Continued nose-dive for Southland home sales

Projects to add downtown office space
from The Arizona Republic, reports that Downtown Phoenix's lack of office space could change dramatically in the next couple of years as builders boost inventory. According to a report by Integra Realty Resource Inc, between 2008 and 2011, they are set to increase supply in the city's "central business district" by 2.1 million square feet, or 58.5% more than current inventory level. The latest market report from commercial brokerage firm CB Richard Ellis showed the vacancy rate for such space in downtown Phoenix during the fourth quarter of 2007 was 5.8% for Class A, or high-end, space. Mindy Korth, an executive vice president in CBRE's Phoenix office, cites the mixed-use CityScape project and One Central Park East tower, both under construction in downtown, as projects that will alleviate current stress. Both developments are scheduled to be completed in late 2009 and are expected to add a combined 1.1 million square feet of high-end office space to the submarket.

NAR Campaign Talks Up Value of Homeownership
from Realtor Online Magazine, reports that the National Association of Realtors is reaching out to consumers with the facts about homeownership and the value of real estate as a long term investment. The new advertising campaign will provide current, relevant housing data to help would-be home owners make informed decisions about buying a home. NAR President Dick Gaylord said, "Nobody buys a home in the national real estate market. All real estate markets are local. ... It's also advisable to look beyond the immediate horizon - real estate has proven itself to be a good long-term investment and a safe, secure way to build long-term wealth." Existing-home sales are likely to total 5.66 million in 2007, the fifth highest on record, rising to 5.7 million in 2008 and 5.91 million in 2009, according to NAR's most recent forecast. The good news for buyers is existing-home prices are likely to be down 1.9% to a median of $217,600 for all of 2007, prices are expected to hold steady in 2008, and then rise 3.1% in 2009 to $224,400.

DataQuick: SoCal Record Low December Sales, Prices off 15.8% From Peak:
From DataQuick: Continued nose-dive for Southland home sales

A total of 13,240 new and resale houses and condos were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in December. That was up 0.5 percent from 13,173 for the previous month, and down 45.3 percent from 24,209 for December last year, according to DataQuick Information Systems.

Last month's sales were by far the lowest for any December in DataQuick's statistics, which go back to 1988. The sales count was 23.5 percent below the previous December low of 17,272 in 1990. The average December over the past 20 years is 25,543, the all-time peak for the month was reached in 2003 when 36,865 homes were sold.

Last month's median was 15.8 percent below the $505,000 peak reached last spring and summer. While the steep decline in median sales price does reflect a drop in prices, it also reflects significant shifts in the types of homes selling. Particularly noticeable is a drop-off in sales of more expensive homes financed with "jumbo" mortgages.

Btw, at yesterday's State of the State Address, Governor Janet Napolitano announced her three-step plan to address Arizona's "subprime-lending debacle." Governor Napolitano stated, " First, the Department of Real Estate, at my direction, has created the Homebuyers' Bill of Rights. It is available now, on the Web and in print, and it gives homebuyers information about roads, water, police and fire services and more. It's a tool for making educated financial decisions, and it's step one." For the full text of her address go to www.az.gov. The Department worked cooperatively with Industry and the Public to create the "Bill of Rights" which is posted as a quick link at www.AZRE.gov