Current Market Information & News 

MARCH 2008 

Real Estate Outlook: Existing Home Sales Rise, An article from RealtyTimes.com, March 27, 2008, reports that there is positive economic news this week. Sales of existing homes last month rose for the first time in half a year, adding evidence that the housing cycle may be bottoming out after nearly three years of correction. The national gains in resales for single family homes was 2.8% and 3.7% for condominiums. The latest sales increases were also accompanied by a decline in the national median price of homes sold. The median price is down 8.2% from last year. More affordable, realistic prices is going to bring out buyers that have been on the fence and help to burn off that 10-month overhang of unsold houses on the market. Another factor helping to increase sales is low-cost mortgage money.
Click Here For Entire Article 

After months of declines, home sales up
Low interest rates, bargains are helping
By The Arizona Republic
Mar. 25, 2008 

Existing-home sales climbed unexpectedly in February, as home buyers took advantage of low interest rates, falling home prices and foreclosure bargains. 

The uptick in resales ended multiple-month losing streaks both nationally and in metro Phoenix and is prompting speculation that the housing market is close to hitting bottom.  

National figures for February show U.S. resales climbed 2.9 percent from January, according to the National Association of Realtors. Valley existing-home sales climbed 10 percent in February, according to figures released earlier this month from realty studies in the Morrison School at Arizona State University. 

With the spring buying season under way, March resales in the Valley are on track to top February's pace, according to an early count from Phoenix real-estate data firm Information Market.  

"We are still bumping along the bottom, but the Valley's housing market is starting to gain some traction," said Jim Sexton, president of Phoenix-based real-estate firm John Hall & Associates. "Sellers are getting more motivated. Prices are coming down, and there's a lot of activity from first-time home buyers again."  

He said foreclosure bargains are also beginning to attract real buyers instead of just speculators.  

In metro Phoenix, the median price of a used single-family home fell to $220,000 in February from $230,000 the month before. Nationally, the median home price was $195,900 in February, down from $201,100 in January.  

Jay Luber, vice president of the Phoenix office of First Horizon Home Loans, said many potential buyers are still "making the mistake" of trying to gauge when the market will hit bottom.  

"But nobody can predict the bottom, and I have several clients that didn't have homes to sell who are thrilled with the deals they made when they bought," he said. 

Home sales and prices, locally and nationally, are both down substantially from the pace set in February 2007.  

During a boom or downturn, month-to-month figures are a better indicator of where the market is headed.  

Lawrence Yun, chief economist at the Realtors Association, called February's gain over January encouraging.  

"We're not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing," he said. 

New-home sales in metro Phoenix were down less than 2 percent in February. National figures will be released later this week.  

A drop in the number of homes for sale will be another sign that the housing market is poised to stop slowing. Home listings in the Valley climbed by a few hundred in February, to top 53,000. But that figure is down from last fall, when there were more than 54,000 homes for sale across metro Phoenix. Nationally, listings fell by 3 percent in February. 

Across the country, tougher credit standards are knocking some potential buyers out of the market, and lenders are expected to get even tougher as mortgage losses mount. 

Foreclosures continue to be the wild card for the housing market. As long as the number of people losing their homes continues to climb, inventories of homes for sale will rise and home prices will likely keeping falling.  

Tom Ruff, real-estate data analyst with the Information Market, said foreclosures aren't likely to peak in the Valley until late summer. 

"But I am optimistic," he said. "I feel like we are finally approaching the housing market's bottom." 

Southeast Valley Scores Well on Quality-of-Life Report Card
By The Arizona Republic
Mar. 25, 2008 

When it comes to protecting the environment, Southeast Valley communities are like kids in Lake Wobegon - everyone is above average. 

That's the assessment of Valley Forward, a 39-year-old business-government alliance that tackles quality-of-life issues in the metro area. 

The group issued its fifth "environmental report card" this week, generally praising the work of cities in four areas - water, air, land use and transportation. 

"Despite staggering growth, Valley communities are doing an above-average job of balancing environmental quality with economic development," according to the report. 

Valley Forward used information provided by city and county governments to compile the report. Despite the overall rosy assessment, it acknowledged an apparent contradiction in at least one key area, air quality. 

Maricopa County is under increasing federal pressure to reduce the amount of dust in its air and could lose up to $7.8 billion in transportation money if it doesn't comply. 

"Ironically, communities fared best in the air category," the report said. The good grades came because cities and towns are doing what they individually can, apart from state and regional efforts. 

Overall among cities, Phoenix fared best in the survey, earning straight A's. 

Among Southeast Valley communities, Tempe and Gilbert were strongest. 

Tempe's "transportation and land use planning processes are well coordinated and the community provides about $36 million in funding to its transportation programs annually through a dedicated sales tax," the report said. 

Tempe has seen a 17 percent boost in mass transit ridership since Valley Forward's last report card, issued in 2004. 

Gilbert earned an A for its water policies. "The city demonstrates a commitment to long-range planning to ensure a sustainable resource," the authors said. 

Mesa's grade-A water program "extends beyond population buildout," the report said, with "an active and diverse water conservation program" and planned improvements to its facilities. 

Chandler won the highest grade of all, A-plus, for "dedication to water resource planning that is a role model for other Valley water providers." 

The biggest improvement between Valley Forward's 2004 report and this one may come as a surprise to struggling northeast Pinal County commuters. 

In 2004, Valley Forward gave Pinal County a D-plus in land use and transportation. 

This year, Pinal won a B-plus for land use and B for transportation. 

What's different now, the report said, is that the county has adopted a Growth Planning Initiative, "a strong visioning exercise to guide a comprehensive plan update and to build a consensus around a vision for the future." 

This is crucial, the report said, because Pinal County is expected to become the middle link in a "Sun Corridor" megalopolis stretching from Tucson to Phoenix in coming decades. 

As for transit, the report said, "Pinal County has awakened and taken on a leadership role in regional transportation planning efforts. The county seems to have a good understanding of the impacts of the growth coming its way." Click Here For Entire Report 

For Real Estate Professionals, the Opportunity Has Never Been Brighter An article from RISMedia.com, reports that this is a time where true real estate professionals can shine and develop a real value proposition rather than continuing to sell services that mean nothing to the consumer. Now is the time that clients need the services of good judgment and intelligent pricing strategies. It is also a good time to educate yourself on mortgage types so you can market a property to various types of buyers with different financial situations. A few areas where your clients may need your help include buyer evaluation services, short sales services, pre-foreclosure advisory sessions and credit planning sessions. The opportunity has never been better to carve out your unique niche your area.
Click Here For Entire Article 

New foreclosure rescue plan offers 'Help Now' An article from CNNMoney.com, reports that a new plan, called "Help Now", was offered by the National Community Reinvestment Coalition (NCRC), a nonprofit community advocacy group. The plan calls for the government to buy up at-risk loans, restructure the terms to make them affordable and sell the reworked loans back into the secondary market. Economist Mark Zandi of Moody's Economy.com said, "I think the plan is commendable. It doesn't let the home owner off the hook. They still have to pay at least part of the debt." According to NCRC CEO John Taylor, the Help Now approach will be more effective than Hope Now because it will make it easier for lenders to rework the terms of troubled mortgages.
Click Here For Entire Article 

Request our Free Gilbert, Chandler, Mesa, Queen Creek, Gold Canyon, Scottsdale and Surrounding Cities Relocation Package. It's packed full of useful and important information about the Southeast Valley and our other surrounding cities. Don't move here without it! Remember, we'll send it to you for free and without obligation. Just fill out the form and we will send it right out... 

It's our job to know EVERYTHING about Gilbert, Queen Creek, Chandler, Mesa and our other surrounding cities! Ask us any question. Or request a FREE information package. There's no obligation, and we promise to get back to you quickly...