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1st Quarter 2006 Urban Newsletter
February 27, 2006
Dear Friends,
I hope 2006 has started out well for everyone. RooPho Realty LLC is off to a good start building relationships with developers and continuing our great rapport with buyers and sellers. This year RooPho Realty has also expanded into the commercial market. The Phoenix Valley of the Sun commercial real estate market is growing fast and we have so many friends that are interested in buying various commercial properties so RooPho Realty has expanded to become a full service Arizona real estate brokerage. In the Arizona real estate commercial market vacancy rates are falling and cost of rents are rising thus creating a hot market for building and investments. Commercial investments are attracting more institutional investors like pension funds and real estate investment trusts but the small business or investor can do well to buy a property and earn equity while building their business or even leasing the property. Jude Smith will be working with our Arizona commercial clients and still working with me on the Arizona residential real estate side of the business. If you have any needs in buying or selling Arizona commercial real estate properties call Jude at 602.618.7706 or at the office number 602.224.0554.
The Arizona residential real estate market can be very confusing right now. As I read through all the articles of different papers and compare the notes I make from what I hear on the news, on the internet and even in conversations, the numbers don’t always jive. Everyday you hear the bubble is bursting, it’s not bursting, there’s a bubble then there’s not a bubble. I just heard on NPR's Morning Addition that many people think the Real Estate market has come to a screeching halt but then many experts believe the market is just “tapping the breaks”. It has become more of a buyers market with more houses on the market and less buyers trying to out bid each other to get them but with interest rates still very reasonable people are still buying homes. The big difference is the huge infusion of investors seems to be over. I read an article in the Arizona Republic on February 16 th that said we barely managed to grab the title of the nation’s hot spot for home price gains in 2005. We gained 48.9% in 2005 beating out Cape Coral and Ft. Myers Florida by .9%; you’d think we barely grew the way the headline read. The Republic also reported in mid-February the median price of an existing home in the Valley fell $3000 to $257,000. That’s still not bad considering the median home price is up almost 50%. Then I found an article from the Arizona Republic on February 8 th that said the median priced home is currently $329,900 as of December 31 st, 2005. The articles are written by different reporters and both either said they were or implied they were for existing homes. I guess we’re all trying to do the best we can in this very confusing market.
The bottom line is if you’re thinking of selling and you price your Arizona home fairly and have some patience you could still get your asking price or close to it. Last year Arizona real estate sellers got use to over pricing their home by 10% and more I think they are still trying to do that but now they are forced to lower the price to a fair market value making them feel like they are loosing money. But the truth is , you can’t loose money you never had. So remember, price your Arizona house fairly, then it should sell in about 40 days or sooner.
The Phoenix Arizona area continues to be a great place to live and a great place to buy or sell residential and commercial real estate.
Best Regards,
First Friday Art Walks – Our new RooPho Realty downtown Phoenix office is working out well and we enjoy it very much. We have met many new people who stop in during the day to say hi and ask about homes and commercial space in Phoenix. If you can’t stop by during the week I hope you’ll come to the First Friday Art Walks in the Roosevelt / Phoenix Art District. Jude and I open up every month for First Friday Art Walks until 10pm to talk to visitors about the downtown Phoenix real estate market as well as the Valley-wide Real Estate market in general. I’ve read in the paper that the City of Phoenix estimates that 10,000 people come to downtown Phoenix for First Friday Art Walks every month, so stop in and say hello!
Encanto Urban Homes – (pictured left) Encanto Urban Homes will be located near 19 th Ave &Thomas and is being built by the same developer that did Palm Lane Urban Living on Palm Lane between 3rd Street and 7th Street in midtown Phoenix. Encanto Urban Homes is very close to downtown, Central Ave Phoenix offices, the Arizona State Capital and metro Phoenix freeways. There will be two and three bedrooms offered at Encanto Urban Homes with 1390 and 1910 square feet respectively. All units at Encanto Urban Homes will have 2 car attached garages and loads of updated features. Encanto Urban Homes are some of the best loft - style condominium units you’ll find in the Central Phoenix / Downtown area. Sales are expected to start Fall 2006. Call RooPho Realty the urban real estate specialists 602.224.0554.
Central Park East – This is a $200 million office and residential complex located in Downtown bordered by Central Ave, Polk, First and Van Buren Streets. The project includes office and residential including a building for ASU, parking and retail space. The project should break ground in mid-2007. The city is happy about this project because it infuses a huge amount of private capital in the Copper Square area plus brings more residential housing and commercial office space to downtown.
Studios@636 – (pictured left) The Studios@636 will be a great place to live. Studios@636 is also a great opportunity for a first time home buyer or a downtown Phoenix professional that sometimes needs a place to crash after a long day at the office or after a game, concert or play. RooPho Realty will be having open houses in Fall 2006. Call Jude or me for an appointment. Studio@636 prices range from $139,900 to $154,900 so they are very affordable.
Phoenix Bond Election – Yes, I’m going to plug the Phoenix Bond Election. Not because it’s good for downtown, which it is, but also because it’s good for more than downtown and if you don’t think so then you should vote against it. But before you do, consider all that is at stake. Prop 1 – Strengthening Police, Fire and Homeland Security - $177 million. Prop 2 – Technology improvements for Police, Fire, Government Efficiency - $16.1 million. Prop 3 – Building High Schools, Higher Education and Health Science Facilities (ASU and downtown Medical Center) - $198.7 Million. Prop 4 – New Parks and Open Spaces - $120.5 million. Prop 5 – Libraries, Youth, Senior and Cultural Centers - $133.8 million. Prop 6 – Affordable housing & revitalizing Neighborhoods - $85 million. Prop 7 – Streets and Storm sewers - $147.4 million. You can get more information at http://phoenix.gov/2006bond/bondprops.html. There doesn’t seem to be any organized opposition to any of the propositions so review the details online and no matter how you feel, please vote.
Cityscape Mixed-Use Downtown Phoenix – (pictured left) The AZ Republic reported that Cityscape Mixed-Use is a mega downtown Phoenix investment and could cost at least $500 million. Cityscape Mixed-Use a four-tower project with office space, retail and housing and would cover 2 downtown Phoenix city blocks. If all goes as planned, the groundbreaking of Cityscape Mixed-Use could start by the end of the year and could take up to five years to complete. Cityscape Mixed-Use would be located between 2 nd Street and Central Ave and Washington and Jefferson Streets. City of Phoenix counsel is not totally behind the Cityscape Mixed-Use project and yet they want private money to build up downtown Phoenix. Here’s their chance.
UPDATES on projects discussed in previous newsletters. In the last newsletter, I talked about projects downtown at 5 th & Lincoln, Central & Buchanan and 3 rd Street & Earll. Well those projects are still coming, the developers sales team tells me they are waiting on the City which is waiting on the outcome of the Bond election. The Summit at Copper Square has some units left with prices starting in the mid $400’s. The Cosmopolitan Towers has some units left with prices starting in the $600’s. And Portland Place has a few units left in Phase 1 and hopes to start selling phase 2 anytime now. As for who has broken ground, Portland Place Phase 1, 44 Monroe and the Summit at Copper Square (under construction pictured right) have all broken ground. Tapestry on Central sold out months ago and phase 1 has been filling with new residence for a few months. Phase 2 and 3 are well on their way to completion.
Please feel free to always give Jude or me a call, we’re always pleased to talk to you and let you know what we know about the market. 602.224.0554
               
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