Tag Archives: Maricopa

89444261

Desert Schools Promotes Meshey to President

Desert Schools Federal Credit Union has announced the appointment of the organization’s new president, Jeff Meshey. Desert Schools’ current CEO and President, Susan Frank, will retain the title of CEO and remain in the foremost executive leadership position. A former senior executive vice president and veteran of Desert Schools, Meshey assumes the role following 20 years with the company, all of which have been under Frank’s tenure.

Meshey has long been a key contributor to Desert Schools’ immense success in the Arizona market, leading the charge to expand the organization’s presence across three counties. Prior to the economic downturn in 2008, he was instrumental in leading the growth of the credit union’s branch network, helping to move the organization’s area of service solely from school employees to a full community charter, now serving any member of the community who lives or works within the three counties that the branches occupy.

“I’m incredibly grateful for the opportunity to move further into a leadership role within Desert Schools and am humbled by the organization’s faith in me,” said Meshey. “I believe in being both a leader and a servant for our members and employees, and I look forward to continuing to make a difference in my new position.”

With $3.8 billion in assets, more than 300,000 members and 50 branch locations across Maricopa, Pinal and Gila Counties, Desert Schools Federal Credit Union assumes the title of largest credit union in Arizona.

red-header-2014

RED AWARDS 2014: Best Education Project

On Feb. 26, AZRE hosted the 9th Annual RED Awards reception at the Arizona Biltmore in Phoenix to recognize the most notable commercial real estate projects of 2013 and the construction teams involved. AZRE held an open call for nominations and more than 100 projects were submitted by architects, contractors, developers and brokerage firms in Arizona. Click here to view all 2014 RED Awards Winners.‎


Central Arizona College 
Maricopa Campus
Developer: Pinal County Community College District
Contractor: CORE Construction
Architect: SmithGroupJJR
Size: 76,800 SF
Location: 17945 N. Regent Dr., Maricopa
Completed: July 2013

Central Arizona College created a new campus in the City of Maricopa that brings sustainability and education to the forefront. The three initial campus buildings are sustainable “academic sheds” designed to keep the students cool from the hot desert sun throughout the year. The building materials are utilitarian, natural, low-maintenance and recycled. Nothing is wasted for aesthetics. There is one central water plant that feeds the three new buildings on campus. It’s designed in a manner that considers the campus’ future growth and saves water consumption by 28 percent. The master-planned campus will be 10 times its current size by completion. The innovative and transformative research facility will serve as a vital tool for recruiting top scientists and engineers, and bring the seeds of change to a “bedroom community boomtown gone bust,” as the New York Times once published.
CAC

Banner Good Samaritan

E.V. residents can preview Banner Health Center

East Valley residents and visitors can be among the first to see the new Banner Health Center at a free “Community Preview” from 8 to 11 a.m. on Saturday, Aug. 3, at the center located at 1435 S. Alma Road, south of the Loop 202 between West Pecos and West Germann Roads.

Participants can hear the opening remarks and join in the dedication at 8:30 a.m., followed by a celebration including healthy snacks, giveaways, children’s activities and information about Banner Health facilities and services. Community members are invited to meet the center’s primary care physicians and staff, tour the new center, and even make an appointment to see a physician.

Banner Health Center in Chandler will open for patient care on Wednesday, Aug. 7 starting at 7 a.m. Staff physicians will include two pediatricians, three family medicine physicians and one internal medicine physician with plans to increase in the future. Along with 18 exam rooms, basic imaging and laboratory services are also available on site for added patient convenience.

Banner Health Centers accept most insurance plans. The center will be open from 7 a.m. to 7 p.m. Monday through Thursday, 7 a.m. to 5 p.m. Friday, and 8 a.m. to 1 p.m. Saturday with same day and next day appointments available. Concierge staff answers the phones one hour before and one hour after center hours. To schedule an appointment or for more information, call (480) 668-1600.

The center will offer a wide range of services including:
·         Well-child checkups and immunizations
·         Adult physcials
·         Care for chronic conditions such as diabetes, high blood pressure and asthma
·         Treatment for ear aches, sore throats and infections
·         Sports injury and fracture care
·         Minor skin irritation treatment
·         Cuts and suture removal

The Banner Health Center in Chandler is the third of four in the East Valley to open after a shared groundbreaking on Oct. 25, 2012. Banner Health Center in Queen Creek opened May 1; a center in Gilbert opened May 22 and another will open in East Mesa in early September. An additional Banner Health Center opened in Goodyear within the planned community of Estrella on July 10, joining the existing Banner Health Centers in Peoria/Sun City West, Surprise, Buckeye in the Verrado Community, Maricopa, and South Loveland, CO.

86531405

3 alternatives for Phoenix-to-Tucson rail line

Arizona transportation officials studying the feasibility of a passenger rail line between Phoenix and Tucson have narrowed the list of alternatives to three.

State Department of Transportation officials said Tuesday that all three alternatives would run along Interstate 10 south of Eloy.

One alternative would share the right of way with Union Pacific Railroad north of Eloy.

ADOT has been working with federal officials, local governments and planning organizations in Maricopa, Pinal and Pima counties to determine which routes to further study.

Nearly 7,000 Arizonans completed surveys with ideas of which routes would best serve the communities along the proposed rail line.

ADOT hopes to have one preferred alternative for further study by the end of this year.

However, there currently isn’t a construction schedule or funding for the project.

Banner Good Samaritan Hospital

Banner Health Center preview on June 29

West Valley residents can tour the new Banner Health Center in Goodyear from 8 to 11 a.m. on Saturday, June 29.The Center is designed to support high quality, convenient health care for the entire family.

Attendees will hear remarks by Banner Medical Group CEO Jim Brannon and Goodyear Mayor Georgia Lord at 8:30 a.m., followed by a celebration including food, tours, giveaways, children’s activities and information about Banner Health facilities and services. Community members are invited to meet physicians and staff and even make an appointment.

“We want to become part of the fabric of the community by becoming the medical home residents look to for help in keeping their families healthy,” said Jim Brannon, chief executive officer of Banner Medical Group. “This Banner Health Center is designed to provide primary care to the entire family in one space. We want it to be the place you would choose for prevention, wellness, basic and complex medical care and the advice you need to thrive with chronic health conditions.”

At opening on July 10, staff physicians will include family practitioners and pediatricians. Banner Health Centers accept most insurance plans. The Center will be open extended hours from 7 a.m. to 7 p.m. Monday through Thursday, 7 a.m. to 5 p.m. Friday and 8 a.m. to 1 p.m. Saturday. Same-day appointments will also be available. Laboratory and X-ray services are also on-site.

Banner Health Center in Estrella will also be the gateway to the incredibly comprehensive services offered throughout Banner Health system, including Banner Estrella Medical Center and specialty facilities such as Banner MD Anderson Cancer Center, Cardon Children’s Medical Center and Banner Concussion Center.

This location at 9780 South Estrella Parkway joins the existing Banner Health Centers offering health care where you want it and how you want it in Gilbert, Queen Creek, Surprise, Verrado and Maricopa, Ariz. as well as South Loveland, Colo. For more information on the Banner Health Center in Estrella, visit www.BannerHealth.com/HealthCenterEstrella.

housing.prices

No Housing Bubble for the Phoenix Area?

Despite dramatic home-price boosts, don’t expect another housing bubble anytime soon in the Phoenix area. A new report from the W. P. Carey School of Business at Arizona State University breaks down what’s happening in the Maricopa and Pinal County housing market, as of April:

* The median single-family home price climbed again to $181,399, up almost 30 percent from April of last year.
* The report’s author sees no housing bubble on the way, with a very tight supply of available homes for sale.
* He also sees no significant negative effect yet from rising interest rates on local housing demand.

Phoenix-area home prices have been soaring since they reached a low point in September 2011. The median single-family home price rose 29.6 percent — from $140,000 to $181,399 — between April 2012 and April 2013. Realtors will note the average price per square foot went up 23.5 percent. The median townhouse/condo price went up 34.6 percent.

“In previous reports, we predicted prices would rise significantly during the strong annual buying season that lasts until June,” 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. “From February through April, the average price per square foot did rise more than 9 percent for single-family homes, but the upward pricing pressure may finally ease somewhat this month.”

One big reason for the price gains has been the chronic shortage of available homes for sale in the Phoenix area. The number of active single-family-home listings (not including those already under contract) fell 7.3 percent just from April 1 to May 1. Only 24 days of lower-end supply (priced under $150,000) is out there. However, the frequent drops in supply have at least slowed down enough to let the market accumulate 20 percent more listings than it had at the same time last year.

Investor interest in Phoenix has also waned as prices went up and better bargains were still available in other areas of the country. Orr says the institutional-investor buying spree here began in 2011, peaked in summer 2012, and is now in a downward trend. The percentage of homes purchased by both small and institutional investors in Maricopa and Pinal counties in April was 26.8 percent, down all the way from 39.7 percent in July 2012, and most of these purchases were actually made by small-scale investors.

Many of the investor-purchased homes have already been turned into rentals for people who lost their houses during the recession. Some commentators have been saying there might be another housing bubble when investors decide to sell these homes, but Orr strongly disagrees.

“Some commentators talk ominously of a bubble bursting when these homes come back onto the market,” he says. “Such talk gets a lot of attention because we are over-sensitized to bubble talk after the disruptive events of 2004 to 2006. However, this idea falls flat when we examine the actual number of homes involved. The entire institutional inventory of 10,000 to 11,000 rental homes here represents a tiny fraction, less than 1 percent, of our housing stock. If every single one were to be placed for sale next month, we would still have less supply than in a normal balanced market.”

Demand from investors is already being replaced by demand from owner-occupiers and second-home buyers. Most homes priced below $600,000 continue to attract multiple offers within a short time. The luxury market is also gaining some steam. Single-family-home sales activity overall went up 4 percent from April 2012 to this April, beginning to reverse a long downward trend in year-over-year activity.

“There has been much talk of the negative effect that rising interest rates might have on demand,” says Orr. “So far, the increases have been minor, and the main effect has been to reduce the motivation to refinance existing home loans. At the same time, higher interest rates often create a greater sense of urgency among home buyers, so if lenders simultaneously relax their underwriting rules, this could stimulate demand, rather than reduce it.”

The market also continues to recover from the foreclosure crisis. The number of completed foreclosures on homes and condos in April of this year was down 46 percent from April last year. Foreclosure starts – homeowners receiving notice their lenders may foreclose in 90 days – dropped 60 percent. Orr expects the rates to fall below long-term averages soon.

With fewer foreclosures coming on the market, some buyers have turned to new-home builders. However, Orr says the construction industry is still building far fewer homes than needed to keep up with rising population and demand in the area. This is partly because the prices of land, materials and construction labor are all rising as subcontractors struggle to attract more workers. He says the developers are also being very cautious in their expansion. They enjoy the fact that limited supply allows them to continue increasing prices faster than their costs and don’t want to disturb this trend by overbuilding.

“Given the balance between supply and population growth in Phoenix, home prices are unlikely to fall below today’s level and are more likely to continue to climb for a long time, though at a more gentle pace.”

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/Full-Report-201305.pdf. A podcast with more analysis from Orr is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.

aetna - save money on insurance at Costco

SCAN Health Plan Arizona Gets New VP

SCAN Health Plan Arizona has appointed Wendy Karsten vice president and general manager, effective immediately. For the past year Karsten has been serving as vice president of healthcare operations for SCAN in Arizona.

“Over the past year Wendy has made a significant contribution to SCAN and our members in a variety of areas, including overseeing our home-visit program,” said Chris Wing, president and CEO of SCAN Health Plan. “We know that in this newly created role she will continue to find new ways to help our SCAN members maintain their health and independence.”

As vice president and general manager for SCAN Health Plan Arizona, Karsten is now responsible for the health plan’s overall performance in Maricopa and Pima counties, providing strategic, operational and financial direction. To that task she brings more than 25 years of experience in healthcare leadership. Immediately prior to joining SCAN, Karsten served as CEO for Huntington Medical Foundation in Pasadena, California, where under her leadership the large multi-site medical group implemented an electronic health record system, opened an urgent care center, formed a local partnership to provide care to uninsured children in the community, and acquired 14 area medical practices.

Karsten holds a Master of Arts degree in education from California State University Los Angeles and a Bachelor of Science in finance and accounting from Eastern Oregon University in La Grande, OR.

SCAN Health Plan, one of the largest not-for-profit Medicare Advantage plans in the United States, currently has nearly 145,000 members in California and Arizona. Further information may be obtained at scanhealthplan.com or on Facebook at facebook.com/scanhealthplanarizona.

volunteer

Paying it forward: Why it Matters

If one person can make a difference, think what an entire company can do.

Giving back has been at the core of many great businesses, but there is a growing trend in the way businesses are paying it forward — employee-volunteer programs.

Many businesses understand that it’s more than just numbers, it’s about values. Generosity and corporate responsibility are some of those values. Generosity demonstrates a genuine corporate value that benefits the company and employees. Many businesses have started to make it a fundamental part of their mission.

In many different ways, businesses are looking for ways to reach their consumers, connect with them on a personal level and give back to the communities in which they live and serve. Through employee volunteer programs like HERO at Harrah’s Ak-Chin, employees volunteer thousands of hours each year to help individuals and communities in need.

Some recent HERO success stories include:

* Employees raised $7,000 for the Dove’s event to help with a late life domestic abuse program and shelter (first of its kind).
* Over 40 participants in Pat’s Run to help provide resources and educational scholarship support to veterans, active service members and their spouses.
* Participation in Maricopa Relay for Life dinner and walk raised more than $18,000 for cancer research.
* Employees collected 831 pounds of food and distributed to needy families at the FOR Maricopa food bank event.
* Partnered with the Ak-Chin Indian Community, with over 160 volunteers, for a community trash pickup in celebration of Earth Day.

But communities and organizations aren’t the only ones benefiting — businesses and their employees are also seeing the benefits, too.

What goes around comes around
Beyond helping the community, volunteer programs help employees. Volunteering boosts motivation and allows employees to work with each other outside of an office setting. When employees have the chance to give back in a meaningful way for something they care about, they will feel more positively connected to the business where they work.

As for businesses, a donation simply is not enough. It’s about the return. Making a lasting impact is just as – and perhaps more – important as defining your mission. You can’t solve disease or climate change with good intentions. As your name comes around as a business that is generous with their time and money, you’ll gain new customers, clients and overall respect from the communities you serve.

Other benefits:
* Improve relations with the surrounding community
* Enhance public image through a different platform
* Strengthen employee leadership and interpersonal skills
* Improve employee retention

Charity may begin at home, but it certainly does not end there. From the small grass-roots enterprises to large organizations, building partnerships with nonprofit organizations and supporting employee volunteer opportunities is a great way to give back to those who have helped support your business and will likely bring beneficial returns back to the business.

Mike Kintner is marketing director at Harrah’s Ak-Chin Casino Resort.

 

 

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Ak-Chin Indian Community Invests $10M in Maricopa

During the May 7 Maricopa City Council meeting, Mayor Christian Price announced that the Ak-Chin Indian Community would be making an investment of $10 million in Maricopa. Of the $10 million investment, $2.6 million will support the Maricopa Unified School District and $7.4 million will be allocated to the operation of the City of Maricopa’s Copper Sky Recreational Complex, a multigenerational/aquatic center and regional park, currently under construction.

The Community’s investment in the District will assist with the short fall within the budget and the failure of the previous tax initiative.   Ak-Chin Tribal Chairman Louis J. Manuel, Jr. has long valued the importance of education and has made it a priority for the Tribal Council to find ways to improve upon it, not only for the Tribal community, but for the City of Maricopa as well.

“As true leaders to those our youth look to for guidance, we need to invest in them to promote and partake in a future yet to be determined but with the belief of opportunities,” said Chairman Manuel.  “The Ak-Chin Indian Community believes a partnership like this goes beyond the boundaries and creates a relationship to forge a strong future for everyone.”

The Copper Sky Recreational Complex, slated to open in spring 2014, includes a multigenerational/aquatic center and a regional park.  The 52,000-square-foot center will have many amenities, such as a gymnasium with two full-size basketball courts, a fitness area, an indoor running track, a competitive pool, a recreational pool, and a splash pad.  The regional park is approximately 120 acres and will be comprised of a five-acre lake, tennis, basketball and volleyball courts, a skate park, multi-use fields, a baseball/softball field, a dog park, and bike and multi-use trails.

“I am ecstatic to see the countless benefits that come from building positive and valuable relationships with our wonderful neighbors, the Ak-Chin Indian Community,” said Maricopa Mayor Christian Price.  “As we embark on this new era of collaboration, I look forward to seeing our partnerships continue to develop and our communities continue to thrive. I am encouraged that, together, we will continue to construct a highly-prized and decidedly-successful region.  The City of Maricopa is extremely grateful for the outstanding generosity of the Ak-Chin Community and we look forward to building a prosperous future together.”

The Community’s $10 million investment will be made in one payment to the City, who will serve as the grantor of the $2.6 million to the District.

“We have a life-long relationship with the City of Maricopa; we have shared in each other’s growth and helped when called upon.  We hope to continue our partnership into the future,” said Chairman Manuel.

home.prices

Phoenix-area Housing Prices Keep Soaring

Home prices continue their upward climb in the Phoenix area, with more momentum expected until at least June. A new report from the W. P. Carey School of Business at Arizona State University reveals the latest information about the Maricopa and Pinal County housing market, as of March:

The median single-family home price was all the way up to $175,000, about a 30-percent increase from March of last year.
The supply of homes for sale continued to fall, but the problem is not so much the high demand, but more the lack of sellers getting into the market.
Rebounding population growth in the Phoenix area is also blasting past the rate at which builders are constructing new homes.

Phoenix-area home prices reached a low in September 2011 and have largely shot up since then. The median single-family home price went up 29.7 percent – from $134,900 to $175,000 – in the year from March 2012 to March 2013. Realtors will note the average price per square foot went up 23.6 percent during the same time. The median townhouse/condo price increased 43.2 percent – from $81,000 to $116,000. A big reason for all this upward movement is the scarcity of affordable homes for sale.

“The number of active single-family listings has been dropping fast and went down another 4 percent from March 1 to April 1,” 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. “Fewer than 12,000 single-family homes were up for sale (without an existing contract) on April 1, and 80 percent of those were priced above $150,000, making it very tough to find properties in the lower price range.”

Orr adds it’s actually not high demand that’s the major culprit here.

“The low number of sellers is what’s unusual, not the number of buyers, which is only slightly above normal,” he says. “Higher prices would normally encourage more ordinary home sellers into the market, but many are either locked into their homes because of negative equity, or they’re simply waiting for prices to go up more.”

Orr says most homes priced below $600,000 continue to attract multiple offers, and March is the peak of the buying season that lasts from January to June. However, due to the chronic supply shortage, the amount of single-family home sales actually went down 8 percent from March 2012 to March 2013.

Investors are also starting to lose some interest in the Phoenix area, since bigger bargains can be found in other areas of the country that haven’t rebounded as fast. The percentage of residential properties bought by investors dropped from 29.2 percent in February to 27.1 percent in March, the lowest percentage in several years. The market is now seeing increased demand from owner-occupiers and second-home buyers, instead.

Completed foreclosures were down an incredible 60 percent from March 2012 to March 2013. Foreclosure starts – homeowners receiving notice their lenders may foreclose in 90 days – dropped 53 percent. Orr believes we’ll see foreclosure-notice rates “below long-term averages” by the end of next year.

Meantime, new-home sales are also going up, in tandem with resale prices. In Maricopa County alone, new-home sales increased 37 percent from March 2012 to March 2013. However, new-home construction isn’t keeping pace with the Phoenix area’s rebounding post-recession population growth. The U.S. Census reports 1,220 single-family-home construction permits were issued in March, a very small number by historic standards. For example, the total in March 1996 was 3,071, and the total in March 2004 was 5,490.

“The population is growing much faster than the housing supply, with an expected 50,000 to 60,000 people being added to the Phoenix-area population this year, but only around 12,000 new single-family homes being built,” Orr explains. “Builders are scratching their heads, trying to figure out what to do. They don’t want to overbuild like they did during the peak, and they don’t want to build a bunch of new homes for people who can’t secure the mortgages needed to buy them with such tight lending conditions.”

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/Full-Report-201304.pdf. A podcast with more analysis from Orr is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.

homes

Prices Up, Foreclosures Down, Investors Losing Interest

Phoenix-area home prices are back on their way up again, after a short drop in January. The latest housing report from the W. P. Carey School of Business at Arizona State University shows soaring prices, dropping foreclosures and waning interest from investors looking at Maricopa and Pinal counties, as of February.

* The median single-family home price shot up more than 4 percent in just one month — January to February.
* The median single-family home price went up 36.5 percent from February 2012 to February 2013.
* Foreclosures have resumed their downward trend, after a brief post-holiday bump, and they are likely to fall below the “normal,” long-term level by the end of next year.

Phoenix-area home prices have risen sharply since hitting a low point in September 2011. The median single-family home price went up 4.3 percent from January to February. It went up 36.5 percent – $124,500 to $170,000 – from last February to this February. Realtors will note the average price per square foot rose 30.9 percent year-over-year. The median townhouse/condo price increased 39.4 percent – from $77,500 to $108,000.

“These substantial increases were predicted in our last report and are almost certain to continue in March,” 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 at Arizona State University. “Pricing typically strengthens during the peak buying season from February to June each year.”

Orr adds the market is still dealing with a chronic shortage of homes available for sale. The number of active single-family-home listings (without an existing contract) in the greater Phoenix area fell about 5 percent just from February 1 to March 1. Also, 79 percent of the available supply is priced above $150,000, creating a real problem in the lower range.

“The shortage continues to get more severe among the most affordable housing sectors,” says Orr. “Overall, ‘distressed,’ bargain supply is down 32 percent from last February, since we’re seeing fewer foreclosures and short sales. First-time home buyers face tough competition from investors and other bidders for the relatively small number of properties available in their target price range.”

Thanks to the tight inventory, the amount of single-family-home sales activity was down 10 percent this February from last February. Things don’t appear to be getting better.

“Higher prices would normally encourage more ordinary home sellers to enter the market, but it seems many potential sellers are either locked in by negative equity and/or staying on the sidelines, waiting for prices to rise further,” explains Orr. “At some point, we will reach a pricing level where resale supply will free up, but we are not there yet.”

While high-end, luxury-home resales are picking up some steam, many frustrated home buyers in the lower price range have been turning to new-home construction. As a result, new-home sales were up an incredible 67 percent from last February to this February. New-home sales have almost doubled their market share from 6 percent to 11 percent over the last 12 months. Still, Orr says new-home sales have a long way to go to recover their normal percentage of the market.

He adds, “New homes are not being built in sufficient quantity to match the population growth in the Phoenix area. The construction industry remembers overbuilding from 2003 to 2007, contributing to the disaster in 2008 that resulted in layoffs and bankruptcies for some developers. For now, it looks like they will probably build fewer than half the homes needed to keep pace with current population trends.”

Investor interest also continues to wane in the Phoenix area. The percentage of homes bought by investors from 2011 to mid-2012 was way up, but it declined in Maricopa County from 37 percent last February to 29.7 percent this February. Many investors are looking at other areas of the nation where prices haven’t recovered as much and more bargains are available. Orr labels it a “significant down trend” here.

Foreclosures and foreclosure starts (homeowners receiving notice their lenders may foreclose in 90 days) are both back on a downward trend, too, after a short post-holiday bump. Completed foreclosures on single-family homes and townhome/condos fell 25 percent from January to February alone. They were down 52 percent from last February. Foreclosure starts were down 61 percent from last February. Orr predicts foreclosure-notice rates may be down to “below long-term averages” by the end of 2014. Meantime, the lack of cheap foreclosed homes continues to help push prices up.

“The significant annual price increase over the last 12 months has now spread to all areas of greater Phoenix,” says Orr.

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/Full-Report-201303.pdf. A podcast with more analysis from Orr is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.

housing.prices

Phoenix-area Home Prices continue to Rise

More ordinary buyers are finally getting into the Phoenix-area housing market as home prices continue to rise and investors find fewer bargains to snap up. That’s according to a new report from the W. P. Carey School of Business at Arizona State University, which reveals the numbers for Maricopa and Pinal counties, as of November:

> The median single-family home price continued to rise, jumping from $157,000 in October to $162,500 in November.
> The tight housing supply grew 31 percent between September and December, but another drop may be coming in the spring.
> All-cash offers are finally on a downward trend, signaling that investor interest may be waning a bit and more ordinary buyers are able to successfully compete for homes.

Phoenix-area home prices reached a low point in September 2011, followed by a sharp rise that’s expected to continue into 2013. The median single-family home price in November was up to $162,500 from just $120,000 last November — a 35.4-percent increase. Realtors will note the average price per square foot rose 27.4 percent year-over-year. The townhouse/condo median price is up almost 43 percent, from $70,000 to $100,000.

However, according to the report’s author, Mike Orr, the market is unbalanced, with not enough homes available for the many buyers, especially at the lower end. The number of homes for sale, but not under contract, was down 7 percent year-over-year at the start of December. Specifically, the amount of bargains or “distressed supply” was down a whopping 43 percent from last year. Things started to improve this fall, with total supply up 31 percent from September to December, but Orr doesn’t see more good news coming.

“We don’t see a strong flow of new listings coming onto the market,” says Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. “For example, short-sale listings are down about 70 percent compared to this same time last year. As the market improves, it seems many people may have decided to hang onto their homes in an effort to let values keep going up. I also anticipate another possible drop in supply this spring. Unless new-home builders can start keeping up with rising demand, we may have a chronic supply problem.”

Ordinary buyers, who usually need financing, still face multiple bids and tough competition from investors offering sellers preferred all-cash deals. In fact, almost half (48.4 percent) of the single-family-home sales under $150,000 in November were all-cash purchases. However, the percentage of homes bought by investors declined from 35.5 percent in August to 27.5 percent in November. Orr says investor activity peaked around August and is on a long-term downward trend. With the possible exception of a brief, normal holiday spike in December/January, he expects a continued drop in investor activity.

“As prices go up each month, price-sensitive buyers, such as investors, get a little less enthusiastic,” explains Orr. “Bargain hunters haven’t got much left to pick over, which is allowing more normal buyers to jump into the market before prices rise past what they can afford.”

Foreclosures are down in the market. Completed foreclosures on single-family and condo homes dropped 34 percent from November 2011 to November 2012. Foreclosure starts – homeowners receiving notice their lenders may foreclose in 90 days – went down 48 percent.

Sales activity stayed relatively level, dipping just 1 percent from November to November. The most expensive types of sales, new-home sales and regular resales, are up 32 percent and 84 percent. All types of discount sales, such as short sales and bank-owned-home sales, are down.

Almost every area of the Valley has seen prices explode over the past year, led by Pinal County, including Eloy, Arizona City and Maricopa.

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/Full-Report-201212.pdf. A podcast with more analysis from Orr is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.

Top Arizona Legal Cases - AZ Business Magazine September/October 2011

County opening new justice court

Arizona’s most populous county is opening its 26th justice court precinct, with a ceremony scheduled Thursday to celebrate the swearing-in of Justice of the Peace Anna Huberman.

The court for Maricopa County’s new Country Meadows Justice Precinct will be housed in downtown Phoenix for the next few years.

The precinct covers a territory roughly between Interstate on the south, Dysart Road on the west, Cactus Road on the north and as far east as 59th Avenue on the west.

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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.

Banner Health Center Maricopa, AZRE July/August 2011

Medical: Banner Health Center – Maricopa


BANNER HEALTH CENTER – MARICOPA

Developer: Banner Health
General contractor: DPR
Architect: SmithGroup
Location: SWC of Alan Stephens Parkway and Porter Rd., Maricopa
Size: 40,000 SF (Phase I)

The $17.2M Banner Health Center will be located at The Wells retail center. It will be built in phases that will allow the center to expand to more than 80,000 SF. Phase I will build-out more than 40,000 SF with space for 18 physicians and ancillary services such as X-rays and lab services. Completion is expected by 2Q 2012.


AZRE Magazine July/August 2011