Cushman & Wakefield of Arizona, Inc.
With Arizona experiencing population and employment growth, why is it that housing sales are flat and not living up to expectations?
That was the topic discussed at Valley Partnership’s April breakfast, which was attended by a record 300 plus partners.
Jim Belfiore of Jim Belfiore Real Estate Consulting served as moderator. The panel featured three residential development experts: Jeff Gunderson, Senior Vice President-Land, Lennar Homes; Mike Jesberger, Principal, Terrawest Communities; and Susan Walker, Regional Manager, Wells Fargo Home Mortgage.
The Mayor’s Minute featured Sharon Wolcott from the City of Surprise. Her talk served as the perfect lead-in for the discussion. Surprise is a bustling suburb in the Southwest Valley with room to grow. It soon will benefit from the opening of the Loop 303, both on the residential and commercial side. Or will it?
A survey of the Valley’s housing market shows it is flat compared to last year. It is especially flat compared to 2012 when the housing market surged. The reasons? Buyer hesitation was mentioned as one of the factors, as was FHA loan limits.
“It’s tough to get deals done today,” Gunderson said. “Deals were getting done in 2012 because prices and absorption increased. And now, it’s about how people are feeling. About the economy. About their jobs. The largest purchase a person makes is now based on a feeling.”
Jesberger offered a solution, saying once municipalities get their balance sheets in order, they can begin to attract economic development.
“Patience, patience, patience. Jobs, jobs, jobs,” he said.
As Metro Phoenix continues to grow, the housing market should continue to grow as well – primarily along the freeway corridors. The Southeast Valley, we were told, will continue to be a dominant player.
The big issues?
Walker said it’s “the process.”
“We need to educate the consumers and get the message out: there is money to lend,” she said.
Jesberger said it’s setting up the future for his division.
“It’s all about lead time. And trying to predict what’s going to happen. We need to be able to set up for future success.”
