By Ed Egger
Inside Tucson Business
Published on Monday, June 16, 2008
Focusing only on citywide data or median home values could be a mistake for home buyers and sellers because they may miss important neighborhood details that could make a difference in buying or selling decisions.
Long Realty Companies has introduced a tool that provides data about specific neighborhoods. It’s data that can help with decisions on when, where and what price real estate should be sold.
Called the Long Research Center, it uses a software program called Broker Metrics that can take Multiple Listings Service data and break it down by zip code, neighborhood or subdivision and analyze it by total sales, median sales price, months of inventory and trends in each neighborhood.
As an example Kevin Kaplan, marketing director for Long, looked at zip code 85747 on the southeast side along Houghton Road, north of Interstate 10.
The general data show that median home prices are down 19.3 percent to $205,750 in May 2008 from $255,000 in May 2006.
But, on closer inspection using the Long Research Center, the May data showed this:
• The supply of inventory was down to just 2.9 months at current pacing from a high of 9.1 months seven months ago in October. (A normal inventory supply is about 6 months.)
• There were 276 homes for sale, down from a high of 416 in September 2006.
• The number of homes under contract was 62, up almost 32 percent from 47 under contract a year ago.
• There were 52 homes sold, nearly comparable to the 58 sold in May 2007.
The bottom line is that 41 percent of homes for sale in May in the 85747 zip code were either sold or under contract. Kaplan said a buyer wanting to buy in that zip code could logically conclude this is a good time to buy before supplies of inventory drop any more causing the supply-demand equation to start pushing prices higher. Sellers, on the other hand, may conclude that waiting could be a good strategy if they aren’t under pressure to sell immediately.
Kaplan also used the Research Center to check out what’s happening at the opposite end of the region, in Oro Valley. Median home prices have plummeted 25.7 percent in the past two years, 16.5 percent in the last year alone. But those falling prices have helped eat up 10 months’ worth of inventory just in the last five months down to 8 months in May from 18 months in December.
D-M AFB home contractor plans September rollout
After a year of planning and design work, the contractor selected to build and maintain military family housing at Davis-Monthan Air Force Base is planning a mid-September ribbon cutting — a month earlier than originally planned.
The Air Force Asset Management Group for Actus Lend Lease has signed a 50-year ground lease to build and maintain on-base housing equivalent to what is available off base. Soaring Heights Communities (SHC) is administering the Actus agreement at Davis-Monthan.
The SHC project involves demolition of 868 of 1,224 existing homes on 419 acres at Davis-Monthan, renovation of another 159 existing homes, and construction of 573 new homes for all ranks. Of the 159 to be renovated, about 25 are already completed with substantial upgrades in carpeting, tile, exterior landscaping and installation of all-Energy Star appliances.
The SHC communities also will feature playgrounds, community centers, fitness rooms and a "splash park," as well as walking trails.
The SHC project includes $232 million in construction costs over an initial seven-year development period that began last year. About 55 percent of the money is being spent at Davis-Monthan with the rest being put into Holloman Air Force Base near Alamogordo, N.M.
With local economies and construction industries in a funk, the good news, said Cindy Gersch, project marketing manager for Actus, is that about 85 percent of the subcontractors on the project are local.
Actus has developed 40,000 homes at more than 20 military installations in 12 states.
K. Hovnanian planning ‘biggest sale of year’
K. Hovnanian Homes will hold a two-day sales event June 21 and 22 it is billing as its biggest sale of the year at its age-restricted Four Seasons at Rancho del Lago development, west of Vail Road in Vail.
Among the promotions: no down payments, no closing costs, no fees on mortgages through K. Hovnanian American Mortgage, free washer and dryer and upgraded kitchen appliances and window coverings.
Staples signs lease at Campbell Plaza
Staples Office Superstore has announced its first location in the Tucson market will be a 20,388 square-foot store in Campbell Plaza, North Campbell Avenue and Glenn Street. The retailer has signed a 10-year lease and plans to have the store open in April 2009.
The store is one of five the company says it is planning to open in the market. It also means the nation’s three largest office supply retailers will be in the Tucson market - Staples, Office Depot and Office Max.
Nancy McClure and Shannon Murphy of CB Richard Ellis represented the landlord, Camelback Corporate Center Joint Venture LLC, a joint venture of Tucson-based Holualoa Arizona and Phoenix-based Pacific Ridge Properties. Greg Laing of Phoenix Commercial Advisors office represented Staples.
Worth Noting
• Commonwealth Investments LLC purchased a 7,955-square-foot industrial building at 2111 E. 17th Street for $825,000 from CFAM Properties LLC. Ron Zimmerman of Bourn Partners LLC represented the buyer. Rob Glaser of Picor represented the seller.
• Carapace LLC has purchased a 5,000-square-foot freestanding retail building at 4020 E. Speedway from K & E Buildings Family LLP for $462,500. Pete Villaescusa and Jesse Peron of CB Richard Ellis represented the seller. John Ash, also of CB Richard Ellis, represented the buyer. Carapace plans to convert the former Carquest Auto Parts store into professional office space.
• Sunflower Market leased 27,255 square feet at Marana Market Place, at the southeast corner of Orange Grove and River roads, from Larsen Baker. Andy Seleznov of Larsen Baker represented the landlord. Rick Volk of Volk Company represented Sunflower.
• Southern Arizona Legal Aid Inc. leased 15,690 square feet of office space at 2343 E. Broadway from Continental Development Company. Crystal McGuire of Buzz Isaacson Realty LLC negotiated the lease.
E-mail items for this feature to eegger@azbiz.com. Real Estate & Construction apppears weekly.
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