The Dealmaker: 10/06/2016

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The Dealmaker is a daily note of the day’s top real estate stories served just in time for lunch. Bon Appetit! Subscribe here to receive the Dealmaker to your inbox.  

 

The housing cycle: market by market; John Burns Real Estate Consulting rates Phoenix in an expansion phase. According to John Burns Real Estate Consulting, Phoenix is among the cities undergoing an “Expansion” — with “capital investment, rising sales and prices, good affordability, and low construction” serving as the benchmarks. BTW, thanks to Brian Rosella (vp, Cushman & Wakefield) for bringing this graph and article to our attention. They’re up now, at Rose Law Group Reporter. http://bit.ly/2dBytlm

Phoenix OKs incentives for downtown Fry’s grocery store, high-rise. “The City Council approved on a 7-2 vote a package of financial incentives [$18.3 million plus property-tax breaks] to launch the project [300 apartments,1,500 square feet of office space and… downtown Phoenix’s only grocery store…. by RED Development].” Further details, including the council members who voted AGAINST it — and why — at AZCentral. http://bit.ly/2dhQrYK

REACHING FOR THE SKYE – Scottsdale Skye on McDowell subdivision looks to move into phase two. And what will it take to get to the next phase? According this report in Scottsdale Independent, it will require “a non-major amendment to the [city’s] General Plan 2001… Additionally, the city would need to approve an ordinance requesting a zoning district map amendment…” Click through for more on these resolutions, which are expected to be considered at an Oct. 10 city council meeting. http://bit.ly/2cWVPzu

Homebuilder enters Arizona market at 50,000-home Estrella development. “Texas-based Terrata Homes has plans for 92 homes at Newland Communities’ Estrella development… west of Estrella Mountain Park and south of State Route 85….” Phoenix Business Journal’s Mike Sunnucks also reports that “Terrata’s Goodyear homes will be more than 2,000 square feet on 65-foot-wide lots.” http://bit.ly/2dNRPmI

LEGAL ACTION AHEAD – Goldwater Institute sues City of Scottsdale for targeting farmers market signs. “Represented by… the Goldwater Institute… businesswoman Aaron Shearer filed a lawsuit challenging the constitutionality of Scottsdale’s ordinances that regulate signs. Ms. Shearer, owner of Green Bee farmers market, argues that the sign ordinances violate her rights to free speech and equal protection under the state and federal constitutions.” More here: http://bit.ly/2dy4dZ7

Some big U.S. cities see apartment rents fall for first time in years. “San Francisco and New York are leading the way in the downturn,” said Ken Rosen, chairman of the Fisher Center of Real Estate and Urban Economics at the University of California at Berkeley. “People are going to be surprised that this is happening but they shouldn’t be. It’s been too far, too fast.” For more on what The Wall Street Journal calls “a dramatic reversal that could signal the end of a six-year boom,” plus a related link for rent trend data in Phoenix, click it—> http://bit.ly/2dHYYrw

The latest in masterplan amenity innovation. “Velodromes, tree houses, zip lines, and even zoos have become hot new amenities for successful master-planned communities.” John Burns Real Estate Consulting surveyed “more than 270 master-planned communities for [their] annual ranking of the 50 top-selling communities… [and] discovered numerous jaw-dropping amenities.” Check them out, in Rose Law Group Reporter. http://bit.ly/2dVGd59

Refinances help mortgage applications advance. Mortgage News Daily  furnishes us with the latest figures from MBA’s Market Composite Index.  Here’s a peek… While purchasing applications”dip[ped],” the Refi Index “increased by 5 percent from the previous week and the share of refinancing applications increased to 63.8 percent of total activity, up from 62.7 percent…” http://bit.ly/2dhRTu9

Mortgage rates highest since before Brexit. “For most lenders, that means conventional 30yr fixed quotes of 3.5-3.625% for strong scenarios,”  accordingMortgage News Daily. This report goes on to say that today’s higher rates were driven by “much stronger-than-expected economic data.” For Loan Originator Perspectives, Best-Execution Rates, and Ongoing Lock/Float Considerations, you know what to do —> http://bit.ly/2dOi5fQ

Is it time to start worrying about housing prices? Inman’s Sean Becketti looks at how “surging house prices have led some to worry about the potential for another house price bubble.” He writes: When credit conditions are deteriorating and there are non-financial reasons for high prices, watch out.”
http://bit.ly/2dPhIa5

Dealmaker BONUS: Here’s what the U.S. would look like if everyone lived in a tiny home. In her rather whimsical piece, Realtor.com columnist Yuqing Pan muses about what “the nation [would] look like without McMansions and ranches and rambling old houses with plenty of space to roam… if all households in the U.S…. lived in 250-square-foot tiny homes, clustered together.” [Not to mention what the reactions would be from some of our more high-profile fellow Americans. For example, Trump: “I don’t like it; I want YUGE!”; Tom Cruise: “What are you talkin’ about!? These little things are GIGANTIC!”; Hillary: “At least the walls are narrow; maybe they’ll help support me when I fall.”; Bill Clinton: “And here I thought sneakin’ the ladies by Hil’ and into the Oval Office was tough! Man, I got my work cut out!”] http://bit.ly/2dvGv3d

The World’s Greatest Polo Party Is Only A Month Away! – http://bit.ly/2dvLKfO

Because you are an informed person, as a supplement to the Dealmaker, we are providing you 3 (sometimes more/less) non-real estate related articles we thought you might enjoy!
 

[OPINION] A river runs through them: Why the arguments for “decommissioning” Glen Canyon Dam don’t hold water. Countering “people who claim decommissioning Glen Canyon Dam… makes sound water-management sense,” The Arizona Department of Water Resources fires back with: “Taking one of the two great Colorado River system dams out of service would be like removing one of the wheels of your bicycle and presuming that everything will continue working just fine. It won’t.” Click through to read this, the “second of a two-part series addressing the nature of Glen Canyon Dam and its role in the Colorado River water system.”  http://bit.ly/2dvRoQi 

TAX SCOFFLAWS: REJOICE! – Department of Revenue down to four bean counters. At least according to Georganna Meyer, “the agency’s former chief economist,” who’s quoted in this Arizona Capitol Times’piece as saying, “[the agency is] down to four corporate income tax auditors, which says to me… there is no corporate income tax auditing occurring…” So how many corporate auditors does the agency “typically” have?  And how many companies do they watch?  Answers here: http://bit.ly/2dvIGDI

Arizona’s job growth expected to slow, but to outpace U.S. average. “Total employment should grow by about 580,000 over an 11-year study period starting with 2014, said Doug Walls, research administrator for the state Office of Economic Opportunity. [T]hat translates to about a 1.9 percent annual growth [versus] a 2.3 percent growth rate annually since the recession ended.” Economist Elliott Pollack also gives his “take on employment growth and where it is occurring,” in this report by Howard Fischer (Capitol Media Services] at Arizona Daily Sun. http://bit.ly/2dHZplG

Nevada governor calls special session for Monday to consider Raiders stadium plan. “Gov. Brian Sandoval… summoned Nevada lawmakers to Carson City… to consider… a measure to raise Clark County room taxes to finance $750 million of a proposed $1.9 billion domed [65,000-seat] stadium in Las Vegas, the potential new home of the NFL’s Oakland Raiders and UNLV football team.” — in the Las Vegas Review-Journal, where the rendering will have you wondering, Is that really the stadium? Or has the MOTHERSHIP landed!?! http://bit.ly/2d6ruBS

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Rose Law Group Reporter, which provides Dealmaker’s content and service, is contracted by Rose Law Group.  Rose Law Group is a full service real estate and business Law Firm practicing in the areas of land use/entitlements, real estate transactions, real estate due diligence/project management, special districts, tax law, water law, business litigation, corporate formation, intellectual property, asset protection, ADA compliance, estate planning, family law, cyber-law, online reputation and defamation, lobbying, energy and renewable energy, tax credits/financing, employment law, Native American law, equine law, DUIs, and medical marijuana, among others.  The views expressed above are not necessarily those of Rose Law Group pc or its associates and are in no way legal advice. This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.

Belfiore Real Estate Consulting is Arizona’s leading housing market research firm.  The company couples its surveys of up to 350 new home subdivision sales personnel monthly with resale and public data, as well as the perspectives of leading development, homebuilding, lenders, brokerage, real estate law, contractors, and investors to report on and forecast residential housing market conditions.

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