Phoenix Arizona


Greater Phoenix resale numbers end summer on sour note by azhttp

MESA, Ariz. — With 4,240 recorded sales in August 2007, the local resale housing market continues its uninspiring march. The activity of August followed July 2007 at 4,330 sales and was below last year’s 5,685 transactions. The month of August brought the year-to-date total to 37,750 sales, which is well below the 47,515 for 2006 year to date and 78,935 sales for 2005 year to date.

“Primarily the role of August is to act as a transition from the heady days of summer to the lower recorded sales of the last months of the year,” said Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness at the Polytechnic campus.

“However, there are increasing risks that the market could move lower than expected, driven by geopolitical risks and tighter mortgage underwriting guidelines. Both of these factors could make it increasingly difficult for people wanting to buy, but are not able to obtain needed financing. This point will be especially true in the move-up market,” Butler added.

The combination of large inventories and low interest rates have enabled people to purchase more expensive homes, which is one reason the county median price has remained fairly stable. But, recent troubles in the nonconforming mortgage market (mortgages above $417,000) have begun to adversely impact the move-up market. Last year, 39 percent of the resale homes sold for more than $300,000, while it was 37 percent for August 2007.

Foreclosures and new homes are providing a competitive alternative to the resale home in many areas of the market. New home builders continue to aggressively pursue buyers through incentives such as specially priced upgrades, free pools and gift cards. Thus, the 2007 resale housing market is showing signs of increasing weaknesses that could drive it below the current expectations of it being a good year.

Much like the ever-increasing sales activity of the last few years, the rapid improvement in price has disappeared. The median home price in August was $255,000 in comparison to $265,000 for July and last year’s $262,500. The most evident impact of lower prices is improved affordability. Although mortgage interest rates increased slightly from last year’s 6.1 percent to 6.2 percent, the lower median price allowed the monthly payment to decrease slightly from last year’s $1,350 to $1,330.

Changes in median prices can vary tremendously throughout the valley. For the western suburbs the median price has fallen from $240,000 in August 2006 to $217,450. On the other hand, homes in the North Mesa area have gone from last year’s $235,000 to $255,000. While some areas have declining prices, other areas are increasing or remaining fairly stable, especially the mature neighborhoods that are close to freeways, retail and schools. Since the greater Phoenix area is so large, the median price can range significantly from $680,000 ($697,500 in July) in North Scottsdale to $189,000 ($185,000 in July) in the Maryvale area of the city of Phoenix.

Although townhouse/condominium units have retained some popularity with seasonal visitors, investors and people seeking affordable housing, this housing sector has continually fallen from the 1,350 sales in March to 955 sales, while there were 1,100 sales for a year ago. Even with slower sales, the median home price increased slightly from $181,000 in July to $182,500 in August ($170,000 for August 2006).

The median square footage for a single-family home recorded sold in August 2007 was 1,740 square feet, which is larger than the 1,640 square feet for a year ago. The larger size further demonstrates the role of the move-up sector in the local housing market. In the townhouse/condominium sector, the median square footage was 1,115 square feet which is larger than the 1,090 square feet reported a year ago.

·       In contrast to August 2006, recorded sales in the city of Phoenix decreased from 1,760 sales to 1,160 sales, while the median sales price decreased to $220,000 from $224,000 for a year ago. Since Phoenix is a geographically large city, the median prices can range significantly such as $189,000 in the Maryvale area to $314,750 ($330,000 in July) in the Union Hills area. The townhouse/condominium sector decreased from 395 to 300 sales, while the median price increased from $153,295 to $173,000.

·       While the Scottsdale resale home market declined from 390 from a year ago to 360 recorded sales, the median sales price decreased from last year’s $598,500 to $559,375. The median resale home price is $680,000 ($697,500 in July) in North Scottsdale and $305,000 ($315,000 in July) in South Scottsdale. The townhouse/condominium sector in Scottsdale increased slightly from 205 to 210 sales, while the median sales price decreased from $266,000 to $242,900.

·       Compared to August 2006, the Mesa resale housing market declined from 645 to 460 sales, while the median price fell from $240,000 to $237,000 ($242,000 in July). The townhouse/condominium sector also fell from 165 to 120 sales, while the median home price decreased from $159,950 to $152,000.

                   

·       Glendale decreased from 445 to 300 sales and the median sales price decreased from $255,000 to $240,750 ($238,500 in July). The townhouse/condominium sector decreased from 65 to 45 sales, while the median sales price decreased from $143,000 to $140,500.

       
·       For the city of Peoria, the resale market declined from 280 to 205 sales, while the median price dropped  from $270,000 to $257,500 ($264,950 in July). The townhouse/condominium sector decreased from 25 to 20 sales and the median price went from $165,000 to $162,500.

·       In comparison to a year ago, the Sun City resale market remained at 90 sales, while the median sales price decreased to $175,000 from $200,000. Resale activity in Sun City West declined from at 50 to 45 sales, the median sales price decreased from $240,650 to $220,000. The townhouse/condominium market in Sun City declined from 50 to 45 recorded sales, while the median home price decreased from $139,000 to $124,000. In Sun City West, activity fell from 15 to 10 sales and the median sales price decreased from $175,750 to $130,000.

·       The resale market in Gilbert decreased from 355 to 290 sales and the median sales price decreased from $320,000 to $300,000 ($314,500 in July). The townhouse/condominium market remained at 10 sales as the median sales price decreased from $210,000 to $180,000.

  • For the city of Chandler, the resale market fell from 410 to 300 recorded sales, while the median sales price went from $308,000 to $282,800 ($308,375 in July). The townhouse/condominium market stayed at 40 sales and the median sales price declined from $182,000 to $163,250.

·       The resale market in Tempe decreased from 155 to 115 sales, with the median sales price decreasing from $299,950 to $270,000 ($283,810 in July). The townhouse/condominium sector was stable at 70 sales, but the median sales price increased from $179,250 to $194,950.

·       The highest median sales price was in Paradise Valley at $1,950,000 with a median square foot house of 4,220 square feet.

·       In the West Valley, the following communities represent 10 percent of the resale market.

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        o       Avondale fell from 130 to 95 sales with the median price moving from $254,325 to $223,275 ($222,500 in July).
        o       El Mirage decreased from 80 to 60 sales, while the median home price went from $212,750 to $185,000 ($180,000 in July).

        o       Goodyear went from 95 to 80 sales, while the median price decreased from $280,000 to $272,000 ($248,750 in July).

        o       Surprise decreased from 225 sales to 200 sales, with the median price decreasing from $250,000 to $232,500 ($234,900 in July).

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Realty studies

Realty Studies is associated with the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus. Realty Studies collects and analyzes data concerning real estate in the greater Phoenix metropolitan area. Realty Studies is a comprehensive and objective source of real estate information for private, public and governmental agencies.  Its director, Dr. Jay Q. Butler, may be reached at (480) 727-1300 or e-mail him at Jay.Butler@asu.edu. To subscribe to RSS feed for Realty Studies news, visit http://www.poly.asu.edu/realty/rss.html.

ASU’s Polytechnic campus, located in southeast Mesa, offers bachelor and graduate degree programs, unparalleled by other Arizona state universities, through the Morrison School of Management and Agribusiness, the School of Applied Arts and Sciences, the School of Educational Innovation and Teacher Preparation, and the College of Technology and Innovation. Visit us online at http://www.east.asu.edu.

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Greater Phoenix resale numbers tracking near historical norms by quotes

Greater Phoenix resale numbers tracking near historical norms

MESA, Arizona —February, like January, tends to be a poor indicator of the coming year.  In addition, it is a short month, so it is typically a low month for sales activity, frequently being the lowest month of the year. For February, 4,280 homes were recorded sold, in contrast to 4,520 for January, 5,460 for a year ago and 7,935 transactions in 2005. This was the lowest February since 4,090 homes were recorded sold in 2003, which was the lowest month for 2003. So far in 2007 a total of 8,800 homes have been recorded sold in contrast to 10,715 in 2006 and 17,290 in 2005 for the same time period.

While the resale market is tracking near historical norms, the overall health of the market will become more evident in the next few months, which are traditionally the strongest for the resale market, according Jay Q. Butler, director of Realty Studies at Arizona State University’s Polytechnic campus.

“If 2007 is to show some improvement, listings should be increasing with a corresponding improvement in buyer activity.  However, the activity levels should be well below those of the last few years, because the current market lacks the market frenzy to own and/or invest at almost any price and reasoning,” said Butler. 

If the international economy and political situation remains stable, the general expectation is that the 2007 resale housing market should be a good year, but no where near the records.

Much like the ever-increasing sales activity of the last few years, the rapid improvement in prices has disappeared. The median home price has been very stable at $260,000, which is the same as January, but down from last year’s $265,000.  For February 2007, 16 percent of all recorded sales were for homes priced from $125,000 to $199,999, 43 percent for $200,000 to $299,999 and 39 percent for homes priced more than $300,000.  Last year, the distribution was 19 percent of all recorded sales were for homes priced from $125,000 to $199,999, 40 percent for $200,000 to $299,999 and 37 percent for homes priced more than $300,000.

The increase in the higher price levels demonstrates the importance of the move-up market in a slowing market. Since the greater Phoenix area is so large, the median price can range significantly from $687,500 ($665,000 in January) in North Scottsdale to $139,500 ($148,000 in January) in the Sky Harbor area of the city of Phoenix.

Since home prices have declined slightly from a year ago, the monthly payment of $1,300 is down from last year’s $1,320. Even though mortgage interest rates have been declining for the last few months, limited home appreciation and household income continues to raise concern about the ability of some homeowners to maintain their homes. This may be especially evident for those that have used some of the more creative financing instruments, such as option payment plans and initially low-interest-rate adjustable mortgages. 

Because townhouse/condominium units are popular with seasonal visitors, it is not unusual to observe an improvement in February. Thus, February had 1,050 sales, in comparison to 850 for January and 1,260 sales for a year ago. The median home price has been very stable at $175,000, which is also the same as a year ago.

The median square footage for a single-family home recorded sold in February 2007 was 1,670 square feet, which is larger than the 1,620 square feet for a year ago. The larger size further demonstrates the role of the move-up sector in the local housing market. In the townhouse/condominium sector, the median square footage was 1,085 square feet, which is smaller than the 1,135 square feet reported a year ago.

  1. In contrast to February 2006, recorded sales in the city of Phoenix decreased from 1,645 sales to 1,215 sales, while the median sales price increased to $228,470 from $213,750 for a year ago. Since Phoenix is a geographically large city, the median prices can range significantly such as $139,500 in the Sky Harbor area to $305,000 ($353,500 in January) in the Union Hills area. The townhouse/condominium sector decreased from 425 to 355 sales while the median price decreased from $158,500 to $150,000.
  2. While the Scottsdale resale home market declined from 400 to 355 recorded sales, the median sales price increased from last year’s $575,000 to $600,000. The median resale home price is $687,500 ($665,000 in January) in North Scottsdale and $321,250 ($308,000 in January) in South Scottsdale. The townhouse/condominium sector in Scottsdale also decreased from 235 to 220 sales and the median sales price decreased from $285,000 to $254,950.
  3. The Mesa resale housing market declined from 655 to 460 sales, while the median price fell from $245,000 to $238,500 ($240,000 in January). The townhouse/condominium sector also fell from 190 to 140 sales, while the median home price increased from $155,000 to $161,400.
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  5. Glendale decreased from 435 to 300 sales and the median sales price decreased from $250,000 to $242,850 ($238,500 in January). The townhouse/condominium sector also slowed from 65 to 50 sales, while the median sales price decreased from $140,000 to $139,000.

       

·       For the city of Peoria, the resale market decreased from 275 sales to 235 sales, with the median price moving from $275,000 to $270,000 ($260,000 in January). The townhouse/condominium sector remained at 25 sales and the median price increased from $169,900 to $184,000.

  1. In comparison to a year ago, the Sun City resale market remained at 100 sales, while the median sales price decreased to $204,500 from $216,000. As resale activity in Sun City West stayed at 55 sales, the median sales price decreased from $243,500 to $230,000. The townhouse/condominium market in Sun City declined from 60 to 45 recorded sales, while the median home price decreased from $146,450 to $129,000. In Sun City West, activity improved from 15 to 30 sales and the median sales price decreased from $180,000 to $166,000.
  2. The resale market in Gilbert decreased from 290 to 230 sales, with the median sales price decreasing from $341,000 to $307,500 ($319,000 in January). The townhouse/condominium market fell from 20 to 15 sales as the median sales price decreased from $213,000 to $205,500.

  • For the city of Chandler, the resale market fell from 400 to 280 recorded sales, while the median sales price improved from $299,900 to $307,500 ($305,000 in January). The townhouse/condominium market declined from 65 to 50 sales and the median sales price declined from $183,600 to $170,830.

§       The resale market in Tempe increased from 120 to 135 sales, while the median sales price decreased from $300,000 to $280,000 ($282,950 in January). The townhouse/condominium sector slowed from 90 to 50 sales and the median sales price decreased from $185,000 to $182,500.

  1. The highest median sales price was in Paradise Valley at $1,740,000 with a median square foot house of 3,840 square feet.

·       In the West Valley, the following communities represent 9 percent of the resale market.

o       Avondale fell from 110 to 70 sales, with the median price moving from $261,000 to $242,080 ($243,950 in January).

o       El Mirage decreased from 60 to 45 sales, and the median home price went from $221,000 to $206,000 ($202,000 in January).

o       Goodyear declined from 80 to 65 sales, with the median price decreasing from $289,000 to $270,000 ($260,000 in January)

o       Surprise increased from 200 to 215 sales, while the median price decreased from $260,750 a year ago to $245,000 ($247,235 in January).

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Realty Studies

Realty Studies is associated with the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus. Realty Studies collects and analyzes data concerning real estate in the greater Phoenix metropolitan area. It is a comprehensive and objective source of real estate information for private, public and governmental agencies.  Its director, Dr. Jay Q. Butler, may be reached at (480) 727-1300 or e-mail him at Jay.Butler@asu.edu.

ASU’s Polytechnic campus, located in southeast Mesa, offers bachelor and graduate degree programs, unparalleled by other Arizona state universities, through the Morrison School of Management and Agribusiness, East College, the College of Science and Technology, and the School of Educational Innovation and Teacher Preparation. Visit us online at http://www.poly.asu.edu.



Arizona Artists Encouraged To Apply For Coronado Fence Project by quotes

 Arizona Artists Encouraged To Apply For Coronado Fence Project

The Phoenix Office of Arts and Culture’s Public Art Program invites Arizona artists to submit qualifications for a new public art project in the Coronado Historic District.

The project is part of a Street Transportation Department project in central Phoenix to construct a fence on a new median on Virginia Avenue, directly south of North High School. The selected artist or artists will design panels for the fence but will not be responsible for fabrication. The project is ideal for artists who generally work with two-dimensional media, small metals and textile design; metal-working or public art experience is not necessary. Nov. 2 is the deadline to apply for the project.

The purpose of the Coronado Fence is to better direct vehicular and pedestrian traffic in the area near the high school. It is part of a neighborhood project initiated by residents of the Greater Coronado Neighborhood Association in cooperation with the Street Transportation Department. The selected artist will be asked to work with a steering committee that includes neighborhood residents, North High representatives and the city’s Office of Historic Preservation, as well as the Street Transportation Department and the fence contractor.

To receive the project’s “Call to Artists,” which has detailed application requirements, or to learn more about Phoenix’s Public Art Program, visit phoenix.gov/arts or call 602-262-4637 or TTY 602-534-5500.



Historic Phoenix Union High School Re-Opens as State-of-the-Art Biomedical Campus by quotes

Historic Phoenix Union High School Re-Opens as State-of-the-Art Biomedical Campus

The city of Phoenix in collaboration with the University of Arizona College of Medicine, the state of Arizona and Arizona State University opened the new Phoenix Biomedical Campus.

More here: Phoenix Biomedical Campus



Phoenix Convention Center Hosts Open House by quotes

ASU Downtown Phoenix Campus Grand Opening by quotes

Falcon Field Airport development expanding by quotes

Falcon Field Airport development expanding

The City of Mesa and Grubb & Ellis are excited to report the signing of a second long-term lease for hangar development at Falcon Field Airport.  Reilly Aviation, LLC is leasing 5.25 acres in the northwest quadrant of Falcon Field Airport.  The lease will generate more than $73,000 of annual revenue for the airport.

Plans for the development include 30 t-hangars and 17 box hangars, approximately 70,000 to 80,000 square feet of hangars for individual or corporate aviation use.  Joe Reilly, principal of Reilly Aviation LLC, states, “We welcome requests for hangar sizes and amenitites for our project.  We want to build the development to meet the demands of the aviation community at Falcon Field.”

Falcon Field Airport Director, Corrine Nystrom emphasizes, “This project’s positive economic impact on Falcon Field Airport further demonstrates the aviation and development synergy of the area by adding to the already 1.5 million square feet of 2006 projects under construction within a 1-mile radius of the Airport in the Falcon Field District.”

Falcon Field Airport is located between McKellips and McDowell Roads and Greenfield and Highley Roads with convenient access to the Red Mountain 202 Freeway less than 1-mile away.  Falcon Field Airport ranks 3rd in terms of economic impact among Arizona airports, behind Phoenix Sky Harbor International Airport and Tucson International Airport and ranks among the “top 10” in the nation for general aviation airports in terms of based aircraft and number of flight operations.

“We are very excited to finalize this deal with Reilly Aviation, LLC.  By signing this lease, the City of Mesa along with Grubb & Ellis has taken another step forward in solidifying Falcon Field’s place as one of the top general aviation airports in the country,” comments Garret Schoenberger, Grubb & Ellis Sales Associate.  For land leasing opportunities at Falcon Field Airport, contact Schoenberger at 602.224.4465 or GSchoenberger@brephoenix.com.  For more information about Reilly Aviation, contact Joe Reilly at 520.982.0982.