Arizona Realestate News: September 2008, Buckeye real estate property search, Arlington land for sale,New River Acreage for Sale,Rainbow Valley,Tonopah

Largest Land Holdings Of 50-1200 Acre Parcels In Metro Phoenix

Monday, September 22, 2008

Reduction in commercial property sales

Lehman brothers bankruptcy and bank of America's plan to buy Merrill lynch will affect the real estate industry. Shopping centers, warehouses and apartment buildings have seen a decrease in sale in 2007. Banks issued securities to investors as a way to raise more money to lend to buyers of commercial properties. The result has been less money available to finance the purchase of commercial real estate. According to a data, the market rate to buy an office property in metro Phoenix was $3.1 billion between august and July 2007. This number fell to $1.8 billion between august and July 2007. Lehman brothers and Merrill lynch had invested in commercial real estate loans and properties. Both the banks had earlier announced that they would sell some of these loans to other companies due to bad conditions in the commercial real estate market. Commercial real estate is considered a riskier investment because of rising vacancy rates, dreary rent growth and instability of tenants in housing industries.

Tuesday, September 16, 2008

Dipping home prices in California

Home prices are falling in California but this state is still considered the nation's 10 most expensive housing markets. Average sale price for a 2,200 square foot house of San Diego this year is $ 1.8 million. According to a study, the average price of a house in Seattle is $584,500, Tacoma's home value is $338,750 and Bellevue's home value is $814,483. Severe drop in home values have been in areas like California, Arizona, Nevada and Florida. In 15 markets outside U.S., the average home price averaged more than $1 million. The average home prices in 13 U.S. states are $1 million. In U.S. markets, areas like Greenwich, Beverly Hills, Calif are ranked as second and third most expensive markets, with average home prices being $1.8 million. Other California markets that are top 10 by price are Palo Alto, Santa Monica, Santa Barbara, Newport Beach, San Francisco and San Mateo.

During the second quarter of 2008, the conventional mortgage home price index (CMHPI) purchase only series has seen a 0.4 percent decline in U.S. home values in second quarter 2008. Home sale prices have fallen to an average of 6.0 percent in the CMHPI purchase only series in second quarter 2008, being the largest fall over 39 years. Home values have remained stabled in some parts of U.S. Most of the areas like west south central region where home value have increased.

According to CMHPI Purchase-only series there has been an annual price increase of 2 percent in some areas like North Carolina, North Dakota, Oklahoma, South Dakota, and Texas and West Virginia. Certain regions have seen an annual drop of 10% like Arizona, California, Florida, Michigan and Nevada. Certain regional performances shows the CMHPI purchase only series: Home values have increased in west south central division and west north central division during last 12 months. Home values have decreased in areas like Decreased middle Atlantic division, east south central division, east north central division, mountain division, south Atlantic division, new England division, pacific division past 12 months.

Home values in Arizona are dropping at a faster rate. The home value of an Arizona house has dropped 4.4 percent in just 3 months. The home values are decreasing every quarter. The home values in Arizona are now 9.2 percent lower than the same period a year earlier. The home value of a house is now $181,700, compared to last year when it was $200,000. The home values of California, Nevada and Florida have also decreased. In these areas the houses were being sold very quickly because of which there is a credit crunch.

During the boom period, investors were buying the houses very fast when they were just built due to which the prices were increasing but the home values of those houses have decreased. The average home value in Arizona is still worth 66 percent more than five years earlier and 418 percent more than in 1980. Homes in Kingman and Lake Havasu have lost nearly 6.6 percent of their value in just three months and are now down by nearly 13.1 percent. Home values in phoenix metropolitan area have come down almost 5.2 percent between first and second quarter of the year, compared with less than 3.3 percent between the last quarter of 2007 and the first quarter of this year.

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