Apr. 22, 2005 12:00 AM

One south Phoenix man told me that if he had his way, Central Avenue south of the Rio Salado would be lined with condos, coffee shops and coiffures.

He envisioned the south part of town being trendy with shiny, tall buildings and yuppies running around everywhere. My guess is they would be in a hurry to get to the trendiest new club or the organic-only grocery stores.

Now that parts of south Phoenix are finally being mined by business people and developers who have “discovered” it, suddenly plans for the South Mountain Village area are emerging. Some are practical and sensible, while others are whimsical and absolutely outrageous.

It’s only natural that these ideas come to the surface as south Phoenix begins its ascent. In this week’s ¡Extra! reporter Jacqueline Shoyeb chronicles the city of Phoenix’s capital investments in the area. They are substantial. When we were brainstorming about the idea of reporting a story on major projects in south Phoenix, it struck us that the city itself is churning the engine of change.

It is hardly alone, but the city’s major commitments raise the confidence of private investors and others who have avoided the area for decades.

South Phoenix’s story is a long one – mostly filled with challenges. And while those hurdles are still on the track to success, the village is moving ahead, clearing some obstacles and running around others.

With the city’s baseline (no pun intended) investments, most importantly the Baseline Road expansion, Rio Salado redevelopment and the Trend Homes tract on 24th Street, residents and area leaders are beginning to think positively. South Mountain/Laveen Chamber leaders couldn’t contain their enthusiasm about the area’s prospects at a recent meeting I sat in on.

Small business has always been the lifeblood of the area. Little tienditas, barbershops and restaurants have been as much of the landscape as the antennas atop South Mountain. However, now the big-box stores and bigger shopping centers are changing the landscape – in most cases for the better.

So far, south-side residents have welcomed the developments. In our reporting, we have found that the commercial and city projects have reflected a sense of pride among south-siders. It’s like, “Hey, we’re finally getting some respect.”

Showing some love for SoPho is almost getting too trendy.

Another man, a persistent 82-year-old Paul Dong, called to tell me he figured out how to redevelop south Phoenix into a world attraction and a great place to live. He even brought me a full presentation with pictures.

He’d start with building “Niagara on Central West,” a 75-foot waterfall on the Rio Salado at Seventh Avenue with riverbank entertainment and a dance hall, a food court and “classy” restaurants under the falls. Then he’d build a 150-foot waterfall at Seventh Street, “Yosemite Falls on Central East,” with an aquarium and an IMAX theater under the falls.

Now a lot of this might sound funny and unrealistic to you. Well, it does to me, too. But what I find most interesting and impressive here, much more than outlandish ideas and gentrifying proposals, is that people now have south Phoenix top of mind.

People out there find the area interesting, see it as place with real potential, worth investing time and money in, and want to improve it.

Like the city’s investments and ideas, that’s a good thing. And good things are what South Mountain Village needs more of as it transitions, grows and matures into a region of the city its residents want it to become.

Meghan E. Moravcik
The Arizona Republic
Apr. 15, 2005 12:00 AM

Valley home sales hit record numbers in the first quarter of 2005, driving some to worry about whether too many people are being priced out of the market.

In Phoenix, home sales went up from 5,340 resales during the first quarter of 2004 to 7,650 in 2005.

“Historically, the first quarter is not one of the stronger quarters,” said Jay Butler, director of the Arizona Real Estate Center. “So, by having a strong first quarter, that shows evidence the market is continuing to move along in growth.”

But sustaining the strong pace will be difficult, he said.

“If interest rates begin to rise . . . you’ll see limits on the market,” he said. “The market will begin to slow down.”

Median home sale prices in Phoenix went from $128,500 in the first quarter of 2004 to $159,400 in 2005. Even if the market’s growth does slow down, Realtor Carol Boles doesn’t think the prices will drop.

“I just don’t see that happening,” said Boles, who owns Firebird Realty in north Phoenix. “I’m still investing in real estate at today’s prices. If I had any indication (that prices would drop), I wouldn’t.”

Phoenix’s limited housing inventory and high selling prices have created an undesirable situation for many buyers, Boles said.

“A lot of first-time buyers are getting squeezed out of the market,” she said. “You have to offer over the list price.”

And sellers are running into problems of their own when they tried to find a new home to buy.

“If you own a home and want to sell it, you have to turn around and buy a home to replace it,” Butler said. “It could be difficult to (find a replacement home), so some home buyers stay either out of desire or are forced to stay with the home they have because they can’t replace it.”

Realtor Brett Barry said these residents usually are happy that the value of their homes has gone up, but they don’t want to go through the hassle of getting into a bidding war on a replacement home or moving into an apartment until they find one.

That’s why he usually sees only about 10 to 14 homes for sale in north Phoenix at any given time, rather than the 30 to 40 he’d expect to see.

“Sellers are causing the shortage,” Barry said. “Most people are saying they don’t even want to play the game. A lot of sellers are just sitting on the sidelines.”

Barry expects the market to continue at its current pace for at least the next six months.