New Intel facility in Chandler? / Chandler real estate / Chandler Arizona

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Posted on 2nd March 2011 by Anthony in Uncategorized

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Intel has committed to invest 5 billion in a new factory that will for sure boost the Chandler real estate market.   In short with such an investment, and such a big job draw, it can only help an ailing arizona real estate market.  In the big picture the real estate market is driven by jobs, without a job it doesn’t matter what your credit score is, without a job, you have no money to purchase a house, so you can see why a project like this is so vital to the Chandler real estate market, and the Arizona economy.  With so much joblosses incurred by the state, and by the country the thousands of temporary construction and factory jobs will be a success.  With longer term high paying jobs in the near future this project has really turned into a big winner for Chandler Arizona.

The facility hopes to open for business in 2013 and they will be producing high volume semi conductors, and the plany will be called fab 42.  Such a move will be sure to initiate the jobs beign relocated to Arizona.  This is what Arizona does best, build expand and produce more jobs.  This is the first big step that Arizona has taken in the empoyment sector. 

The new plant can be directly attested to the  2005 passed legislation that helped companies such as Intel that have expensive facilities and high wages but sell little within the state.  In short, if companies made a billion dollar investment in the state, then the sales counted for tax purposes would only be those in Arizona.  This is what prompted Intel to make the decision, good legislation!

Here are some interesting stats about the new Intel plant:

  • Over 320 million in direct revenue to Arizona over the next decade
  • 569 million when you take multipliers into effect
  • target date is 2013
  • 19,000 temporary jobs
  • 1,000 full time high salary positions
  • 3,000 construction jobs

As far as the city of Chandler they could not be happier.  with such a major employer in their backyard, that will only boost Chandler real estate.  Currently Intel employ’s just under 10k employees, and they are the biggest job provider in the East Valley, and that number will only grow for Chandler Arizona.  Chandler real estate has taken a hit like everywhere else around the country, but with it’s great centralized location, good schools, and plenty of jobs, Chandler has really positioned itself to continue to grow and move forward.  Intel will not only help Chandler Arizona, but surrounding cities like Maricopa, Casa Grande, Gilbert, Queen Creek, and other cities where the prices of homes are less, and they are still within a 40 minute drive to work.  There is no doubt that this is a major benefit to Chandler, the surrounding cities and the state.

Market Statistics / Buy a home in Casa Grande / Maricopa real estate

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Posted on 2nd March 2011 by Anthony in Case-Shiller Index

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Case-Shiller December 2010

Casa Grande, and Maricopa real estate were not represented in this nationwide real estate track.  Last week, Standard & Poor’s released its Case-Shiller Index for December 2010. The index is a home valuation tracker, meant to meausure the change in home prices from one period to the next.

December’s Case-Shiller Index showed major devaluations nationwide. As compared to December 2009, on a year-over-year basis, home values fell in 18 of the Case Shiller Index’s 20 tracked markets, and the U.S. National Index dropped 4 percent overall. 

The retreat puts December’s home values at similar levels as compared to early-2003.

That said, buyers and sellers would be wise to take the findings lightly. The Case-Shiller Index is inherently flawed. As such, its results are neither practical — nor relevant — to everyday Americans.  Maricopa real estate is still a great buy, so are homes in Casa Grande, the market seems to be stabilizing, so the time to buy a home in casa grande is now!

There are 3 Case-Shiller flaws, in fact.

The first flaw is the index’s limited sample set. Wikipedia lists 3,100+ municipalities nationwide and we can be certain that real estate is bought and sold in all of them. The Case-Shiller Index, however, measures just 20 of them. That’s less than 1% of all U.S. cities. And then, within those tracked cities, Case-Shiller reports an average, lumping disparate neighborhoods and streets into one big number.  Pinal County, and cities like Maricopa and Casa Grande were not counted in this measure.  Homes for sale in Phoenix and the surrounding areas have been counted.

The “national figures” aren’t really national, and the “city data” doesn’t apply to your home, specifically.  For more information about Pinal County information please visit http://www.caredf.org/.

The second Case-Shiller Index flaw is how it measures home value changes. The index only consider at “repeat sales” of the same home, so long as that home is a single-family, detached property. Condominiums, multi-family homes, and new construction are ignored in the Case-Shiller Index.

Because distressed properties account for such a high percentage of resales lately — 36% in December –foreclosures and short sales skew Case-Shiller Index worse.

And, lastly, the Case-Shiller Index is flawed by “age”. Because it reports closed sales a 60-day delay, December’s Case-Shiller Index is measuring the values of home sales contracts from September and October. The Case-Shiller Index, therefore, is a snapshot of the not-so-recent past, and does little to tell us about the next 60 days.

Overall, the Case-Shiller Index is helpful tool for economists and policy-makers, but it doesn’t do much good for individual homeowners across the city of Maricopa or anywhere else. For accurate, real-time housing data in your local market, talk to a real estate professional instead.  For more information about Maricopa real estate visit www.pru1re.com.  Looking to buy a home in Casa Grande?  Search all Casa Grande foreclosures.  Need a loan?  Click here

Pending Home Sales Drop / buy a home in Maricopa Arizona

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Posted on 1st March 2011 by Anthony in Pending Home Sales

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Pending Home Sales July 2009 - January 2011After a strong run to close out 2010, the market for home resales softened a bit in January.  This could be great news for people looking to buy a home in Maricopa Arizona.  Maricopa real estate was strong to end out the quarter with strong home sales, but the first of the year has steadied out.  But with this news , the time to buy a home in Maricopa Arizona is now!

On a seasonally-adjusted basis, the Pending Home Sales Index dropped 3 percent last month, and December’s figures were revised downward for a loss, too, according to the National Association of REALTORS®.

A “pending home sale” is defined as a home under contract to sell, but not yet closed. 

The forward-looking index is now at a 3-month low on a national level, but still well ahead of its rolling 6-month average.

Unfortunately, national data isn’t overly helpful for buyers and sellers of real estate. The National Association of REALTORS® knows this, of course, and makes an effort to get more granular, supplementing the Pending Home Sales Index report with a region-by-region breakdown. 

Between December and January, only the South Region increased in sales volume. The Midwest led the losers:

  • Northeast Region: -2.4%
  • Midwest Region : -7.3%
  • South Region : +1.4%
  • West Region : -5.2%

Maricopa real estate is in the west bracket, down, but still selling a high volume of homes. Even still, however, regional data remains too broad to be practical. The South Region, for example, is comprised of multiple states with thousands of cities and town. The housing market dynamics of a specific neighborhood in a specific regional city will differ from that of another neighborhood in another regional city.

Real estate data must be local to be relevant.

Overall, then, what may be most telling from January’s Pending Home Sales Index is how weather can influence results.

Most of the country faced drastic weather conditions in January, ranging from raging snowstorms to bitter cold. Events like that tend to put a damper on home sales, a contributing factor in why the number of new contracts fell.

Another reason is rising mortgage rates. Conforming and FHA rates rose week-by-week in January, robbing home buyers of 10% of their purchasing power. This, too, can slow down purchase activity as buyers adjust their expectations.

Looking forward, we should expect the Pending Home Sales Index to resume rising. Inclement weather doesn’t kill demand; it just delays it. And mortgage rates have settled somewhat. These two factors should help release pent-up demand just as the Spring Homebuying Season gets underway.

As more buyers enter the market, negotiation leverage will shift to home sellers, pressuring Queen Creek home prices higher. The lowest prices of the year — and the cheapest financing — could be what you see today.  If you are looking to buy a home in Maricopa Arizona, or are looking to get a loan for Maricopa real estate please visit www.pru1re.com.

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