Chris Castner: GoArizona Living & Investing

Wed, 17 Aug 2005 05:38:42 GMT

Greater Phoenix Home Prices Jump 47% in Year

The Greater Phoenix area led the nation in home price increases over the last 12 months, at a pace nearly triple that of the rest of the country. Equally significant, was the 47 percent median price hike for existing Valley homes. By the end of July that price had reached $255,000, according to the Arizona Real Estate Center.

During this same period, the typical U.S. home price rose only 13.6 percent.

Out-of-state investors have been one of the driving forces behind the Valley's home-buying frenzy over the last several months. Here, Californians and baby boomers accounted for a large portion of the sales.

A breakdown of median price increases for key Valley communities from July, 2004 to July, 2005:

Phoenix - $144,900 to $197,00
Scottsdale - $389,000 to $560,000
Mesa - $159,220 to $230,000
Tempe - $186,900 to $270,000
Gilbert - $212,000 to $315,000
Chandler - $184,895 to $282,000
Glendale - $162,000 to $225,000
Avondale - $163,125 to $250,000
Goodyear - $172,330 to $274,950
Surprise - $165,000 to $250,000

Numbers of sales have also risen sharply in 2005, totalling 68,235 through July. In 2004, the figure was 56,745 for the same period.

Earlier in 2005, Las Vegas was the national leader for home price increases.

Sun, 24 Jul 2005 06:40:15 GMT

New Jobs: Maricopa County Ranks #1 in U.S.

The nation's hottest job market can be found in Arizona's Maricopa County according to just-released data from the federal Bureau of Labor Statistics. More than half of Arizona's population resides here.

Between December, 2003 and December, 2004, 75,700 jobs were created in Maricopa County. Runner-up Clark County, Nevada trailed by 29 percent, with an increase of 58,900 jobs. Construction jobs set the pace at 12.9 percent, with health care and education next at 7 percent.

Maricopa County is the 4th most populous county in the U.S (3.3 million people). It is also the nation's 14th largest county with 9,224 square miles, of which 21 square miles are water. Included here are the rapidly growing cities of Phoenix, Scottsdale, Mesa, Chandler, Gilbert, Glendale and Peoria. In addition to Phoenix, the state capital, the county boasts a growing high-tech industry, along with strong manufacturing and agricultural sectors. Other regional assets include 15 institutions of higher learning, and several professional sports teams such as the NBA Phoenix Suns and the NFL Phoenix Cardinals. Phoenix's Sky Harbor Airport is the 5th busiest in the world with over 1,300 daily flights.

Maricopa County was officially established on February 14, 1871. Most of today's county was originally part of the Territory of New Mexico until 1863, when the Arizona Territory was established. The county was created as a result of the growth of Phoenix and other communities along the Salt River. It was named in honor of the Maricopa Indians who inhabited the area as early as 1775.

Maricopa County Links:

Sat, 09 Jul 2005 21:16:15 GMT

Honolulu & Phoenix Employment Outpaces L.A. & S.F.

Employment growth in both Honolulu and Phoenix is outpacing that of Los Angeles and San Francisco, according to the Federal Reserve Bank of San Francisco.

Based on year-to-year gains, analyzed month by month, Honolulu is up 3 percent, and Phoenix is up 4 percent. These figures are in marked contrast to two of the West's greatest urban areas, Los Angeles and San Francisco, each of which is up less than 1 percent.

Positive changes in employment tallies were first noted in summer, 2002 for Honolulu and Phoenix. However, Los Angeles, Long Beach and San Francisco evidenced no turnaround until spring of 2004.

Job growth in Hawaii has spread across all sectors.

Construction employment rose 11.2 percent in Arizona, 9.7 percent in Hawaii and 6.0 percent in California.

Residential construction permits in Hawaii are running 21 percent ahead of last year.

Thu, 07 Jul 2005 05:13:14 GMT

Californians, Boomers Buying up Arizona Homes

According to a new survey, Californians make up a significant portion of home buyers in the Metropolitan Phoenix area. The study, conducted by Marketing Solutions (Las Vegas), also produced data showing that 68 percent of those who bought homes over $300,000 are baby boomers.

Here, baby boomers are defined as those born between 1946 and 1964, along with others born between 1939 and 1945 ("war baby" generation).

The survey also showed that:

24 percent of all buyers were from California.
50 percent of investor sales went to Californians.
Median age of buyers was 47, up from the median age of 41 in a similar survey 6 months earlier.
Median price of a new home was $230,000, up from $192,786 in the earlier survey.

Another finding indicated that baby boomers preferred slightly larger homes: 2,161 square feet to 2,098 square feet of non-boomers.

Southwest of Phoenix, in Yuma County, a population increase is on the fast track, evidenced by a large influx of Californians taking advantage of Arizona's affordable housing. This corresponds to a statewide trend, where traditionally rural areas are growing more rapidly than metropolitan sectors. As such, prices are rising: in November, 2004, a 7,000 square-foot lot sold for $25,000. Seven months later, in June, 2005, that price had become $45,000.

Sun, 03 Jul 2005 02:41:01 GMT

Chandler's Fulton Ranch Project Underway

The impressive 520-acre Fulton Ranch project is now underway in Chandler. The master-planned community will feature 600 single-family houses, 89 custom homes and two townhouse and condominium neighborhoods.

Additionally, the development will include a school, lakes, parks and walking trails.

Dennis Webb, Vice President of Fulton Homes, said:

"We're moving quite a bit of dirt out there right now. We're cutting out where the lakes will go and creating varied elevations within the project. The bottom of the lake will be 20 feet below grade, and we'll have waterfalls and water features throughout."

The design concept of integrating office and retail areas with residential living space has proven to be extremely popular. Already, over 7,000 people are registered on the interest list, even though sales will not begin until early 2006.

Three retail centers are included in the plan: Town Center, Marketplace and Promenade.

Sun, 26 Jun 2005 03:50:51 GMT

Large Pinal County Housing Project Gets Approval

Coolidge, Arizona's Planning and Zoning Commission recently gave its approval for The Pivotal Group's planned 3,200-acre Sandia Community. Located 51 miles southeast of central Phoenix, the large residential development could eventually encompass 11,000 homes. Coolidge currently has a population of about 10,000.

"It's our first master-planned community," City Manager Robert Flatley said. "It sets a high tone for other developers."

Developers and home builders find Pinal County very attractive, with its affordable land and low city fees. 28 percent of metropolitan Phoenix's new-home permits lie in the northern part of the county.

Housing analyst R.L. Brown, publisher of the Phoenix Housing Market Letter, commented:

"Builders have found relatively affordable land, favorable government approval processes and found a consumer ready, willing and able to build in Pinal County because of higher housing values."

4,000 homes in Sandia's first phase will sell for $175,000. They will be situated on 1,200 acres. The start of construction is anticipated by the end of 2005.

Arizona leads the nation in average home price increases.

Sat, 25 Jun 2005 23:52:41 GMT

Arizona Personal Income Rises 8.5%

According to recent figures, Arizona's personal income rose 8.5 percent over the last twelve months. This increase ranked seventh among all states, in data recently published by the U.S. Bureau of Economic Analysis.

The construction industry played a major role in this growth. Other significant factors included the retail sector, finance and insurance, healthcare and social assistance activities.

Jim Rounds, a senior economist and Vice President of Scottsdale's Elliott Pollack & Co., said:

"It's not surprising we're outperforming the rest of the nation. We typically do during an expansion."

Personal income is determined via a combination of wages and salaries. The formula also includes other elements, such as dividends, one-time payments, interest and rental incomes. It is an important factor in providing policymakers a read on potential tax revenues for government. Likewise, personal income is a good consumer confidence indicator for retailers.

Governor Janet Napolitano's Deputy Chief of Staff, George Cunningham, stated:

"The Arizona economy is still on an upward cycle and moving up. The economy came back in fiscal year 2004 and was even stronger in 2005. At the moment, there's no reason to expect fiscal year 2006 won't be a good year."

Wed, 22 Jun 2005 05:52:49 GMT

Scottsdale, Tempe, Chandler Tout New Tech Corridor

Calling it the "101 Science & Technology Corridor," the cities of Scottsdale, Tempe and Chandler are jointly marketing their new high tech hub to the rest of America. Their goal is for the corridor to become nationally known, like North Carolina's Triangle Park or Route 128 in Massachusetts.

The 30-mile corridor connects the three communities via the Loop 101 Freeway. It includes hundreds of research, tech and manufacturing companies, along with 10 educational institutions. Here, the average household income is $75,000.

The 101 Corridor starts just north of Scottsdale's Mayo Clinic and runs to Intel Corporation's Ocotillo Campus in south Chandler.

Scottsdale's Economic Development Manager, Katherine Hutton Raby, recently stated:

"As a group, we have this enormous basket of goods. If you look at the Valley as a whole, the greatest concentration of science and technology companies is in this corridor."

Biotech companies are coveted by cities for three reasons: they attract affluent residents, venture capital and stable jobs. This notion was underscored by Christine Mackay, an economic-development specialist for Chandler:

"Biotech is one of the entities that will never be offshored because of intellectual property rights in the U.S."

Origins of the 101 Corridor go back to 1958, when Motorola Inc. moved to Scottsdale. Later, during the 1980's, Motorola and Intel opened facilities in Chandler.

Thu, 16 Jun 2005 06:14:00 GMT

Phoenix Ranked #2 in Information Technology

Phoenix was recently rated as one of America's best cities for information technology and telecommunications by Foriegn Direct Investment Magazine. It is published by the prestigious Financial Times Group of London, considered a leading source on international investing.

Chicago was ranked #1, followed by Phoenix, New York City and Anchorage, Alaska, each of which tied for second place.

The magazine's ratings are based upon how attractive U.S. metropolitan areas are to businesses in several key categories, including information technology and telecommunications.

The quality of the local telecommunication infrastructure is a vital consideration when a business looks to set up operations in a new area.

Barry Broome, President of the Greater Phoenix Economic Council, commented:

"We're pleased such a reputable source would recognize the region's ability to be globally connected."

Wed, 15 Jun 2005 05:34:39 GMT

Positive Outlook for Phoenix Housing Market

The steady influx of new home buyers bodes well for the long-range housing market in the Greater Phoenix area. Further, this ongoing trend is seen as a safety net against any sort of housing "bubble" burst or declining home values.

Arizona's leading economists and market watchers are predicting as many as 52,475 homes will be built across metropolitan Phoenix in 2005. According to economist Elliot Pollack of Arizona State University's W.P. Carey School of Business:

"Like the Energizer bunny, the single-family real estate market just keeps going and going."

Phoenix led the nation in the building of new metropolitan homes last year. Also, in 2004, Arizona ranked #2 among all states in population growth. This marked Arizona's 11th consecutive year in the runner-up position.

Likewise, 2006 should be a busy growth year according to June's Greater Phoenix Blue Chip Report. It forecasts the building of another 50,325 new homes Valley-wide.

Thu, 09 Jun 2005 03:56:44 GMT

Retiring Boomers Plan to Buy New Homes

Many baby boomers want new homes as they retire and take on new lifestyles. This was one of the key findings in a recent survey commissioned by home builder Del Webb. The company regularly monitors the attitudes of this ever-important customer group between the ages of 41 and 59 years old.

Jacque Petroulakis, spokewoman for Pulte Homes, said:

"This market segment is so important for so many reasons."

There are approximately 77 million baby boomers in the United States.

The survey's data also indicated the following:

Fifty-nine percent of the boomers age 41 to 49 want to buy a home for retirement; half of all boomers 50-59 are planning on doing the same.
Social security is a big concern for many boomers, as 62 percent age 41 to 54 believe the system is "in crisis;" seventy-five percent of the group will not rely entirely on social security to fund their retirement.
One-fourth of the non-retired boomers age 41 to 54 believe they will end up retiring later than expected due to social security worries.
The rising cost of health care in retirement was the primary concern of all respondents.
All ages indicated their number one retirement activity would focus on travel. Other planned activities included learning new skills, exercising, volunteering and sharing time with friends.
Some boomers will continue to work after retiring, either because of money needs or a simple desire to stay active.

This is an excellent time for wise investors and future retirees to take a serious look at the exploding housing markets in both Hawaii and Arizona!

Sun, 05 Jun 2005 02:11:50 GMT

Arizona Leads Nation in Average Home Price Increases

During the first three months of 2005, Arizona led the nation in average price increases, as homes statewide appreciated by 5.2 percent. This figure was more than double the national average of 2.2 percent during the same period. The data was contained in the Office of Federal Housing's quarterly report.

The rating system is formulated on a "weighted repeat sales index." It is a different measure than simply evaluating median monthly sales prices. Here, price changes are tracked via Fannie Mae and Freddie Mac mortgage data for existing homes sold or refinanced.

Not included in the index, are new-home sales figures. When it comes to new-home building, metropolitan Phoenix leads the nation.

Looking at resale data, home prices in the Greater Phoenix area climbed a remarkable 21 percent during January, February and March, 2005.

Sat, 04 Jun 2005 20:52:17 GMT

Arizona's Small-Business Economy Among Best in Nation.

Arizona ranks #1 in a recent national survey of small-business owners when asked to assess how good business conditions were. The May, 2005 data was released in the latest quarterly report by the National Federation of Independent Business (NFIB).

Small-business owners, when asked to assess how good business conditions were, rated Arizona first in net-percent-improving category, first in net-percent saying sales were good and first in net-percent claiming profits were good.

The survey's first question asks small-business owners to rank how supportive their state's business environment is, including government, banks, media and community groups. Here, Arizona came in fifth among the largest state economies, in front of Texas and well ahead of California.

Said Michelle Bolton, Arizona NFIB director:

"It's no surprise at all that we're performing better than such states as California, but part of the reason is that we've naturally had a pretty darn good business climate overall, a climate which is conducive to creating stable conditions."

Fri, 03 Jun 2005 02:52:50 GMT

Homes Now More Affordable Than in '80s and '90s

Single-family houses are now more affordable than they were ten or more years ago, according to a recent study by the Federal Reserve Bank of Chicago. The data also tends to refute speculation that a real estate "bubble" could be just over the horizon.

In 2004, the monthly mortgage payment on a median priced home was covered by less than 16 percent of a median household's income. This figure was lower than those of 20 percent and 18 percent for the mid-80s and early 90s, respectively.

As written by senior economist Richard Rosen in the Chicago Fed Letter:

"The increase in housing has come at the same time as mortgage rates have declined and incomes have increased. These two factors have kept housing affordability for the United States as a whole roughly constant as housing prices have increased."

Likewise, other federal officials, including Chairman Alan Greenspan, have stated they do not foresee a national housing bubble that will burst.

Tue, 31 May 2005 02:06:24 GMT

Rapid Growth Projected for Chandler Business Corridor

Chandler's Price Road Corridor will undergo a rapid growth spurt in the next two to three years. The Price Corridor, one of Arizona's major employment hubs, will experience a flurry of new businesses and expansions over the next several years.

The Arizona Republic article lists three major factors that are driving the rush of businesses to the area: a variety of affordable housing, a good labor pool, and an array of amenities like the Chandler Fashion Center. Still in play, are 200 of the sector's remaining 500 acres. Real estate brokers forsee the creation of large numbers of jobs in the high tech, biomedical, financial and industrial fields.

Pete Wentis, Senior Vice President of DB Richard Ellis, stated:

"The Price Corridor is probably one of the most dynamic corridors in the entire valley at this point. Probably six or seven major corporations are jockeying for a location on that corridor, whether it's for a brand new facility or an expansion."

The corridor is anchored by Intel Corporation's Ocotillo Campus. Intel, Chandler's largest employer, is currently laying the groundwork to build three more computer-chip-making factories at the location.

Residential growth plays a significant role in attracting businesses, as companies are willing to go where the talent is. Said Christine Mackay, industrial specialist for the City of Chandler:

"It used to be that residential followed industry. In this day and age, industry follows residential."

Wed, 25 May 2005 03:31:23 GMT

Builders Zero-in On Baby Boomers

According to the National Association of Home Builders, the fastest-growing segment of America's housing market is composed of buyers 50-plus years of age. Not surprisingly, this group includes baby boomers, empty nesters, pre-retirees and other categories of older buyers. The Arizona Republic article also reports that buyers 55-plus bought nearly one out of every five new U.S. homes (1.1 million) in 2003.

During the post-World War II baby boom, between 1946 and 1964, nearly 76 million people were born in the United States. It was this group that helped define spending trends and consumer marketing through key phases of their lives.

Arizona home builders are eagerly seeking new ways to tap into boomer buying power, as they create different brands to appeal to the diverse range between the youngest and oldest boomers. Said Jacque Petroulakis, public affairs director for Pulte Homes and Del Webb Communities:

"These people are not retired, but their children have left home and they now want to take full advantage of a resort-style lifestyle. They are beginning their 'someday' stage even before they retire."

Important factors attracting boomers and other buyers are affordable prices, climate, jobs and recreation options:

"There are many reasons Phoenix has such a great housing market," said Steve Hilton, co-chairman of Meritage Homes. "The area's affordability is one. Lifestyle is another one. Both are drawing many new residents and home buyers, including both young families and baby boomers."

Ralph Spargo, general manager of Standard Pacific Homes in Irvine, CA, put it quite simply:

"The baby boomer (home buyer) is really going to be something special in the next few years."

Tue, 10 May 2005 03:42:37 GMT

Arizona Homes: No Boom-to-Bust Scenario

The Arizona Republic reports that a rising number of U.S. cities are in the midst of housing booms that could potentially become busts. However, federal banking regulators do not see evidence of any such conditions in Arizona.

According to the Federal Deposit Insurance Corporation (FDIC), "boom" markets are defined as those depicting 30 percent total price gains (inflation adjusted) during the past three years. While Arizona home prices rose about 30 percent from 2002 through 2004, the after-inflation gain was closer to 21 percent.

Some industry experts believe overly large increases are more prone to boom-to-bust outcomes. A recent boom list is dominated by cities in California, Florida, Nevada, New England and other portions of the East Coast.

William D. Hinz II, President of Western National Bank (Phoenix), believes the Valley housing market will remain in good shape, since buyer demand and population inflows will continue to drive sales of new units.

Tue, 15 Mar 2005 22:57:42 GMT

Hot New Projects Slated for Greater Phoenix / Valley

An impressive array of new real estate developments are underway in Scottsdale, Tempe, Douglas Ranch and Peoria.

Riverwalk Arizona, a huge 187-acre commercial center for business and retail, is under construction in Scottsdale and scheduled to open in Summer 2005. The $400 million / 2,000,000 square-foot mixed use development represents the nation's single largest project on Native American land. It will feature an artificial river, while generating 15,000 new jobs. A recent East Valley Tribune article states:

"It's almost a microview of the Salt River Community, how the whole community developed around the Salt River as a water source, said Kurt Rosene, The Alter Group's senior vice president of national development. It will be a wonderful parklike environment for people to walk along and take breaks."

The business park will include the 142,000 square-foot Arizona Design Center and restaurants, while several hotel chains and national corporations have expressed interest in setting up Arizona operations within the Riverwalk development.

In Tempe, the Centerpoint project will feature two 22-story glass towers housing 700 condominiums. Pre-sales will begin in March, 2005, and construction will run through 2006. Condos, based upon 23 different floor plans, will be priced from $180,000 to $2 million. Said Ken Losch of developer Avenue Communities:

"This is really a true urban design. We're marrying the services of a hotel and the ownership of a condominium together."

In Douglas Ranch, developer El Dorado Holdings has purchased a 50 percent share in the massive Douglas Ranch Project. Douglas Ranch, a 34,000-acre project 25 miles northeast of downtown Buckeye, is Arizona's largest planned development. It is currently zoned for 71,000 homes, 12,000 apartments and seven golf courses. The plan also sets aside several hundred acres for retail, office and industrial space. When finished, the project has the potential to accommodate 250,000 residents, 12 high schools, 25 elementary schools and 22 golf courses. At least 22 percent of the land will remain open for trails and parks.

In Peoria, the City Council has approved the rezoning of the 359-acre Camino a Lago South for the development of 1,433 detached single family homes in the city's northwest sector. Open space, including pocket parks with playing fields, shade armadas and barbeque areas will encompass 11 percent of the development.

Thu, 10 Mar 2005 21:57:22 GMT

Real Estate is Arizona's "Hottest Commodity"

Once-popular farming has steadily given way to Arizona's hottest commodity, real estate.

Throughout the Valley and other parts of Arizona, housing developments are replacing farmland, especially in such growth hotbeds as Chandler, Gilbert and Queen Creek. Approximately fifty percent of the Valley's urban areas were once used for farming, according to Arizona State University's Center for Business Research.

Also, Metro Phoenix ranks among the nation's top 10 metropolitan markets for office and multifamily properties in 2005. Here, Phoenix is rated sixth in the office buyer market and seventh in the multifamily buyer market. These high rankings are influenced by Phoenix's "Sunbelt" status, along with its projected 2.5 percent job growth in 2005.

Other cities in the top 10 listings include Las Vegas, Riverside/San Bernadino (CA), Tampa, Tucson, Salt Lake City, Houston, Raliegh, Kansas City. Chicago and West Palm Beach.

Mon, 07 Mar 2005 23:19:07 GMT

1031 Tax-Deferred Exchange is Valuable Tool for Investors

Real estate investors are afforded a wonderful opportunity to build wealth and save on taxes via Section 1031 of the Internal Revenue Code. Commonly referred to as a "1031 exchange," investors are thus able to:

dispose of a current investment property
apply all equity to aquire replacement investment property
defer regular capital gain tax
effectively leverage all equity into the new property

In general, this mechanism allows investors to accomplish many objectives including increased leverage, diversification, enhanced cash flow, consolidation of property, and freedom from joint ownership. Mary Monday, in an Arizona Daily Sun article, strongly recommends the use of 1031 exchanges:

"If you are thinking about selling an investment property you should consider a 1031 exchange. An exchange offers an investor an opportunity to reinvest the federal capital gains that would normally be paid to the IRS and put that money to work for yourself. Essentially, the exchange should be thought of as an interest-free loan from the IRS; one in which the principal may be increased through subsequent exchanges and may never require repayment, if you plan properly."

Arizona investors, in particular, are using 1031 exchanges to acquire multiple newer properties in and around the fast-developing Greater Phoenix area. Here, the Valley's hottest investment areas include Surprise, Goodyear and Avondale, where new homes are sprouting "like desert wildflowers."

Sun, 20 Feb 2005 03:28:21 GMT

Valley Home Sales Off to Sizzling Start in 2005

A new record high was established in January with 9,360 recorded home sales, a gain of almost 4,300 sales over the previous year. Median home prices also showed an increase of 24%, in data recently released by the Arizona Real Estate Center at Arizona State University.

Valleywide, from 2004 to 2005, other significant data included:

Phoenix sales increased from 1,460 to 2,685 transactions, with the median sales price rising from $127,000 to $154,000.
In Scottsdale, the resale market jumped from 515 to 785 sales, as the median price moved upward from $350,000 to $458,690.
Glendale sales increased from 390 to 640 recordings, while the median price went from $148,950 to $171,450.
In fast-devoping Gilbert, resale activity rocketed from 260 sales to 565; the median price rose from $190,000 to $244,000.
Likewise, Chandler's resales ramped-up from 325 to 625 home sales, with the median price moving from $165,000 to $219,000.
Surprise evidenced another strong showing as recorded sales increased from 170 to 370; the median price accelerated from $145,115 to $195,000.

See the Business Journal of Phoenix for a more detailed listing of Valley home sales in January.

Sat, 19 Feb 2005 06:46:15 GMT

Arizona Again Ranks #2 in Population Growth

Recently released U.S. Census Bureau numbers for 2004 list Arizona with a 3.0 percent population growth, second only to Nevada's 4.1 pecent increase. This marks the Grand Canyon State's 11th consecutive year in the number two position nationally.

Four other western states ranked among the nation's top 10 growth states: Idaho (#4), Texas (#6), Utah (#7), and New Mexico (#10).

Arizona's population as of July, 2004 was 5.7 million persons. The U.S. Census Bureau is scheduled to provide its next population estimate in December, 2005.

Tue, 08 Feb 2005 04:55:30 GMT

Out-of-Staters Buying One Out of Every Four Phoenix Homes

KOLD News 13 (Tucson, AZ) reports buyers and investors from other states are now purchasing one out of every four Phoenix area homes, doubling the rate of two years ago. Californians, comprising 50% of this group, account for the largest segment of out-of-state investors.

Despite double-digit increases in 2004, Phoenix home prices remain relatively low when compared to other areas of the West. As of last December, the median price of a new home was $195,000; used homes were running $175,000. California houses cost three times more than a typical metro Phoenix home. Likewise, Phoenix houses are priced at least $100,000 less than those in Las Vegas and Denver.

Said Jay Butler, Director of the Arizona Real Estate Center, "Investors are behind the housing market's big numbers now."

Zareh Tahmassebian, a 23-year-old mortgage banker from Los Angeles, has purchased 15 Phoenix area homes since last summer. "Why buy one house with cash when you can buy 10 of them at 10% down?" he said.

Thu, 03 Feb 2005 18:30:43 GMT

Steady Climb for Phoenix Area Home Prices in 2004

Both new and resale home prices in the Greater Phoenix area increased steadily during 2004 according to data released yesterday by ASU's Arizona Real Estate Center.

The median price for resale homes climbed from $155,000 in 2003 to $174,815 in 2004, an increase of 12.8 percent. Between January and December, 2004, these prices rose from $156,000 to $190,000.

Median prices for new homes increased by 12.6 percent, from $173,240 in 2003 to $195,000 in 2004. These costs went up from $178,110 to $211,640 during the 12-month January to December, 2004 period.

Valleywide, new homes and resales were most affordable in the nearby communities of Chandler, Gilbert, Avondale, Goodyear and Surprise.

Wed, 02 Feb 2005 05:50:53 GMT

Valley Ranked #1 in U.S. Job Creation

A recent study ranks the Greater Phoenix area as the nation's job growth leader among major metropolitan areas. Posting a 3.1 percent gain between November, 2003 and November, 2004, the Valley evidenced the highest job growth among 28 metro areas with over one million workers. Runner-ups were St. Louis at 3.0% and northern Virginia with a 2.8% increase. This marked the first time the Valley hit #1, after consistently enjoying top five rankings.

The construction sector encompassed many of the gains, as 14,500 construction jobs were created during the 12-month period. Other areas with strong showings included education, health services and business services.

Another measurement focus, the business conditions index, likewise produced very positive data. Its reading rose to 64.6 in December, up from 61.4 in November. This marked the 20th consecutive score above the crucial 50 mark. (Readings above 50 demonstrate growth in the local economy).

Wed, 19 Jan 2005 04:24:36 GMT

Phoenix Set to Claim 2004 Home-Building Title

After logging one of the largest building booms in history, Phoenix is on the verge of claiming the 2004 title as the top new-home market in the nation. 52,580 houses were constructed across metropolitan Phoenix through November of last year. This figure puts Phoenix ahead of Atlanta's 51,860 new homes for the first 11 months of 2004. Atlanta has led the U.S. in this category for the past decade.

Home-building plays a major role in the Greater Phoenix area, where the housing industry accounts for one out of every three dollars generated.

Sat, 25 Dec 2004 06:22:35 GMT

Many Californians Considering Other States

According to a San Francisco think tank, one-fourth of all Californians are thinking of relocating to another area, even out-of-state, due largely to the cost of housing. Significantly, half of those under 35 are seriously considering making a move. This group constitutes the state's prime labor force. Many are simply overwhelmed by the median price of a single family home: $465,000. Only 19% of California's population can afford to buy such a house. Across the board, state home prices rose 31% during the past twelve months.

Not surprisingly, many first-time home buyers and other investors are focusing on the fast-developing Greater Phoenix area, where spacious new homes can be purchased for roughly 40% of the cost of a California dwelling. And even in many parts of Hawaii (Oahu & the Big Island), median home prices are still lower than those in California.

Fri, 24 Dec 2004 04:05:50 GMT

New Housing Still Red-Hot in Valley

Despite a marked industry slowdown nationwide, new housing in the Phoenix area continued at a record pace during November. New housing permits in the booming metro area were up 56% over the same period last year. The continued upsurge in building puts Phoenix on track to top 60,000 permits in 2004. Actual sales continued strong in November, increasing by 27% over the same month last year. Housing analyst R.L. Brown stated: "The strength of the new housing market is being felt all across the valley."

Earlier this year, Phoenix surpassed Atlanta as the most prolific home-building area in the nation.

Thu, 23 Dec 2004 08:35:39 GMT

Arizona Second in Population Growth

Trailing only Nevada, Arizona's population grew by 3% during 2003, and 12% during 2000 to 2004. More than 5.7 million people now reside in the state. Florida was third in growth.

Overall, Arizona ranks #18 nationally in total population.

Thu, 23 Dec 2004 07:58:39 GMT

U.S. Baby Boomers a Powerful Force

Stating that, "Many fortunes have been made by following the 'Baby Boomer generation,'" The Mature Market reports that many American companies are now faced with a massive demographic shift as many boomers are now in their 50s. It was this 76-million strong contingent that rushed to buy hula hoops and Frisbees in the 1950s, jammed college admissions in the 1960s, and sent real estate prices soaring in the 1970s and 1980s. By 2010, fully one-third of the U.S. population will 50 years of age or older.

Prudent, forward-thinking businesses in all sectors must carefully meet the needs of this influential, affuluent niche to maintain their success.