Arizona Realestate News: October 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

Thursday, October 30, 2008

Why to invest in a Vacant Home

Instead of pouring your money into Wall Street try to put it in a vacation home. It is remarkably good investment right now. Buy a vacation home in areas like Cape Coral, Daytona, Destin, Fort Lauderdale, Indian rocks Beach, Kissimmee, Madeira beach, Orlando, Panama City beach, Sanibel Island, West Palm Beach, or Windsor hills. Home prices are down right now across the board. That means you can pick up a beach condo or a mountain cabin at a decent price. Due to lower interest rates its time to buy. In certain areas like Arizona and Florida, the pending home sale index has jumped to 18.4 percent in August. It's now 37.8 percent above what it was a year ago. Home prices are going to increase 2 to 3 percent by next year. Vacation home rental market is strong in a weak economy because it's easy for consumers to find information on vacation homes. Vacation homes are less expensive when compared to hotel rooms. The weak dollar makes U.S. tourist destinations attractive to European travelers, whose currency is still strong. When airfare gets expensive, people start taking road trips. Even in a bad economy people need to take vacations. An inexpensive stay in a nearby vacation home is the perfect choice.

Tuesday, October 21, 2008

Buckeye transportation plans to extend railroad

Buckeye Logistics Transportation Center is planning to stretch nearly11, 000 acres near Arizona 85 and old highway 80, along union pacific Railroad corridor. Due to this there could be an increase in employment and the tax base. This project would generate employment to nearly 17,000 people. As the project moves forward there would be an increase in the number of jobs. As the fuel prices are on a rise, people prefer traveling from rail. So if this rail route is extended, more people will be able to travel at a lower cost. Rail freight is much cheaper than trucking freight. Only 6000 people used to live in 2000, but this has increased to 40,000 people. Due to this, there has been a rapid housing growth but employment has not grown at the same rate. Most jobs would be at or above the state's median income of $17 an hour. The jobs may include dock workers to haulers, account managers to executives in every sector.

Foreclosure auctions are going to increase rapidly in many areas like north suburban towns this year. In Glenview, the number of auctions has increased from 5 during the first half of 2007 to 20 in the first half of 2008. In Northbrook the increase has increased from 4 to 22, and in Skokie it has increased from 19 to 57. In Arlington land for sale the number has jumped from 12 to 39. This is only a small percentage of the total mortgages held in every town. Municipalities should look into this matter because many properties remain vacant for extended periods of time. Studies show that if there are vacant properties, this could give a negative impact to the surrounding property values. Municipalities, regional associations and community groups should take necessary action if they see vacant properties in the surrounding areas. The situation is becoming more complicated because the local community banker no longer holds the title of the property. It is generally becoming difficult to find a faceless entity about ways to expedite the sale of the property to get the home occupied again.

Arizona department of housing (ADH) will be receiving nearly $38 million to buy foreclosed homes, repair the home and then lease them to residents. Arizona will receive nearly $121 million in federal funds to solve the problems relating to home foreclosures in the neighborhood areas. Eight other country and municipal government will receive federal funds. Although these federal funds will not be sufficient to clean up all the foreclosed properties it can improve the situation in some neighborhood areas. Many states that have received federal funds are as follows- Florida tops the list with $541 million, next is California which received $530 million, and then comes Michigan with $264 million. Arizona has received nearly $121 million ranking 9th in terms of receiving federal funds. Nevada which is considered having highest foreclosure rate has received just $72 million. Every state has received at least $19.6 million as part of the federal blight-mitigation plan. Some states like southwest, Rust Belt, Mid-Atlantic and southwest have received more money from federal blight mitigation plan.

Apartment owners and operators are seeing slow down in the economy. The slow down in economy is due to job cuts, lackluster capital markets and increase in operating expenses which is a major cause of worry for the future. One of the reason for slow down in economy is due to job losses. The demand for sales of single family homes is on high even when there is slow down in economy. As the supply has exceeded demand for single family homes the home prices have declined 5 to 20 percent. The ratio of home prices to rents exceeded its long term norm by 50 to 60 percent during the housing boom. There is going to be another 10 to 20 percent of combined rent increases and/or home price decreases before the ratio is back to normal. Since there's lot of uncertainty in the market, many believe that asset values are on the decline. Cap rates will ultimately rise and remain higher, but it's going to take some time.

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