Tag Archives: real estate market

Newport Beach

Wilken teams with Engel & Völkers

Engel & Völkers announced the opening of its first Scottsdale shop and entrance into the Arizona real estate market, breaking new ground as the luxury brand continues to expand throughout the U.S. and around the world.

Sandra Wilken, of Sandra Wilken Luxury Properties, has become the first Engel & Völkers license partner  in Arizona, converting her 18-year, Scottsdale-based company to Engel & Völkers Scottsdale, Sandra Wilken Partners. The company, with a team of 17 agents that closed $58 million in transactions in 2012, now becomes one of 491 shops worldwide in more than 36 countries.

“Engel & Völkers brings the highest standards of real estate service to the most sought-after markets throughout the world,” said Anthony Hitt, Chief Operating Officer of Engel & Völkers North America. “We are excited to introduce our distinctive brand in Scottsdale and to debut with the leadership of Sandra Wilken, the most successful and highly respected name in the area’s luxury market.”

As an already well known and respected name in luxury real estate, Sandra Wilken has been among the top producing Scottsdale brokers for the past 38 years. Wilken specializes in luxury real estate purchases and sales of properties ranging from luxury condominiums to multimillion-dollar estates in the Valley’s most prominent, high-end communities such as Scottsdale, Paradise Valley, the Arcadia and Biltmore areas of Phoenix, Fountain Hills and Gainey Ranch.

“It is an extreme honor to be selected by such a prestigious, international real estate company,” said Sandra Wilken. “With the success that my company has experienced over the past 18 years, it seems to be a natural step in catapulting us to an international level. This affiliation not only raises the awareness of our clients’ listings to the broader Engel & Völkers global network, but it allows the firm to expand our client base, the number of agents we employ and our total number of listings and transactions. The timing couldn’t be better with Arizona’s housing market seeing significant gains month over month. I see it as an opportunity to bring the world to Scottsdale and Scottsdale to the world.”

“Engel & Völkers’ global expansion strategy has always been based on being where our clients want to be, whether it is to reside, to vacation or to have a second or third home,” said Hitt.  “We’ve selected to open in Scottsdale’s because of its popularity among international home buyers, the leadership and established reputation of Sandra Wilken in the market and the area’s exceptional luxury properties. It’s the perfect home for our brand which is known internationally for of high end, white glove service. Sandra and her team became leaders in the market because of their higher standards of service, which they’ve succeeded in providing for the past 18 years. They have attracted the best agents in the area, and will continue to do so. They were the obvious choice to represent the Engel & Völkers brand.”

For more information about Engel & Völkers Scottsdale, Sandra Wilken Partners visit www.scottsdale.evusa.com or call 480-596-0001.

Newport Beach

Wilken teams with Engel & Völkers

Engel & Völkers announced the opening of its first Scottsdale shop and entrance into the Arizona real estate market, breaking new ground as the luxury brand continues to expand throughout the U.S. and around the world.

Sandra Wilken, of Sandra Wilken Luxury Properties, has become the first Engel & Völkers license partner  in Arizona, converting her 18-year, Scottsdale-based company to Engel & Völkers Scottsdale, Sandra Wilken Partners. The company, with a team of 17 agents that closed $58 million in transactions in 2012, now becomes one of 491 shops worldwide in more than 36 countries.

“Engel & Völkers brings the highest standards of real estate service to the most sought-after markets throughout the world,” said Anthony Hitt, Chief Operating Officer of Engel & Völkers North America. “We are excited to introduce our distinctive brand in Scottsdale and to debut with the leadership of Sandra Wilken, the most successful and highly respected name in the area’s luxury market.”

As an already well known and respected name in luxury real estate, Sandra Wilken has been among the top producing Scottsdale brokers for the past 38 years. Wilken specializes in luxury real estate purchases and sales of properties ranging from luxury condominiums to multimillion-dollar estates in the Valley’s most prominent, high-end communities such as Scottsdale, Paradise Valley, the Arcadia and Biltmore areas of Phoenix, Fountain Hills and Gainey Ranch.

“It is an extreme honor to be selected by such a prestigious, international real estate company,” said Sandra Wilken. “With the success that my company has experienced over the past 18 years, it seems to be a natural step in catapulting us to an international level. This affiliation not only raises the awareness of our clients’ listings to the broader Engel & Völkers global network, but it allows the firm to expand our client base, the number of agents we employ and our total number of listings and transactions. The timing couldn’t be better with Arizona’s housing market seeing significant gains month over month. I see it as an opportunity to bring the world to Scottsdale and Scottsdale to the world.”

“Engel & Völkers’ global expansion strategy has always been based on being where our clients want to be, whether it is to reside, to vacation or to have a second or third home,” said Hitt.  “We’ve selected to open in Scottsdale’s because of its popularity among international home buyers, the leadership and established reputation of Sandra Wilken in the market and the area’s exceptional luxury properties. It’s the perfect home for our brand which is known internationally for of high end, white glove service. Sandra and her team became leaders in the market because of their higher standards of service, which they’ve succeeded in providing for the past 18 years. They have attracted the best agents in the area, and will continue to do so. They were the obvious choice to represent the Engel & Völkers brand.”

For more information about Engel & Völkers Scottsdale, Sandra Wilken Partners visit www.scottsdale.evusa.com or call 480-596-0001.

121956596

W.P. Carey offers online program to adapt to real estate market

From the foreclosure crisis to roller-coaster home prices and a trove of new investors, we’re watching the world of real estate dramatically change. This evolution has some real estate professionals looking to blur the lines between what they do now – and what they can do.

For example, general contractors may see opportunities to complete their own real estate projects, and some realtors are looking into buying homes for renovation and investment. A new online program from the W. P. Carey School of Business at Arizona State University will help address this.

“We’ve been talking with real-estate industry groups, and they see a need for a flexible, convenient program to provide an overview of the development process for current real estate professionals who want to expand their horizons,” says Mark Stapp, the Fred E. Taylor Professor in Real Estate at the W. P. Carey School of Business. “We designed the new online Real Estate Development Certificate program for this purpose. It teaches real estate fundamentals, law, investments and land development, all in an easy-to-use format from a top business school.”

The new online program is essentially a real-estate development education sampler, which lasts nine months. The first classes will begin on Oct. 1. Industry groups, including the Urban Land Institute (ULI), the Valley Forward Association and the National Association of Industrial and Office Properties (NAIOP), have already taken an interest, and members will be eligible for a discounted tuition rate.

“In addition to the basics, we’re going to focus on responsible community development and themes like sustainability and creating real value for customers,” explains Stapp, an instructor in the new program and a developer himself. “There’s a new era of real estate construction emphasizing fewer cookie-cutter homes and more focus on buyers’ needs. We want to help real estate professionals deliver an even higher level of service to their clients, make better business decisions, and better position their products and their companies for revenue growth.”

Until now, Stapp only taught in the school’s Master of Real Estate Development (MRED) program, an in-person, one-year program for mid-level real estate professionals. He’s executive director of that program, which is in its sixth year and enrolls students from eight countries, who learn about design, law, construction and business. Many of the same seasoned faculty members will teach in the new online program.

Applications are already being taken for the new certificate program, and more information can be found at www.wpcarey.asu.edu/REDcert. Additional information about the in-person MRED program is available at www.wpcarey.asu.edu/mred. The school will also soon launching a new online publication about its real estate research and programs called knowRE, which will be available to the public at www.knowwpcarey.com/realestate.

The W. P. Carey School of Business’ other graduate programs include full-time and evening MBA programs ranked Top 30 in the nation by U.S. News & World Report, as well as an online MBA program on the publication’s “Honor Roll” of 14 online graduate business programs. The school’s Arizona-based executive MBA program is ranked No. 13 in the world by The Wall Street Journal.

real estate market

Real Estate Market Is Recovering, So What’s Next?

As job numbers and consumer spending begin to rise post-recession, the real estate market is also starting to recover. But will we see a repeat of massive growth, skyrocketing prices and cookie-cutter homes? One expert from the W. P. Carey School of Business at Arizona State University analyzes likely future trends.

“We have a lot of people looking at the same real estate data and making decisions at the same time,” explains Mark Stapp, the Fred E. Taylor Professor in Real Estate and director of the Master of Real Estate Development (MRED) program at the W. P. Carey School of Business. “This is how markets wind up with overbuilding and speculation, but I’m actually hopeful that won’t happen in the Phoenix metro area this time. After the recent bust, real estate professionals are paying more attention to differentiating projects and focusing more on users’ wants and values. Also, lenders are enforcing more discipline.”

Stapp says the Phoenix area is one of the markets with the most abundant real estate market data available. On the residential side, Stapp is seeing the emergence of different products to meet people’s changing needs.

“We’re watching the development of new luxury apartments that are big enough to comfortably house families,” says Stapp, who is both a real estate developer and who teaches real estate to mid-level professionals. “Many former homeowners have either decided to get out of the single-family home market because of their recent experiences or they simply can’t buy another home because of credit issues. Renting may be their best alternative.”

In addition, Stapp says it’s tough to get many existing homeowners to sell their houses with prices still down from the peak; they don’t want to lose money. Therefore, developers are introducing new alternatives that might be appealing. They’re integrating more sustainable, energy- and money-saving features. They’re also trying out new designs that appeal to changing lifestyles.

“Real estate is a service business, and developers have to deliver what the customers want,” says Stapp. “We’re already seeing more interest in new-home sales, and developers are getting creative. For example, there’s a very modern Dutch-designed model home from a major local builder. In the past, a risk like that would have been shunned in favor of more cookie-cutter homes that all look similar.”

Developers are also focusing on filling in desirable areas already close to roads and development, instead of building on the outskirts, where new homeowners may be reluctant to live. The median home price in the Phoenix area is already up 25 percent from this time last year, and new-home sales are up more than 40 percent. Plus, Stapp says it won’t be that long for many of those who filed for bankruptcy and/or lost their homes to foreclosure to get back into the real estate market.

“The Federal Housing Administration (FHA), Fannie Mae, Freddie Mac and the Department of Veterans Affairs (VA) all allow people who’ve filed for bankruptcy to get loans after several years,” explains Stapp. “Some developers are planning for that now, since it takes around two years from start to finish on these building projects.”

On the commercial side, Stapp says office-space needs have permanently changed. Thanks to advancements in technology and more forced productivity from fewer employees, more people and equipment can now fit into the same amount of office space. Also, some older buildings just don’t have the right configuration for modern equipment, and parking may be lacking. Therefore, Stapp thinks it will take longer for this sector to recover. However, he feels industrial space is already back in pretty good shape in the Phoenix area, though the situation is fragile.

“If they pull the trigger on too many projects, it will be like overgrazing,” says Stapp. “We don’t want to overbuild again, which would ruin the market for everyone.”

Stapp would like to see a little more regional development planning, plus a good look at the current property-tax structure. He also advocates more self-control.

“Hopefully, the recent fall has instilled a sense of discipline in the real estate community,” concludes Stapp. “Making money in real estate has always been about transactions – buying and selling. Banks make money when they loan; architects make money when they design; construction crews make money when they build. We all have to start putting more time into thinking and planning, even if that means postponing a pay day.”

Stapp is one of the industry experts teaching in the one-year Master of Real Estate Development program at the W. P. Carey School of Business. The program immerses students in the various facets of real estate development, including business, law, design and construction.

For more information about the MRED program and the real estate market, visit www.wpcarey.asu.edu/master-real-estate.

Valley Commercial, Real Estate Sales Dip

Valley Residential, Commercial Real Estate Markets Still Struggling, ASU Report Shows

Residential and commercial real estate prices in Metro Phoenix  are still suffering in the rough economy, a report from the W. P. Carey School of Business at Arizona State University show.

Valley home prices are going negative for the first time in months, and commercial real estate prices are about 30-percent lower than at the same time last year, according to the report.

On the residential side, the ASU-Repeat Sales Index (ASU-RSI) measures annual changes in average Phoenix-area home prices. The latest index shows a 0.2 percent drop from August 2009 to August 2010. Previous reports revealed no change from July 2009 to July 2010 and small annual increases in June, May and April. The index hasn’t been in negative territory since March.

“This is the first overall decline since March, but it is consistent with the small ups and downs associated with relatively stable housing prices,” assures the report’s author, Professor Karl Guntermann, the Fred E. Taylor Professor of Real Estate, who is assisted by Research Associate Adam Nowak. “The ASU-RSI has been relatively stable for more than a year, which suggests that changes in house prices will be moderate going forward unless there are dramatic changes in the Phoenix economy or housing market.”

Foreclosed homes have been one of the stronger segments of the market in recent months, according to Guntermann. However, the price index in that segment declined 4 percent in August after five straight months of increases.

“The weakness in prices may mean there finally is insufficient demand to absorb the steady stream of foreclosures that enter the market each month. However, it is too early to tell if the decline is the start of a new trend or reflects just a temporary slowdown,”  Guntermann says. “The data also doesn’t provide a basis for optimism when it comes to non-foreclosure homes, which showed a 9 percent annual drop in August. That’s the segment of the market of interest to most homeowners either waiting to sell or just wanting to know when their equity will stop shrinking.”

Median home prices in the Valley have also fallen out of the $125,000-$135,000 range where they had been for almost a year. The preliminary median figure for August is just $122,000.

The preliminary median price of a townhouse/condominium in the Phoenix area for August was just $65,000, down from $77,100 in July.

“This is a continuation of a downward trend that began in June,”  Guntermann explains. “Townhouse/condo prices seem to periodically take a step down in price and then stabilize for several months before starting the next decline.”

On the commercial side of Phoenix-area real estate, the first two quarters of 2010 show somewhat of a leveling off. Guntermann says commercial prices peaked at an annual rate of 28 percent in the third quarter of 2006. The commercial index began to decline dramatically by the end of 2008, and the decline sped up throughout 2009.

“By the end of 2009, the annual decline reached 40 percent,”  Guntermann says. “Commercial prices in 2010 remain about 30 percent lower than the corresponding quarters in 2009, reflecting a market with significant problems. The good news is that the commercial market appears to be showing signs of stability rather than worsening declines.”

Both the commercial and residential indices are based on repeat sales, the most reliable way to estimate price changes in the real estate market. Repeat sales compare the prices of a single property against itself at different points in time, instead of comparing different homes and commercial properties with different quality factors.

The new ASU-RSI reports can be found at http://wpcarey.asu.edu/realestate/housing-market-reports.cfm and http://wpcarey.asu.edu/realestate/commercial-market-reports.cfm.

'Strategic Defaults in the Recovering Real Estate Market

‘Strategic’ Defaults In The Recovering Real Estate Market

The Phoenix resale home market rebounded slightly in February, according to the Realty Studies Report from the W. P. Carey School of Business. Compared to January, the number of transactions increased and prices were up a bit. Still, foreclosures accounted for 42 percent of the total market, and the sale of previously foreclosed properties made up 40 percent of the traditional sale segment. Meantime, market watchers are wondering what will happen when the many Adjustable Rate Mortgages (ARMs) reset this year and next. We asked  Jay Butler, associate professor of real estate and author of the report, what he thinks about that, and what else he noticed in the February data. (9:20)

luxuryrealestate

Housing Crash is Hurting The Valley’s Luxury Real Estate Market

A meticulous five-bedroom, remodeled home sits nestled in one of Paradise Valley’s most beautiful neighborhoods. But the most remarkable thing about this home is not its one-acre lot, new flooring or up-to-date kitchen. It’s the “For Sale” sign that has graced the front yard for two years.

Two years, two different realty companies and several price reductions later, the home finally is generating some energy and a contract is in the works. But, according to information from Coldwell Banker’s luxury home experts with The Walt Danley Group, that never would have happened if the price hadn’t dropped 20 percent in one year and 40 percent from the time it first went on the market.

This scenario is playing out to varying degrees throughout the Valley’s high-end home submarkets, from the Biltmore area to Paradise Valley to North Scottsdale. Real estate professionals say that while wealthy clients clearly are insulated from some of the economic hardships that face production-home buyers, they are not completely immune from them.

Inventory is high, homes are sitting on the market longer and Realtors must convince sellers to lower their expectations on price.

“What’s happening in the marketplace,” says Sandra Wilken of Sandra Wilken Luxury Properties, “is we are trying to get our sellers to be extremely realistic on their list price. The ridiculous prices of three years ago are not going to happen.”

In 2007, Wilken says buyers in Paradise Valley purchased 133 properties worth $2 million or more. The most expensive home sold for $8.8 million. This year, 62 homes have been sold in that range, with the highest fetching $7.62 million.

Information from the Arizona Regional Multiple Listing Service in two high-end zip codes, Paradise Valley’s 85253 and North Scottsdale’s 85256, shows inventory climbing through 2007 and the first half of 2008 compared to accepted offers. The average price for a property sold in Paradise Valley in September 2006 was $2.328 million. This past August it was $1.606 million.

Break it down
It is important to understand that in the luxury home market, different segments are performing in different ways.

Buyers who can afford a $2 million to $4 million home, or higher, are more insulated from current market conditions.

Tom Fisher calls them “program buyers,” successful and affluent business people who are on track to build homes that some call “family resorts.”

Fisher, owner of Fisher Custom Homes, builds houses that start at $2 million. His clients’ income or cash flow often is tied to the stock market, and while that has bred caution in their spending, in his experience it hasn’t derailed many building plans.

Walt Danley agrees there still is activity in the high-end market, but poor economic conditions fostered by sub-prime lending have, in a sense, trickled up.

Credit crunch
Credit in the form of jumbo loans, or loans for more than $417,000, has dried up as well. Several years ago, buyers could purchase a $1 million home with as little as 5 percent down, says Dean Bloxom, president of iMortgage Services in Phoenix. Some banks asked for 10 percent on $2 million.

Today, loans are available but banks want at least 20 percent down, and clear, documented evidence of someone’s assets and income — a correction that should have happened earlier, Bloxom says.

There are indications the market may pick up some velocity, says Cionne McCarthy, an agent with Russ Lyon Sotheby’s International Realty.

The Luxury Home Tour, which showcases homes in Paradise Valley and the Arcadia and Biltmore districts, recently released figures that show homes in August spent less time on the market.

From Aug. 8 to Sept. 6, homes spent an average of 151 days on the market, compared to an average of 223 days between August 2007 and August 2008.