Are is phonetically not correct. It has a surplus ending.
Compare: car, far, start, part, start.... 'Are' is one of the two main unpredictable spellings for the /air/ sound (fair/fare, stairs/stares).
Too much practice with phonically simple books can get very tedious for parents and children. It is therefore sometimes better to use simple stories instead too, letting children decode as much as they can, but helping them out with tricky words and concentrating on reading for pleasure. What counts is going over words again and again, until children can recognise all common English words by sight, instantly, as we do as adults. Some children get there with very little phonics.
Phonics is good to start with, but many children get the idea that the squiggles on the page can be turned into words quite quickly. The fact that many English letters and letter strings (graphemes) have more than one pronunciation means that real phonics can only a part of learning to read (although SP advocates call the deciphering of tricky words phonics too, and have left everyone confused).
Eight graphemes are particularly variable:
: (on - only, once, won, woman, women
go - to)
: (shout -should, touch, soul, soup)
: (home - come, move)
: (food -good, flood)
: (road - broad)
: (treat - great, threat, theatre, create
(ear: ear ? early, heart, bear)
surplus endings
which do not lengthen vowels
(have, delicate, engine -
cf. gave, dedicate, divine)
omitted doubled consonants (camel)
which make short vowels look long
(camel - cf. came, same - hammer, stammer)
Quite a few others are tricky in quite a few words too:
a: and ? apron, any, father
a-e: to deliberate ? a deliberate act
ai: wait ? said, plait
al: always ? algebra
-all: tall - shall
are: care - are
au: autumn - laugh, mauve
-ate: to deliberate - a deliberate act
ay: stays - says
cc: success - soccer
ce: centre - celtic
ch: chop ?chorus, choir, chute
cqu: acquire - lacquer 19
e: end ? English
-e: he - the
-ee: tree - matinee
e-e: even ? seven, fete
ei: veil - ceiling, eider, their, leisure
eigh: weight - height
eo: people - leopard, leotard
ere: here ? there, were
-et: tablet - chalet
eau: beauty ? beau
- ew: few - sew
- ey: they - monkey
ge: gem - get
gi: ginger - girl
gy: gym ? gynaecologist
ho: house - hour
i: wind ? wind down ski hi-fi
- ine: define ?engine, machine
ie: field - friend, sieve
imb: limb ? climb
ign: signature - sign
mn: amnesia - mnemonic
-oes: toes ? does, shoes
-oll: roll - doll
omb: tombola - bomb, comb, tomb
-ot: despot - depot
ough: bough - rough, through, trough, though
ought: bought - drought
oul: should - shoulder, mould
our: sour - four, journey
ow: how - low
qu: queen ? bouquet
s: sun ? sure
sc: scent - luscious, molusc
-se: rose - dose
ss: possible - possession
th: this - thing
-ture: picture - mature
u: cup ? push
ui: build ? fruit, ruin
wa: was ? wag
wh: what - who
wo: won - woman, women, womb
wor: word ? worn
x: box - xylophone, anxious
- y-: type - typical
- -y: daddy - apply
z: zip ? azure