Tag Archives: August

Calfee06

Cassidy Turley Completes 69,471 SF Lease for 1st United Door Technologies

Cassidy Turley announced it completed a lease for 69,471 square feet for 1st United Door Technologies, LLC at Geneva Industrial, 1016 W. Geneva Drive in Tempe. Senior Vice President Bruce Calfee and Vice President Josh Wyss, of Cassidy Turley’s Industrial Group, represented the Tenant while Executive Vice Presidents Steve Sayre and Pat Harlan represented the Landlord, CLPF Geneva Industrial, LP (Phoenix).
1st United Door Technologies is a Tempe, Arizona based garage door manufacturer. The company specializes in steel and wood doors for both commercial and residential use. Ownership is comprised of the former owners and senior management of Anozira Door Systems. Since 1982, 1st United Door Technologies has been serving Homebuilders across the Nation with unique and distinctive garage doors that enhance the beauty and value of the Builders homes. With over 150 years of door installation and manufacturing experience, the management team is known for providing innovative and quality products at very competitive prices. The new Geneva Industrial location is part of a company expansion.
Built in 1981, Geneva Industrial is a ±69,471 square-foot, industrial manufacturing building. The property is part of the South Tempe Industrial Corridor and is in close to the I-10 and US-60 Freeways. The building is currently 100 percent leased.

housing.prices

Phoenix home prices jump 18.8% in year

Home prices rose in August in nearly all U.S. cities, and many of the markets hit hardest during the crisis are starting to show sustained gains. The increases are the latest evidence of a steady housing recovery.

The Standard & Poor’s/Case Shiller index reported Tuesday that national home prices increased 2 percent in August compared with the same month a year ago. That’s the third straight increase and a faster pace than in July.

The report also said that prices rose in August from July in 19 of the 20 cities tracked by the index. Prices had risen in all 20 cities in the previous three months.

Cities that had suffered some of the worst price declines during the housing crisis are starting to come back. Prices in Las Vegas rose 0.9 percent, the first year-over-year gain since January 2007. Prices in Phoenix are 18.8 percent higher in August than a year ago. Home values in Tampa and Miami have also posted solid increases over the period.

Seattle was the only city to report a monthly decline. Still, prices there fell just 0.1 percent in August from July and are 3.4 percent higher than a year ago.

Prices in Atlanta have fallen 6.1 percent over the 12 months that ended in August, the largest year-over-year decline. But Atlanta has posted the largest price gain among the 20 cities over the past three months, according to Trulia, a housing data analysis firm.

“The sustained good news in home prices over the past five months makes us optimistic for continued recovery in the housing market,” David Blitzer, chairman of the Case-Shiller index, said.

The steady increase in prices, along with the lowest mortgage rates in decades, has helped many home markets slowly rebound nearly six years after the housing bubble burst.

Rising home prices encourage more people to put their homes on the market. They may also entice would-be buyers to purchase homes before prices rise further.

The S&P/Case-Shiller index covers roughly half of U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The August figures are the latest available.

The figures aren’t seasonally adjusted, so some of the gains in August reflect the benefit of the summer buying season.

Stan Humphries, chief economist at the housing website Zillow, expects the monthly price figures will decline in the fall and winter.

“This doesn’t mean the housing recovery has been derailed,” he said. “This is exactly what bouncing along bottom looks like.”

Other recent reports show that the housing market is improving, albeit from depressed levels.

Home builders started construction on new homes and apartments at the fastest pace in more than four years last month. They also requested the most building permits in four years, a sign that many are confident that home sales gains will continue. Home building is still far below the pace that economists say is consistent with a healthy housing market.

New home sales jumped last month to the highest annual pace in the past two and a half years.

Sales of previously-occupied homes dipped in September but have risen steadily in the past year.

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Unemployment falls in nearly 90% of U.S. cities

Unemployment rates fell in August in nearly 90 percent of large U.S. metro areas, mainly because more people gave up looking for work.

The Labor Department said Wednesday that unemployment rates dropped in 329 large cities, the most in four months. Rates rose in 24 cities and were unchanged in 19.

In the Metro Phoenix area, the unemployment rate was 7.4 percent in August 2012, down from 8.8 percent in August 2011.

The decline in rates across America’s cities was largely for a bad reason: The government only counts people as unemployed if they are actively looking for work.

The trend closely matched the national figures. The U.S. unemployment rate fell in August to 8.1 percent from 8.3 percent, also because more people stopped searching for jobs and weren’t counted.

The metro data are more volatile than the national figures because they aren’t adjusted for seasonal factors, such as summer hiring.

The four cities with the biggest drops in unemployment were all in Mississippi, where the work force shrunk by 1.8 percent to 1.3 million. In Hattiesburg, the unemployment rate dropped to 7.3 percent from 9 percent. In Jackson, it fell to 6.7 percent from 8.2 percent. Pascagoula and Gulfport-Biloxi reported the next biggest declines. Yet the state barely added jobs in August.

The two cities with the biggest increases were in Washington state: Yakima’s rate jumped to 10 percent from 8.2 percent, and Wenatchee’s rose to 7.2 percent from 5.7 percent. Both are centers of apple production and their rates can be volatile during the harvest season.

In Denver, where President Barack Obama and GOP challenger Mitt Romney were set to debate Wednesday night, the unemployment rate fell half a percentage point to 7.7 percent. Unemployment also dropped in Las Vegas, where Obama has been preparing for the debate, although it was still painfully high at 12.3 percent. Nevada has the nation’s highest unemployment rate of 12.1 percent.

There were some signs of progress in the report. The unemployment rate is below 7 percent in 123 metro areas, up from 73 a year ago. And the rate tops 10 percent in only 54 areas, about half the number compared with a year ago.

The lowest unemployment rate was in Bismarck, N.D., where it was 2.6 percent. North Dakota has benefited from a boom in oil and gas drilling.

The highest rate was in El Centro, Calif. and Yuma, which both reported rates of 29.9 percent. Both cities have large numbers of migrant farm workers.

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Phoenix-area Home Prices, Supply Slowly Inching Up

Both Phoenix-area home prices and the number of homes available for sale are slowly inching up. A new report from the W. P. Carey School of Business at Arizona State University reveals the numbers for Maricopa and Pinal Counties, as of August:

> The median single-family home price went up from $149,000 in July to $150,000 in August — about 1 percent.
> The median price is up by more than one-third (about 34 percent) from last August.
Supply of available homes for sale finally went slightly up in most areas of the Valley, but overall, low supply continues to limit market activity.

“Overall prices reached a low point in September 2011 and have risen sharply since then,” says the report’s author, Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. “We’re experiencing a normal summer slowdown, and I expect prices to continue their advance as we move into cooler months.”

The median single-family home price in the Phoenix area went up about 0.7 percent, from $149,000 in July to $150,000 in August. The current median is 33.7 percent higher than last August, when it was $112,205. Realtors will also note the average price per square foot is up 24.6 percent from last August.

Sales activity has been relatively slow, due to the traditional summer lull in the market and the limited number of homes for sale in the area. Still, there was a small bump up in available supply.

“Supply increased 3 percent from July to August, but the inventory of homes for sale remains well below the average for the last 10 years,” says Orr. “The number of active single-family homes without an existing contract was just over 10,000 for the greater Phoenix area as of Sept. 1, and 77 percent of those homes were priced above $150,000. That inventory should last only about 27 days. At least it’s up from the low of just 15 days of inventory in May.”

Average buyers have to compete for relatively few homes priced under $250,000. They face multiple bids, including those from investors who can offer all cash and no appraisal required. The situation is moderately improving, though. Orr says, as prices go up, more people are becoming willing to sell their homes. He believes supply recently moved higher in about 80 percent of the Valley, especially the outlying areas.

“August home sales were up 3.6 percent from July,” says Orr. “However, activity was still down 9.2 percent from August of last year. The reduction is primarily due to a huge decline in distressed sales: short sales and sales of homes that recently went through a foreclosure. Also, the number of bank-owned homes sold in August was down a huge 78 percent from last August.”

Foreclosure starts – homeowners receiving notice their lenders may foreclose in 90 days – went down 2.5 percent from July to August. Foreclosure starts are down almost 38 percent from last August. Still, Orr says this number is about 2.3 times normal for a typical month in the Valley. The number of completed foreclosures in August was down 22 percent from last August.

Investors continue to play a key role in the Phoenix area housing market. Almost 36 percent of the homes sold in Maricopa County in August went to investors. That’s up from 28 percent last August. More than half of the homes sold this August for $150,000 or less went to all-cash buyers.

“Some large investment companies have been buying homes in bulk from other investment companies,” explains Orr. “They are clearly frustrated by the difficulty of acquiring large numbers of homes through normal channels. Most of the properties are being used as rentals for tenants who have lost their former homes to foreclosure or through a short sale. In greater Phoenix, we have never seen so many single-family homes used as rental accommodation, and it will be interesting to see how elastic the demand is over the coming year.”

Many average buyers are turning to new-home sales, given the difficulty of getting a bargain resale. New-home sales went up 55 percent from August to August, and some developers are starting to cap sales to conserve lots. The number of active subdivisions is down 18 percent since the beginning of the year, and about 63 percent of those currently active are expected to sell out within 12 months.

Orr’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at http://wpcarey.asu.edu/finance/real-estate/upload/FullReport201209.pdf. More analysis is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.

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Housing Indicators Show Sustained Progress in Home Prices

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury released the August edition of the Obama Administration’s Housing Scorecard – a comprehensive report on the nation’s housing market. Data continues to show signs that the housing market is strengthening – as home price improvements in the first half of this year have helped lift 1.3 million families above water – although officials caution that the overall recovery remains fragile. The full Housing Scorecard is available online at www.hud.gov/scorecard.

“The Obama Administration’s efforts to speed housing recovery are showing clear signs of traction as the scorecard indicators highlight market momentum not seen since before the housing crisis,” said HUD Acting Assistant Secretary Erika Poethig. “With median sales prices the highest they’ve been since the earliest months of the Administration, underwater borrowers down by 11 percent since the end of last year and more than half a million refinances through our enhanced Home Affordable Refinance Program so far this year, it is clear that we’re making progress.  But with so many households still struggling to make ends meet, we have important work ahead. That is why we are asking the Congress to approve the President’s refinancing proposal so that more homeowners can receive assistance.”

Also featured this month in the Administration’s Making Home Affordable Program Report are detailed assessments for the largest mortgage servicers participating in the program with results from the second quarter of 2012. The Servicer Assessments – first introduced in June 2011 and published quarterly – have set a new standard for disclosure around servicer efforts to assist struggling homeowners.

“The Making Home Affordable Program has established critical standards that have changed the way the mortgage industry does business, leading to relief for millions of struggling homeowners,” said Treasury Assistant Secretary for Financial Stability Tim Massad. “By shining a spotlight on individual servicer performance in key areas, and requiring improvements through our compliance process, the nation’s largest mortgage servicers are fixing their processes while being held publicly accountable.”
The August Housing Scorecard features key data on the health of the housing market and the impact of the Administration’s foreclosure prevention programs, including:

The Administration’s foreclosure programs are providing relief for millions of homeowners as we continue to recover from an unprecedented housing crisis.  More than 1.2 million homeowner assistance actions have taken place through the Making Home Affordable Program, while the Federal Housing Administration (FHA) has offered more than 1.4 million loss mitigation and early delinquency interventions. The Administration’s programs continue to encourage improved standards and processes in the industry, with HOPE Now lenders offering families and individuals more than three million proprietary mortgage modifications through July.

Homeowners entering HAMP continue to benefit from deep and sustainable assistance. As of July, more than one million homeowners have received a permanent HAMP modification, saving approximately $538 on their mortgage payments each month, and an estimated $14.4 billion to date. In July, 77 percent of homeowners with eligible non-GSE mortgages benefitted from principal reduction with their HAMP modification. Eighty-seven percent of homeowners entering the program in the last two years have received a permanent modification. View the Making Home Affordable Program Report with data through July 2012.

Since inception of the Making Home Affordable Program, Treasury has required participating servicers to take specific actions to improve their processes through ongoing program reviews. The latest Servicer Assessments summarize performance on metrics in three categories of program implementation: identifying and contacting homeowners; homeowner evaluation and assistance; and program reporting, management and governance. Results for the second quarter of 2012 show that servicers are focusing attention on areas identified in previous program reviews and, as a result, are demonstrating significant improvement in program implementation:

Mortgage servicers show continued improvement in calculating homeowner income, which is used to determine a homeowner’s eligibility and modified payment amount under the program.  In the second quarter, the average income calculation error rate for the top servicers fell below two percent and two servicers had zero percent error rates.
Servicers are more effectively evaluating homeowners under program eligibility criteria as seen in the “second look disagree” category, which reflects the rate at which Treasury’s program reviews disagree with the servicers’ decision to find a homeowner ineligible for assistance.  In the second quarter, the average second look disagree percentage for the top servicers remained below one percent with two servicers having a zero percent disagree rate for the quarter.

For the second quarter of 2012, two servicers were found to need only minor improvement on the areas reviewed for program performance, while seven servicers were found to need moderate improvement.  Although servicer performance in a particular compliance category can fluctuate from quarter to quarter, in general, servicers continue to show overall improvement.  All servicers, however, will need to continue to demonstrate progress in areas identified in follow-up program reviews.

Arizona's Unemployment Rate Drops in October 2010

Arizona’s Unemployment Rate Drops in October 2010

The state’s unemployment rate dropped two-tenths of a percent to 9.5 percent in October, as the economy added 27,400 jobs. This is the largest October job gain since 2004. The Arizona Commerce Authority (ACA) reports today that the private sector generated 93 percent of those jobs, or 25,600.  Year-over-year, total non-farm employment was up 1.1 percent last month.


Oct. 2010 Sept. 2010 Oct. 2009
United States 9.6% 9.6% 10.1%
Arizona 9.5% 9.7% 9.3%

This is the third consecutive month of over-the-year gains in total nonfarm employment, and the rate of gains has been increasing each month. According to the ACA, Arizona now ranks 18th in the nation in over-the-year employment growth. The state was ranked 32nd in September. Significantly,  Arizona’s construction industry continued to show signs of improvement, and in October posted its first over-the-year increase since December 2006.

“Overall, Arizona’s employment situation is beginning to show indications of welcome improvements,” according to the ACA employment report.


Oct. 2010 Sept. 2010 Oct. 2009
Overall 2,432.4 2,405.0 2,408.0
Monthly  Change 1.1% 0.7% 0.7%
Annual  Change 1.0% 0.5% -7.2%

Over the month, 10 out of the state’s 11 major sectors saw job gains. The sector that had the most gains for the month was trade, transportation and utilities, with 7,100.

Gains were reported in: professional and business services (1,700); financial activities (600); educational and health services (6,400); natural resources and mining (100); construction (5,100); leisure and hospitality (3,300); government (1,800); other services (1,400); and manufacturing (200).

The only sector to lose jobs was information (-300).

The unemployment rates dropped in almost all of the state’s largest metro areas.


Oct. 2010 Sept. 2010 Oct.2009
Phoenix Metro 8.5% 8.7% 8.8%
Tucson Metro 8.3% 8.6% 8.6%
Yuma Metro 25.8% 23.9% 21.9%
Flagstaff Metro 7.9% 8.1% 8.4%
Prescott Metro 9.7% 10% 9.9%
LHC-Kingman Metro 10.9% 10.8% 10.8%
Cubicle

Jobs Grow Modestly; State’s Unemployment Rate Is Unchanged

The state added 16,000 jobs in September, mostly due to the start of the new school year. Despite the modest gains, the Arizona Department of Commerce reported today that the state’s unemployment rate remains at 9.7 percent


Sept. 2010 Aug. 2010 Sept. 2009
United States 9.6% 9.6% 9.8%
Arizona 9.7% 9.7% 9.4%

Year-over-year, total non-farm employment was up 0.5 percent last month. August’s year-over-year numbers were revised from a loss of 0.1 percent in total non-farm employment to a gain of 0.3 percent. The August gains broke a 30-month streak of over-the-year job losses for the state.

For the month, the state’s employment gain of 0.7 percent were below the 10-year average, but was better than the previous two years, when the economy generated job growth of 0.2 percent in September 2008 and 0.5 percent in September 2009. The private sector had an anemic net gain of 700 jobs last month. However, for the past three Septembers, the private sector has lost jobs.


Sept. 2010 Aug. 2010 Sept. 2009
Overall 2,403.8 2,387.8 2,392.1
Monthly % Change 0.7% 1.6% 0.5%
Annual % Change 0.5% 0.3% -8%



Over the month, six sectors gained jobs and five lost jobs. The sector that had the most gains for the month was government, with 15,300. But those jobs came primarily from local and state education, with losses in the federal government offsetting some of the gains.


Professional and business services added 2,900 jobs; financial activities gained 1,700; educational and health services rose by 1,200; natural resources and mining generated 200 jobs; and construction also saw job gains of 200 in September

The professional and business services sector boasts the highest over-the-year job gains with 13,800. Over the year, trade, transportation and utilities was up 10,100 jobs; educational and health services gained 8,800; leisure and hospitality had a 1,500-job gain; and natural resources and mining generated 1,200 positions.

Over-the year losses were recorded with government (-7,300); construction (-6,100); other services (-4,000); financial activities (-2,500); information (-2,000); and manufacturing (-1,800).

The unemployment rates in the state’s largest metro areas mostly held steady or dropped slightly in September.


Sept. 2010 Aug. 2010 Sept.2009
Phoenix Metro 8.7% 8.8% 8.8%
Tucson Metro 8.6% 8.7% 8.6%
Yuma Metro 23.9% 23.7% 21%
Flagstaff Metro 8% 8% 8.2%
Prescott Metro 10.1% 10.2% 9.9%
LHC-Kingman Metro 10.8% 10.9% 10.8%

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Falling Prices, More Foreclosures Plague The Valley’s Housing Market

The housing market in the Phoenix metro area continues to tread through troubled waters.

According to a new report from the W. P. Carey School of Business at Arizona State University, the median price for an existing home in the Valley fell for the third straight month. Making matters worse, foreclosures continue to weigh down activity in the existing-home market.

The median home-resale price for last month was $135,000 — $3,000 less than August 2009. In fact, existing-home prices have been falling steadily since May, when the median price was $144,000. The median price was at $143,000 in June, and $137,500 in July.

“Although current interest rates and home prices are very attractive, homeowners don’t seem to be motivated to buy,” says Jay Butler, an associate professor of real estate at ASU. “This lack of motivation can be attributed to anemic economic and job recovery, low consumer confidence and stricter underwriting guidelines, among other factors.”

Home sales last month were particularly sluggish, with 4,800 homes re-sold. That’s down from almost 5,100 in July. In August 2009, almost 6,000 homes were re-sold. The numbers aren’t expected to improve anytime soon as home sales traditionally slow down after the summer season.

“As the year comes to an end, median prices often decline in response to holiday and school activities that allow little time or desire to buy a home,” Butler says. “Beyond the impact of foreclosure activity, the absence of a strong move-up market, will also limit any growth in home prices.”

The other barometer of the Valley’s existing home market — foreclosures — fared just as badly in August. Foreclosures accounted for 45 percent of the existing-home market last month, the highest percentage since January.

“When you add in re-sales of previously foreclosed-on homes, all of this foreclosure-related activity represents a full two-thirds of the market’s transactions in August,” Butler says.

About 4,000 foreclosures were recorded in Maricopa County in August, up slightly from about 3,900 in July. In August 2009, 3,100 foreclosures were reported.