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Realty Intuition

Blog by Mike Pizzo
Mesa, Arizona

"Ahead of The Curve" insight into the social forces that will shape real estate values and trends of the future.

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Realty Intuition

Fate Of The Suburbs Part III

Jul. 30, 2008

We have talked about the too "close in" suburbs, where residents are still engulfed in an urban environment. And we discussed those too "far out" suburbs whose great distance from jobs and services is unacceptable at today's gas prices.

Now let's discuss the optimum suburban location. I'd say the perfect location is one where quality schools, shopping, services and entertainment can be reached in less than a five minute drive. In the relatively recent days of sub $2.00 gas, an acceptable drive time to such destinations was probably 15 to 20 minutes. Those times are gone.

Ideally, commuting distances should be no more than 25 minutes one way, the shorter the better. Again, twice that amount of time was economically feasible before our fuel prices doubled. Those who can telecommute will certainly have a lot more options about where they can live. Can you configure your job to telecommuting? If you spend a lot of your workday in front of a computer, there is a good chance you could. It might be a good idea to start touting the idea to your boss. Read "The 4-Hour Workweek," by Timothy Harris, for great tips on how to do this.

And of course, proximity to these destinations should be achievable in a neighborhood where you feel safe to walk to the park after dark, where graffiti is rarely if ever seen on the outer walls of your subdivision, and where you rarely if ever have to subject yourself to stop and go rush hour traffic.

Do these criteria seem unrealistic, even idealistic? For some people, yes. But there are areas around the Valley of the Sun, where the majority of middle class workers could have all the above. The Superstition Gateway region of far east Mesa, located just east of the intersection of the 60 (Superstition,) and 202 (Red Mountain) Freeways, is one example. Two years ago, this area was too far out. Within that time frame, new construction has erected a large new hospital and almost all the standard retail and entertainment franchises to fill what were previously huge expanses of dirt fields. It wasn't till two weeks ago however, that completion of the final phase of the 202 freeway linked residents to twice as many employment sources within our prescribed 25 minute commute.

 I happen to live in this area. My wife and I moved into an early phase of the Parkwood Ranch planned community in early 1999, at which time we could hear roosters crowing each morning. The location worked for us, but was relatively "remote" until a whole suburban infrastructure popped up around us almost overnight. Someday, Superstition Gateway may find that it too has become too close in. But with the slowdown in real estate development, that will take ( I think,) the better part of a decade. It will be interesting to watch.

In our turbulent times, there is one more criteria to add to the ideal suburban location. Close enough in to reach the urban center in less than an hour's drive. Distant enough to get completely out of the metro area in less than an hour, in case of terrorist attack, riots or other urban emergencies. By those criteria the is really no "good place to live" in Southern California.

In conclusion, we see that timing will greatly determine which locations make the ideal suburbs. The communities built on the "high ground" of the hills and mountains that surround the Valley, are likely to retain the most value and desirability after the whole region is completely built out. That also holds true for most other urban regions that are surrounded by such hills.

Not everybody shares these suburban values.And if circumstances permitted, the ultimate place to live for many of us might be somewhere other than even "the perfect suburb."  It is high time to start  finding and investing in those locations. We'll be discussing that soon.

Welcome!

Jun. 24, 2008
Tagged with: timing

Thank you for visiting my Blogsite, "Realty Intuition."

You may be wondering what that title is supposed to mean. I will explain. We are going to evaluate current real estate conditions, and make some educated projections about what is going to happen next. We are not going to be able to correctly forecast everything. Still, you may surprised how many developments can  seen coming "from a mile away," if only one observes what is really happening, and has the experience and perspective to anticipate the logical results.

You can see how this information could be useful for making more money when you buy or sell. The benefits however, can be much greater. Where you live is one of the most important factors in the quality of your life. Things are changing fast in America. Today's nice place to live may be not so nice in the not so distant future, and vice versa. Although almost everyone's present location is influenced by family, work, etc, you still have options. And if you can forsee the best place to work or raise a family in the future, it may empower you to get there.

What qualifies me to attempt this undertaking? Well, I have been sucessfully selling residental real estate through three full market cycles. From 1980 through 1996 I was practicing in Huntington Beach, Ca. In July 1996, my wife and I moved to Phoenix's Southeast Valley. Presently, I'm an Associate Broker at Keller Williams Integrity First Realty, in Mesa, Az. I have been involved in a lot of transactions and managed a real estate office. Although nobody has "seen it all," I have learned to anticipate and deal with most of the usual issues, as well as the small but crucial mini trends that occur within the major cycles.

Along the way, I have developed a somewhat battled scarred sense of humor. So prepare yourself for the occasional tale about not so sublte ironies, and the poetic justice the market can dish out to those who tempt fate.

Beyond real estate, the main hobby/commitment for my wife and me is showing and breeding Championship Bull Terriers. Staging and showing a house has a lot in common with the grooming and ring presentaion of a show dog. One of our girls has a new litter, and I'll probably be subjecting you to puppy photos from time to time. 

You will find new posts here on Mondays and Fridays; sometimes, on Wednesdays too, if the muse is with me, or something important comes up. For poring through all this bio and intro, let me reward you with one of the Core Truths in real estate that is not widely understood....

"Location, location and location" are NOT the "three most important factors in real estate." That only represents half of the equation. Every bit as important as location is "Timing, Timing and TIMING!"

 

 

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