Tucson Real Estate Market

Long Realty’s Why I love Arizona photo contest: VOTE today!

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Long Realty has a photo contest going on called “Why I love Arizona.” Twenty photos were chosen from over 900 submissions by the public, state wide. Additionally, 20 photos were chosen from over 200 submissions from agents and employees. The winner will receive $1,926, representative of 1926, the year Long Realty was founded.

My photo (see below) made the top 20 for agent/employee submissions. Vote today by clicking here to access the “Why I love Arizona” website. Regardless of who you vote for, it’s amazing to see the quality of these photos. None of which were taken by professionals. It makes one realize that Arizona is a truly amazing place, rich in natural beauty and geological diversity.  If you are looking to enjoy Arizona sunsets on a more regular basis, Sarah Ley can assist with all of your Tucson real estate needs. Call Sarah for a no obligation appointment. (520) 404-0544 or email: sley@longrealty.com

Sunset over Wild Horse Pass

Tucson, AZ real estate market report

The Tucson market is showing signs of a decline in inventory. Currently there is an active listing inventory of 5.6 months, market wide. This means that at the current rate homes are selling, it will take less than 6 months (assuming no new homes come on the market) to clear out the existing inventory. As a rule of thumb, inventory levels under six months are a seller’s market, and inventory levels over 6 months are a buyer’s market. Although prices have declined 14% in the past year, the fact that there are far fewer properties offered for sale is a good sign that the market is on it’s way to stabilization, and a more balanced market.

Interest rates remain at 40 year lows. There has never been a better time for first time home buyers to enter the market. Foreclosures and short sales continue to be a drag on prices, and Fannie Mae and Freddie Mac have a back log of foreclosed properties that may take over 10 years to clear the system. Here in Tucson, we are close to the end of this cycle, as we have already been through the worst part of the cycle. The question will remain as to how the banks will be able to help delinquent mortgagees refinance so they can stay in their homes, and lessen the burden that more foreclosures would have on the market.

To review the current market stats, click here.

Beautiful Oro Valley Home, 1st time on the market & open house Sunday 10/23!

12231 N. Kylene Canyon Drive (view PDF of property flyer)

You won’t want to miss a chance to see this gorgeous Rancho Vistoso property. First time on the market, it is a great value. Offered at $179,000! Seems like Y2K pricing. An amazing value for this home. Make sure to see the PDF flyer in the link above.

Stop by the open house this Sunday 10/23/11 from 1-4 PM, or call Sarah Ley with Long Realty at (520) 404-0544 to schedule a viewing. Perfect property for 1st time home buyers or winter residents. This home will wow you, and affords the Oro Valley, AZ lifestyle you’ve been searching for at value pricing.

First time on the market- open house Sunday 10/23/11, 1-4 PM!

Pima County offers assistance to first time homebuyers and Veterans

Pima County, AZ just put out a press release yesterday that they are offering up to $8,500 towards buyer’s closing costs, as well as 30 year fixed rate mortgages for 3.5%.

The terms are as follows:

To qualify for the down payment assistance and the 3.5% interest rate, borrowers must be first-time buyers or veterans, or the home must be in one of 19 targeted census tracts in Pima County (see attached map).

The $8,500 in down payment assistance is available to households whose family income is 80% or less of the area median income (for example, $38,200 or less for a family of two or $47,700 or less for a family of four).

If their household income is higher, buyers can still take advantage of the 3.5% interest rate, which has higher household income limits.  For the 3.5% interest rate, the household income limits are:

Family Household Income Limits

Size Pima County Target areas

1-2                  $71,520                      $72,960

3 or more       $83,440                      $85,120

To qualify for down payment assistance, the  buyer must have $1,000 to contribute to the purchase but must not have cash assets exceeding $10,000.

The buyer must also complete HUD Certified  buyer Counseling at one of the following agencies:

Chicanos Por La Causa

Paul Swift

200 N. Stone Ave.

Tucson, AZ  85701

(520) 882-0018

Paul.swift@cplc.org

Family Housing Resources

1700 E. Fort Lowell, Suite 101

Tucson, AZ 85719

cris@thrinc.net

Old Pueblo Community Services

Terry Galligan

4501 E. 5^th St.

Tucson, AZ  85711

(520) 546-0122

TerryGalligan@helptucson.org

Pio Decimo Center

Jesus Mora

848 S. 7^th Ave.

Tucson, AZ  85701

(520) 622-2801

jmora@piodecimocenter.org

Primavera Foundation

151 W. 40^th St.

Tucson, AZ  85713

(520) 882-5383, ext. 132

csilva@primavera.org

TMM Family Services

Tres Lister

1550 N. Country Club Blvd.

Tucson, AZ  85716

(520) 322-9557

tlister@tmmfs.org

What a great program! Let’s hope that Tucson first time home buyers and Veterans will take advantage of this program when buying a home here in Tucson.

Currently about 52% of the real estate market in the Tucson area is sales of distressed properties. This includes both short sales and foreclosures. The Pima County program is sure to be a win-win for buyers, as well as helping to clear out this deep cycle of distressed property sales. The program will help first time buyers and Veterans get into a new home, and it will also benefit the Tucson real estate market by reducing inventories of distressed properties. Both local and national experts have agreed that reducing inventory levels will be the key in the market finally reaching a bottom, and eventually returning to a more balanced real estate market where the market absorbs properties at a faster rate.

If you have any questions about this program, or the home buying process in general, please call Sarah Ley, ABR, CRS, CNHSA, Senior Associate with Long Realty, at (520) 404-0544.

It’s all a matter of perspective…

I read an article in the Wall Street Journal this morning called, “The housing slump has Salem on a Witch hunt again.”  

While this article was nothing earth shattering, it made me realize that like everything in life, the conclusions we choose to draw about people, events, things, etc. are all about our own perspectives. The article stated that due to the housing slump, and a glut of foreclosed homes on the market, Realtors and buyers are seeking clever ways to rid homes of what they call, “energy imprints,” which are mainly negative vibes that they claim are stuck in the homes, causing them to either linger on the market- or give the new owner the heebie jeebies. The healers, which for obvious reasons in Salem, MA are better known as witches, go into a house and do their ‘hocus pocus’ to cleanse the house of any negative energy, with the desired affect that the new buyer can live there without any stagnant emotional clutter from the person who has been foreclosed on.  Perhaps these ‘cleanings’ pave the way for a buyer to feel okay about taking over a house when the previous owner could not make the payments, and lost the house? A way to cope with the fact that they are benefiting from someone else’s downfall.

As a Realtor, I understand about negative energy in a house, and I agree without a doubt that it can be felt in some homes. But this is coming from my perspective, and maybe all of this rhetoric is just imagined in our heads because we seek a certain outcome to events? We humans have to find a way to explain and justify things to ourselves so that they make sense to us.  Such a simple overall concept, but in reality- what complex webs we weave!

As a resident of Tucson, AZ, it is quite amazing to watch both the local and national spin doctors put their different takes on last Saturday’s January 8th shooting spree that targeted Representative Gabrielle Giffords and her constituents in a neighborhood Safeway parking lot. Laying blame not to the shooter himself, but to all the extraneous factors that  led him to do what he did- in a way that fits their own personal agendas… Without getting into the obvious bipartisan political spins and finger pointing, each individual’s perspective on this horrible tragedy may lead them down any number of mental paths as a means of trying to understand and comprehend the reason(s) why this senseless act occurred in our community. It’s important to note that we all do this form of rationalizing to explain to ourselves and others the reasons why we think this tragedy (or any other given tragedy) happened- in order to make the reasons for ‘the tragedy’ fit a pattern that is consistent with our own thinking.

Perhaps what I’ve taken away from the witches article, is that the simplest path is nearly always the one that offers the most clarity, but may not fit with our own beliefs.  Simply: this act was committed by an extremely troubled individual with serious mental health issues. Once the dust settles, I would not be surprised if the killer is discovered to be a paranoid schizophrenic. We can choose to take any perspective on why it happened, but the bottom line is that our own perspectives are just that- our own perspectives.  Sometimes it is easier to try to explain why we think something happened (to make it fit our own agenda), than it is to extract the simplest possible explanation at face value. Remember the old statement we learned in school, “The shortest distance between two points is a straight line?” The witches may not agree with that…

The foreclosure freeze & how it affects Tucson home buyers & sellers

It may not surprise anyone to know that Wall Street is blaming the consumer in reaction to the “foreclosure freeze.” The foreclosure freeze is still largely a mystery, and it’s anyone’s guess how it will play out in the larger Tucson, AZ real estate market, in both the short and long term. This article summarizes Wall Street’s reaction to the foreclosure freeze, and it won’t surprise anyone. Wall Street commonly deflects blame from itself, and why not blame the average homeowner. What they don’t take into consideration is that many of the people affected by a foreclosure didn’t want to lose their home. They simply had no means to support their mortgage, whether by a job loss, or a resetting adjustable rate mortgage.

This isn’t the first time in the last three years that foreclosures have been frozen. In February 2008, Henry Paulson froze foreclosures for 30 days to try and figure out one of the worst housing debacles in history. Unfortunately for everyone, the housing debacle seems to have no immediate end in sight.

So what’s a Tucson home buyer or seller to do? Keep on buying, and/or selling!  We can’t allow fear of what may happen stand in the way of our housing needs. As FDR said in his Inaugural speech, “We have nothing to fear, but fear itself.”  Look at the big picture: interest rates are at 50 year lows. Home affordability has increased dramatically in the past five years. The median sales price of a home in Tucson now stands at $150,000. In 2006, it was $225,000. This is a dramatic shift in affordability, without even taking the lower interest rates into consideration.

Buyers need to evaluate their housing needs based on the big picture, and decide if it makes sense for them financially to buy a home. In many cases, owning is now less expensive than renting. If you are planning to hold onto the house for at least five years, it makes sense to buy now because you will ride out the ups and downs of market values. When you buy a home you will get to write off the interest on your mortgage, and best of all- it will be YOUR home- not your landlord’s.

Sellers need to be realistic and see the market for what it is- an opportunity for buyers, but not for sellers. Price and condition are the only two factors that a seller can control, and both need to be in line with buyer’s expectations in order to facilitate a timely sale. In many parts of Tucson, there are over 12 months of inventory on the market. There is in essence, a high level of competition among sellers. The Long Realty Tucson October housing report has just been released, and it is recommended that Tucson home sellers review these market reports before putting their house on the market.

New Listing- Tucson, AZ Real Estate- Townhome in desirable Arcadia Square

New on the Tucson, AZ real estate market this Labor day weekend is this 3BR/2BA, 1,688 square foot barrio style townhome in desirable Arcadia Square. Private, end of cul-de-sac .17 acre lot w/Mountain views from the backyard. Kitchen has tiled countertops & looks onto family room w/gas fireplace. Large living areas offer neutral colors, berber carpet, & ceramic tile. Master w/slider to back patio. Freshly painted interior & ceiling fans in all bedrooms. Gorgeous, park-like backyard w/extended brick patio, brick pathways, screened in AZ Room (not included in sq. footage) & lovely, professional landscaping w/citrus trees & more. Plus large 2-car garage w/storage room Neighborhood has a community pool & park. Great location- close to Ft. Lowell historic district & TMC. This is an excellent value! Lives like a single family home, but also perfect for seasonal residents. A wonderful setting- just waiting for YOU! Call Sarah Ley with Long Realty at (520) 404-0544 to view this great new listing!

New Listing in desirable Arcadia Square (near Swan & Ft. Lowell + Ft. Lowell historic district)

1930′s (U of A area) Spanish Style fix-up home now on the Market

LOCATION, LOCATION, LOCATION! (New listing on the Tucson, AZ real estate market). You can’t get much closer to the UA campus than this! Two houses down from Sam Hughes Place, and about two blocks to the stadium sits this 1930′s Spanish style Bungalow, which has many original historic details. Possibly original wood floors, coved ceilings, arched windows & doorways. Fireplace in family room. Alley access for parking & also room to park two cars & possibly build a carport on the west side of property. Separate studio guest house has a bath with shower & efficiency kitchen = approximately 160 sq.ft.- not included in assessor’s square footage. (Believed to have originally been a garage). Desirable R-2 zoning offers expansion possibilities. Home has been a rental for many years & is currently occupied by the owner’s son & two roommates. This home is somewhat of a fix-up, & is being sold in AS IS/WHERE IS condition. It needs work, but is priced accordingly at $249,000. Call Sarah Ley with Long Realty Company at (520) 404-0544 if you would like more information about this property, or Tucson real estate in general.

1930's Spanish Mission style home for sale 2 blocks from U of A

The Dog Days of Summer…

Well, they are finally here!  The dog days of summer have officially arrived. Folks, we’re in the final stretch of summer now… It’s that time of the summer when many people who can take time off work are on vacation. Kids (and parents!) are counting the days until back to school time.  I think this photo sums it all up. This is my dog standing on the precipice of the end of summer. From these dog days, it’s all downhill from here. We’ve made inroads through the hottest part of the summer, and in a few weeks- we’ll see begin to see those bright yellow school buses, once again gracing our streets and taking our kids back to school to their daily rituals.

The dog days of summer

Bank Owned Homes- What you don’t know can hurt you!

I was out with a buyer this afternoon showing a few bank owned properties. It seems most buyers are wanting ‘a deal’ these days. One of the houses we looked at was in a well established, and (for the most part) stable neighborhood in Oro Valley. Why was this house so cheap? There is another house that is the same floor plan just around the block listed for $110,000 more. At the same time, it was puzzling to my buyer and I how this house could have sat on the market for five months without selling at the seemingly low price it was listed for.  A mystery, indeed…

The troubling thing about bank owned homes is that they are a mystery. They are sold with no disclosures, as the seller (the bank) claims to have no knowledge about the property, and the previous owner is long gone. In this specific case, it appeared that someone may have made an effort to cover up potential issues with the home, namely mold… The house had a basement (rare in Tucson), and when my client and I were looking in the basement bedroom, we noticed an overwhelming moldy smell. I could see paint covering circular spores. The window had extreme signs of water damage. The carpet appeared brand new. The baseboards were missing, and there appeared to be water damage all over one wall. Not only did it smell moldy, but after 10 minutes in the house, we were all feeling a bit queasy. I left with a headache, and on the way back to my office, I felt dizzy and short of breath. Not exactly living conditions you’d want to subject your family to! If after 10 minutes in the house we all felt that way, imagine how bad it would be to live there. Mold is often a hidden health issue.  See this link from the EPA for more.

The bottom line for buyers is that bank owned homes can be like peeling an onion. You don’t know how many layers of damage there are! Considering the lack of facts and disclosures associated with bank owned homes, it is imperative to procure the services of a good home inspector. Get an inspector who is ASHI certified, and one who will take pictures of suspected issues the home has. Since most bank owned homes are sold in “as is, where is condition,” if you are considering purchasing a bank owned home, in addition to having the house examined from head to toe, you will need to get several bids from licensed contractors for necessary repairs prior to buying the house. Remember the old saying, “Caveat emptor.” This rings true with bank owned homes. Let the buyer beware! The issues of this house will be your issues if you buy it!

Here is a link to an article about bank owned homes with mold. http://ezinearticles.com/?Buying-a-Bank-Owned-Mold-House?-Think-You-Can-Handle-the-Clean-Up?-Beware-Even–The-Pros-Screw-Up!&id=1885445 Make sure you have an idea what you are getting into before you complete a purchase of a bank owned property. If you need the services of a qualified, professional Realtor- please don’t hesitate to contact Sarah Ley.