3rd Quarter 2007 Urban Newsletter

Dear Friends,                                                                                                                                          August  25, 2007

Isn’t it fun trying to keep up with the Real Estate market and the Mortgage market?   While home values have declined nationwide and even gone down in some areas of Metro Phoenix, they don’t seem to have gone down as much as some expected and they have still risen in some areas.   And while there are many problems in the Mortgage industry right now you can still get a good mortgage at a good rate, if you have a little money to put down and a reasonably good credit score.

If you’re wondering if it’s a good time to buy a house the answer might be yes depending on your situation. Not only have home values come down but interest rates are still historically low.   According to the Mortgage Banker’s Association 30 year fixed rate loans dipped to 6.41% the first week of August.   But with the subprime crisis not everyone will be able to get a loan.   If you have good credit, low debt to income ratio, a healthy down payment, verifiable income, and looking to finance less than $417,000 you should get a loan easily.   You should have a FICO score of 620 or more and expect to put at least 10% down and you could get an interest rate of 6.2 to 7.5 percent.   If you want the lower interest rate you’ll need a higher FICO score, say 660 or higher.   Subprime loans are harder to find but still available and expect to pay 8 or 9 percent.   There’s no telling how long these financing problems will last but some are saying expect it to last into 2008.   As long as the property you’re buying or selling is less than $417,000 and you have some cash to put down you shouldn’t have any trouble.

The Federal Reserve policy makers held their interest-rate target at 5.25 percent for a ninth time in early August and said that inflation is the biggest risk for the economy.   They also acknowledged that persistent declines in housing, stricter lending standards and volatile financial markets have raised concerns about growth "somewhat," according to their statement. Still, they projected the economy would continue to expand.   Keeping inflation under control with interest rates is an art and not really a science so they continue to watch things closely and make adjustments as they seem necessary.  

The valley’s resale market continues to be behind the last couple years and there remains a large number of homes on the market.   I think the investors that are still trying to sell off their properties are expecting those triple digit profits.   Despite slow sales and the record number of homes on the market, the Valley still ranks 3rd in the nation for home building behind only Atlanta and Houston.   It’s nice to be high in the rankings but it would be better if these new homes were selling.   Many builders just keep building because they have deep pockets and employees they can’t afford to lay off.   And you have to ask if they did stop building where would the thousands of people go who move here each month?   Some are buying but I think many are renting until the market levels out.   There are some who think it will level out in early ’08 but these may have been the same that said it would level out in early ’07 and were wrong.   I guess we’ll have to wait and see, I’m not brave enough to predict when the market will pick up but late summer is traditionally slower and it always picks up a bit in the early fall so I’m hopeful things will start turning around.

You’ve probably noticed by now that I put an insert into this quarter's newsletter.   A friend of mine, Melissa Allison is moving to the Phoenix area and does fantastic murals of all types.   She can paint them on the wall of your home, office, retail store, restaurant or on a canvas.   Melissa will be showing some of her work at my office during October’s First Friday so stop by and see what a great job she does.   Melissa can be reached at 330-519-6659 for more information or to make an appointment.

If you’d like to get into some interesting conversations about the Phoenix market as well as the redevelopment of Downtown Phoenix and other urban areas of the Valley, I’ve started The Phoenix Urban Real Estate Blog.   You can get to it from www.RooPhoRealty.com then click on Blog on the left side menu.   I started the Blog so we will have one place to go and share information and thoughts about the market, new construction, re-sale homes and condos and the urbanization of Downtown Phoenix.   I hope you’ll stop by next time you’re online and share your thoughts, ideas and opinions.  

Best regards,

P.S.   I’m still looking for Realtors to join RooPho Realty.   If you or anyone you know is interested please call me so we can talk about the details.   I’m a great mentor and look forward to helping new Realtors get their business going or assist experienced Realtors with anything they need.

 

Remember Cosmopolitan Towers located at 3 rd Street and Pierce in Downtown?   Well it looks like this may never build.   The project has been put up for sale, I hear it’s in escrow, and that’s a good sign.   The buyers may not build this project but hopefully something will be built on that lot.   If you have any money on a unit there don’t worry, your money is safely in escrow.  

How about an update on Tapestry on Central?   They are currently trying to close on the third and final building.   Yes, I said trying because many of units are not appraising for the agreed upon sale price of two years ago.   Even though the sale is not contingent on the appraisal they are renegotiating the sale price, I have three sales in there and have been really working on this.   If you ever question why you need an experienced  licensed Realtor, this is when we make a difference.

 

 

I’ve been asked many times about the Chateaux on Central and they are under construction again and really looking nice.   They have sold 3 of the 21 units and are expecting to have a few models open by November 1 st.   Prices range from $2.8 to $4.5 million.   Boy would I be happy to sell you one of these. :)  

44 th Street and Camelback has been in the news lately, three of the four corners are desperate for redevelopment.   On the Northwest corner is the proposed mixed use Camelsquare.   The neighbors are up in arms because they don’t want tall buildings to ruin their views and understandably so.   On the other hand, the area is not being used to it’s potential and the best way to increase property values in an area is to bring in new projects.   There’s a lot of discussion about the Southeast corner where the old Valley National Bank is located.   Since that building is on the corner, can’t the developer and the area residents agree to leave the building and work it into a new development?   I’m sure that’s what the residents want but they have to give something too, like taller buildings.  

AquaTerra in Mesa is replacing the Fiesta Towers that was going near the Southeast Corner of Southern & Alma School Roads.   AquaTerra will include retail space, live/work spaces and 433 condos.   Prices will range from $200,000 for 600 square feet and up to $900,000 for 2400 square foot penthouses.   The developer remains very optimistic in luxury condos even with the housing slowdown.   I remain optimistic in urban condos but wonder how many luxury properties the Valley can handle.

Another mixed-use project was just approved in May for Tempe Town Lake called The Pier at Town Lake.   This will be on 27 acres of city-owned land near Town Lake.   There will be a total of 3.65 million square feet of mixed-use space including 1480 condos a 285 room four star hotel and 460,000 square feet of commercial space.   The project will span more than a dozen buildings that have already been approved by the FAA for up to 22 stories.  

 

I still think the best buy in Downtown Phoenix is Artisan Village and I’m not just saying that because I live here.   I have a residential/retail unit listed right now where you can open up an office or retail store and live in the same property.   It’s the same set up as mine and I gotta say , it’s a great set up to live and work right here.   I get more work done without the commute so there’s more time for work and for time off.   Or if you work downtown and are tired of the commute you can walk to work anywhere downtown from my listing that has 2 bedrooms, 2 baths, plus 2 car garage for $279,000.   If you or anyone you know wants to buy in Downtown give me a call.   I have 3 listings in Artisan Village and can show you anything in the community.

 

There’s a new business at the Shops at Artisan Village next to my office, it’s “Well Hung Art & Framing.”   They have a great selection of prints and can make custom frames for any artwork you have.   Stop by and talk to Kimberlee anytime or call her at 602-254-1492.

 

 

Two homes in One – If you want a home and a guest house or a place for another family member or friend to live, this may be the place for you.   We have a listing in Ahwatukee near 44 th Street and Elliott that has two homes in one.   The first one has 2 bedrooms, 2 bathrooms, a den, family room and living room and the second one has 1 bedroom, 1 bathroom a great room with a full size kitchen.   The property also has a large diving pool and spa, a gazebo and good size yard.   Call Marilyn Smith (602-601-3992) for an appointment to see it.

Looks like I’m out of space ,   please remember, if you or anyone you know is looking to buy or sell a home or condo, we’re here to help.   Call 602.224.0554 for an appointment.

 

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