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Dear Friends; February 25, 2008
Welcome to 2008! This could be a tough year for the economy so you have to keep up to date on what’s going. I have heard some experts say we should be pulling out of the housing slump by mid-year and I’ve heard others say it could last 3 to 5 years, so as usual, it’s anybody’s guess. I do think things have picked up in some areas of town and that sellers are starting to realize they can’t get 100% profits over what they paid 2 years ago. As the sellers price their homes at reasonable asking prices and buyers start to feel like they can trust the market has gone down as much as it’s going to, the sales of homes will start to get back to something normal. It does look like prices in most parts of the Phoenix Metro area have stabilized.
This is a great time to buy. Interest rates are at their lowest in 4 years, prices have come down from the boom of 2004 and 2005, prices are down and there are hundreds of homes to choose from in every part of the valley. So if you’re an investor or plan to occupy the home, it’s a great time to buy.
When home values start to go up so will interest rates and you will have missed the window of opportunity.
The Federal Reserve surprised everyone in January by lowering the fed funds short-term interest rate by ¾ of a percentage point to 3.5% and then within the same week cut it another ½ of a percentage point to 3%. What does that mean to you? That move had a direct affect of reducing interest rates on mortgages and home equity loans that are based on the fed funds short-term interest rate. This could help many who are having trouble making those payments and could help others to buy a home when they might not have been able to at higher rates.
With interest rates at the lowest level in 4 years and prices down your money will go further than it did last year.
Another positive note is there are a lot bargains out there. There are lender owned homes for a great price and many at below value. Many of these are offered as Short Sales and if you don’t know about Short Sales, in a nutshell, a short sale is when you sell your house for less than you owe and your mortgage company agrees to accept that amount instead of the whole amount due. This is good because it keeps a foreclosure off your credit score and gives the buyer(s) a better deal so hopefully the home will sell before foreclosure. There is a catch that many people are not aware of, if you have refinanced or gotten a equity line of credit you may have to pay income tax on the amount the mortgage company writes off of their taxes. Check with your CPA for all the details on how this works. A Short Sale can be a good thing and has helped many people get out of a bad situation. If you feel a Short Sale may be a right for you, call RooPho Realty and we’d be glad to help you with the Short Sale of your home.
If you’re interested in buying a Bank Owned property or a Short Sale property, we can help you find these properties.
We have started a monthly e-Newsletter in February. It will contain a quick read of the real estate market and trends nationally but concentrating on the local Metro Phoenix market. I will attempt to compare the national trends with the Phoenix market as many times what happens nationally has a direct affect on our market but at the same time, our market can act differently. If I have your e-mail address you will start to get it automatically but if I don’t have it and you’d like to get it, please e-mail me at Chris@RooPhoRealty.com and ask to be put on the e-NewsLetter from RooPho Realty.
Also, don’t forget to visit our Phoenix Urban Real Estate blog at http://roopho.typepad.com/chris_blog/ . This is a great way to share thoughts and ideas of the real estate market and the projects that are planned or being built.
I hope your year is off to a good start and please remember, if you, your friends or family have any real estate needs throughout the valley, please call us, we’d love to help you buy a new home or sell the one you’re in.
Best Regards,
Chris Campbell
Union Square at 12th Street . This is the newest addition to the redevelopment along the Light Rail and stands to make a real improvement east of Downtown. This is the largest mixed-use project along the Light Rail to date at 11 stories and will include 280 condos and 175 room hotel as well as street level retail. Ten percent of the condos will be priced for middle income buyers. There will be Light Rail stops on two sides of the project, one on Jefferson and one on Washington. Mike Lafferty, President of Lafferty Development, Inc ., said he plans to bring in Starbucks and Dunkin’ Donuts to the retail space along with other name brands. Contact RooPho Realty for updated information or keep an eye on our website as we post information as it becomes available.
How does living in a new community in the Roosevelt Arts District sound? What if I told you there’s a heated lap pool, a dog park and the best part is you’d be living next door to me? 
Ok, maybe living next door to me isn’t a plus but you could have a worse neighbor. We have a unit listed in Artisan Village for $249,000, 2 bedrooms, 2 bathrooms and a 2 car tandem garage. Artisan Village has 10 units on Roosevelt that have storefronts. We have one for our offices, plus there’s a new Mediterranean restaurant, a clothes boutique, a coffee shop with great pastries and breads, a picture framing shop, a State Farm Insurance agent, a computer repair shop and 2 art galleries. Plus, within walking distance you have many restaurants, movies, plays, concerts, sports and soon a Light Rail stop for easy access to the airport, Tempe, Mesa and north on Central Ave. You can get more information on our website under Featured Listings or call Jude or me at 602-224-0554.
If you’re looking for Art Deco and unique at a good price you should check out our listing at The Orpheum Lofts. This is a Short Sale and is 1098 square feet, 2 bedroom and 2 bathrooms on the 5 th floor with South facing windows. The asking price is currently $359,000 and the comps are over $400k. This existing historic landmark built in 1936 was formerly known as the Phoenix Title and Trust Building and converted into 90 lofts in 2004. The authentic restoration of the Art Deco high-rises designs throughout the building will showcase the style and architecture of the era. This is an amazing 11-story brick building that was retrofitted to meet future-paced technological requirements while preserving the authentic structural magnificence of the Art Deco era design. Every effort was made at Orpheum Lofts to preserve the original exposed brick, decorative terra cotta and remarkable detail in metal, marble and terrazzo in the interior, and to protect the original exterior brick, stone, granite, terra cotta and original frame windows incorporated into the architecture. This will truly be one of the most exciting buildings in Downtown for a long time.
The Summit at Copper Square is complete and people are moving in. However there are some units still for sale from the developer. This is a great building with a negative edge pool on the fifth floor, a spa, conference room, work out room and BBQ. The 23 rd floor has a club house that can be reserved for private parties and has views of the city. We were there for a Super Bowl party and it was a great experience and spectacular views. They have great standard features including slab granite counter tops and hardwood floors throughout except the bedrooms and den. The Summit at Copper Square high-rise condominiums is located right across the street from Chase Ballpark and of course a few blocks from US Air Arena in downtown Phoenix. If you go to ball games, concerts or enjoy dinner out, this is a great place to live the urban lifestyle. There are 165 condos with 8,500 square feet of retail space on the first floor in downtown Phoenix. We have floor plans for all floors, so contact us for more information.
There are over 7500 homes listed as Bank Owned or Needs Bank Approval right now with an average list price of $242,000. As I mentioned earlier and you have probably seen in the news, now is the time to buy and some of these are very good deals. Some will need a little work, other may need a lot of work but most are priced under market and with a little elbow grease you could get into a home or condo. Call RooPho Realty (602.224.0554) today to get a list of these homes in any area of the Valley.
Leslie Suder has opened a new State Farm Insurance agency in Artisan Village a few doors down from RooPho Realty. Leslie can insure your home, cars, life and your retirement, all with
Discounts up to 40%. You can contact Leslie at 602-334-1284 or stop by her office at 610 E. Roosevelt ST, #136 and please tell her you read about her in the RooPho Realty newsletter.
That’s it for this quarter. I hope 2008 has started out well and continues to be a prosperous year for you.
               
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