4th Quarter 2007 Urban Newsletter

Dear Friends,                                                                                                                                       November 25, 2007

I hope this news letter finds you well.   Fall has been a bit warm but then we like it that way in the Valley of the Sun.   We have seen an increase in people contacting us since the 1 st of October.   I’m not ready to say the market has turned but it feels like more than just a blip on the radar screen.   Many of us are hoping the cooler weather is bringing a better real estate market.   It is a Buyers market but that really doesn’t make it good for Buyers because many Sellers still have their properties over priced for the market and the Buyers don’t trust even those Sellers who have their homes priced well.   I think right now it’s really up to professional Realtors (like us at RooPho Realty) to help the Buyers and the Sellers understand the market so both parties feel comfortable with the price.   Jude, Marilyn and I are committed to helping you understand the market and the direction it’s going so you can make a better decision whether you are buying or selling.  

Now for the headlines, I have read everything from “ Arizona fastest growing”, “ Arizona, dependent on real estate, likely won’t go unscathed” to “ Central Phoenix homes gain in value” and “Steady new-home sales are a good sign for market”.   According to Catherine Reagor of The Arizona Republic on Sunday, October 14 th, Valley condo prices are more erratic than the rest of the market.   Some areas in Phoenix and Scottsdale posted double-digit increases in condo prices, while single family homes near by saw double-digit declines.   New condos fared the best in many areas and helped drive up overall median prices.   Condo prices in some areas went up as much as 38% while prices dropped in most areas of Mesa, Chandler and Gilbert.

According to a 2007 Home Price Comparison Index, Phoenix is still one of the most affordable housing markets in the U.S with an average home sales price of almost $368,000 and New York magazine list Phoenix among the top 2 nd home markets in the country.   So the 64 million dollar question is, “When are homes going to start selling again”?   Boy I’d love to have that crystal ball.   I do believe the market in some areas of the valley is going to start selling because of the Snowbirds and new residents to the area.   Last I heard we still have 300 people every day of the year moving to the Valley.   We have seen an increase in people contacting us to buy & sell homes in October but that doesn’t mean it’s a change in the market.   RooPho Realty aggressively looks for buyers and sellers to represent so maybe our marketing is just working well and of course we aren’t complaining about that.   I hope this is the beginning of an increase in sales for the market but we’ll have to wait another month or so to see if it’s a trend or just a bump in the road of activity.

The bottom line on the market is if you have a credit score of 670 or more and some money to put down, now is a really good time to buy.   Even though the mortgage industry is having problems (and some of these problems are getting resolved), you can still get a mortgage and a good interest rate if you aren’t doing 100% financing and you can prove your income.   Call Nick Heth at Legacy Home Mortgage (602-468-4155) to see what type of programs you qualify for.   There is still some money in a Phoenix bond program for first time home buyers (that is someone who has not owned a home in 3 years or more) for homes up to $417,000.   And if the first time home buyers doesn’t work for you, Nick can find something that does.

There are some developers who are still actively buying land and making plans to build with the anticipation of the market turning around by the time their project is ready for occupants.   An Israeli company is working on developing the Northwest corner of Central Avenue and McDowell Road.   They are planning three 34 – Story condo towers that will include 900 luxury residences with units ranging in size from 800 sq ft to over 2000 sq ft and prices starting around $500k.

I also have good information that Cosmopolitan Towers is not happening, in fact that property is on the market and I heard it’s in escrow with a new developer.   Then the dirty little rumor mill says Cielo on Central just south of Indian School and O4 at 4 th Ave and Osborn are not going to happen but I have not been able to confirm that.   The AZ Republic reported that 6 projects along Central are still happening and they listed Cielo as one of them.   So for any project that gets cancelled or delayed another one is on the rise.

We have had some people posting comments on 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,

If you haven’t considered 215 McKinley, now’s a good time to think about it.   I just took a tour of the units and they are complete and move in ready.   What a great location with good views from the north and the south.   Plus they have custom kitchen cabinets, upgraded stainless appliances and hardwood floors in many units.   And the bathrooms are very nice with countertop bowl sinks, jetted tubs and walk-in showers with two shower heads in some plans.   Their prices are reasonable starting in the mid 200’s.   They are located between 2 nd Street and 3 rd Street and McKinley which is just a few blocks from, well, everything.

 

There’s another great project that I really like and it’s called McKinley Row.   These promise to be very cool with a great location at 4 th Ave and McKinley.   They are breaking ground in November with occupancy available in the summer of ’08.   They have 1 to 3 bedrooms and special pricing for the first few buyers so if you have any interest now is the time to call us and set up an appointment.   Prices range from $249,900 to $499,900.   These units will have hardwood floors, solid core doors, slab granite counters and walk-in closets just to name a few things.  

 

 

Did you ever think the Mini-Mansions on Central otherwise known as Chateaux on Central were ever going to happen?   If you’ve driven down Central Ave lately you’ll see they are not only happening but they are mostly up and they are working on the interiors.   They are opening a model on November 5 th but don’t go without a RooPho Realtor to represent you.   (Don’t forget in any development sales office the sales person represents the seller and not you.   RooPho Realtors specialize in the urban market and can help protect your interest and your earnest money by asking the right questions and helping you understand the purchase contract.)   These are great urban homes with 5 storyies, private elevators, Viking appliances, several patios and a fourth floor terrace that could fit a small pool and a basement that can be a wine cellar or maids quarters.   Hmm, let me think, do I want a wine cellar or maids quarters?   Units range from 5200 to 8200 sq ft and prices start at $2.8 million.   There will be a total of 21 units in all with 13 available in the first phase.  

Designed by award winning architect Michael Underhill, Roosevelt 11 is a residential project located at Roosevelt and 9th Streets in the historic Garfield District. Conveniently located near ASU's downtown campus, Roosevelt 11 offers 11 town home style residences with prices starting from the high $200's. With floor plans ranging from 1200 to 1500 square feet, Roosevelt 11 provides an affordable home ownership opportunity with all the benefits of downtown living. Each home has a three level floor plan with a private garage located on the first level.

Portland One is located just off 7 th Street on Portland.   They range from 1,600 to over 2,165 square feet and have outside patios, front yards and top floor terraces with views of downtown. Each home has a private entrance and yard for entertaining and all have an attached 2-car garage. The interiors of these homes include 10' ceilings in the living room and kitchen area and possess lots of creative wall space for displaying all your treasured art pieces.

 

Portland Place Phase 1 is complete and they have some units that are move in ready.   These units range in size from 800 to 2850 square feet and are priced from the $300’s to over $1 million.   They also have townhomes available.  Many of these units have wood or travertine floors, upgraded cabinets and slab granite counter tops not to mention exceptional views and the roof top pool is complete with gas BBQ’s.   They are also taking reservations on Phase 2 so contact us and we can set up an appointment to get a tour.

In a final note, I hope you, your friends and family are not one of the many that have found themselves in trouble with a mortgage that has a variable interest rate and now has a mortgage payment much higher than you expected or can afford.   The Arizona Attorney General has warned homeowners to steer clear of scam artists who promise to stop foreclosure proceedings and help you keep your home.   In such situations, homeowners typically wind up signing over their properties in the process because there’s a quitclaim deed buried in the mortgage-rescue paperwork.   You’re now a renter, not an owner.   If you or anyone you know is in this situation, please call a bank or reputable mortgage company.   Nick Heth of Legacy Home Mortgage (602.468.4155) can also help you.

 

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