Thursday, December 28, 2006
Renters gloat over housing slump
James R. Hagerty and George Anders
Wall Street Journal
Dec. 26, 2006 11:21 AM
The housing slump has been painful for millions of people who work in real estate or recently bought a house.
For Patrick Killelea, however, this year has been one long victory lap. Killelea, a 41-year-old software engineer, has long preached that it makes more economic sense to rent than buy homes. He recalls shouting "Wow!" when he heard about September's 9.7 percent drop in prices of new homes."
I didn't want to gloat," he says. "But then again, maybe I did."
For years, Americans who refused to buy real estate at what they considered excessive prices were ribbed for failing to profit from one of the greatest booms in history. "Are You Missing the Real Estate Boom?" needled the title of a 2005 book by David Lereah, chief economist of the National Association of Realtors.
Now, with the housing market in a slump, renters who sat out the boom are finally getting some satisfaction.
Wall Street Journal
Dec. 26, 2006 11:21 AM
The housing slump has been painful for millions of people who work in real estate or recently bought a house.
For Patrick Killelea, however, this year has been one long victory lap. Killelea, a 41-year-old software engineer, has long preached that it makes more economic sense to rent than buy homes. He recalls shouting "Wow!" when he heard about September's 9.7 percent drop in prices of new homes."
I didn't want to gloat," he says. "But then again, maybe I did."
For years, Americans who refused to buy real estate at what they considered excessive prices were ribbed for failing to profit from one of the greatest booms in history. "Are You Missing the Real Estate Boom?" needled the title of a 2005 book by David Lereah, chief economist of the National Association of Realtors.
Now, with the housing market in a slump, renters who sat out the boom are finally getting some satisfaction.
Real estate market may be headed for a turnaround
Washington Business Journal - 12:07 PM EST Wednesday
by Joe Coombs
Senior Staff Reporter
Sales of new single-family homes took a sharp drop in November compared to 2005, but activity actually ticked up a bit from the previous month.
About 1 million new single-family homes sold in November in the U.S., down 15.3 percent from more than 1.2 million homes in November 2005, according to a report from the U.S. Department of Commerce. November's sales volume was 3.4 percent higher than October, a sign that the flagging real estate market may be making a turnaround.
The median sales price for new single-family homes was $251,700. The average price in the U.S. for new homes in November was $294,900.
In Greater Washington, new and existing homes continue to sell at rates higher than the national level. In D.C., the median sales price in November was $410,000, although that was a drop of 7 percent from November 2005.
Read more >>
by Joe Coombs
Senior Staff Reporter
Sales of new single-family homes took a sharp drop in November compared to 2005, but activity actually ticked up a bit from the previous month.
About 1 million new single-family homes sold in November in the U.S., down 15.3 percent from more than 1.2 million homes in November 2005, according to a report from the U.S. Department of Commerce. November's sales volume was 3.4 percent higher than October, a sign that the flagging real estate market may be making a turnaround.
The median sales price for new single-family homes was $251,700. The average price in the U.S. for new homes in November was $294,900.
In Greater Washington, new and existing homes continue to sell at rates higher than the national level. In D.C., the median sales price in November was $410,000, although that was a drop of 7 percent from November 2005.
Read more >>
Monday, December 25, 2006
Light rail spurs rush of private development
Sean Holstege
The Arizona Republic
Dec. 24, 2006 12:00 AM
Two years before the light-rail system opens, private investors are starting to pump more than $1 billion into new developments near the rail stations.
The investments promise to reshape key corners and neighborhoods along the 20-mile route, an infusion that is typical of light-rail systems but is occurring earlier in the Valley than in other cities."
I don't think you've seen this level of public and private investment anywhere else in the country before a light-rail line even opens," said Bo Martinez, Phoenix's economic development manager for light rail.
Read more >>
The Arizona Republic
Dec. 24, 2006 12:00 AM
Two years before the light-rail system opens, private investors are starting to pump more than $1 billion into new developments near the rail stations.
The investments promise to reshape key corners and neighborhoods along the 20-mile route, an infusion that is typical of light-rail systems but is occurring earlier in the Valley than in other cities."
I don't think you've seen this level of public and private investment anywhere else in the country before a light-rail line even opens," said Bo Martinez, Phoenix's economic development manager for light rail.
Read more >>
Sunday, December 24, 2006
Bulls & bears: What's next for Valley housing market?
Drag on Valley housing market raises question:
Valdez
THE ARIZONA REPUBLIC
Dec. 24, 2006 12:00 AM
The defining event of 2006 in this real estate mad state was the housing slowdown. Now, the question is: What happens next?
It was a national phenomenon, dragging on the economy, slamming the results of large, publicly held house builders and home-improvement chains, and costing perhaps hundreds of thousands of construction jobs. Foreclosures and mortgage delinquencies have shot up, especially for people who took out subprime mortgages.
In Phoenix, the slowdown is palpable, from the shelved plans for high-profile skyscraper projects in the central city to halted, half-finished subdivisions on the metropolitan fringes.
Read more >>
Valdez
THE ARIZONA REPUBLIC
Dec. 24, 2006 12:00 AM
The defining event of 2006 in this real estate mad state was the housing slowdown. Now, the question is: What happens next?
It was a national phenomenon, dragging on the economy, slamming the results of large, publicly held house builders and home-improvement chains, and costing perhaps hundreds of thousands of construction jobs. Foreclosures and mortgage delinquencies have shot up, especially for people who took out subprime mortgages.
In Phoenix, the slowdown is palpable, from the shelved plans for high-profile skyscraper projects in the central city to halted, half-finished subdivisions on the metropolitan fringes.
Read more >>
Friday, December 22, 2006
Arizona rated fastest-growing state
The Business Journal of Phoenix - 1:46 PM MST Friday
Arizona did not gain as many people as Louisiana lost, but the Grand Canyon state still gained residents at a fast-enough rate to qualify as tops in the nation, according to a Friday announcement from the U.S. Census Bureau.
Between July 1, 2005, and July 1, 2006, Arizona grew at a 3.6 percent rate, edging previous speed growth leader Nevada, which had a 3.5 percent gain.
Idaho was third, with a growth rate of 2.6 percent.
Read more >>
Arizona did not gain as many people as Louisiana lost, but the Grand Canyon state still gained residents at a fast-enough rate to qualify as tops in the nation, according to a Friday announcement from the U.S. Census Bureau.
Between July 1, 2005, and July 1, 2006, Arizona grew at a 3.6 percent rate, edging previous speed growth leader Nevada, which had a 3.5 percent gain.
Idaho was third, with a growth rate of 2.6 percent.
Read more >>
Monday, December 18, 2006
Finding W. Valley water just the start
Shaun McKinnon
The Arizona Republic
Dec. 18, 2006 12:00 AM
Beneath the desert in the far West Valley, beyond the White Tank Mountains, enough water fills a sprawling, hourglass-shaped aquifer to supply tens of thousands of homes for at least the next century.
Finding the water was the easy part.
But before developers can fire up the first drill rig, they must prove to the state that they can replenish most of the groundwater pumped from the aquifer without tapping any other underground reserves. It's a high hurdle meant to protect Arizona's resources while still allowing growth.
Read more >>
The Arizona Republic
Dec. 18, 2006 12:00 AM
Beneath the desert in the far West Valley, beyond the White Tank Mountains, enough water fills a sprawling, hourglass-shaped aquifer to supply tens of thousands of homes for at least the next century.
Finding the water was the easy part.
But before developers can fire up the first drill rig, they must prove to the state that they can replenish most of the groundwater pumped from the aquifer without tapping any other underground reserves. It's a high hurdle meant to protect Arizona's resources while still allowing growth.
Read more >>
Valley's next boom: Buckeye
Catherine Reagor
The Arizona Republic
Dec. 17, 2006 12:00 AM
A remote parkway in the far West Valley nicknamed the "Road to Nowhere" is poised to become Main Street for nearly 1 million people.
More than a dozen huge developments are sprouting up on both sides of the 30-mile-long Sun Valley Parkway, west of the White Tank Mountains. The area is expected to draw a quarter of all the Valley's new homes during the next few decades and transform the sleepy town of Buckeye into a giant suburb 40 miles west of downtown Phoenix.
Buckeye, with just 30,000 residents, has been annexing so much land it's about to rival Phoenix in sheer size. Its small downtown is still south of Interstate 10, but now its northern boundary stretches along the White Tanks so far that Buckeye is almost butting up to Wickenburg.
Read more >>
The Arizona Republic
Dec. 17, 2006 12:00 AM
A remote parkway in the far West Valley nicknamed the "Road to Nowhere" is poised to become Main Street for nearly 1 million people.
More than a dozen huge developments are sprouting up on both sides of the 30-mile-long Sun Valley Parkway, west of the White Tank Mountains. The area is expected to draw a quarter of all the Valley's new homes during the next few decades and transform the sleepy town of Buckeye into a giant suburb 40 miles west of downtown Phoenix.
Buckeye, with just 30,000 residents, has been annexing so much land it's about to rival Phoenix in sheer size. Its small downtown is still south of Interstate 10, but now its northern boundary stretches along the White Tanks so far that Buckeye is almost butting up to Wickenburg.
Read more >>
Friday, December 15, 2006
Housing: Curb Your Enthusiasm About A Recovery
Home prices still have room to decline, and it may take 15 years or more to reach new inflation-adjusted highs
Housing booms are short and exciting. Housing busts, on the other hand, are long and painful. So don't put much faith in those oft-heard assertions that the worst is already over. Prices are likely to fall further in many markets in 2007. In some others, prices may rise, but at less than the rate of inflation. A BusinessWeek analysis of the past three decades shows that if history repeats itself, it's likely to take 15 years or more for many parts of the country to get back to their inflation-adjusted peaks.
For residential real estate, the outlook for 2007 ranges from mildly positive to awful. The major markets that do least badly will be "revenge of the nerds" cities like Dallas and Houston that the boom bypassed. Even if all they generate is low-single-digit price gains, they will look good by comparison. Seattle and Raleigh, N.C., with healthy job growth, should also do O.K. The biggest losers will fall into one of these groups: cities like Detroit that are suffering economic contractions; cities like Los Angeles, San Diego, and others in California where prices are extraordinarily high and have barely begun to adjust; and cities like Miami, Las Vegas, and Phoenix that have a huge overhang of unsold houses or condos.
Advice to homeowners: If you need to sell and you're not getting much interest, cut the price by an extreme amount. If you make halfhearted cuts, you'll remain overpriced and you'll follow the market all the way to the bottom. Advice to buyers: Bargain hard. Many sellers are still asking for too much. "As tough as our market's been, the toughest thing is to get sellers to understand that prices aren't going up 18% to 20% a year anymore," says Ned Redpath, head of Coldwell Banker Redpath & Co. Realtors in Hanover, N.H.
Read more >>
Housing booms are short and exciting. Housing busts, on the other hand, are long and painful. So don't put much faith in those oft-heard assertions that the worst is already over. Prices are likely to fall further in many markets in 2007. In some others, prices may rise, but at less than the rate of inflation. A BusinessWeek analysis of the past three decades shows that if history repeats itself, it's likely to take 15 years or more for many parts of the country to get back to their inflation-adjusted peaks.
For residential real estate, the outlook for 2007 ranges from mildly positive to awful. The major markets that do least badly will be "revenge of the nerds" cities like Dallas and Houston that the boom bypassed. Even if all they generate is low-single-digit price gains, they will look good by comparison. Seattle and Raleigh, N.C., with healthy job growth, should also do O.K. The biggest losers will fall into one of these groups: cities like Detroit that are suffering economic contractions; cities like Los Angeles, San Diego, and others in California where prices are extraordinarily high and have barely begun to adjust; and cities like Miami, Las Vegas, and Phoenix that have a huge overhang of unsold houses or condos.
Advice to homeowners: If you need to sell and you're not getting much interest, cut the price by an extreme amount. If you make halfhearted cuts, you'll remain overpriced and you'll follow the market all the way to the bottom. Advice to buyers: Bargain hard. Many sellers are still asking for too much. "As tough as our market's been, the toughest thing is to get sellers to understand that prices aren't going up 18% to 20% a year anymore," says Ned Redpath, head of Coldwell Banker Redpath & Co. Realtors in Hanover, N.H.
Read more >>
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