Interesting article from a local lender
Here’s an interesting article about our market that I bet you don’t hear this on the national news!
Market Recap
Good News
Phoenix-area housing prices have consistently gone up every month this year, despite tough economic times. The median single-family home price in the Valley has steadily increased. The median price has gone up almost 5.5 percent from $136,500 in January to $144,000 in April.
The low prices are attracting out-of-state buyers who are looking for a retirement home. Phoenix is considered a steal along with Las Vegas, Nevada and parts of California and Florida.
Homebuilders like Pulte, Meritage Homes and Toll Brothers have purchased bargain priced lots in Gilbert’s Stratland Estates and are busily building homes.. Last year Gilbert was one of the few Valley cities to report positive growth.
Bad News
Almost 3,500 homes were foreclosed on in April, way up from about 2,500 foreclosures last April. However, it is an improvement from March’s nearly 4,400 foreclosures. Foreclosures combined with the resale’s of previously foreclosed properties still account for 60 percent of the Valley’s single-family home market activity.
Commercial real estate is still struggling and some experts feel banks have hung on too long to underperforming assets. The vacancy rates are not pretty with office vacancies running as high as 30% in Scottsdale Airpark, Phoenix-Mesa Gateway Airport and Glendale’s sports and entertainment district as compared to an average of 22.7% valley wide. Retail vacancy rates average 11.9% with an occasional bright spot like Ahwatukee with a low 6%. Industrial vacancy rates average 15.5%. Experts say 25% of outstanding commercial real estate loans are in good shape while 25% are on the verge of foreclosure. The remaining 50% could go either way. If there is a sudden increase in commercial foreclosures it could drag the whole real estate market down again. The main reason for the problem is overbuilding.
Jim Lee, Sr. Mortgage Consultant
16150 North Arrowhead Fountain Center, #260 Peoria, AZ 85382
Phone: 480.444.7136 Direct Fax: 480.444.7186
jim.lee@onqfinancial.com / www.onqfinancial.com
