| January 2007 News Articles | ||||||||||
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01-02: Western states see rise in home resales as mortgage rates dip, from the Phoenix Business Journal, reports that existing home sales in the West rose 0.8 percent to an annual pace of 1.32 million in November but were 17.5 percent lower than a year earlier, according to the National Association of Realtor's latest housing report. The median price in the West was $351,000, down 0.8 percent from November 2005. "As the housing market recovers from its correction, existing home sales should be rising gradually during 2007- it looks like we may have reached the low point for the current cycle in September," said David Lereah, NAR's chief economist. "We've entered a more sustainable period of home sales now, and we expect greater support for prices over time as inventory levels are eventually drawn down," he added. Mortgage rates remain low, with the 30-year mortgage rate sitting at 6.24 percent in November, down from 6.33 percent in November 2005. 01-03: ASU making strides in real estate, from the Arizona Republic, reports that ASU is now offering an MBA with a real estate concentration and a doctorate in business administration/real estate finance. ASU has been teaching real estate courses for some time, but not as a major concentration. Community leaders and alumni told them in 2004 that they needed to improve the real estate program at ASU due to the importance of real estate to the Arizona economy. ASU has also hired a top real estate scholar, Crocker Liu, to become the founding director of the new MBA program. Liu is the most publicized academic in the area of real estate investment finance. With Liu on board, ASU is talking with other experts and hopes to add another faculty member to the team. 01-03: Housing slump seen hurting '07 economy, from MSNBC.com, reports that the housing market continues to suffer through a serious correction and will hurt the national economy in 2007. Many private analysts are forecasting the economy will perform at the slowest level in five years. One such analyst, Nariman Behravesh, chief economist at Global Insight, a forecasting firm, says "The recession in the housing market does not seem to have had much of an impact on the consumer. The bad news in housing has been offset by good news on wages, jobs and the stock market." While the slowdown will cause the unemployment rate to rise, economists remain hopeful that the economy will remain on track to achieve the Federal Reserve's hoped-for "soft landing". That is a scenario in which growth slows enough to dampen inflation but not enough to trigger a recession. If the Fed succeeds in its soft landing goal, many economists believe the stage will be set for a solid rebound to a 3 percent plus GDP growth rate in 2008 and beyond. http://www.msnbc.msn.com/id/16438094/ 01-04: Phoenix property values expected to rise 11 percent in 2007, from the Phoenix Business Journal, reports that property values in Phoenix are expected to rise 11.1 percent in 2007, according to a fourth quarter survey by Arizona Tax Liens.com. Buyers and sellers projected an average increase of 10 percent statewide, citing the large number of people immigrating to Arizona, fueled by high-tech and biotech job growth in Tucson and Phoenix, low housing costs and baby boomers buying retirement homes. Of the 5,000 people surveyed, 59 percent planned to buy real estate in Arizona in 2007 and 32 percent planned to sell. Arizona Tax Liens.com provides real estate investors with online access to Arizona tax lien lists. http://www.bizjournals.com/phoenix/stories/2007/01/01/daily11.html?t=printable 01-04: Tax lien sales likely to drop at '07 auction, from the Arizona Business Gazette, reports that Maricopa County Treasurer David Schweikert says that "we believe we'll have 20,000 liens to offer this year", which is down from past years when as many as 28,000 properties were on the auction block. "We're doing a better job at collections", Schweikert said. "It's the right thing to do, to collect as much as possible, but it does represent a huge change for us." In early December, the Treasurer's office sent out 35,000 final delinquency notices carrying information about all delinquent taxes affecting a specific property. Schweikert's advice to homeowners, "open your mail". Potential bidders can go to the Treasurers web site for more information about the upcoming tax lien auction. http://treasurer.maricopa.gov/index.htm: 01-05: Santan Freeway fuels job market, from the Arizona Republic, reports that the Santan Freeway will deliver big developments and a large number of jobs to Gilbert in 2007. Retail centers from clothes to cars, office towers, and a hospital expansion are all expected to open this year in an area around Val Vista Dr. and the freeway. "We had planned over the years for that to be a center of employment for Gilbert as well as a revenue generator for sales tax," said Kathy Langdon with the Gilbert Chamber of Commerce. Several of the projects coming to Gilbert this year include Santan Motorplex, Mercy Gilbert Medical Center, Rome Towers, San Tan Village and Main Street Commons. Shows that growth follows the freeways! 01-05: Home buying, selling made easier with hybrid agents, from the Arizona Republic, reports that some Valley Realtors are getting into a new trend, becoming "hybrid agents"-- professionals who double as Realtors and loan officers. Jim Decker, an associate broker with West USA Realty in Peoria, decided to venture into lending as a way to become more versatile and better inform his clients. "I was tired of some of my clients getting bad deals from mortgage companies", Decker said. "It's a huge step in buying a home, and if I can give then the answers they need, the whole transaction goes smoother." To learn the lending side of the industry, Decker teamed up with JSSmith Mortgage, a Scottsdale-based company that offers a training program to help Realtors like Decker make the transition to a hybrid agent. Out of about 70,000 licensed agents in the state, a few hundred double as loan officers. "This seems like a brand new idea, but in a decade, it will be everyday practice," said Jeffrey Smith, president of JSSmith Mortgage. 01-05: Old, new in Rancho Ventura, from the Arizona Republic, reports that soaring home values in Arcadia the past five years have sparked interest in nearby neighborhoods that are being rediscovered and redeveloped. That includes the 50-year old Rancho Ventura neighborhood, southwest of 44th Street and Thomas Road, which has large, irrigated lots with a mix of well-kept homes and others that show their age. "it's a sleeper of an area in terms of value," said Katherine Coles, a planner for Phoenix's Camelback East Village area. But bargain properties are starting to disappear as interest in the area rises. Median home prices in Arcadia's ZIP code 85018, increased 145 percent to $490,000 between 2001 and 2006. By comparison, the median home price was $218,500 last year in 85008, up 29.3 percent from 2005 and up 100 percent from 2001. That ZIP code is from Thomas Road to Van Buren Street, between 64th and 24th Streets. 01-08: Some home sellers settle in for long wait, from the Arizona Republic, reports that according to the Arizona Regional MLS, single-family houses in the Valley took an average of 83 days to sell in November, off the pace of the 65- and 61-day selling times in that same month in 2002 and 2003. Although some Valley residents can sell relatively quickly, others wind up waiting many months. Resale sellers are very important to the housing market, analysts say. If they can't sell their old homes, they can't buy new ones, and builders are stuck with too much inventory. Real estate agents point out some of the key reasons for slow sales, including too many homes on the market and sellers holding out for "boom prices". Single family inventory stood at 42,000 in November 2006, compared with 23,500 in November 2005. The article profiles several sellers of homes in the Valley and their experiences during this correction market period. 01-09: Arizona avoids Southwest's big foreclosure jump, from the Phoenix Business Journal, reports that while the Southwest led the U.S. in foreclosures for 2006, Arizona had only a minimal contribution to the upswing, according to figures released yesterday by Foreclosures.com, a California-based real estate investment advisory firm. California, Texas and Colorado were among the states with the most foreclosures. California led the nation with 157,417 foreclosure filings, up 94.3 percent from 2005. Colorado saw filings rise 55.4 percent to 68,310. Texas rose 35.2 percent to 106,845 foreclosure filings. Nevada saw a huge increase of 174.8 percent to 24,194 foreclosure filings in 2006. In Clark County alone (Las Vegas), there were 7,000 foreclosure filings in the last three months of 2006. In contrast, Arizona foreclosure filings rose just 8.2 percent to 21,774 filings in 2006, up from 20,117 in 2005. Nationally, there were 970,948 foreclosure filings in 2006, up more than 51 percent from the 641,000 in 2005. http://phoenix.bizjournals.com/phoenix/stories/2007/01/08/daily3.html?t=printable 01-10: Home market will heal slowly, from the Arizona Republic, reports that metropolitan Phoenix's new-home slump still has several months to run, according to experts who spoke yesterday at the Urban Land Institute's Real Estate Trends conference in Phoenix. Housing accounts for one of every three dollars in the region's economy, and a prolonged slump would bring pain on several fronts. "What we saw (in the boom) we will never see again in our lifetimes", said Steve Hilton, chief executive of Scottsdale-based Meritage Homes. The consensus from the experts is that the new home market will bottom out this spring or summer. Greg Vogel of the Land Advisors Organization said Valley home building will run at a rate of 35,000 to 40,000 new-home permits a year, down from the 60,000 range during the 2005 market. Pete Bolton of CB Richard Ellis spoke on the Valley's commercial markets, saying they are in good shape. Vacancies have fallen in the office, retail and industrial markets. 01-10: 2,000 Scottsdale residences to open in '07, from the Arizona Republic, reports that about 2,000 new residences are set to open in downtown Scottsdale this year. The city's biggest condo projects, including the 700-unit Optima Camelview Village and the 198-unit Scottsdale Waterfront, are scheduled to open most or all of their residences by fall. About a dozen other projects, including a six-story tower adjacent to the Hotel Valley Ho and the residences at W Hotel, are scheduled to open before the end of 2007. Other projects scheduled for completion this year include the 227-unit Safari Drive development on Scottsdale Road northeast of Camelback Road. Just to the east, the 225-room W Hotel will feature 25 luxury condos. In addition to the residential development, several commercial and retail developments are also planned to open, including the first phase of South Bridge, which features 115,000 square feet of retail, restaurant and office space and is scheduled for an August opening. 01-11: Existing home sales in December worst of 2006, from the Arizona Republic, reports that metropolitan Phoenix's resale market finished the year with 67,035 homes sold, down from the boom years of 2004 and 2005, according to the latest numbers released by the Realty Studies Group at ASU. In 2005, there were 110,835 resales in the Valley. December 2006 sales were the worst monthly total for the entire year. Experts blame investors, many of whom fled the Valley, leaving a glut of housing behind. "They were the driving force", said Jay Butler, who heads Realty Studies. "They were the ones who would pay any price for a home." Single-family resale inventory stands at more than 42,000, nearly double that of 2005. Median prices rose nearly 50%, from $174,815 in 2004 to $260,000 in 2006. Many people are looking to this year with hopes of better times. Some agents say they are seeing buyers who stayed on the sidelines early in 2006 moving into the market. Agents say houses in good locations and at realistic prices will sell, and they are seeing a different type of buyer, the person who wants to stay put rather than the quick-money investor. 01-11: Area home sales down, prices up, from the Arizona Republic SE Valley, reports that in 2006, sales dropped 57 percent to 1,055 in Ahwatukee Foothills; 41 percent to 4,625 in Chandler; 44 percent to 3,730 in Gilbert; 42 percent to 7,600 in Mesa and 32 percent to 1,785 in Tempe. However, prices rose in 2006 anywhere from 8.5 percent in Ahwatukee Foothills to 14 percent in Tempe. Sales slowed because people seem to be settled in, content with their homes and not interested in moving, said Jay Butler. "There is no reason for them to pack up and move on", he added. 01-11: Home sales fall, but prices rise, from the Arizona Republic Scottsdale, reports that sales of existing Scottsdale homes dropped 40 percent in 2006 from the previous year while the median price edged up 13.3 percent to $595,000. Scottsdale captured 7.7 percent of the Valley's 67,035 home resales. The median price in south Scottsdale increased 14.3 percent last year to $320,000. It was up 13.3 percent in north Scottsdale to $682,000. Sales of existing condos fell 35 percent to 2,900 transactions, but prices climbed nearly 9 percent to $264,005. Paradise Valley's median price for existing homes increased 25 percent to $1.65 million. "The luxury market is as strong as ever," said Scottsdale Realtor Mark Tait of Realty Executives. 01-12: Real estate slowing felt in W. Valley, from the Arizona Republic, reports that the West Valley's housing market followed the Valley-wide slowing trend in 2006 with homeowners worrying about slipping values and sellers struggling with a sea of listings. But the market is good news for buyers as sellers reduced prices and offered incentives to lure a deal. "Buyers had a lot of choices in 2006 and remain in the driver's seat," said Meredith Andrews, a Realtor at Windermere West Valley in Surprise. "They can bargain a little bit, and sellers have an incentive to make sure their properties look great." However, the growth in the west Valley is helping as it is becoming a desired spot with all of the new master-planned communities and the new Westgate area. As for the West Valley's resale housing market, Andrews anticipates a correction in the market by midyear. "It will take a little more time for listings to start moving again," Andrews said. "The trick will be to price right." 01-12: Housing planned at Town Lake, from the Arizona Republic, reports that two housing developments are proposed for near Tempe Town Lake near the new Tempe Center for the Arts. Town Lake Villas would contain eight multimillion-dollar single-family homes ranging from 4,600 to 5,800 square feet with underground parking with space for at least four vehicles, elevators to the homes second floors and rooftop gardens with Jacuzzis. Next door, plans for more condos and townhomes are being proposed by Zacher Homes, who wants to build four condominium towers that could reach 25 stories. Preliminary plans show the "Residences at the Arts Park" would be on the northwestern corner of Roosevelt and First Street. Neither of the project's developers was willing to talk about prices for the homes, but city officials said they expect the Town Lake Villas homes could cost up to $2 million. The developers behind the Residences at the Arts Park units say the condos will cost about $400 per square foot to build. 01-16: Toll roads not an option for Napolitano, from the Arizona Republic, reports that Gov. Janet Napolitano told members of the East Valley Partnership last week that she opposes toll roads as a way to relieve Arizona's transportation woes. "I am not a fan of toll roads," she said. "I'll tell you right up front. There's a reason I don't live in New Jersey." But she is for faster freeway construction and other alternatives. In addition to $300 million in state budget surplus money appropriated last year to speed road construction, Napolitano said bonds used to pay for roads should extend to provide an additional $400 million to further accelerate freeway construction, including Southeast Valley projects. She also requested that the Arizona Department of Transportation submit proposals to her within 90 days for the possible installation of commuter rail systems or more light rail to alleviate traffic congestion. Senate Majority Leader Thayer Verschoor said he is interested to see ADOT's rail study that was ordered by Napolitano. A vocal supporter of commuter rail, Verschoor said having the governor back a study of that transit option "will add some extra needed weight to it." 01-17: Despite building boom, W. Valley feels cooldown, from the Arizona Republic, reports that the West Valley's housing market followed a Valley-wide slowing trend in 2006, with homeowners worrying about slipping values and a large number of listings on the market. The sluggish market was good news for buyers, as sellers reduced prices and agreed to pay closing costs in a bid to lure customers. "Buyers had a lot of choices in 2006 and remain in the driver's seat," said Meredith Andrews, a Realtor with Windermere West Valley. Despite last year's softening market, the Northwest Valley's growth did fuel success at master-planned communities in Peoria and Surprise, and multi-family projects in Glendale's sports and entertainment district. Sales remained strong at Vistancia, Peoria's largest master-planned community. The 7,100-acre community has sold 2,483 homes since it opened in 2004. In Surprise, Marley Park celebrated its one-year anniversary in September and welcomed residents and builders throughout the year. Developed by DMB Associates Inc, Marley Park offers a wide variety of architectural styles and features nine themed parks. As for the West Valley's resale housing market, Andrews expects a correction in the market by midyear. 01-18: Home builders feel they have weathered the storm, index suggests, from the USA TODAY, reports that home builder sentiment improved in January to its strongest since July, as price cuts, lower mortgage rates and incentives fostered demand, the National Association of Home Builders said Wednesday. The NAHB/Wells Fargo Housing Market index rose to 35 in January, up from 33 in December, marking its highest reading since 39 in July. "Builders are starting to see that the worst is behind them and that buying conditions have improved to the point that greater optimism is warranted," said NAHB Chief Economist David Seiders. The upturn in demand reflect lower mortgage rates since mid 2006, energy prices that sank from record highs, solid employment and household income growth, home price reductions and builder incentives, he added. http://www.usatoday.com/money/economy/housing/2007-01-17-home-builders_x.htm 01-18: Office rents in parts of Phoenix top $40/sq. foot, from the Arizona Republic, reports that some office buildings in Phoenix at Camelback and 24th Street are commanding rents of more than $40 per sq. foot, rivaling rates of better known addresses in Chicago and Newport Beach, California. The Phoenix market average for Class A office space was $26.75 per sq. foot in the fourth quarter of 2006, according to Cushman & Wakefield of Arizona. Competitor CB Richard Ellis listed the Valley's Class A space at $29.21 per sq. foot. Across the Valley, the average asking rates for leases climbed between 15 percent and 20 percent in the past year, according to broker reports. Absorption of office space hit a new record, as nearly 3.5 million sq. feet were leased. The demand was based on strong job creation in 2006. Scottsdale Airpark showed the most job creation, followed by midtown Phoenix, according to the Cushman report. Larry Downing of Cushman & Wakefield says "the West Valley will be the submarket to watch in the next two to five years. Recent residential growth in the area and the addition of amenities like the University of Phoenix Stadium have helped position this submarket for future commercial growth." http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0118biz-office0118.html http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/community/chandler/articles/0118cr-fees0108Z6.html http://www.eastvalleytribune.com/index.php?sty=82527 01-19: Camelback building sells for $75 mil, from the Arizona Republic, reports that the nine-story Camelback Center at 2355 E. Camelback Road sold this week for $75.62 million, or $325 per square foot. The seller, Crown West Realty, purchased the building in November 2004 for $32.35 million. This was the latest in a flurry of sales in the area, one of the most desired office locations in the Valley. Current rents at Camelback Center are about $25 per s.f., but the market is averaging $35 per s.f., and some buildings are getting over $40 per s.f. Shows that our commercial market is strong and is drawing interest from institutional investors. 01-19: December U.S. home construction climbed, from MSNBC.com, reports that the pace of U.S. home construction climbed 4.5 percent in December, the second straight monthly increase that ran contrary to analyst expectations. Economist had forecast December housing starts to be below Novembers pace. For all of 2006 housing starts totaled about 1.8 million, down 12.9 percent from 2005 totals, the biggest decline since 1991. But the good news is that starts climbed for the second straight month, and according to yesterday's NAT NEWS article, Home builders feel they have weathered the storm, index suggests , from the USA TODAY , home builder sentiment improved in January to its strongest since July, as price cuts, lower mortgage rates and incentives fostered demand. http://www.msnbc.msn.com/id/16686772/ 01-22: Governor pursues plan for commuter rail lines, from the Arizona Republic, reports that ADOT is days away from asking bidders to plan a passenger rail line connecting Phoenix and Tucson by Centennial Day, Feb 14, 2012. The arrival of commuter rail in Arizona is not a guarantee because some state law makers oppose rail, saying it isn't worth the subsidy. But involvement by the state increases the chance that it could become a reality. "The governor clearly believes that we have to explore these options and implement some," said Jeanine L'Ecuyer, Napolitano's spokeswoman. "She wants wide open thinking on this subject. She's serious about these executive orders. She expects results and does not want these studies to be a book on the shelf." ADOT will look at a wide range of options, from new or expedited light rail extensions around Phoenix to longer and faster commuter rail lines to the West Valley to the Phoenix to Tucson train. ADOT is expected to release a study by the end of the month detailing the amount, condition and capacity of existing freight lines, which would need to be leased for commuter rail. 01-22: Home prices making Valley harder to sell for exec recruiters, from the Arizona Republic, reports that the big price jump in Valley housing is making it more difficult for mid and top-level executives to relocate to the Valley. According to a new survey released by national search firm Tower-Hunter and Wage Watch Inc., during the past 12 months, 74 percent of respondents had "some difficulty" recruiting middle-management candidates, and 60 percent had "some difficulty" in recruiting upper-management candidates. Nearly 75 percent of participants said they experienced situations where candidates withdrew from the interview process before a formal offer. About 70 percent of respondents said middle managers declined to continue with the hiring process because salaries were too low. That increased to 75 percent for upper management. Almost one-fourth of respondents stated that middle-management candidates thought housing costs were not only higher than expected but were a deterrent to relocation. "Compared with eight other regions which Greater Phoenix generally competes for highly skilled and educated individuals, the Phoenix area is rated the lowest," determined a November report by the Maricopa Partnership of Arts and Culture. Maricopa County's wages in many categories are below the national average. 01-23: State targets mortgage fraud, from the Arizona Republic, reports that a wave of mortgage fraud in the Valley has prompted state legislation that would define it as a crime punishable by up to 10 years in prison. Cash back deals are a newer form of mortgage fraud whose rapid spread in Arizona has alarmed regulators and real estate industry leaders. The fraud involves obtaining a mortgage for more than a home is worth and pocketing the extra money in cash. The deals inflate home values and can affect values across whole neighborhoods. Ultimately, lenders end up with bad loans. Felicia Rotellini, superintendent of the Arizona Department of Financial Institutions, said her agency was flooded with calls Monday from people reporting cash-back deals and other potential mortgage fraud. Valley appraiser Dennis McMillen said mortgage fraud is an issue in the housing market but that it's not always due to inflated appraisals. In some cases, he said "real estate agents and mortgage brokers are withholding the cash-back agreements from the contract, thus the appraiser and title company does not know of these agreements." Don Matheson of Re/Max Excalibur in Scottsdale said "this is a very big problem and very damaging to our real estate market. We need to catch these people and put them in jail." 01-24: Arizona economy expected to topple national numbers, from the Phoenix Business Journal, reports that Arizona will topple the expected U.S. growth rate of 3 percent in 2007 thanks to it's continuing population boom, according to ASU economist Edward Prescott, the keynote speaker at yesterday's Arizona Bank & Trust Economic Summit 2007, "Trends to Bank On". "The Arizona trend dominates," Prescott told the more than 300 who attended. Katie Pushor, chief executive and president of the Greater Phoenix Chamber of Commerce, said the state is the second destination for domestic migration next to Florida and the eight internationally. "People want to move to this state," she said. "There is an overwhelming perception of opportunity here." Unemployment is the lowest in 25 years, hovering under 4 percent, but escalating housing prices are keeping some workers from moving here, Pushor said. "Affordability is really an issue for the work force," she said. Also included is an article on this same speech from the Arizona Republic titled Arizona likely to outpace nation. In it, Edward Prescott is quoted as saying "there's got to be another 20 years of rapid growth, and then health thereafter." 01-25: 2006 resale home market in Phoenix area slumps, from the Arizona Business Gazette, reports that for 2006, 67,035 sales of existing homes were recorded in the metro Phoenix resale market, compared with 110,835 sales for 2005 and 102,115 for 2004. Although the market slowed appreciably, 2006 was still the fourth best resale market year on record, falling between 2002 (62,625 sales) and 2003 (73,785 sales) numbers. The information was released by the Realty Studies Center at ASU. "The local resale housing market, since 1982, has been fairly stable, representing 7 percent of the single-family inventory, while the 2005 indicator stood at 11 percent," said Jay Butler. "The 2006 housing market stands at 6 percent of inventory, which is comparable to the housing markets of the mid 1990's." 01-29: Phoenix ranks as financial services giant, from the Arizona Republic, reports that metro Phoenix has made impressive strides in developing its financial-industry base, emerging in recent years as a key regional player for a growing number of banks, insurers, brokerage firms, independent lenders and others. While corporate headquarters remain scarce, regional hubs are popping up all over. "We've become a regional choice (for financial firms) in the southwestern United States," said Barry Broome, president and CEO of the Greater Phoenix Economic Council (GPEC). Many of the same factors that attract other businesses here also lure financial firms, including good weather, good travel through Sky Harbor, and a location in a time zone that's conducive to taking late afternoon and evening calls from customers. Look for Phoenix to start attracting "corporate headquarter" operations as our economy grows. 01-30: Valley new home market shows signs of stabilizing, from the East Valley Tribune, reports that following a year of slumping sales, the Valley's new home market is expected to stabilize in 2007 as builders continue to get rid of excess inventory. "2006 activity will cause the industry to pause and recognize that housing in this market area has to be affordable," said RL Brown, publisher of the Phoenix Housing Market Letter. The dramatic run up in prices during last year's housing frenzy was not sustainable, he said. Home sellers will need to price homes according to today's market or withdraw their listings. Builders must be more realistic if they plan on staying in business, Brown added. The median price of a new home in the Valley was $285,000 in December, down 5 percent from December 2005 but up 8.5 percent from January 2006. Prices should begin to stabilize to a more traditional 4 percent to 5 percent rate of appreciation, he said, adding that new home permits should be in the low 40,000's. 01-31: New builds give way to resales, from the Arizona Republic, reports that Chandler has changed from a new build market to a resale market as the city runs out of land for new homes. Chandler city officials expect the city to be built out in just five years. Housing permits in 2006 fell to 895 in Chandler, less than half the numbers seen in 2005. In contrast, there were 4,625 existing homes sold last year in Chandler, and that was a slow year. Homes are now being built at Fulton Ranch, the last large master-planned community in Chandler, but they will sell in the $500,000 to $1 million plus price range. "Don't look for any affordable, large-lot new housing in Chandler," Valley housing expert RL Brown said. He said Chandler will see more high density housing as well as developers building on smaller lots they ignored before. In 2006, the median price of an existing home in Chandler was $297,900, lower than Ahwatukee and Gilbert but higher than Mesa and Tempe. http://www.azcentral.com/arizonarepublic/business/articles/0131biz-housing0131.html# 01-31: Giant speculative buildings set to fill growing demand, from the Arizona Republic, reports that developers are building the first of several supersized speculative industrial buildings to answer demand for more industrial space. In the Valley, developers rarely put up buildings with more than 200,000 square feet of space without a tenant in mind. But now at least four projects with buildings no smaller than 350,000 square feet are under construction. These projects, three in the southwest Valley and one in Casa Grande, account for about 3.6 million of the 8.5 million now under construction, brokers say. Demand for large industrial spaces has been growing the past few years as Phoenix has become a regional distribution center. Phoenix's industrial boom also is attributed to proximity to California and trucking rules. Anthony Lyons of Grubb & Ellis said 45 percent of containers come to the U.S. through the ports of Los Angeles and Long Beach, and many companies are looking to Phoenix to store and distribute these products. http://www.azcentral.com/arizonarepublic/business/articles/0131biz-bigbuildings0131.html | ||||||||||
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