08-01: Ellman buys 1,860 acres in Goodyear, from the Arizona Republic, reports that Valley developer Steve Ellman purchased 1,860 acres in Goodyear by picking up a multi-million dollar debt for infrastructure that the seller could not pay. Ellman, who developed Westgate City Center, would not disclose the sales price for the land, which is zoned residential. Representatives for EP-The King LLC and Sonterra Properties said the Valley's sluggish housing market made it impossible to meet its infrastructure obligations. The development, called Kings Ranch, is near Cotton Lane and the Gila River. This will be Ellman's third residential development in the Valley. He recently purchased 1,275 acres in Fountain Hills and 2,400 acres called Goldfield Ranch near Scottsdale and Fountain Hills.
http://www.azcentral.com/community/swvalley/articles/0731swv-ellman0731-ONL.html
08-01: Home refinance may come with nasty curve, from the East Valley Tribune, reports that some Valley homeowners trying to refinance out of troublesome loans are finding out that they have a prepayment penalty clause in their current loans, which requires the homeowner to pay a fee, frequently thousands of dollars, if the loan is paid off early. Prepayment penalties can range from 1 to 2 percent of the loan amount. The problem is some unscrupulous loan officers slip in the penalty without telling the client, who fails to recognize it is all the loan documents they have to sign. In the past, borrowers who needed to move early had gathered enough home equity to pay off the penalty. Now, dropping values mean some people already owe more than their houses are worth, and adding a penalty on top of that can make or break a deal, said Greg Geenen, vice president of the Arizona Mortgage Lenders Association. Prepayment penalties are most common on subprime mortgages, which were prevalent in the Valley market during the housing boom.
http://www.eastvalleytribune.com/story/94242
08-02: Pending home sales rise, mortgage applications dip, from the USA TODAY, reports that pending sales of existing homes rose by 5% in June compared with the previous month, a surprisingly positive sign, while mortgage applications fell last week to their lowest level in more than 5 months. The National Association of Realtors (NAR) said June's pending home sales index was the largest monthly gain in more than 3 years and that the increases were reported across the country. However, Lawrence Yun, NAR's chief economist, wasn't overly optimistic, and the pending sales index remained 8.6% below year ago levels. "It's too early to say if home sales have already passed bottom," Yun said. Meanwhile, mortgage applications continued to slide as home loan demand eroded amid rising credit concerns. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications dipped 0.3% in the week ending July 27th, to 607.1-- a level just above the 606.6 reading from five months ago.
http://www.usatoday.com/money/economy/housing/2007-08-01-mortgage-applications_N.htm
08-03: Planners merge to discuss transportation, from the Arizona Republic, reports that Pinal County officials met Thursday to discuss improving its transportation system so it can accommodate the expected 1.9 million residents expected by 2025. "We need regional connectivity to our community centers, cities and towns and other counties," said Andy Smith, transportation planner for Pinal County. Roads in the area are already reaching capacity from the last five years of growth, which added about 100,000 new residents to the county. Regional leasers say transportation planning is also important as the county is expected to connect Phoenix and Tucson into a "megapolitan"-- a super-sized metro area estimated to have about 10 million residents by 2040. Pinal is now the sixth fastest growing county in the nation.
http://www.azcentral.com/community/gilbert/articles/0802gr-bypass02-ON.html
08-03: Home construction remains solid in P.V., from the Arizona Republic, reports that home construction in Paradise Valley, the area's priciest market, is strong with 50 new home permits issued by the town through June, compared with 54 for the same period in 2006 and 55 in the same period of 2005. Paradise Valley, also known for tear downs of existing homes to build new mansions, also issued 35 home-demolition permits for the first half of the year, up 17 percent from 2006. That reflects a dwindling supply of vacant lots in Paradise Valley. Paradise Valley is a bright spot in an overall market that has seen permits fall 23 percent for the first half of 2007, according to the Phoenix Housing Market Letter published by local housing analyst R.L. Brown. Karl Stauffer, an associate broker with Sonoran Properties GMAC Real Estate, said luxury markets such as Paradise Valley "have been steadily grinding along." He is not alarmed at the residential-market slowdown. "Yes, it's bad medicine, but it's medicine we have to take in order for the patient to get healthy in the long term," Stauffer said.
http://www.azcentral.com/community/nephoenix/articles/0802sr-biz0803realestate-ON.html
08-06: Foreclosures soar on outskirts, from the Arizona Republic, reports that neighborhoods on the fringe areas of metro Phoenix, including Queen Creek, Pinal County, Laveen, Buckeye, Goodyear, Surprise and Anthem, have at least three times as many homeowners struggling to hold on to their homes than communities closer in, according to data from the real estate firm Information Market. "The fringes are where affordable houses were and where investors went," said Jay Butler, director of Realty Studies at ASU. " The number of Valley residents who lost their homes to foreclosure has nearly tripled since last year, from 1,073 in all of 2006 to 2,954 through June of this year. Most are in the fringe areas of the Valley. For example, Anthem had 84 foreclosed homes this year, compared with 3 foreclosures during the same period of 2006. Avondale has 122 foreclosed homes for the first six months of 2007, compared with 5 during the first half of 2006. Queen creek has had 45 foreclosures in 2007, compared with two in 2006. Buckeye has had 245 through June 2007, compared with 66 in 2006. In metro Phoenix, 85 percent of the homes foreclosed on now are going back to the banks.
http://www.azcentral.com/arizonarepublic/news/articles/0805fringe05.html
08-06: Homes left behind, from the Arizona Republic, reports that with the skyrocketing foreclosure and problems in the housing market, more and more homes are being abandoned by their owners, leaving properties that are unmaintained with weeds, green pools and trash. "It started ramping up during the past six months, and I don't see it stopping anytime soon," said Ray Villa, acting neighborhood services director for Mesa. "We're getting between five and 10 complaints a week that someone has walked away from a property and is letting it deteriorate," he said. Officials from Mesa to Peoria are seeing the trend and say newer subdivisions on the outskirts of town are some of the hardest hit. They tie it to declining home values, adjustable-rate mortgages, discouraged investors and owners struggling to make ends meet. City officials are frustrated because many times they cannot find the owner and the "clean and lien" laws that most cities have to allow the city to clean up the mess can take months.
http://www.azcentral.com/arizonarepublic/news/articles/0806foreclosed0806.html
08-06: Mortgage crisis: Home loans are harder to get, from the USA TODAY, reports that lenders are quickly closing the door to borrowers with low credit scores, small down payments for a new home or little equity in their current homes. "The market for virtually any loans with the slightest element of risk has effectively disappeared," said John Bollman with National City Mortgage. In explaining the company's latest pricing and product changes that will weed out some of these borrowers, he said, "I have been a mortgage banker for 20 years and have never seen such a severe reaction to credit risks in the market place... (and) things may even get worse before they get better." The crisis in the mortgage industry sparked a big sell off last week on Wall Street and will weigh on the Federal Reserve Board which meets Wednesday to set short-term interest rates. Some economist are now predicting that the Fed will begin lowering rates in the next six months.
http://www.usatoday.com/money/economy/housing/2007-08-05-mortgage-lenders_N.htm
08-07: America's fastest-growing suburbs, from MSNBC.com, reports that Census information from 2000 through 2006, compiled by Demographia, a St. Louis research firm, shows Gilbert, Arizona as the nations fastest-growing big suburb (with a population of 100,000 or more) in the nation. The study, commissioned by Forbes.com, shows that Gilbert grew from 112,766 people to 191,517 in that period of time. The Phoenix area also saw the greatest positive domestic migration of any American metro area last year, with 115,000 more people moving into town than leaving. The article states that affordable housing and a growing economy are draws to the Phoenix metro area. Lincoln, California, outside of Sacramento, was the nation's fastest growing suburb overall (regardless of size), growing from 11,746 to 39,566 people from 2000 to 2006. Rounding out the top ten fastest growing suburbs after Lincoln were four Phoenix suburbs; Buckeye, Surprise, Goodyear and Avondale.
http://realestate.msn.com/Buying/Article_forbes.aspx?cp-documentid=5219929>1=10341
08-08: Fed wary of market woes, fall in housing, from the Arizona Republic, reports that Wall Street turbulence, Main Street credit problems and a national housing slump pose increasing risks to the economy, the Federal Reserve said Tuesday, even as it left interest rates unchanged. "Financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and business, and the housing correction is ongoing," the Fed said. "They acknowledged, and rightfully so, the elephant in the room: problems in the credit market. But they didn't feed it any peanuts by cutting rates," said Stuart Hoffman, chief economist at PNC Financial Services Group. "But the statement gives the Fed a little more flexibility, a crack in the door, for them to cut rates later on if the economy loses traction," he said.
http://www.azcentral.com/arizonarepublic/business/articles/0808biz-fed0808.html
08-08: Fireside at Desert Ridge like 7 neighborhoods in one, from the Arizona Republic, reports that Fireside at Desert Ridge, going up on 270-acres west of Desert Ridge Marketplace, is like seven neighborhoods. On the northeastern corner are "maintenance free" homes-- apartment and patio homes that will be sold to empty-nesters and first-time buyers. Near Deer Valley Drive in the center are the luxury line of homes-- large with up to five bedrooms. "We are speaking to a variety of lifestyles," said Eric Orpet, marketing manager for Pulte and Del Webb, developers of the site. "We've developed brand-new unique plans for the area." In all, 916 units will be built, with homes ranging from 1,448 to 4,306 square feet with prices starting at $359,900 to $794,900. The most popular homes so far are in the Monument Series, with sizes from 3,334 to 4,049 square feet and priced from the high $600,000's. In addition to Desert Ridge Marketplace, several other shopping and lifestyle complexes are also developing in this area, including City North and Aviano.
http://www.azcentral.com/community/nephoenix/articles/0807phx-nesale0807-ON.html
08-09: Real estate group lowers home-sales forecast, from MSNBC.com, reports that U.S. home sales will hit a five-year low this year as wary lenders cut back on loans for many borrowers, according to the latest forecast from the National Association of Realtors (NAR). The NAR's revised forecast calls for existing home sales of 6.04 million, down 6.8 percent from last year, and 1 percent lower than NAR's July forecast. That would make 2007 the lowest sales year since 2002. Next year, the NAR forecasts sales to climb to 6.38 million. Median nationwide existing home prices are expected to fall by 1.2 percent this year to a median price of $219,300, before climbing back next year to $223,600. Median new home prices are projected to fall 2.3 percent to $240,800 this year and then rise to $246,300 in 2008.
http://www.msnbc.msn.com/id/20178883/
08-09: Ahwatukee foreclosures up, from the Arizona Republic, reports that foreclosure notices in Ahwatukee are up 240 percent in the first six months of 2007 compared with the same period in 2006, as more homeowners struggle to afford the higher-priced homes in those communities. Other areas of the Southeast Valley were also hard hit, with Chandler and Sun Lakes showing a 183 percent increase, Mesa with a 116 percent increase, and Tempe with a 97 percent increase, according to data from The Information Market. Foreclosure notices mean homeowners are at least three months behind in their mortgage payments but doesn't necessarily mean a foreclosure will follow. Homeowners are struggling throughout the Phoenix area as homes are harder to sell and lenders have tightened their standards and are less likely to allow refinancing. The Arizona Regional MLS says about 19,000 homes were on the market in the Southeast Valley in June but only 1,973 sold, taking an average of 90 days. Barry Kramer, owner of Keller Williams Realty Ahwatukee Foothills, said the people hurting the worse are those who bought in the last year or two and investors.
http://www.azcentral.com/community/ahwatukee/articles/0808ar-foreclose08-ON.html
08-09: Office lease rates continue upward trek, from the Business Journal of Phoenix, reports that office rental rates are expected to continue their climb over the next several quarters as lease activity lowers vacancies and spurs new construction of Class A projects, according to the second-quarter report for the Phoenix office market from Colliers International. Asking rental rates for the second quarter hit $20.28 per square foot, up from $20.08 in the second quarter of 2006. Rates ranged from a high of $25.09 for Class A space in the northeast area of the Phoenix metro area to $12.74 for Class C space in the southeast suburbs. The vacancy rate was 12.9 percent for the second quarter, compared with 13.5 percent in the first quarter.
http://phoenix.bizjournals.com/phoenix/stories/2007/08/06/daily32.html?t=printable
08-09: Hispanic population grows larger in Maricopa County than any other in U.S., from the East Valley Tribune, reports that Maricopa County added more Hispanics to its population in one year than any other county in the U.S. The figures suggest that a large percentage of new residents are migrants-- legal or otherwise. New figures from the U.S. Census Bureau show more than 71,000 people who identify themselves as Hispanics were added to the county's population between July 1 2005 and July 1, 2006. And the county has added more than 366,000 Hispanics since 2000, bringing the county's total Hispanic population to more than 1.1 million. The Hispanic population is increasing twice as fast as the general population.
http://www.eastvalleytribune.com/story/94768
08-10: Mortgage rates dip, good news for buyers, from MSNBC.com, reports that rates on 30-year mortgages fell this week to their lowest level in two months, according to Freddie Mac. The average 30-year, fixed-rate mortgage averaged 6.59 percent, down from 6.68 percent last week, and the lowest rate since early June when rates averaged 6.53 percent. Mortgage rates have ebbed as recent stock market turbulence has prompted investors to plow money into bonds, driving down rates on bonds. That, in turn, has pushed down mortgage rates, which have eased amid signs the economy is growing gradually and hiring has cooled off a bit.
http://www.msnbc.msn.com/id/7148582/
08-10: Median Foothills housing price drops 14 percent, from the Arizona Republic, reports that the median price for a Ahwatukee Foothills resale dropped to $343,000 in July, a 14 percent decline from July 2006. Jay Butler, director of Arizona State University Realty Studies, said the housing market continued an "uninspiring trend" in July. He said medians continue to bounce around from month to month, but in general are falling because it is harder to get financing on expensive homes and there is more competition from the increasing inventories of new homes and the opportunity to get cheap homes through foreclosures. Median prices in Chandler were up 2.6 percent to $308,375; Gilbert was down 6 percent to $314,500; Mesa was down 3 percent to $242,000, and Tempe fell less than 1 percent to $283,810. Only 1.345 homes sold in the Southeast Valley in July, a decline from 1,570 sold in July 2006.
http://www.azcentral.com/community/ahwatukee/articles/0809ar-resales09-ON.html
08-10: Valley existing home sales lag in July, from the East Valley Tribune, reports that sales of existing Valley homes continued to lag in July, with 4,330 existing home sales recorded in July, down from the 4,910 in June, according to the latest numbers from ASU's Realty Studies department. July sales were down 22 percent from the same period last year. In the first seven months, 33,510 existing homes were sold, compared with 41,835 sold during the same period in 2006, and compared with 68,235 sales recorded in 2005, the ASU report shows. More foreclosure properties have also hit the market, adding to the more than 50,000 homes already for sale in the Valley. And sellers continue to face stiff competition from new home builders offering huge incentives. Earlier this year, industry observers predicted that the Valley would see home sales in the high 60,000's or low 70,000's this year, said Jay Butler, director of Realty Studies. Now, "most forecasts are out the window," he said. Despite the decline in sales, the Valley's median home price remained relatively stable. Last month's median was $265,000, compared with $264,900 last year.
http://www.eastvalleytribune.com/story/94806
08-13: Lenders' troubles resonate in Arizona, from the Arizona Republic, reports that experts are concerned abut the subprime market mess and its affect on the Arizona economy as Arizonans with good credit now will face intense scrutiny when applying for a loan, and others with minimal credit may not qualify at all for a home loan. Young and first-time buyers will have difficulty finding easy credit and will have to put down larger down payments, particularly if they have a credit score under 600. Almost 40 loan offices in the Valley have closed, including New Century Financial Corp. closing 24 of its metro Phoenix offices. "When mortgage companies begin to fail, everyone gets nervous," said Jay Butler, director of Realty Studies at ASU. "Everybody is sharpening their pencils," he added. Arizona serviced 191,681 subprime loans during the first quarter of this year, and about 8.4 percent of those loans were delinquent, according to the Mortgage Bankers Association.
http://www.azcentral.com/arizonarepublic/business/articles/0812biz-mortgage0812.html
08-13: Lending woes hit commercial real estate market, from the USA TODAY, reports that the havoc in the credit markets could reduce prices that office, retail, industrial and apartment center properties have commanded over the past few years. "The sale prices of assets are going to decrease," said Robert Horowitz, of Cooper-Horowitz, Inc., which arranges financing. "Prices are a reflection of what people can borrow. The buyer's can't get the level of financing that they were able to obtain six months ago," he added. Additionally, commercial mortgage interest rates have gone up a minimum of half a percentage point, he said. Because of the turmoil in the credit markets that started in the residential mortgage sector, commercial mortgage lenders are charging higher interest rates and lending lower portions of the purchase price-- despite lower vacancies and higher rental rates.
http://www.usatoday.com/money/economy/2007-08-12-commercial-estate_N.htm?loc=interstitialskip
08-14: Phoenix ranks No. 1 in retail building, from the Arizona Republic, reports that metro Phoenix has more retail space under construction than anywhere else in the country, according to national real estate information firm CoStar. Most of the retail growth is along the Loop 101 and Loop 202 extensions. The fast growth can be attributed not only to the Valley's increasing population and low unemployment but perhaps also to residents who love to shop, said Garrett Newland, vice president with Westcor, a shopping-center development company. Metro Phoenix had 13.4 million square feet of retail space under construction at the end of the second quarter. Nearly 83 percent of it is pre-leased, according to CoStar.
http://www.azcentral.com/arizonarepublic/business/articles/0814biz-retailspace0814.html
08-14: Subprime standards tighten, from the Arizona Republic, reports that more banks have tightened lending standards on subprime mortgages, the Federal Reserve said Monday in a survey that provided further evidence of spreading problems. The survey found that nearly half of the banks responding said they have tightened loan standards for so-called non-traditional mortgages, which are defined as adjustable-rate loans with multiple payment options, interest-only mortgages and products referred to as "Alt-A" loans that offer such features as limited verification of incomes. The Fed survey also showed that ten percent of the banks have also tightened loan standards on prime loans, such as 30-year mortgages to borrowers with good credit. The Mortgage Bankers Association reported recently that the percentage of subprime loans that were 30 or more days past due climbed to 15.75 percent in the first three months of this year, a record high and up from 14.44 percent in the final three months of 2006.
http://www.azcentral.com/arizonarepublic/business/articles/0814biz-mortgages.html
08-15: Airport area could be urban paradise, from the East Valley Tribune, reports that transforming the Williams Gateway area into a major employment hub for the southeast Valley could be key in turning Mesa from a commuter's hell into an urban paradise. For nearly two decades, about 30 percent of new households in the Phoenix area have been constructed in the SE Valley, while employment centers have lagged far behind, said Gadi Kaufmann, a consultant for local developer DMB Associates. The result is that commuters are frequently stuck in traffic. DMB Associates purchased 3,200 acres of the former GM Proving Grounds last year and plan a mixed-use "urban core" near Williams which could include high-end office space, mixed-use residential areas, a resort and executive housing. The airport could be a major draw for employers looking to base their companies in Arizona, creating an area where people can work, live and play. Look for this area to continue to explode with new growth!
http://www.eastvalleytribune.com/story/95153
08-15: We found an interesting chart in CNNMoney that shows the foreclosure rates for the top 100 metro areas. The ranking is based on the number of foreclosure notices per every household. Phoenix comes in at number 22 with 1 foreclosure filing for every 74 households. This charts shows that there are a lot of other areas with a higher foreclosure rate than Phoenix, including many in California, and surprisingly in the Midwest. Check it out!
http://money.cnn.com/2007/08/14/real_estate/California_cities_lead_foreclosure/index.htm?postversion=2007081411
08-16: Economic panel cites population growth, nonresidential construction among local drivers, from the Business Journal of Phoenix, reports that population growth, declining or stable fuel prices, nonresidential construction, modest interest rates, the national economy and global growth are expected to be the key positive influences on the local economy over the next 12 months. That is the opinion of economists who take part in the Arizona Blue Chip Economic Forecast published by Arizona State University. The top negative influences on our local economy likely will come from the slowing residential housing market, consumer spending, slowing economic growth, and problems with the subprime lending market and rising mortgage rates, the group said. "It is no surprise that the slowing residential construction market garnered the most mentions as a negative factor for the local economy," said Tracy Clark, the Forecast editor. But the news is not all bad with population growth critical to limiting the impact of the residential slowdown, Clark said. "It is clear that population growth is off the peak but is still remarkably strong by national standards," Clark added.
http://phoenix.bizjournals.com/phoenix/stories/2007/08/13/daily29.html?t=printable
08-16: Existing home sales fall in 41 states, from MSNBC.com, reports that sales of existing homes fell in 41 states during the April to June quarter while home prices were down in one-third of the metropolitan areas surveyed, according to the latest report from the National Association of Realtors (NAR). However, Realtors officials said they saw some glimmers of hope in the data, pointing out that existing home prices were up in 97 of the 149 metropolitan areas surveyed compared with the sales prices of a year ago. That represents gains in 65 percent of the areas surveyed, an improvement from the 55 percent a year ago. "Although home prices are relatively flat, more metro areas are showing price gains with general improvement since bottoming out in the fourth quarter of 2006," said Lawrence Yun, a senior economist for the Realtors. Arizona was noted in the article as one of the states with the largest large drops in sales compared with the same period a year ago (down 23.4 percent), and Phoenix was cited as having a price decline of 2.8 percent compared with the same period in 2006.
http://www.msnbc.msn.com/id/20279235/
08-16: Home builders increasingly pessimistic, from MSNBC.com, reports that the National Association of Home Builders said its housing market index, which tracks builders' perceptions of current market conditions and expectations for home sales over the next six months, fell two points to 22 this month, the lowest reading since January 1991 and the sixth-straight monthly decline. The group said widespread attention to the housing market slump and the troubled home loan industry has led to a "wait and see attitude" among many potential buyers. Builders are cutting prices and offering big incentives to help sell homes, but the market remains difficult, the trade group said. More would-be buyers are now unable to qualify for mortgages as risk-adverse lenders tighten credit standards among rising defaults.
http://www.msnbc.msn.com/id/20283167/
08-16: Who's to blame for the Sub-Prime Problem, from the National Review Online, reports that according to economic columnist Jerry Bowyer, the Federal Reserve policy of lowering interest rates back in 2003, the money spigots were opened wide and this marked the beginning of the sub-prime mortgage bubble. His thinking is that when the Fed pumps money into the economy, it does so through the banks. The Fed buys bonds from banks using money created from thin air. Yes, the money ends up flowing throughout the whole economy, but it hits the banks first. And flush with this excess cash, the bankers make loans, including loans to homeowners. And when they run out of reasonably good credit risks, they start lending to bad credit risks-- such as all those sub-prime mortgage holders you're now reading about. In one year, sub-prime lending went from 4 percent of total lending to more than 10 percent. That's in one year! He suggests that tax cuts versus a reduction in interest rates would have avoided the messy sub-prime mess and stimulated the economy better than the policy the Fed chose. Interesting take.
http://article.nationalreview.com/?q=NjcxODIyMDI3OWI5MGJhZGE3NzVmZGFkZTk2YTE5ODk=
08-17: Tucson's First Magnus Financial cuts off loan funding, sends workers home, from the Phoenix Business Journal, reports that First Magnus Financial Corp., one of the nation's largest privately held mortgage companies has fallen victim to the mortgage industry meltdown. The Associated Press reports that the majority of the company's workers were sent home Thursday and that an official said a bankruptcy filing is possible. First Magnus operates a wholesale division and a retail division under the brands Charter Funding, Great Southwest Mortgage, and Frost Mortgage. First Magnus is one of several lenders nationwide facing trouble amid the housing downturn and rising number of loan delinquencies.
08-17: Rules get tighter for mortgage lending, from the Arizona Republic, reports that lending guidelines are tightening almost daily for borrowers as the subprime-loan crisis spreads. On Thursday, mega-lender Countrywide Financial Corp. had to take out an emergency loan to keep operating, and Tucson-based First Magnus Financial Corp. stopped taking loan applications. First Magnus is one of the nation's top private lenders. Because of the mortgage meltdown, lenders are requiring higher credit scores and bigger down payments from all borrowers. They are also charging a higher interest rate to people who want to buy a home for $417,000 or more because fewer lenders want to fund them. "The mortgage market has changed drastically in just the past few weeks," said Tom Miner of mortgage firm Miner Kennedy Chmura Associates. "We are getting calls from buyers who can't close anymore because lenders want more documentation or money down," he added.
http://www.azcentral.com/arizonarepublic/news/articles/0817homeloan0818.html
08-17: Arizona job growth No. 2 in nation, from the Arizona Republic, reports that Arizona job growth slowed in July with the rest of the nation, but Arizona remains among the top growth economies, according to a Thursday report from the Arizona Department of Economic Security. The state's unemployment stood at 3.7 percent, compared with the 4.6 percent national average. The growth rate stood at 2.8 percent, down from the 5.3 percent from the same time a year ago. The national average growth rate as of June was 1.1 percent. Arizona is No. 2 behind Utah, and followed by Wyoming, South Dakota and Louisiana. The big surprise was that the construction industry reversed a four-month down trend amid the housing industry havoc. "The picture here in Arizona is a heck of a lot better than other states," said Don Wehbey, the department's senior economist.
http://www.azcentral.com/arizonarepublic/business/articles/0816biz-jobs0817.html
08-17: Existing home sales fall in July, from the Arizona Republic Glendale, reports that fewer Northwest Valley homes were resold in July as compared with the same period last year, consistent with a slowing housing trend taking place throughout the metro Phoenix area, according to Realty Studies at ASU. Peoria and Surprise showed a slight uptick in median home prices from the month before, while Glendale saw a drop. Glendale saw home resales drop to 305, from 455, and the median price fell from $249,000 to $238,500. Peoria resales declines from 270 to 200, while the median price ticked down from $270,000 to $264,950. However, the price was up from $255,000 in June. Surprise resales were down from 200 a year ago to 185, and the median price fell from $253,500 last year to $234,900. It was $230,000 in June. Sun City sales held steady at 75, but the median price was down to $199,500 from the $204,000 a year ago. In Phoenix, the sales price was roughly the same at $225,000 compared with last year. Scottsdale's price jumped from $580,000 to $600,000, while Mesa's moved lower from $249,900 to 242,000.
http://www.azcentral.com/community/glendale/articles/0816gl-housing0817-ON.html
08-18: Home prices in Valley off 2.7% from year ago, from the Arizona Republic, reports that home prices in metropolitan Phoenix slipped 2.7 percent in the past year, but the Valley has lost less ground in appreciation than other hot housing markets that led the nation in run-ups two years ago. In 2005, metro Phoenix home prices jumped 55 percent, according to the National Association of Realtors. That was the biggest increase in the country. Other price leaders were Las Vegas and several Florida cities. In the second quarter, prices in Las Vegas dipped 3.6 percent vs. a year earlier. In Florida, Daytona home prices slid 8.3 percent. In Palm Bay, the drop was 15 percent. Orlando fared better with a 2.4 percent drop. The dip in local home prices is Valley-wide, with some parts of the area faring better than others.
http://www.azcentral.com/arizonarepublic/news/articles/0820homeprice0820.html
08-18: It's deal time with 55,000 homes listed, from the East Valley Tribune, reports on housing market indicators and reports that home listings in the Valley rose to almost 55,000 in the past few weeks, a new high. About 85 percent of the Valley homes foreclosed on in July went back to the lender, according to Information Market. Housing analyst RL Brown has revised his 2007 new home building forecast downward to 34,000, with another 34,000 in 2008, with the market rebounding in 2009. The median price of an existing home was $265,000 in July, according to Realty Studies at ASU. That figure has been hovering between $263,000 and $265,500 for the past two years. Metro Phoenix drew 61,600 new jobs from July 2006 to June 2007, for a 3.3 percent growth rate, down from the 100,000 new jobs created in both 2005 and 2006. New home prices in Metro Phoenix have fallen an average of six percent this year, according to Phoenix-based Biltmore Real Estate Consulting. The firm said new home prices have dropped 21 percent in the last 18 months. The housing market is slowing nationally. In some cases, metro Phoenix is faring better. Many real estate analysts were calling for the market to start to rebound or at least bottom out this year, but now many are looking to mid 2008.
http://www.azcentral.com/arizonarepublic/business/articles/0819biz-catherine0819.html
08-21: Congress seeks to halt rising foreclosures, from MSNBC.com, reports that with fresh data showing home foreclosures on the rise, lawmakers on Capital Hill are considering various measures to restore a mortgage market now in disarray before the current mortgage market threatens the wider economy. U.S. foreclosures continued to rise in July, up 9 percent from June and up 93 percent from a year ago, according to RealtyTrac. Nearly 180,000 filings were reported during the month, equaling one in every 693 U.S. households. Though 43 states have seen higher year-over-year foreclosure rates, more than half of the total foreclosures have been concentrated in just five states-- California, Florida, Michigan, Ohio and Georgia. Arizona was one of the top ten states for foreclosures, along with Colorado, Massachusetts and Indiana. "I do smell a federal bailout," said Michael Darda, chief economist at MKM Partners. "We have a Democratically controlled Congress and a Republican president with a disastrous international situation and a plummeting approval rating. So this could be irresistible," he added.
http://www.msnbc.msn.com/id/20364043/
08-21: Foreclosures: No relief in sight, from CNNMoney.com, also reports on the foreclosure situation and reports that 179,599 foreclosure filings, which include default notices, auction sale notices and bank repossessions, were reported nationwide in July, according to RealtyTrac. This past winter, RealtyTrac had forecast a 33 percent increase in U.S. foreclosures for this year but now it's raised it's outlook. "It's trending to close to 2 million now, 60 percent more than last year," said Rick Sharga, RealtyTrac's vice president for marketing. Moody's Economy.com is even more pessimistic with its forecast of some 2.5 million defaults for the year. Nevada had the highest foreclosure rate of any state with one filing for every 199 households, and California's foreclosure rate was four times higher than a year ago. California also has six of the top 10 metro areas with the highest foreclosure rates.
http://money.cnn.com/2007/08/20/real_estate/July_foreclosures_soar/index.htm?postversion=2007082106
08-22: Ariz.-based finance firm to lay off 541, shut mortgage unit, from the Arizona Republic, reports that Scottsdale-based 1st National Bank Holding Co. said it will discontinue its national wholesale mortgage unit and close mortgage centers in Virginia, North Carolina and Nevada, keeping just one operations facility, in Tempe. The Tempe operation will cut approximately 170 positions. "This was one of the most painful decisions of my 38-year career," said Raymond Lamb, owner and Chairman. "I have never seen a market shift as drastically as has occurred in the mortgage business over the last four, but even more precipitous in the last few weeks, Lamb said"
http://www.azcentral.com/arizonarepublic/business/articles/0821biz-FirstNational0822-ON.html
08-22: As housing flounders Realtors leave profession, from MSNBC.com, reports that the National Association of Realtors expects membership to decline this year for the first time in a decade as the housing market slump affects their opportunities. The NAR ended 2006 with nearly 1.4 million members-- almost double the roughly 716,000 it had in 1997-- but expects 2007 to close with 1.3 million members, a drop of over 4 percent. Trade groups in two of the hardest hit states, California and Florida, also forecast membership drops. Colleen Badagliacco, president of the California Association of Realtors, said many agents joining in the last three years wanted to cash in on a hot market but weren't prepared to endure what she calls the "ugly perfect storm" that attracted more agents than a sagging market can support.
http://www.msnbc.msn.com/id/20378837/
08-23: Job losses pile up amid meltdown, from the Arizona Republic, reports that since the start of the year, more than 40,000 workers have lost their jobs at mortgage lending institutions, according to the latest data compiled by global outplacement firm Challenger, Gray & Christmas, Inc. Meanwhile, construction companies have announced nearly 20,000 job cuts this year, while the National Association of Realtors expects membership roles to decline this year for the first time in a decade. It's an employment collapse that could rival the massive layoffs in the airline industry after the Sept. 11, 2001 terrorist attacks. "It's far from over," said Bart Nater, a senior analyst with Celent, a Boston-based financial consulting firm. " The subprime-lending collapse will continue to ripple through the financial sector." In related news, Bank of America made an equity investment of $2 billion into Counrtywide Financial Corp. as the lender tries to weather the credit crunch that has been rocking Wall Street and the mortgage industry.
http://www.azcentral.com/arizonarepublic/news/articles/0823MortgageMess0823.html
08-23: Accredited Home Lenders shuts mortgage business, from the Arizona Republic, reports that Accredited Home Lenders Co. plans to shut down most of its business to survive the troubles in the home lending industry. Accredited said it will cut its work force from 2,600 to 1,000 and close 65 branches. The company will immediately stop accepting applications for home loans in the U.S. though it will honor the loans it has already committed to finance. More than 50 lenders have gone bankrupt this year, including two of the nation's 10 biggest.
http://www.azcentral.com/arizonarepublic/business/articles/0822biz-accredited22-ON.html
08-23: This article is from local economist Elliott Pollack's website. It is a letter from Elliott Pollack dated August 8, 2007 to editor of The Economist Magazine in response to a negative article about Phoenix in the July 26th 2007 edition of The Economist titled "Into the ashes". We thought that it was an excellent response to all of the negativity that we have been facing in our market. While our market, and the national real estate market, are going through some painful times with this correction, we all must realize that real estate is cyclical and that this market has the attributes to make it one of the best in the nation, now and into the future. As Elliott states, "fortunately, the economic fundamentals that have made the Greater Phoenix economy so successful in past years remain in place. In addition to offering individuals and families the opportunity to succeed, Greater Phoenix generally remains business friendly. The bottom line is that people want to move here. Data doesn't lie."
http://www.elliottpollack.com/files/Letter%20to%20The%20Economist.pdf
http://money.cnn.com/2007/08/14/real_estate/California_cities_lead_foreclosure/index.htm?postversion=2007081411
08-24: Phoenix upsets W. Valley cities over I-10 funds, from the Arizona Republic, reports that West Valley cities are upset with the city of Phoenix after Phoenix councilwoman Peggy Neely invoked an obscure rule of the Maricopa Association of Governments that throws out the common practice of counting one vote per city and, instead, weighs votes based on a city's population, thereby affecting the ability of several West Valley cities from receiving part of the $10 million the Legislature has earmarked to cover the widening of Interstate 10. Goodyear, Avondale and Litchfield Park will receive $6 million of the earmarked $10 million, leaving the three cities with a $4 million price tag that they now have to cover. If the popular vote of 14-10 had been counted, the three southwest Valley cities would have received the entire $10 million. "It's a blatant abuse of power," said Avondale mayor Marie Lopez. Let's see how this one play out and if it delays the widening of Interstate 10.
http://www.azcentral.com/arizonarepublic/news/articles/0824powerplay0824.html
08-24: Report: Housing woes will extend to mid-2008, from the Arizona Republic, reports that Lehman Brothers Holdings, Inc. economist reported that a "pullback" in mortgage lending will prolong the U.S. housing recession and trigger job losses in the real estate, construction and mortgage industries. The report says that home sales and construction starts will continue to decline through the middle of 2008 and national home prices will fall "modestly". Their conclusion: "The housing recession looks far from over." "Calling a bottom to the housing recession is very difficult right now," said Michelle Meyer, one of Lehman Brothers economists. "We have sales bottoming out in the middle of next year, but it's difficult to determine when we'll see some life in the market."
http://www.azcentral.com/arizonarepublic/business/articles/0824biz-lehman0824.html
08-24: Mortgage rates fall to lowest point since May, from MSNBC.com, reports that rates on 30-year mortgages fell this week to their lowest level since late May, providing a ray of sunlight for would-be-homebuyers. Freddie Mac reports that 30 year, fixed-rate mortgages averaged 6.52 percent last week, the lowest since May 31st. Mortgage rates eased following last week's decision by the Fed to slice its lending rate to banks, a move designed to calm the recent turmoil on Wall Street about the spreading credit crunch. Rates for five-year, adjustable-rate mortgages also fell to 6.34 percent, and one-year ARM's fell to 5.60 percent.
http://www.msnbc.msn.com/id/7148582/
08-27: Housing bust recalls S&L collapse, from the Arizona Republic, reports that despite the deepening residential housing crisis and the widening effects of the subprime-lending crisis, those who remember the real estate crash and the savings and loan crisis of the late 1980's and early 1990's say today's problems pale in comparison. That meltdown changed the political, economic and power infrastructure of metro Phoenix and Arizona. It put developers, real estate companies, appraisers and mortgage-loan companies out of business, depressed real estate prices for years and brought residential and commercial construction to a standstill. It was as close to a complete meltdown in the Valley as you can get," said Michael Manning, an attorney who helped the government's RTC prosecute those held responsible for the debacle. They included Charles Keating of Lincoln Savings & Loan, Gary Driggs, owner of Western Savings and Mesa developer Conley Wolfswinkle. The article details the activities that led to the RTC real estate collapse and is a good lesson for all those who did not experience that crisis. One note-- that crisis set the stage for the big upswing in Phoenix real estate during the mid 1990's to 2004/2005.
http://www.azcentral.com/arizonarepublic/news/articles/0825biz-wolfswinkel0825rtc.html
08-27: Positive July sales ease bite of credit, from the Arizona Republic, reports that sales of new homes in the U.S. rose 2.8 percent in July to a seasonally adjusted annual rate of 870,000 units, according to the Commerce Department. That came after a 4 percent drop in June. The news was better than analyst's expected. However, analyst's also believe that with the tightening credit requirements on loans, the coming months will likely show renewed weakness. "Sales in August will face significant headwinds from further tightening in credit conditions, reduced availability of mortgage credit as many lenders shuttered their doors and upward pressure on mortgage rates, especially for non-conforming jumbo loans" of more than $417,000, predicted Brian Bethune, an economist at Global Insight.
http://www.azcentral.com/arizonarepublic/business/articles/0825biz-newhome0825.html
08-27: Market conditions test home seller mettle, from the Arizona Republic, reports that many sellers are not in a position to sell their homes until they get some equity built back up, bit for those who have to sell, their homes need to be in sparkling condition and priced in the bottom three of available homes in the neighborhood, according to Nelda McClaskey, associate broker with Keller Williams Realty Southeast in Gilbert. The time when one bought their home also matters. "If they bought more than three years ago, they should be OK," she said. Even the price and condition of the home may not be enough, said Jay Butler, director of Realty Studies at ASU. Neighborhoods with lots of for sale signs and foreclosures can be a problem for sellers. "People may not elect to buy in that kind of neighborhood," Butler said. "The buyers who are able to buy have a lot of options. It can be increasingly difficult to sell a home," he added. Loans are becoming harder to get and the self-employed are likely to be hit hard, a local mortgage loan officer said. The situation may last, as Jay Butler states "Issues could be around for a while."
http://www.azcentral.com/community/gilbert/articles/0824gr-credit0824.html
08-28: New-home sales inch up in July, from the East Valley Tribune, reports that sales of Valley new homes in July rose 4.7 percent from June with 3,128 new home sales, according to the latest Phoenix Housing Market Letter by analyst RL Brown. Overall, there were nearly 8,600 new and existing home sales in the Valley in July. That's not even close to the heights of 2005, but its "a huge amount of sales for housing in a month", Brown said. Today's market is similar to the early 2000's before the boom, and builders and sellers weren't complaining then, Brown said. "My gut feeling is that we have more rocks in the road," but the basic elements of a successful market still exists in the Valley-- good job and population growth," he said. Building permits were down in July with 2,560 permits pulled, compared with 3,490 in June and 3,601 in July 2006. The median price for a new Valley home stood at $257,000. Brown says that the existing home market continues to be the biggest hurdle facing builders.
http://www.tribunehomefinder.com/story/96028
08-28: Existing home sales dropped in July, from MSNBC.com, reports that sales of existing U.S. homes fell in July for the fifth straight month, falling to the slowest pace in five years, while home prices fell for a record 12th straight month, according to the National Association of Realtors (NAR). The median price of a home sold in July fell to $230,200, down 0.6 percent from the price a year ago. The deep housing slump combined with the recent turmoil in the financial markets have raised worries about a possible recession, but many economist believe the Federal Reserve will ward off a full-blown downturn by reducing a key short-term interest rate should financial markets fail to stabilize. With the lending crisis, many analysts believe it could be months before housing stabilizes because of the threat that rising delinquencies could further dump homes onto an already glutted market.
http://www.msnbc.msn.com/id/20461630/
08-28: Home prices seen falling further before rebound, from MSNBC.com, reports that according to economists, homebuilders and analysts, home prices will have to fall further in many markets before the housing market turns around. Some analysts say the price declines to date have been muted because sellers who can't find a buyer at the price they want have taken their homes off the market and decided to wait, hoping that prices will recover. "Even though prices are falling in a lot of places, and even in the markets where they are falling, we're still dealing with the seller denial issue," said Joel Naroff, President of Naroff Economic Advisors. "Either they don't think they have to drop their price or they don't think that they have to drop their price nearly as much as they really do to clear the market." That's what needs to happen here before the market returns to balance.
http://www.msnbc.msn.com/id/20461072/
08-29: Home prices: Steepest drop in 20 years; no recovery soon, from the USA TODAY, reports that U.S. home prices fell 3.2% in the second quarter, the steepest rate of decline since Standard & Poor's began its nationwide housing index in 1987, the group said Tuesday. The decline in home prices around the nation shows no evidence of a market recovery anytime soon, they added. The report came one day after the NAR said sales of existing homes dropped for a fifth straight month while the number of unsold homes shot up to a record level. According to the report, home prices in metro Phoenix fell 6.6% during the second quarter compared with the same period in 2006. MacroMarkets Chief Economist Robert Shiller said the declining residential real estate market "shows no signs of slowing down."
http://www.usatoday.com/money/economy/housing/2007-08-28-sp-housing-index_N.htm
08-29: Chandler build-out forces city to consider high-rises, from the Arizona Republic, reports that Chandler officials will begin a series of General Plan Update meetings focusing on what happens in about five years, when there is no more land for single family subdivisions in Chandler. "We're changing from a rapidly growing city to a more mature one," planner David DeLaTorre said. That means the city will start growing "up"- as taller buildings, he said. There has been talk of mixed-use projects with offices and shops on the ground floor and residential above them. The new General Plan will show where these new high-rise uses will be allowed.
http://www.azcentral.com/arizonarepublic/business/articles/0829biz-cr-genplan0829.html#
08-30: Douglas Ranch lead mighty developments, from the Arizona Republic, asks what's larger than Tempe and will take at least four decades to build out? The answer is Douglas Ranch, the largest of all current projects planned west of the White Tank Mountains in Buckeye. The master-planned community proposed by El Dorado Holdings on more than 35,000 acres is projected to break ground in 2010. Douglas Ranch is one of many new planned communities in Buckeye, including 20-master planned communities mapped out along the Sun Valley Parkway. Other projects include Pulte/Del Webb's Anthem and Sun City Festival, about 7,000-acres total; Belmont (by LKY Development), about 25,000-acres; Festival Ranch (by Lyle Anderson Co.), about 10,000-acres; Sun Valley (by Vanderbilt Farms), about 16,000-acres; and Tartesso (by Stardust Development), about 13,000-acres.
http://www.azcentral.com/community/swvalley/articles/0829swv-conversationsnew0829.html
08-30: Bernanke says lenders need more options, from MSNBC.com, reports that Federal Reserve Chairman Ben Bernanke, in a letter sent to Sen. Charles Schumer, suggested that policymakers look for ways to encourage a wider range of mortgages geared for low income borrowers who have been hard hit by the housing slump and credit crunch. Bernanke's letter also said the Fed is keeping close tabs on financial markets and is "prepared to act as needed" to make sure spreading credit problems don't hurt the economy. Bernanke said the development of "a broader range of mortgage products which are appropriate for low- and - moderate income borrowers, including those seeking to refinance" might help the situation. "Such products could be designed to avoid or mitigate the risk of prepayment shock and be more transparent with respect to their terms, " Bernanke said in his letter. He added "the Congress might wish to consider FHA reforms that allow the agency more flexibility to design new products and to collaborate with the private sector in facilitating the refinancing of creditworthy subprime borrowers facing large resets."
http://www.msnbc.msn.com/id/20500061/
08-31: Bush to unveil homeowners' plan, from MSNBC.com, reports that President Bush is proposing to aid hundreds of thousands of borrowers hard hit by the housing slump. The president is to talk today about several initiatives and reforms to help homeowners with risky mortgages keep their homes. Bush also will discuss efforts to prevent these kinds of problems from arising in the future. Bush is expected to direct Treasury Secretary Henry Paulson and Housing Secretary Alphonso Jackson to work on an initiative to help troubled mortgage holders get services and products they need to keep them from defaulting on their loans. Bush also planned to urge Congress to pass Federal Housing Administration overhaul legislation that would give the FHA more flexibility in assisting mortgage holders with subprime mortgages. With mortgage foreclosures rising and late payments expected to worsen as 2 million adjustable rate mortgages are to reset to higher rates this year, the announcement couldn't come at a better time. Look for more details next week.
http://www.msnbc.msn.com/id/20524454/
08-31: Ariz. ranks No. 2 in default rate for absentee homeowners' loans, from the Arizona Republic, reports that Arizona is one of four states facing a high rate of mortgage defaults on homes bought by absentee owners (investors) mainly for speculation. Nevada, Florida and California are the other states where defaults are being driven, in large part, by delinquencies involving owners who don't live in their homes, the Mortgage Bankers Association reports. Nevada has the highest percentage of loan defaults win non-owner occupied homes, with Arizona second.
http://www.azcentral.com/arizonarepublic/business/articles/0831biz-Mortgage0831 <http://www.azcentral.com/arizonarepublic/business/articles/0831biz-Mortgage0831>
08-31: Housing prices veer into red, from the East Valley Tribune, reports that housing prices in Arizona officially waded into the red last quarter-- the first time that's happened in 16 years, according to new figures released Thursday from the Office of Housing Enterprise Oversight. They report that home values in the state fell nearly three tenths of a percent in the second quarter of this year compared with the prior quarter. The last time the state dipped into negative numbers was 1991. As bad as that news is, the numbers could get worse. James Lockhart, the agency's director, said the new report reflects prices only through June. He said the more recent instability in the mortgage market could affect housing prices, with the results showing up in the third quarter figures that will be released in November. Even with the quarterly decline, Arizona did manage to post a 2.2 percent increase in home prices over the same period a year earlier. California home prices fell 1.4 percent, and Nevada fell 1.4 percent from last years prices.
http://www.eastvalleytribune.com/story/96290
