Tag Archives: Pinal

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

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.

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.