The residential real estate market continued to gain momentum during March as the number of foreclosure notices hit a five-year low. Last month, 512 trustee’s notices were issued, the smallest monthly total since 475 notices were served in December 2007.
Year-to-date, 1,677 notices have been issued, down from 2,527 statements during the first three months of 2012 (see chart). That represents a 34 percent decrease year-over-year for the quarter, according to new data from the Pima County Recorder’s Office.
With fewer distressed homes coming onto the market, sales of foreclosed homes also have slowed. Foreclosure sales have dropped from 1,342 units in the 2012 first quarter to 1,017 units this year. That is a decline of 325 homes, or 24 percent fewer sales.
For 2012, an average of 485 distressed homes were sold monthly. Year-to-date in 2013, the rate is now 339 sales per month.
Since May 2012, foreclosure notices have been trending downward. During 2012, an average 774 notices per month were issued. So far, the 2013 monthly pace is averaging 559 notices per month.
A notice of trustee’s sale is the first step in the foreclosure process. Since 2010, about 65 percent of households served with notices have been unable to work out a mortgage modification and ended up losing their homes.
As the new housing numbers roll in, they sure make the prognosticators look good. For months, real estate, construction and land experts have been predicting strong construction activity in early 2013 for the Marana and northwest markets. So far, their forecasts have come to fruition.
For the 2013 first quarter, construction permits for new single family homes have spiked 48.5 percent higher than a year ago. Since January, 649 permits have been issued compared to 437 for the 2012 first quarter, according to Ginger Kneup, owner of Bright Future Real Estate Research.
The largest increase was in Marana with 235 first-quarter permits compared to just 97 for the same year-ago period. Kneup noted that the 138-permit increase is a 142 percent jump in activity.
Oro Valley is 51 permits ahead of last year’s quarterly pace of 20 permits. For the same period, Pima County increased from 146 to 183 permits. The only notable decrease was in the City of Tucson where permits declined 26 percent, dropping from 74 to 55 permits.
Too many too fast?
Is Tucson’s dynamic student housing market already over-built before every planned project has been completed? The Metropolitan Pima Alliance (MPA) will address the issue at a forum next Friday (April 19).
Melissa Vito, vice president of student affairs at the University of Arizona, will moderate “What is the market of student housing?” Confirmed speakers include Steve Bus, vice president of Campus Acquisitions; and Bob Kaplan, principal of Picor Commercial Real Estate Services. Executives from student housing developers Core Campus and Capstone have been invited but not yet confirmed.
The event is from 7:15-9 a.m., April 19 in the Community Room of the Tucson Association of Realtors, 2445 N. Tucson Blvd. The cost is $25 for MPA members; $45 for non-members and walk-ins. Registration and details are at http://mpaaz.org.
The Alliance of Construction Trades (ACT) will hold its annual Construction Industry Trade Show May 15 at the Hotel Tucson City Center, 475 N. Granada Ave. More than 100 exhibitors are expected, said ACT executive director Jim Kuliesh.
The event is open to anyone working in or affiliated with the construction industry. Business owners and the general public looking for construction services are also welcome. Details are online at www.actaz.net or call (520) 624-3002.
Dealing in Mexico
The Tucson CREW (Commercial Real Estate Women) will present “Doing a Deal in Mexico” Thursday (April 18). It’s a forum focusing on real estate, legal and tax considerations when doing business across the border.
The event will feature panelists Miguel Tapia, senior counsel with Salazar International Advisors; Denisse Angulo, bilingual real estate advisor in regional marketing with Picor Commercial Real Estate Services; and David Lopez-Monroy, shareholder with Beach Fleischman PC.
The forum will be held in the Safari Room at the Arizona Inn, 2200 E. Elm St. Registration is at 11:30 a.m. with luncheon program scheduled for noon-1 p.m. Cost is $25 for CREW members; $40 for non-members and walk-ins. Registration and details are at www.tucsoncrew.org.
Sales and leases
• Lennar Homes Tucson purchased 45 finished lots for $2.25 million in the Eagle Crest Ranch Phase V development at the northeast corner of Oracle Road and Eagle Crest Ranch Boulevard across the Pima County line in Pinal County. The seller was CRVI H-AZCO LLC, Austin, Texas. The transaction was handled by Will White, Land Advisors Organization.
• Legacy Property Management LLC purchased a 45,675 square-foot industrial building at 4700 S. Overland Drive for $4.625 million from Brian Realty Group LLC, represented by Rob Glaser, Picor Commercial Real Estate Services. The buyer was represented by Jon Garvey and Henry Wildermuth, Available Properties.
• Wholesalers Property Co. purchased a 25,412 square-foot industrial building at 2565 N. Huachuca for $1.17 million from Tucson Bradley Group LLC, represented by Rob Glaser and Paul Hooker, Picor Commercial Real Estate Services. The buyer was represented by Tim Healy and Bob DeLaney, CBRE.
• Jon and Stephen Offerman purchased the 35-unit Annandale Apartments, 5601 E. Fifth St., for $902,424 from Mahalo Commercial Properties 10 LLC. The transaction was handled by Bob Kaplan and Allan Mendelsberg, Picor Commercial Real Estate Services.
• Modern Court Properties purchased a 6,400 square-foot office/warehouse at 1621 W. Modern Court for $485,000 from Tessman LLC, represented by Ron Zimmerman, Newmark Grubb Knight Frank. The buyer was represented by Paul Hooker, Picor Commercial Real Estate Services.
• DT and KP Investments LLC purchased 1934 E. 18th St. for $120,000 from Tierra Natal Revocable Living Trust, represented by Allan Moore, Chapman Lindsey Commercial Real Estate. The buyer was represented by Dave Gallaher, Tucson Industrial Realty.
Email sales and leases and other real estate news items to firstname.lastname@example.org. This is the final Real Estate & Construction column written by Roger Yohem, who is leaving Inside Tucson Business. But the column will continue.