diego, have a greater chance that prices will drop. Well-known Arizona housing analyst RL Brown still has a "red code" on his monthly newsletter and says "The end (of the housing market's slowdown) is not yet in sight, and the market is still seeking the bottom." http://www.azcentral.com/arizonarepublic/business/articles/1105biz-catherine1105.html Credit score changes could spark housing boom, from MSNBC.com, reports that the slumping housing market could get a $200 billion boost from new immigration home buyers is mainstream lenders start using methods to score credit, a national group of Hispanic real estate agents said Friday. A handful of new credit reporting systems-- already used by 200 real estate brokers, community groups and mortgage counselors nationwide-- allows lenders to calculate risk by evaluating a prospective client's utility bills, rent checks and other payments. Currently, recent immigrants who lack Social Security numbers or legal status in the U.S. are rejected by the three major credit bureaus. Should the new method gain wider acceptance on Wall street and among secondary mortgage lenders like Freddie Mae, housing markets in states like California, Texas and Arizona could gain the most. "Gateway states like California and Texas will disproportionately benefit from the housing boom because so many of their residents are immigrants," said Gary Ocasta of the National Association of Hispanic Real Estate Professionals. A study at the Joint Center for Housing Studies at Harvard University shows that Latinos will account for nearly one-third of the home buying pool by 2010. That same year, the disposable income of Hispanics will exceed $1.08 trillion, or 9.2 percent of total purchasing power nationwide, according to the Selig Center for Economic Growth at the University of Georgia. http://www.msnbc.msn.com/id/15551056/ Greenspan: Slump will not worsen, from MSNBC.com, reports that former Federal Reserve Chairman Alan Greenspan said that "the economy is obviously going through a significant slowing period, which as best I can tell is more than likely temporary". Greenspan said that while the housing market is not out of the woods yet, the current slump may not worsen. "I think that while we are past most of it there are a lot of negatives... but it is no longer subtracting from the (gross domestic product) growth," the former Fed chairman said. Greenspan also touched on the potential adjustment in loan costs for home buyers with nontraditional mortgage products. While some individual buyers may feel the pinch as payments rise, Greenspan said those changes were "very unlikely to have a macroeconomic effect." Home resale market up last month in Valley but off from a year ago, from the Arizona Republic, reports that there were 4,985 resales in October in the Valley, up slightly from 4,875 the previous month but down nearly 41 percent from October last year, according to the Arizona Real Estate Center at ASU. The median price stayed flat, rising to $257,000, up from $256,900 in September. At $257,000, the new median resale price is just 1 percent lower than in October of last year. Jay Butler, head of the real estate center, said the market is struggling to shake a hangover from last year, trying to find its footing at a more reasonable pace. Median home price down in Scottsdale, from the Arizona Republic, reports that Scottsdale's median home price fell in October to $548,500, down 2 percent from a year ago and down 5 percent from September, according to the Arizona Real Estate Center at ASU. Sales of existing homes picked up a healthy 23 percent from September to October, but were off 27 percent from a year earlier when 575 homn price was at $1.74 million, up 4 percent from a year earlier. Real estate agents testing new ideas, from the Arizona Business Gazette, reports that agents are trying new ideas to generate business in the slowing real estate market. Mary Ann Michaels and her MCO Realty partner, Natalie Varela, started Thursday night open houses in Fountain Hills, versus the traditional weekend open houses, in an attempt to free up buyers' weekends. Bob Stahl with West USA Realty started using a 800 number toll free with each house getting its own extension with a recorded message, after which the caller can either get more information or be connected right to Bob. "The key words are relationship and referral," explained promotional products expert Jim Gordon. Gordon's company, NorthStar Identity, specializes in marketing and promotions for real estate professionals. "All my clients are in touch with past clients and business associates on a regular basis," he said. "The use promotional products to keep their names in front of clients." Re/Max Integrity agent Sheri McBroom buys into Gordon's philosophy. She not only relies on promotional products, she throws two or three promotional parties for her clients, like a cosmic bowling party and a barbecue. 'For Sale' Is a Sign of the Times, from the were waiting in line to get a home, where now, the sales agents are doing the waiting for buyers. It states that the number of unsold homes has soared to almost 46,000 and that for sale signs are up everywhere. On the positive side, the article does state that the local economy has added 300,000 jobs since 2000 and the population grew by 20% from 2000 to 2005. It also states that the positive fundamentals of the local economy remain intact and cited Google's plan to hire several hundred employees. It quotes local Land Advisor expert Greg Vogel as saying "we will quickly grow out of it." It also quotes Daniel Van Epp of Newland Communities (developers of Estrella Mountain Ranch) as saying "As sure as the grass is green, it will all come back." Good article to read to get the East Coast's read on our market. Fluctuating mortgage rates rise slightly, from the USA TODAY, reports that rates on 30-year, fixed-rate mortgages rose to 6.33% this week, up slightly from 6.31% last week. Rates have exhibited a seesaw pattern of falling one week and then rising the next week for the last 1 1/2 months. "Mortgage rates rose earlier in the week on news of large upward revisions over the past three months in employment figures, but began to drift lower as the market looked more deeply into the numbers," said Frank Nothaft, chief economist at Freddie Mac. Rates on 15-year, fixed-rate mortgages averaged 6.04%, up from 6.02% last week. A year ago, 30-year mortgages averaged 6.36% while 15-year mortgages stood at 5.89 percent. STILL HISTORICALLY GOOD RATES! http://www.usatoday.com/money/perfi/housing/2006-11-09-mortgages_x.htm Ahwatukee home prices drop 3.5%, from the Arizona Republic, reports that the median price for a single-family home in Ahwatukee Foothills fell 3.5 percent to $357,000 last month, compared with a year earlier, according to numbers released by the Arizona Real Estate Center at ASU. It peaked at $399,950 in July. There were 85 sales in October, compared with 150 a year earlier. Jay Freeman, an Ahwatukee Realtor, said prices are coming down for homes under $600,000 but are holding steady for higher-priced homes. In Chandler, the median price stands at $298,000, down only 1 percent from a year earlier. There were 345 sales last month, compared with 540 in October 2005. In Gilbert, the median price stands at $328,000, up 1 percent from a year earlier. Sales slowed from 485 to 275 in October. In Mesa, the median price fell 4 percent in October to $235,000 and sales slowed from 1,015 to 555. In Tempe, the median price stands at $296,500, up 8 percent from October 2005, and sales slowed from 195 to 95. Home resale market behind last year's pace, from the East Valley Tribune, reports that recorded sales rose to 4,985 last month from 4,875 in September, according to the latest numbers from the Arizona Real Estate Center at ASU. So far this year, 57,375 resales have been reported, down from the 97,165 for the same period in 2005. The median home price Valleywide stood at $257,000. Last month, 15 percent of all recorded sales were for homes priced from $125,000 to $199,999, while 46 percent were from $200,000 to $299,999 and 35 percent were more than $300,000. "This was just a slight uptick," said Jay Butler, the center's director. "The overall trend is we seem to be bouncing along the bottom here. We're probably a little bit below our historical norms for these months, but the market is within its range of historical normalcy." http://www.eastvalleytribune.com/index.php?sty=78608 http://phoenix.bizjournals.com/phoenix/stories/2006/11/06/daily52.html?t=printable Obstacles unlikely to stop sprawl to Prescott, from the Arizona Republic, reports that metropolitan Phoenix's onward growth could soon cut a swath all the way to Prescott. But the path to Prescott is filled with roadblocks, including state and federal lands, water issues and transportation issues. Still, the Valley is expected to stretch from Prescott, 85 miles north of Phoenix, all the way south to the Mexican border as early as 2040.The area is already considered a megapolitan or "super-sized" metropolitan area. Urban researchers call it the "Arizona Sun Corridor" and rank it as one of the next 10 big U.S. growth hubs. That designation will help it get more growth funding and planning assistance from the federal government. The metropolitan areas of Phoenix, Tucson and Phoenix together have a population of about 5 million, a figure expected to double by 2010. Prescott's population has climbed from 9,000 in 1990 to about 38,000. Economists predict it could have as many as 80,000 residents by 2025. Las Vegas closing in on full house, from the USA TODAY, reports that Las Vegas is running out of fee simple land, and that available acreage may be gone in less than a decade at the current pace. Las Vegas, home to 1.8 million residents, will add more than 1 million residents in the next 10 years, the state estimates, and hit 3 million by 2020. Developers who 15 years ago paid less than $40,000 per acre for land are paying more than $300,000 today. A 1998 law that grew out of a legal settlement allowed the BLM to sell land it owns inside Clark County. About 75,000 acres were suppose to last for 30 years, but two-thirds has been snapped up. The rest is being consumed at 6,000 to 7,000 acres a year. As a result, builders and developers are looking farther out toward Mesquite and Kingman, leapfrogging over BLM land and planning mega developments over 50 miles from the strip. Cities seek to cut condo conversions, from the Arizona Republic, reports that even with a lull in the Valley's condo-conversion boom, city officials are still concerned about the number of condo conversions planned and how it could displace renters. Researchers with CB Richard Ellis predict that, even with the slowdown, about 20,000 apartments will be converted to condos throughout the Valley before the trend ebbs in a few years. City officials have little leverage in controlling the conversions because state law prohibits municipalities from crafting regulations specifically targeting condominiums. Scottsdale alone saw 3,500 apartments converted to condos in 2005, and is taking the lead in fighting to change the law, said Scottsdale mayor Mary Manross. She is concerned with the stories she has heard about tenants being kicked out of their apartments with little notice. Housing: What the Realtors Are Saying, from MSNBC.com, reports on the National Association of Realtors annual convention in New Orleans and what Realtors are saying about the current housing market. The article states that there is a big difference between last year's annual event and this years, with existing home sales expected to fall 9 percent in 2006, and new homes expected to decline 17 percent. In some markets, prices have begun to fall too. Despite the slowdown, NAR's chief economist David Lereah remains optimistic, stating that only 26 percent of the U.S. home markets got overheated, with speculators driving up the prices by more than 20 percent annually. The article mentions Phoenix, Las Vegas, southern Florida and California as the markets that faced challenges, adding that Lereah said that those markets could remain soft into 2008. Developments rising in shadow of reactors, from the Arizona Republic, reports that housing developments are moving closer to Palo Verde Nuclear Power Plant in Tonopah, and that thousands of homeowners are expected to move within the plant's 10-mile emergency notification zone during the next two decades. Development plans have been filed with Maricopa County for eight master-planned communities, most north and east of Palo Verde, with more than 107,000 dwelling units on 33,000 acres. Even with the housing slowdown, speculation has continued to drive up prices around Tonopah. The price per acre has more than tripled to almost $60,000 an acre between Interstate 10 and the nuclear power plant during the past three years, local real estate agents said. Developers within 10 miles of Palo Verde must provide emergency horns within their subdivisions and signs indicating routes of quick access in the event of an evacuation. High-end home buyers attracted to condos, leaving homes behind, from the Arizona Republic, reports that many high end homeowners are selling their homes to move into luxury condos closer into the city and amenities such as shopping, dining and entertainment. The article talks about two such buyers; one couple who moved into the Optima Biltmore condo project, the other couple buying a condo at Kierland Commons, and their reasons for doing so. Condo sales have slowed along with the Valley's home market, but the luxury sector has been more stable than the overall market. Through early October, 2,031 homes priced at $1 million or more had been sold in the Valley. That is on pace to top last year's total of 2,285. With luxury condos selling for $1 to $4 million, or roughly $400 to $800 per square foot, the pool of potential buyers is a fairly elite group. GM sale could invigorate east Mesa, from the Arizona Republic, reports that the development of the GM Proving Ground will shape southeast Mesa's future look and personality. "The General Motors property is probably the most attractive property in the entire Southeast Valley for development," said Wayne Balmer, a land-use consultant who helped plan the area. "This property will set the tone and character for southeast Mesa's future and how it is developed." A recent land-use study of the airport and the 50-square miles around it by the Urban Land Institute reinforced belief that some housing should be part of the development mix near the Williams Gateway airport and that could be part of the mix with the GM Proving Grounds. Sources identified the buyer of the GM property as Scottsdale based DMB Associates, known for its high-end projects, including residential communities. Phoenix OK's increase in development fees, from the Arizona Republic, reports that the Phoenix City Council approved increasing impact fees in the growing northern and southern flanks of the city. The fees in Ahwatukee rose to $17,500 per home, and nearly $24,000 in North Black Canyon City. Impact, or development fees, are fees charged for each new home to cover costs for parks, libraries, police and fire protection, and water and sewer infrastructure. The city assesses these fees in growth areas where the cost to bring in these services is higher than in infill areas. Builders usually pass these fees onto the homebuyer in the form of higher housing prices. $10 million sets Scottsdale house sale record, from the East Valley Tribune, reports that a house sold on Tuesday for what may be the highest price ever paid for a residential property in Scottsdale. The home, located at 9422 E. Happy Valley Road was sold for $10 million, according to Bob Hassett, a broker with Russ Lyon Realty. The buyer plans to resell the house and subdivide the 20-acre lot into smaller lots for construction of two more luxury homes, Hassett said. The 27,000 square-foot house has six bedrooms, eight baths, four fireplaces, an eight-car garage, two separate guest apartments and an indoor swimming pool and tennis court. It was built in 1994 by Kitchell Custom Homes and cost more to build 12 years ago than it was sold for on Tuesday, Hassett said. The owner originally sought $35 million for the property but the price was reduced to sell. RL Brown, the Valley's housing guru, said he was not surprised that the seller had to lower the price because the high end of the market has been affected by the same pressures as less elaborate homes. He said the Scottsdale property appears to be more of a land deal than a housing deal. Mortgage rates at lowest level in 8 months, from MSNBC.com, reports that rates on 30-year mortgages fell sharply this week to the lowest level in eight months. Freddie Mac reported that rates on 30-year, fixed-rate mortgages dipped to 6.24 percent, down from 6.33 percent last week. That's the lowest level since March 2 when they stood at 6.24 percent. Analysts attribute the drop to further good news on inflation as both consumer and wholesale prices registered big drops. Frank Nothaft, chief economist at Freddie Mac, said that falling mortgage rates should help cushion the downturn in housing. "We've probably seen the worst of the housing slump although it may not have entirely bottomed out yet," he said. Rates on 15-year, fixed-rate mortgages fell to 5.94 percent, down from 6.04 percent last week. Tribe to weigh freeway plan, from the Arizona Republic, reports that in an about-face, the Gila River Indian Community's council agreed late Wednesday to begin "exploratory negotiations" with ADOT and federal highway agencies on the possibility of putting the Loop 202 freeway on Indian land, and on expanding Interstate 10. "We do have concerns. Arizona is growing. The Gila River community is growing. We are trying to make the best possible move for us as well as Arizona," said Alia Maisonet, a Gila River Spokeswoman. "First and foremost, our community welfare is at the forefront of our minds. We're on the same page as Ahwatukee Foothills residents. We have similar concerns," she added. The resolution passed Wednesday allows the council to name a five-member transportation team who will talk with state and federal transportation agencies. The team will report back to the council no later than March 31. Coolidge housing market remains 'steady', from the Coolidge Examiner, reports that while Pinal County reports a downward trend in the resale home market, the city of Coolidge appears to be on the rebound. Home values remain steadily above median prices in 2005, and master-planned communities that represent the future of residential Coolidge are rising from the desert. Coolidge has seen housing sales in 2006 exceed those in 2005. According to Sue Laybourn, senior city planner, there have been 615 new home permits issued so far this year, compared with 539 new home permits in all of 2005. Coolidge's largest master-planned community, Sandia, is expected to go vertical during the first quarter of 2007. Cross Creek Ranch Phase 1 grading is complete and model home plans have been submitted. Heartland Ranch is "bubbling along quite nicely", and home values continue to rise. "The bottom line with Coolidge is it's good value for money," Laybourn said. "If you live up in the Valley, you can't afford a bigger house up there. But you can down here." Mortgage troubles are rising, from the Arizona Republic, reports that the number of people losing their homes to foreclosure or falling behind on their mortgages in metropolitan Phoenix is near a two-year high. "A lot of people with rising mortgage payments due to adjustable loans can't refinance now because their credit and debt situation has changed," said Margie O'Campo de Castillo of Arizona Dream Realty in Phoenix. "They are faced with finding a way to sell their home fast or lose it." In October, the Valley's notice of trustee sales, which are the lender's first step toward foreclosing on a house, almost doubled from April's level. Last month, 1,186 homeowners got trustee notices, and 133 homes were auctioned off to the highest bidder, according to Phoenix-based Information Market. "A lot of homeowners are very nervous, and some are in trouble", said Jay Butler of the Arizona Real Estate Center at ASU. "A lot of people gambled on home values continuing to climb like they did last year, and now they are losing that bet." Developers covet 1940's bombing ranges, from the Arizona Republic, reports that as growth grows into Pinal County, developers are dealing with 14 different former practice bomb sites that were used by the military in the 1940's. The practice bombing sites may have "flash and burn" powder charges that could cause harm if set off. The Army leased the bombing sites from private landowners and in some cases from the state. Now, developers are faced with the clean-up from any of these bombing sites that they plan to develop. Unfortunately, decades old federal records are incomplete and poorly documented as to what areas have already been cleaned up. Growth factors remain strong, from the Arizona Republic, reports on local economist Elliott Pollack's take on the local economy. He states that Phoenix has been a well-established growth area for virtually the entire 20th century, and the trend has continued into the 21st century. He states that the primary reason he is optimistic about the areas future is because people and businesses will continue to migrate to the area and prosper. The long-term outlook remains favorable, and in the short-term, he states that the current business cycle has a couple of good years left in the tank. Pollack addresses the current housing market and says that we need to work ourselves out of the current market imbalance created by the exuberance of 2004 and 2005, as we may have constructed roughly 20,000 more homes than the population inflows would normally demand, and that as of early fall, we have not begun absorbing these excess units. He states that this needs to occur at some point, so expect some adjustment pains in this sector. Residential foreclosures are going up, from the Arizona Business Gazette, reports that the rate of residential mortgage foreclosures in Maricopa County rose 35 percent in August. In the commercial sector, lenders said they have seen little or no increase in foreclosures. On the commercial side, Bonnie Jessen, vice president of First National Bank of Arizona states, "there is so much availability of money right now that it's not an issue. There are many lenders who want to invest funds in Arizona, and that has not changed with the recent downturn in real estate. If anything, it's more of a buyer's market for a mortgage than it's ever been." Mobile may see annexation, from the Arizona Republic, reports that the community of Mobile, located south of Goodyear, is looking to be annexed by Goodyear and develop a 10,000-acre master -planned community. Scottsdale-based Montage Holdings has assembled more than 10,000 acres to build what could be a village of Goodyear. Plans call for an employment corridor, hospitals, a town square, a regional mall and more than 30,000 homes. "What we're envisioning is a self-sustaining community," said Tim Keenan of Montage Holdings. But their plans hinge on getting Goodyear to annex the area, and the next step occurs Wednesday night when the Goodyear Planning & Zoning Commission consider adding the Montage property to its Planning Area. 11-20 Construction of housing falls to lowest rate since "00, http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/1118biz-economy1118.html <http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/1118biz-economy1118.html> 11-20 Zoning rule would aid renovation, from the Arizona http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/scottsdale/articles/1120sr-conform1120Z8.html <http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/scottsdale/articles/1120sr-conform1120Z8.html> 11-22 Developers to create retail, office space at historic 11-28: Hurdles may sink project, from the Arizona Republic, reports that Old World Communities wants to build 75, three-story homes on 139-acres at the 47th Ave. alignment just north of the Loop 101. However, the developer faces several hurdles, including a limited water supply and Indian artifacts near the site. Old World Communities is seeking a rezoning with a hillside density waiver to group the homes closer together. City staff recommended approval of the development with several conditions, including an archeological study. Even if the rezoning is approved, the developer must find a water source before building homes, as Phoenix does not currently supply water to this area. The developer may have to run a water line from south of the Loop 101 to the development at a cost of $1 million. 11-28: A century of water: Study confirms Buckeye has enough groundwater to sustain growth, from the West Valley View, reports that a recent 1,665-square-mile Lower Hassayampa Sub-Basin Hydrology Study concludes that Buckeye has a sufficient groundwater supply to meet the town's development needs for the next century. "It means that we now have assurance that if we properly manage our groundwater supply, we can provide water for the growth of Buckeye," said Scott Lowe, Buckeye Public Works Director. The water study was funded by the town and developers/landowners in the study area, including Belmont, Festival Ranch, Douglas Ranch, Elianto, Tartesso and Trillium. Approximately 30 percent of the water accounted for in the study will come from recharge, or treated water that is released back into the ground. This study will support the development of the area of Buckeye north of Interstate 10 and should make this area a continuing hot spot for real estate development in the Valley. 11-29 New home closings, prices up last month, from the East Valley Tribune, reports that new home closings in Maricopa and Pinal counties were up nearly 10 percent last month compared with October 2005, while resales were down 38.5 percent during the same period. The information was released yesterday by RL Brown, publisher of the Phoenix Housing Market Letter. The median new home price was $281,990 last month, compared with $251,568 in October 2005. The median resale home price was $248,000, compared with $249,000 a year ago. Many homebuilders are making headway into reducing their inventories, Brown said. Through October, new home closings totaled 42,079 this year, compared with 45,648 for the same period last year. Resales this year through October totaled 78,388, compared with 116,435 for the same period last year. "The market's doing just what it needed to do, and that is get itself back in balance," Brown said. http://www.eastvalleytribune.com/index.php?sty=79771 11-29 New homes in the Valley, from the Arizona Republic, also reports on the latest numbers from RL Brown and adds that new-home building has probably hit bottom in metropolitan Phoenix. There were 2,341 single-family permits issued in October, up slightly from September but half the pace of October 2005. Part of the slowdown is due to the many cancelled contracts for new homes in the Valley. Brown cites some sources saying as many as 40 percent of all contracts for new homes in 2005 and early 2006 being cancelled, mostly by investors getting cold feet. Brown is forecasting new-home building permits this year to fall 29 percent below 2005's record pace of 63,570. 11-29 U.S. housing prices plummet, from the Arizona Republic, reports that sales of existing homes nationwide rose slightly in October, but the median home price fell 3.5 percent from a year ago. The median price for a resale dropped to $221,000 in October, according to the National Association of Realtors. It was the biggest year-over-year price decline on record. David Lereah, chief economist with the NAR, said he expected home prices to continue falling for the rest of the year as sellers reluctantly cut their prices. "Many buyers remain on the sidelines," he said. "After a period of price adjustment, we'll see more confidence in the market and a lift to home sales should be apparent in the first quarter of 2007." 11-30 Light rail may come early to West Valley, from the Arizona Republic, reports that efforts are gaining steam to extend the light rail system 11 miles along Interstate 10 by 2015, to a point just east of the Loop 101. The Metro board is expected to seek federal study money and hopefully launch the study in January rather than in 2011. Among the options being considered are using buses or some kind of rail, and running transit down the Interstate 10 median, along the freeway or through a nearby neighborhood. The I-10 route is currently scheduled to open in 2019, after the Mesa, Tempe and Phoenix links are completed. The transit option is being planned in conjunction with ADOT's plans for widening the I-10. 11-30 85045: Foreclosure country, from the Arizona Republic, reports that the western Ahwatukee area covered by zip code 85045 has experienced a higher than average rate of notices of trustees sales than other parts of Ahwatukee. This area is mostly newer, large homes, and some buyers got into them with little or no money down. With home values sliding, some are falling behind on payments and going into foreclosure. That same zip code also had a higher than average credit card debt balance than other areas. Pam Eagan, an Ahwatukee real estate broker, said she wasn't surprised to hear about the high debt and foreclosure risk in western Ahwatukee. She said that the area is largely comprised of families who have moved up from entry-level homes to large houses. 11-30 Selling your home in slump? Don't panic, from MSNBC.com, reports that with home values dropping and home sales off, homeowners needing to sell are in an anxious state. December is typically the slowest month of the year for home buying activity, and agents are advising sellers that they could have to wait for several months to attract a qualified buyer. "The thing to do is not panic. It's just an adjustment," said Sid Davis, a Salt Lake City area Realtor and author of "A Survival Guide for Selling a Home". While market conditions have changed in the past year, homeowners' option's are the same: Prepare to sell or stay put. "Time is not your friend", said San Diego Realtor Bob Wilson. He says many buyers are staying out of the market in hopes that prices will dip further. This is also not the time to start out with an ambitious asking price "just to see" whether buyers will bite. They won't. A home has the greatest chance of selling during the first 30 days on the market, Wilson says, so price competitively from the start. The article states that if you have the time to wait, the market will come back based on historical data. The new home glut has declined and there is a good chance that fewer homes will be coming on the market to compete with existing listings. | ||||||||||
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