News Article From: 05-06-2006
The first article, As home prices rise, so does buyer risk, from the USA TODAY, reports that several markets in the U.S. are facing a higher risk of home price declines according to a study released by PMI Mortgage Insurance. The key findings of the report state that the risk of price declines has increased in 36 of the nations 50 largest housing markets. The number of markets with a 50% plus chance of a price drop jumped from 2 to 6. There is a 21.3% chance for a nationwide house-price drop. The highest risk areas remain on the coastal areas and in California. The article has a list of all the cities with their corresponding risk. It shows that Phoenix has a 9.2% risk factor for a housing price drop.
The second article, Commercial market stays strong in East Valley, from the East Valley Tribune, reports that demand for East Valley commercial buildings is red hot, according to statistics released by CB Richard Ellis. The vacancy rate for the 61 million square feet of office space around the Valley fell to 14.5%. In the SE Valley, the vacancy rate is 14.2%, and in Scottsdale, it is only 12.6%. "That makes it a landlord's market", said Pete Bolton of CB Richard Ellis. "Leasing activity will be extremely healthy as more companies look at the Valley's strong economy as a place to either open new locations or expand existing operations", the report said. "What's driving that is two things-- transportation corridors and rooftops," said Bolton. "There is growth in population and jobs."