Land Prices Headed Up (Phoenix, Prescott: lease, condos, loans)

[autism360]

As it seems Arizona does NOT provide the same level of services for Asperger's Syndrome, I can NOT leave California until my children are appropriately provided for. We will leave our adult adult children here, employed and receiving appropriate supports, before heading to Arizona. This takes time as we are finalizing the process of having our children appropriately cared for.

Also, we do not not plan to buy an empty lot. Purchasing and implementing the siting of a manufactured home is expensive and not the choice we wish to make.

Arizona last month ranked number one out of all 50 states in the country for services for those with disibilities.
If you choose not to buy a piece of land to lock in current pricing that is your decision but prices have been rising at a steady clip in Phoenix and the only way to lock in todays prices is to buy at todays prices. Best of luck with your future plans.

Below is a quote from the latest Cromford report regarding the current state of pricing in the Phoenix area, although Nothern Arizona is a distance from Phoenix history tells us the pricing relationship in N AZ tends to mirror PHX although there does seem to be a time lag.

The number of active new home subdivisions has crept up slightly in the first few months of 2013, but we remain in the mid 300’s (334 as of April), still way below the 600 or so we would see in a normal new home market. Homebuilders are seeing traffic levels at their highest since 2007, but new home contract signings, while as strong as last year, are not meeting their higher expectations. There are clearly plenty of people who wish to buy homes, but for a significant proportion of them, increased pricing means they face an affordability challenge. With all the recent talk in the media about “another bubble”, perhaps they believe (or hope) prices may come back down if they wait. This is an ill-advised strategy. Given the balance between supply and population growth in Phoenix, prices are unlikely to fall below today’s level and are more likely to continue to climb for a very long time.
Building land, materials and construction labor costs are all rising as subcontractors struggle to attract additional people into their workforce. The resulting increase in new home costs will create a vacuum which will tend to pull resale prices still higher while the inventory shortage prevails
Anyone who needs to buy a home in Greater Phoenix would probably be better advised to do so now rather than wait, since waiting will almost certainly mean a higher purchase price and possibly a higher loan interest rate too.

[Steve Pickering]

There is still a lot of $2,000 to $4,000 per acre land just north between Kingman and Prescott. This undeveloped land has been anywhere from $250 per acre to $4,000 per acre for a couple of decades and it will be for another couple of decades. Actually it hasn't appreciated much at all since the 1960's when most of it was bought up by unscrupulous land dealers.

[autism360]

There is still a lot of $2,000 to $4,000 per acre land just north between Kingman and Prescott. This undeveloped land has been anywhere from $250 per acre to $4,000 per acre for a couple of decades and it will be for another couple of decades. Actually it hasn't appreciated much at all since the 1960's when most of it was bought up by unscrupulous land dealers.

Most folks are interested in land within 30-45 minutes of a fairly large city, with electricity and the possibility of a well or city water. When the land is undeveloped most folks get uncomfortable.

[BriansPerspective]

Originally Posted by Steve Pickering

There is still a lot of $2,000 to $4,000 per acre land just north between Kingman and Prescott. This undeveloped land has been anywhere from $250 per acre to $4,000 per acre for a couple of decades and it will be for another couple of decades. Actually it hasn't appreciated much at all since the 1960's when most of it was bought up by unscrupulous land dealers.

Unfortunately, the gas for the helicopter to get to that land remains prohibitively expensive

[wretched wrench]

Originally Posted by autism360

When the land is undeveloped most folks get uncomfortable.

Rightly so.

APS really ripped me, charging me way way more (triple) than they had quoted. I had no recourse, since they are a monopoly regulated by a rubber-stamp commission.

I paid the going rate for my well, so at least I knew going in. I am a dowser, so there was no uncertainty about where to drill, but we were very relieved to have good safe water. And running a pump to get your free water is not cheap, BTW.

And there is the uncertainty of how your land will perk for septic. And the expense of a septic system.

And propane is the most expensive way to heat a house or water, but I knew that going in. And I pay high rates for satellite internet since we have no cell coverage, and had to wait for someone to die or stop paying their bill to get a phone line. Which works when it feels like it.

And there is the open range issue. You'd better be OK with cattle in your yard or spend the bucks for a "Lawful Fence", unless you want them drinking out of your hot tub and eating your vegetables and plants.

I regret nothing, but just wanna let you know what the deal is.

[Steve Pickering]

Originally Posted by wretched wrench

Rightly so.

APS really ripped me, charging me way way more (triple) than they had quoted. I had no recourse, since they are a monopoly regulated by a rubber-stamp commission.

I paid the going rate for my well, so at least I knew going in. I am a dowser, so there was no uncertainty about where to drill, but we were very relieved to have good safe water. And running a pump to get your free water is not cheap, BTW.

And there is the uncertainty of how your land will perk for septic. And the expense of a septic system.

And propane is the most expensive way to heat a house or water, but I knew that going in. And I pay high rates for satellite internet since we have no cell coverage, and had to wait for someone to die or stop paying their bill to get a phone line. Which works when it feels like it.

And there is the open range issue. You'd better be OK with cattle in your yard or spend the bucks for a "Lawful Fence", unless you want them drinking out of your hot tub and eating your vegetables and plants.

I regret nothing, but just wanna let you know what the deal is.

Good post. I went through the same thing just south of Maricopa. If you are going to buy bare Arizona land, you better know what you are doing. I developing my third Bare Land Parciel right now at Sunsites. This one I am doing off grid because of septic, power, and water costs. And there is nothing like seeing your first sheet flood put 4 inches of water in a layer across your property and then be gone in ten minutes

[autism360]

APS really ripped me, charging me way way more (triple) than they had quoted. I had no recourse, since they are a monopoly regulated by a rubber-stamp commission.

Life is good if you are the owner of your very own monopoly and you can make friends $$$$ with the rubber stamp commission but not so good if you are the (victim)aka customer of one. I got burned by APS also.

[autism360]

There are clearly plenty of people who wish to buy homes, but for a significant proportion of them, increased pricing means they face an affordability challenge. With all the recent talk in the media about “another bubble”, perhaps they believe (or hope) prices may come back down if they wait. This is an ill-advised strategy. Given the balance between supply and population growth in Phoenix, prices are unlikely to fall below today’s level and are more likely to continue to climb for a very long time.
[SIZE=4]Building land, materials and construction labor costs are all rising [/SIZE]as subcontractors struggle to attract additional people into their workforce. The resulting increase in new home costs will create a vacuum which will tend to pull resale prices still higher while the inventory shortage prevails.

This a direct quote from the latest WP Carey Cromford Report for the Phoenix area which directly impacts the Prescott area real estate market.

[autism360]

http://www.azcentral.com/business/ar...ource=nletter-

Shaking off a population slump tied to the housing bust, Phoenix once again was among the nation’s fastest-growing cities last year, newly released Census Bureau estimates show.

Population growth = land being purchased to build homes

FHFA: Home Prices Rise for 7th Straight Quarter

U.S. home prices appreciated at a strong pace in the first quarter as prices rose 1.9 percent from the previous quarter, the Federal Housing Finance Agency (FHFA) reported. The quarterly gain marks the seventh straight increase. Compared to the first quarter of 2012, prices were up by 6.7 percent, according to the FHFA's seasonally adjusted, purchase only House Price Index (HPI). From February to March, the index increased by 1.3 percent. FHFA also reported 41 states plus the District of Columbia experienced quarterly price gains. » Read More

[infocyde]

I wish people would look at homes as places to live rather than investments. That is how these boom/bust cycles keep happening. Houses are like any commodity where speculators play their games and screw us all.

You know why land prices are headed up? Let me clue you in. Banks sell "toxic assets" to the federal reserve/fannie mae through fed programs at almost no loss to the banks (though your future earnings are on the hook). Fed/Fannie flip these assets to investors often funded by the very same banks for supper cheap. Investors either try to flip asset for a profit (nice since they aren't putting up really any collateral) or rent them. An investor push, not families, is mostly driving home prices up. Millions of homes still unoccupied and in the foreclosure process purposely being slowed to market to create scarcity. Another bubble cometh. I'm not against investors but I am against the way this is all being done and how it is creating another bubble. Get in now and out before the *pop*.