Tucson real estate is no different than real estate in any other location;  periodically we should take a gander at our surroundings from the eyes of a buyer, even though we are neither buying or selling.

How we keep our yard and our surroundings both exterior and interior, reflects the neighborhood in which we live, and consequently the property values.  The person down the road may have his home for sale;  I may have an unkempt yard with some junk on the side, but visible from the road or by a potential buyer who is walking the area, and my junk may impact the value of my neighbor’s house.

“Harumph” you may say.  How can that be?

Comparative market values, otherwise known as “comps” are cumulative.  Certainly they reflect economic conditions of the time, they reflect the area, and more specifically they reflect a neighborhood.

Given two identical homes, one which has been maintained in a well maintained neighborhood and the second in a neighborhood where there is an occasional older car someone wants to restore  “someday”, which is sitting in the yard with two flat tires collecting dust, and another home where the weeds are becoming a wonderful goat patch, and perhaps another home where the facia board is chipping and flaking, which home will command the higher price?

It is not one home which creates this scenario of a neighborhood which is “run down”; it is the cumulation of homes which cause this impression.

The combination of “mess” creates the image of people not caring about their surroundings.  Buyers do not want to buy into that type of neighborhood.  If the neighborhood looks a bit “run down” today, what will it be in five years?,  they think.  And rightfully so.  Blight begins with one person not caring.

Spring is in the air and spring is traditionally a time for clean up and clean out.  Ask your neighbors to take pride in their neighborhood and get rid of the “junk” and the things which devalue the neighborhood, or just begin yourself, and offer to help an elderly neighbor clean up their yard.

So how does your junk impact your neighbor?  If he/she must price his property lower because of your treasures in your yard and those of your neighbors, when it comes time to sell your home, you will pay that price and probably more in a lower sales price, and potentially in a buyer who also doesn’t care about maintaining the property, or an investor whose only interest is in the rent.

Go back and look at your home from the eyes of a buyer.  It’s eye opening!

March generally is the last month that Tucson is home to winter visitors.  Easter marks the end of the season, but Easter is late this year in April and April is the time the crocus and daffodils rise from their winter sleep in the northern country.

Those who wintered in Tucson this year, I am sure, were grateful to miss all the snow, the sleet the ice and the difficult winter their stay at home counterparts witnessed.

Home prices now are low as are interest rates and this is an ideal time to think about purchasing a second home.

Many people arrive in November for the holidays, and granted the holidays without snow are different!  But hiking, birding, or just plain walking  in Tucson’s warm air and sunny days with a light jacket is joyous.

Active adult communities abound including golf course communities where the retiree can play a round of golf every day!  There is an abundance of private and public golf courses from which to choose including the world famous Dove Mountain Ritz Carlton course, made famous by Accenture Match Play.

For non golfers, Tucson offers a plethora of things to see and do.  Those people who opt for an active adult community often have planned activities including book clubs, art lessons, pottery lessons, tennis lesson, culinary lessons, exercise classes, poker and billards rooms and on and on.  But you don’t have to opt for an active adult community to be party to all of those things.

Tucson has an excellent library system and book clubs abound.  For more formal instruction, the University of Arizona and Pima Community College offer classes in literature for the general public, not just students.  The Tucson Museum of Art provides art classes as does the Sonora Desert Museum and for people who want to try something new, the Sonoran Glass Art Academy can help you learn to blow glass while you create beautiful items for your home and friends.

The Tucson Park and Recreation Association sponsors pottery classes in different venues in Tucson. You can also learn to salsa dance, play tennis, learn to swim, take up beadwork or any number of hobbies.  Golf lessons are also offered!

The Audubon Society has a year’s worth of activities for birders and the Sonora Desert Museum also provides classes about the natural habitat of the Sonora Desert.  The Tucson Botanical Garden is another popular place to enjoy time and classes as is the University of Arizona Cooperative Extension Service where one can learn to become a Master Gardener.

Living in an active adult community provides instant activities, but for those who want to customize what to do during retirement, think about a house anyplace, then pick and choose your activities from all that Tucson and its surrounding area has to offer!

http://www.sonoranglass.org/about/staff.htm

http://cms3.tucsonaz.gov/parksandrec/program-guide

http://www.tucsonaudubon.org/

http://ag.arizona.edu/pima/gardening/

http://www.tucsonbotanical.org/

http://www.golfnow.com/tucson?trk=PPC_GNOW_Google_TUC&cam=golfnow_local_-_tucson&adg=regional&kwd=tucson_golfing&pht=Broad&gclid=CO-aye2106cCFQUDbAodkEAh-g

http://www.tucsonmuseumofart.org/

http://www.desertmuseum.org/

For more information, contact me:  information@terrybishop.com or check my website

http://www.terrybishop.com

Are you an agent looking to get out of the cold and wintry weather and need a good reason to leave snow, sleet, ice, and chill?

Arizona Chapter Certified Residential Specialists is kicking off the educational year February 22 and February 23 in Tucson with the two day class, Resorts and Second Homes.

With temperatures now in the high 60’s and low 70’s, Arizona is definitely a second home state and considered to be a “resort” state.   Now is the time for second home buyers to flock to the state to purchase resort homes at pretty much rock bottom prices.

The two day core class is designed “to teach the essentials of Buying, Selling, or Managing resort properties for recreation, investment, and development by U.S. and International clients and customers in the United States”.

Nationally known instructor Gail Lyons will teach the two day class.

Eight hours as an elective towards a CRS designation will be awarded, as well as continuing education hours towards earning a ABR designation.  Attendees will earn the Resort and Second Home designation.

For attendees  holding an ABR, ALC, CCIM, CIPS, CRM, CRS, CRB or the National Association of Realtor’s Green designation, payment of an administrative fee, in addition to the course cost, of $195 to REBAC as a one time fee will insure the RSPS designation for life without an annual fee.

Arizona Chapter CRS has made special arrangements with a The Windmill Inn, a local hotel in an upscale Plaza,  for a rate of $135 a night plus applicable taxes.  Persons wishing to begin the CRS designation are welcome to attend the two day class.  For information about the class or the special arrangements with The Windmill Inn, contact Arizona Chapter CRS President Terry Bishop at terry@terrybishop.com or crs@terrybishop.com

Tucson International Airport is an easy airport to maneuver and have direct flights from many areas of the country.

Charge for the two day class is $110 for Arizona Chapter members and $125 for non members.

Information about The Windmill Inn is below, as well as information about registering for the class.  If you have difficulty, contact Terry Bishop, terry@terrybishop.com   The Arizona Chapter wants to welcome you to the beautiful state of Arizona!

About Tucson:

http://www.visittucson.org/

The Windmill Inn:

http://www.hotels.com/hotel/details.html?reviewOrder=date_newest_first&roomno=1&departureDate=02-20-11&destinationId=1470658&rooms[0].numberOfAdults=2&tab=prices&arrivalDate=02-18-11&hotelId=121120&validate=false&destination=Tucson,+Arizona,+United+States#prices

http://www.windmillinns.com/TUCShome.html

How to Register for Resorts and Second Home Class:

http://www.tarmls.org

Login or create a new profile

Click on Calendar of Events on left hand side

Scroll down and select the class

Click on the link to register

Click on “Submit Your Order”

Or contact Christine Sanchez: 520-382-8848 or 866-440-9804

AZCRSChapter@gmail.com

Or contact Terry Bishop:  520-884-7201

terry@terrybishop.com

Tucson International Airport:

http://www.flytucsonairport.com/

“We are trying to improve the business climate here in Tucson” Mike Letcher, City Manager of Tucson, told the gather of Realtors® last week at the Economic Summit sponsored by the Tucson Association of Realtors®.

“The recovery has caused some painful times,” he said, “but we are getting optimistic.   “We want to make sure we do not miss an opportunity by not being able to take advantage of situations when they present themselves,” he continued.

The goals are to improve the business climate, encourage the economic recovery, and grow the local economy.  The new economy is not driven by rooftops, Letcher said.

The major source of revenue in Tucson is the sales tax, not the property tax as many people think. Tucson is trying to increase the tax base with economic diversity for job creation.

The city has cut back and laid off  employees and cut budgets .  First line supervisors have been told to be more “business friendly.”  This is “critical to the city for it to turn around” Letcher said.

The city along with the other towns represented here today must work as a region, communication between the municipalities is imperative since what one area does impacts other areas.

The Ombudsman Program with the city for business development is cutting the time and paperwork for large construction projects, Letcher said.   This is a portal for businesses and developers.  They have someone to go to who understands the best way to do business with the city.

In an effort to be more business friendly, the city has extended hours and has developed programs to protect developer rights.

“Hopefully we will build a stronger region and a stronger downtown,” Letcher said.

Resources:

City of Tucson

http://cms3.tucsonaz.gov/

City of Tucson Streetcar Project

http://www.tucsontransitstudy.com/

City of Tucson Downtown Development

http://cms3.tucsonaz.gov/rionuevo

“We live in a beautiful part of the state, we have incredible weather, and our issues are unique” Gilbert Davidson, Town Manager of Marana told a gather of Realtors® at the Tucson Association of Realtors® Economic Summit, last week.

Marana has higher sales revenues, projected to be up 5.3% through the first half of 2011 over the same period in 2010.  But the town does have budgetary concerns and is trying to cut back on programs which do not impact the long term growth of Marana.

Additionally, there is some building of new single family homes in Marana.  A total of 343 building permits for single family homes were issued in 2010, an average of 28 homes a month. Comparatively, a total of 75 building permits were issued in 2000.    Certificates of Occupancy totaled 42 in 2010.

The Twin Peaks Interchange, now opened, provides a commercial corridor and runs from I-10 to Dove Mountain. “It is the gateway to the Ritz Carlton”, Gilbertson said.  There is ongoing home building as part of the Ritz project.

With the assistance of Congresswoman Gabriel Giffords, Marana secured a federal government grant and built the 70,000 square foot LEEDS certified Marana Health Center.  It is located near the government offices.

Sargent Aerospace and Defense has expanded facilities in Marana and provides jobs.  “The University of Arizona is a gigantic economic engine” and Marana is looking to workforce connections and internships. “We must support the University,” Gilbertson urged.   Marana is a business friendly community and is courting business especially with U of A partnerships.

Marana hosts top PGA players from throughout the world February 21 through February 27 for Accenture Match Play.  The PGA tournament is televised to more than 200 countries.  Marana is on display to the world and Match Play is a tremendous advertising vehicle for Marana and southern Arizona.

Resources:

Marana Health Center

http://maranahealthcenter.org/

Sargent Aerospace and Defense

http://www.azbiz.com/articles/2010/06/23/news/doc4c222c7d7edf0983802864.txt

Accenture Match Play

http://www.pgatour.com/tournaments/r470/

Town of Marana

http://www.marana.com/

With five new town Council members, fresh priorities are focusing on being a “business friendly” community, Jerene Watson, Town Manager of Oro Valley,  told the Tucson Association of Realtors Summit last week.

Two economic development summits resulted in the town’s ability to knock off a year in the development and permitting process.  “We are open for business and are continuously reaching out” to entice business to the community.

Ventana Roche is bringing 500 new jobs to OroValley and the town is courting new corporations in the bioscience, high tech and educational areas, Watson said.

The University of Arizona Bio 5 Oro Valley opened and is a research arm, developing potential new medicines.  Basis Charter School Oro Valleyhas students and took only five months with the new approved development plans.  Additionally Pima College Oro Valley campus is operational.

Private/public partnerships are being explored for potential leases of town owned property which will benefit the residents. Focus is on arts, recreation, and culture.  The Town Center development will offer incentives for potential entertainment or businesses and county bike and pedestrian trails provide recreational facilities for residents.

Like the other town managers at the summit, Watson said general fund revenues are down 20%.  Oro Valley does not have a property tax, but relies upon the sales tax.  Single family residential building permits decreased to 50 is fiscal year 2010 compared to 285 in 2008.  This represents a 50% drop in construction sales tax.  The construction sales tax was 40% of the budget and is now at 19%.  Belt tightening is the order of the day.

Unlike federal and state governments, towns cannot resort to gimmicks and tricks and need to come in with a balanced budget.  The town has courted new business to bring in local sales tax revenues.  Financial dash boards are on the website, she said.

The town is also looking at strategic annexation, and in particular 14 acres to the north bordering state land.

“We are positioning Oro Valley as a desired place to live and raise a family” she concluded.

Resources:

Town of Oro Valley:

http://www.orovalleyaz.gov

Basis School:

http://explorernews.com/news/pima_pinal/article_60ac0118-a8bb-51fb-b398-ae2e58cfbfb0.html

Bio 5:

http://azstarnet.com/news/local/education/college/article_eed8d524-3c78-5c71-8108-f94ede670c85.html

The four managers of the towns in Pima County spoke Thursday to the Tucson Association of Realtors® (TAR) with a prognosis of what growth is anticipated in each of the areas.

“Sahuarita is contending with today’s reality and planning for the future” said Jim Stahle, City Manager of Sahuarita, a town which experienced a growth of 9000 houses, with one half of this building in Rancho Sahuarita.

A total of 1700 housing permits were issued in 2006 and in 2010, only 311 permits issued, the same as 2001, he said. Quail Creek, a Robson active adult community, has seen 18% of those building permits.

Sahuarita has cut budgets, cut staff and is making tough decisions in order to maintain the service levels.  As a result, the town has become more efficient.

Challenges facing the new town include a commercial Community Facilities District (CFD), the cost of  which would be shared with developers.

Development is projected in the Rancho Sahuarita Town District which is ideally located between I-19 and Sahuarita Road, Stahle said.

The town conducted a psychographics analysis trying to determine what people would buy in such an area.

Determining if Sahuarita  will “get into the water business” or if water will remain under the purview of private business is another issue facing the town.  If the town decides to purchase the water company, the issue is how to structure the purchase, the fact it will then be subjected to state regulation, and how the town will pay for the water company, now in private hands.

Farmers Investment Company (FIC), the largest pecan grower in the nation, located in Sahuarita, has 6,000 to 7,000 acres it is eyeing for development in the future, possibly 15 to 50 years.  Much of the land is located in a flood plain zone.  Projected growth will impact the river management plan and the master plan. The town and FIC are working together for planned growth and development.

Sahuarita is looking for opportunities to attract well paying jobs, and is identifying areas which are capable of landing employment.  It also, like the other three towns, is considering annexation of adjacent areas.

Resources: http://www.ci.sahuarita.az.us/

http://www.pecanstore.com/Aboutus.asp

“How can you afford not to buy a house now?  Just hold it for five years and you’ll make a killing,”  Marshall Vest, Chief Economist at the Eller School of Business, told a group of Realtors Thursday.   The investor activity in Arizona is ratcheting upwards.

Vest sees that job growth is forthcoming, “we need job growth to solve our problems in Real Estate,” he said. Unemployment in Arizona is 9.4%, in Phoenix it is 8.4% and in Tucson, 8.3%, but Yuma is 23.2%.  “We are now at the 1982 level of manufacturing and at the 1983 level in construction.”  He sees slow growth in employment during 2011 and by the second half of 2013, a recovery of jobs lost.

Additionally the local market did not see the 5-6% upswing in retail sales shared by the rest of the country, retail sales are at the lowest point, and because many of the municipals depend upon sales tax for revenue, they are finding it extremely difficult to balance their budgets.  Vest is looking at a 6 to 7% gain in retail sales this year, partially attributed to pent up demand.  He sees 2011 as much better than 2009, which he termed a “disaster” and 2010 which was better.  This will impact job growth positively.

Restaurant and Bar sales are up which is good for tourism and with the Gem and Mineral Show and Accenture Match Play around the corner, Tucson should benefit.

Credit creation is the key and will improve the mobility of people which will positively impact the absorption rate of housing statewide.  As credit expands, spending will improve which will lead to more hiring which will strengthen the housing market.  This will also help stabilize the public sector budgets.  New housing starts will increase then, but until that time, there is additional “pain”.

Vest attributed the market meltdown to the creation of subprime and Alt A paper, the securitization of housing loans to a pool of mortgages which were then sold off.  “We are now de-leveraging” from the expansion of credit and nationwide approximately 11% of all outstanding household credit is in some form of delinquency, Vest said.

Vest sees continued improvement and thinks by 2014, we should be back to “normal”, not the “new normal”.

Resources:

Eller School of Business, University of Arizona

http://ebr.eller.arizona.edu/newsroom/video/

The comprehensive market reports released to the public by the Tucson Association of Realtors monthly are both fun and instructional and provide a wealth of data which can be mined with only an elementary understanding of mathematics.

Combining the data with a zip code map provides the basis of knowing where properties are selling and those which are languishing on the market.  This, in combination with absorption rates, (tomorrow’s topic) will divine where the great buys may be and where the “hot market” is currently.

If we look at areas where the greatest percentage of homes on the market sold during December, the Rita Ranch area takes the award with 27.73% of properties sold, but the 85747 zip code had only 154 homes for sale and a total of 35 sold.  Closely following is the Midvale area (85757) with 24.58% sold from a total of 118 on the market, which is 29 homes.  The 85714 area, east of Davis Monthan Air Force Base in the Irvington area had 22.86% sold, or 6 out of 35, and the area with 21.60% properties sold, or 35 out of 162 is 85756, south of Tucson International Airport east of I-10.

Now looking to the areas with the most homes available from the December statistics, there are nine zip codes with more than 250 homes actively on the market.  The Foothills-Sabino Canyon area leads the pack with 353 homes on the market (85750), closely followed by the Catalina Foothills zip code with 340 homes on the market, zip code 85718.  Many people wanted to put their home on the market but waited thinking the prices would increase.

The Green Valley area closely follows in 85714 with 292 homes for sale, followed by Corona De Tucson with 282 homes in the 85614 zip.  Both of these areas saw new construction during the mid 2000’s.   Rancho Vistoso in the 85755 area is offering 279 homes, and the Saddlebrook-Catalina area in 85739 has 270 homes on the market.  All of these areas may appeal to people looking to retire in the Tucson area or people looking for second homes.

The northwest, Lambert Lane area south of Tangerine between Cholla and Oracle in 85737, an Oro Valley zip, has 259 homes on the market.  From Golf Links north to Speedway in the 85710 zip, northeast of Davis Monthan has 258 listings, and Sahuarita, a new home subdivision area in 85629 has 252 homes on the market.

The absorption rate, which is a different statistics than discussed today is tomorrow’s topic for the various zip codes in town.  This will tell how long it may take to sell a property in a specified zip.

Resource:

http://www.tucsonrealtors.org/statistics.html

If you are considering purchasing a home in Arizona, your agent should provide you with the Buyer Advisory, a document which is nine pages and provides information about items a person should know prior to purchasing a home.

The document, written by the Arizona Association of Realtors, is designed to allow the consumer to check  issues he/she should consider when purchasing a home.  It contains links to many websites which can answer consumer questions.

Information concerning neighborhoods is not static, changing frequently, and the Buyer Advisory is revised periodically.  The websites referenced in the Advisory also change their information frequently.

Crime statistics are important and the Advisory references the various sites in Arizona cities where these statistics can be obtained.  An agent cannot know all of these facts and the knowlegable consumer will reference the Buyer Advisory to find answers to his/her questions.

The Buyer Advisory is also a document which a homeowner can use to ascertain answers to questions he/she may have regarding where to go for tax information, zoning information, information about area schools, and the ever famous sex offender information.

If you are considering purchasing property outside of Arizona, the Buyer Advisory is an excellent guideline to questions you may have and potential places to obtain the answers in that state.

Take advantage of this resource, it is part of a buyer’s due diligence when purchasing a property.   A link to the Arizona Buyer Advisory is provided below, you may be surprised at the amount of information it contains.  Use this information for your advantage.  A knowlegable buyer is a good buyer.

http://www.aaronline.com/documents/buy_advis.pdf

http://www.aaronline.com/documents/buyer_advisory.aspx