News Article From: 12-27-2006
The third article, Business real estate outlook mostly sunny for '07, from the Arizona Republic, reports that most real estate experts expect commercial real estate in the Valley to have a very merry 2007. The consensus is that rents in all sectors will grow, vacancies will remain low, and institutional investors will continue pouring money into the area. The Valley is expected to be the choice location for companies that have traditionally looked to Southern California, Dallas, Denver and Atlanta to set up warehouses and office support. Economists are expecting that supply and demand for commercial real estate will be in balance in 2007, said Lee McPheters, director of the JP Morgan Chase Economic Outlook Center at ASU. "There's nothing right now putting the brakes on it," said Mc Pheters. The article gives individual forecasts for the industrial, office, retail and multi-family sectors. Very positive!
The fourth article, A recovery in Housing? Not so fast, from MSNBC.com, reports that a BusinessWeek analysis of the past three decades shows that if history repeats itself, it's likely to take 15 years or more for many parts of the country to get back to their inflation-adjusted peaks. The article states that for residential real estate, the outlook ranges from mildly positive to awful. The biggest losers will fall into one of these groups: cities like Detroit are suffering economic contractions; cities like Los Angeles, San Diego, and others in California where prices are extraordinarily high and have barely begun to adjust; and cities like Miami, Las Vegas, and Phoenix that have a huge overhang of unsold houses or condos. The article cites several economists predicting housing prices will fall from 3 to 10 percent from the end of 2006 to the end of 2007.
The fifth article, Price of single homes rises at 10-year low, from MSNBC.com, reports that prices of single-family homes across the nation rose in October at the slowest rate in almost a decade, according to a new report from Standard & Poor. The S&P report showed a 2.4 percent year-over-year increase in the price of a single-family home based on prices of existing homes tracked over time in 10 metropolitan markets. For its 20 city composite index, S&P showed that prices grew 2.9 percent, the slowest rate ever for that data. "Home price gains are continuing their steep deceleration," said Chief Economist Robert Shiller of MacroMarkets, LLC. "We can clearly see that the monthly price declines are widespread nationally." The data was consistent with the NAR data, which showed the median price of existing single-family homes fell to $221,000 in October, a decline of 3.5 percent from a year ago.