east valley
Volume 4 Issue 10 Mesa, AZ
September 19, 2021
This 2,829-square-foot house on E. Enrose Street in Mesa recently sold for $728,500 – about $28,000 over the listing price. The four-bedroom, two-bath home, built in 1985, boasted a gourmet kitchen, refinished master suite, pool and other amenities. (Special to the Tribune)
Market ‘precarious’ for buyers and sellers, expert says BY PAUL MARYNIAK Tribune Executive Editor
D
IN THE BIZ
riven by iBuyers and investors that are gobbling up substantial numbers of houses, Valley home buyers and sellers may be entering a disquieting and even “precarious” period while renters are facing a continuing rise in rents, judging by the latest observations by a leading analyst of the Phoenix Metro market. The Cromford Report outlined a series of trends from August sales and listings that likely won’t bring many smiles to anyone but landlords. “Many surprising changes have occurred Public Notices ............... page 2 © Copyright, 2021 East Valley Tribune
in the market over the past month,” Cromford said as it reported that the average sale price per square foot soared by 27.9 percent between August 2019 and last month, up from $194.97 to $249.31. That pushed up the monthly median sales price in the same time period by 23.4 percent, from $325 to $401,000. Several developments in August caught the Cromford Report’s eye, particularly a decline in new listings that appears to have been driven by a spending spree by large investors and iBuyers. “Ordinary home buyers are losing some of their motivation, thanks to prices that are vastly higher than last year,” Cromford (USPS 004-616) is published weekly
Mailing Address: 1620 W. Fountainhead Pkwy., Suite 219, Tempe, AZ 85282
(480) 898-6500 Steven Strickbine, publisher Paul Maryniak, executive editor
said. “Despite low interest rates, affordability has slipped below the normal range for Greater Phoenix.” The report stated, “If it were not for the activity of investors and iBuyers – and particularly the latter – the market would have cooled during August. This would have been following the trend established since April. “However, iBuyers have purchased so many homes over the last month that they are significantly distorting the market dynamics. These homes are mostly going to be re-marketed shortly, so they will almost certainly increase supply over the coming weeks.” Cromford noted, “iBuyers have Subscriptions are $26 for 2 years, $14 for one year. Periodicals postage paid at Phoenix, AZ 85026.
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QuikTrip under construction at Cadence TRIBUNE NEWS STAFF
I
n the Eastmark/Cadence rapidly-booming area of southeast Mesa, there’s a Safeway gas station on Signal Butte Road north of Warner. But on the west side of the developments featuring hundreds of homes, it’s hard to find a drop of gas. That is rapidly changing, however, with construction underway for a new QuikTrip. The convenience store, gas station and QT Kitchen off South Ellsworth Road and East Cadence Parkway, in the Arrival at Cadence commercial center at the entrance of the Cadence at Gateway. Construction started in late July, with an expected opening before the end of the year. The Cadence QuikTrip location will have 16 gas nozzles. Cadence developer Harvard Invest-
made offers well in excess of the pricing that we saw from them” in the first half of 2021. He said it is unclear how iBuyers will price their homes once they return them to the market because “normal buyers no longer have the appetite” they showed through June 2021. “Achieving sale prices well over cost could prove quite tricky” for the iBuyers, it suggested. Cromford noted that iBuyers purchased about 2,869 homes over the last three months, which “represents almost 9 percent of resale purchases.” They also have not sold as many as they have bought, though they are selling more to institutional investors, the Cromford Report stated. Moreover, it noted, the prices paid by iBuyers for homes are 53-75 percent higher than they were paying a year ago, even though the median price of homes sold in the Phoenix Metro region has increased 26 percent. The iBuyer and investor buying spree has sharply impacted the availability of resale homes, it said. “We can see that the iBuyers (particularly Opendoor and Zillow) have increased
Construction started on a QT gas station at the entrance of Cadence at Gateway. (Special to the Tribune) ments also expects new businesses opening here soon: Point 22 Tavern, Cork Crush Wine Bar & Beer House, NextCare Urgent Care, Athletico Physical Therapy, BoSa Donuts and a nail spa to its shops.
The QT will be next to Mountainside Fitness, which opened this month, and Black Rock Coffee Bar.
their inventory massively,” the Cromford Report said. “If iBuyers had not done this, we estimate that supply would already be higher by some 1,800 listings…We conclude that pricing would also be weaker without their intervention. This begs the question: what happens if they stop buying on this massive scale?” “Investors, too, can decide to stop their buying spree at a moment’s notice. The market is therefore more precarious than if demand were primarily growing through owner-occupiers,” it added. The news is a lot happier for investors that rent – and not so hot for their tenants, judging by the Cromford Report’s findings. “Investors intending to rent out their properties are a different matter and the rapid rise in rents over the past year has justified them splashing out,” it said. “Indeed, far more homes are going from iBuyers straight to the rental operators than we saw prior to July 2021. This takes homes off the re-sale market for a long time and reduces supply.” It also noted “large scale investors with deep pockets are crowding out smaller investors.” “We have seen larger buying sprees from investors before, notably between 2011
and 2013,” it continued. “However we have never seen iBuyers so determined to increase their top line.” The average rental price per square foot has increased from $1 per square foot to $1.36 in the past two years, Cromford said. “That is a 36 percent increase in just two years and must be a budget problem for tens of thousands of tenants,” it said, noting rents increased by 28 percent in the previous 18-year period. “The cost of renting has escalated over a very short period,” Cromford said. “The housing bubble of 2004-2008 saw little to no rise in rents and in fact the low point was 64 cents in February 2005, just as the for-sale market was reaching its highest frenzy. This time is very different, showing that the rapid appreciation in home values is due to real shortage of housing rather than speculative activity based on easy money.” However, Cromford also noted that all housing costs are soaring in the Valley. “Although the cost of renting has jumped 36 percent over two years, the average home price per square foot has increased by far more – from $169.26 to $262.21, a jump of 55 percent,” it said.
EAST VALLEY BUSINESS
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For more information, visit cadenceaz.com.
SEPTEMBER 19, 2021
Public Notice Advertisement of Sale NOTICE IS HEREBY GIVEN that the under-signed intends to sell the personal property described below to enforce a lien imposed on said property pursuant to the Arizona Self-Service Storage Act, Arizona Statutes 33-1704, Section H, Enforcement of Lien. The Undersigned will sell at public sale by competitive bidding on or after September 24, 2021 at 9:00am using an online auction at www.storagetreasures.com, said property has been stored and located at US60 Self Storage, 1661 S Alma School Rd, Ste 105, Mesa, AZ 85210. Property to be sold as follows: Misc. household goods, personal items, furniture, clothing, toys and/or business fixtures and items belonging to the following: Tenant Name Unit # Dion Young 236 Karol Magistrelli, 353 Luis Rodriguez 302 Charmayne Willis 222 Israel Hicks 625 Laqueena Brown 631 Sale subject to cancellation in the event of settlement between owner and obligated party. Items sold “as is”, CASH ONLY, and Buyer must pay a security deposit and broom sweep/clean the unit. Go to www.storagetreasures.com to bid on unit(s). Published: East Valley Tribune Sept 12, 19, 2021 / 41237
Public Notice CITY OF MESA PUBLIC NOTICE FY 2022/2023 FUNDING AVAILABILITY Date of Publication: September 19, 2021 This City of Mesa is issuing this Notice of Funding Availability (NOFA) for Fiscal Year (FY) 202223. The following anticipated amounts will be available: CDBG: $7,421,931 ESG: $346,781 HOME: $1,672,821
Human Services: $520,000 Note: The HOME Housing Production application program is open year-round, and provides funding for For-Profit, NonProfit, and Community Housing Development Organizations. Funding for the above-mentioned federal programs (CDBG, ESG, and HOME) are provided by the U.S. Department of Housing and Urban Development (HUD) and used for housing and community development activities that primarily benefit low- and moderate-income persons and assist in the prevention or elimination of slum or blighting influences. Funding for the Human Services programs comes from the City’s general fund and the A Better Community (ABC) program consisting of donations from the public made through utility bill payments. These funds support programs and services that directly impact community safety services and encourage self-sufficiency so that residents can fully realize economic and social opportunities. The annual application process, other than LIHTC, will open on Monday, October 4, 2021, and close on Thursday, October 15, 2021 at 11:59 p.m. The annual funding application process schedule for FY2022/23 is available at the following website: https://www. mesaaz.gov/residents/communitydevelopment/apply-for-funding Monday, October 4, 2021 Agency Kick-Off Meeting* – CDBG, ESG, HOME, Human Services 9:00 a.m. – 10:30 a.m. Location: 200 S. Center St., Building 3 – Room 127 Parking available off of MacDonald - parking lot *The following items will be covered: Funding sources, eligibility requirements, City Council priorities and ZoomGrants application software. For more information, visit: https://www.mesaaz.gov/residents/ community-development/applyfor-funding The City of Mesa endeavors to make all public meetings accessible to persons with disabilities. If you are a person
with a disability and require a reasonable accommodation in order to participate in programs and services offered by the City of Mesa Housing and Community Development Department, please con-tact Andrea Alicoate at 480644-5034. Hearing impaired individuals should call 711 (Arizona TDD Relay). To the extent possible, accommodations will be made within the time constraint of the request, and you may be required to provide information to support your reasonable request. Si necesita asistencia o traducción en español, favor de llamar al menos 48 horas antes de la reunión al 480-644-2767. Michelle Albanese, Housing & Community Development Director (September 19, 2021, East Valley Tribune) / 41453
Public Notice NOTICE TO CREDITORS CASE PB2021-090901 SUPERIOR COURT OF ARIZONA MARICOPA COUNTY: In the Matter of the Estate of Danny D Montgomery Deceased. Notice is given that Stephen T. Montgomery was appointed personal representative of this estate. All persons having claims against the estate are required to present their claims within four (4) months after the date of the first publication of this notice or the claims will be forever barred. Claims must be presented by delivering or mailing a written statement of the claim to the personal representative at 20102 E. Silver Creek Ln, Queen Creek AZ, 85142. Dated 9/13/21. Published in the East Valley Tribune September 19, 26 & October 3, 2021 / 41430
Public Notice Notice of Finding of No Significant Impact For the Town of Queen Creek One-time Back Charges Associated with Queen Creek NIA Allocation The Water Infrastructure Finance Authority of Arizona
(WIFA) has received a request for financial assistance from the Town of Queen Creek for a drinking water project. The purpose of this notice is to inform the public and request comments. Upon review of the Environmental Assessment prepared by the United States Bureau of Reclamation (USBR) for the Arizona Department of Water Resources Recommendation for the Reallocation of Non-Indian Agricultural Priority Central Arizona Project Water in Accordance with the Arizona Water Settlements Act Of 2004 Project (which includes Queen Creek’s One-time Back Charges Associated with Queen Creek NIA Allocation Project), WIFA concurs with the USBR’s November 2019 Finding of No Significant Impact (FONSI) that the project neither individually nor cumulatively has a significant effect on the human environment. The Town of Queen Creek is requesting funds to pay for the allocation of Non-Indian Agricultural Priority Water from the Central Arizona Water Conservation District. To receive this allocation Queen Creek must pay one-time back capital charges and 9(d) debt. Documentation regarding the proposed project is available for review at WIFA, 100 N. 7th Avenue, Suite 130, Phoenix, Arizona 85007. All written re-quests for information or letters containing writ-ten comments should be addressed to WIFA at the address above. All written comments must be received no later than 5 p.m., 30 days from the publishing date. WIFA complies with the American with Disabilities Act of 1990. Alternative formats for the project documentation are available upon request. Inquiries, requests and comments should be directed to Lindsey Jones, Environmental Program Super-visor, at (602) 3641324. Published: East Valley Tribune, Sept 19, 2021 / 41474
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EAST VALLEY BUSINESS
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SEPTEMBER 19, 2021
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