Tucson rental real estate is priced right to make investors good solid returns right now

Rental Property for sale in Tucson is starting to become highly prized as prices have come down for all Tucson housing segments including residential income. Individual rental homes offer solid and stable returns right now; duplexes, Tri-Plexes (3-plex), Four-plexes, (4-plex), and small apartment complexes offer even better returns but more risk as the purchases are much larger and have more components as you increase the number of units. Right now Tucson, AZ rental property for sale yields an average 7%-12% capitalization rate for high quality properties.

Right now I am representing one Tucson real estate investor and the cap rate “if” he pays full price for his rental rental property. (He wont be paying full price as I will get him a sizable discount as the property is a foreclosure property in need of a buyer.) But the CAP rate at full price is going to be running 8% right off the bat. When we negotiate some money off of the purchase price, and find a tenant to pay a little over the going rate for rent I believe this house will return much closer to a great return of 10%-12%! I also think in 5 years the Tucson real estate market will have higher prices as the foreclosure crisis will be behind it. Couple this with the fact high demand areas will have additional demand as the Tucson population continues to grow outward this also should push rents and home values higher in those exact areas. Compound the higher values with the higher rents and one can see a total return on investment as solidly above average. In addition for the professional (and beginner) real estate investor or one who owns Tucson rental property/ homes the tax breaks and write-offs can be/ are sizable when you own rental real estate and this adds to the overall returns one receives through their rental property. Although always consult with a tax accountant for your individual situation.

Investment/ rental properties in Tucson specifically residential should be closely looked at by anyone wanting to receive stable, and somewhat safe returns (there is no such thing as a “safe” when investing as you could always lose money if the wrong situation unfolds.) that should be above average for the next several years as rents, and property values should increase over time due to the natural large population increases Arizona has always enjoyed for 50 years straight. If you want help figuring out what options you have and what investment properties should/ could rent for email me and I’ll be happy to look into the situation for you with no obligation or bias.

Should you invest in Tucson rental properties or Phoenix investment properties?

Many people know the Phoenix area and like to invest in real estate/ homes there and honestly I think Phoenix could have a case made for investing in it as prices there in many areas are lower then Tucson by a ways. The only issue I see with Phoenix is the real estate market is still in flux and is shifting different ways in different areas. Tucson on the other hand in my mind is a much more stable market in terms of the overall real estate market and investment returns can/ should be more consistent in the Tucson region. However if you are interested in the Phoenix metro region email me and we can discuss as I believe (know) certain areas of the Phoenix Valley are better investment prospects than others. If it were me I would be looking for top rate quality in Phoenix and sticking to the Scottsdale, and Tempe area for investment rental real estate/ property for sale. That should do best over the next 5 to 10 years for sure.

Where should you buy your rental property in the Tucson area?

For those interested email me and we can discuss in more detail but I believe the U of A area is always best as rents are sky high and demand is always present. Since rental property values are down across Tucson buying in this area makes the safest and most sense to me personally in the current real estate marketplace. I also think other older established slightly upper end areas for individual rental homes should do very well. If you are wanting to buy 3-Plexes, Duplexes, small apartment complex(s) I suggest buying them as foreclosures as the banks are having a VERY tough time finding buyers for those in particular property classes right now.  Many real estate investors bought at prices that left little cash flow coming to them and when the real estate market collapsed and/or a vacancy occurred the investor(s) walked from the properties not wanting to carry investment properties with little or no cash flow and no real equity due to purchase prices they paid. Those prices were way higher then the present values and right now those same sorts of rental properties can be purchased for low prices leaving CAP rates in the high single digits and higher.

As always if you want to discuss these ideas or bounce some of your own real estate investment ideas around email, call, or leave a reply at the bottom of this post and I’ll let you know what I personally think about it. As always thanks again

Tucson or Phoenix Which Area Should You Live In?

Since Arizona is one of the fastest growing states in America the question is always posed, should I move to the Phoenix area? Or the Tucson region? Being a Realtor people like to know all the differences in the cities and also the housing markets/ what the homes are like as Arizona homes are definitely much different then most of the housing options across the rest of the country. In Arizona specifically Tucson and Phoenix we have Haciendas, Territorials, as well as more traditional Spanish Colonials, Queen Anne’s, and Contemporary homes of all sizes and price ranges.

If you are considering the Tucson or Phoenix metro areas to move/ relocate/ or retire to you are in luck as I represent buyers in both regions and know them both very well. Few Realtors can sell in both areas and while most of my business is conducted in the Tucson region I do routinely represent clients in the Phoenix metro area as well including; Chandler, Mesa, Scottsdale, Fountain Hills, Glendale, Buckeye, etc. For those buyers relocating/ moving/ retiring and wanting to understand both areas as well as the benefits/ disadvantages of each working with a sole Realtor who knows both metro regions and can give unbiased, informative information is a huge benefit! Most buyers will use a separate Realtor for each metro region (Phoenix and Tucson) and with that being the case each Realtor will push the buyer hard to buy in their city otherwise they will receive no commission or pay for their time. That being the case sometimes buyers get a biased view on each area and cannot get the best information available for their needs and individual wants.

-If you want to explore moving/ retiring/ relocating to either the Tucson or Phoenix area the best thing you can do for yourself is work with one Realtor who will truly help you figure out what metro area will work best and then even more so what segment of that metro area ie: “I know I want to buy in Phoenix now, but what area should I focus on; Scottsdale, Peoria, Suprise, or Gilbert?”.

So what are the large differences (+/-) between the Phoenix area and Tucson? Lets start with the Tucson area by comparing it to Phoenix.

Tucson Arizona is about a one and a half hour drive south of Phoenix Arizona. Tucson is located about 60 minutes north

Tucson's Dove Mountain area

of the Mexican border town of Nogales Arizona. Tucson sits in a valley surrounded by mountains. I personally prefer the Tucson Mountains to the Phoenix ones but that’s a personal preference. Tucson has a metro population of just over 1 million people and growing quickly. Homes here on average are in my mind a little better value in Tucson yet apples to apples many areas of Phoenix offer much less expensive homes then the Tucson area due to the oversupply of homes the Phoenix area absorbed with the real estate depression. What are the other pluses of living in Tucson? Well here they are;

Here are some of the large differences you may not realize and most wont tell you until you find out yourself:

-In Tucson it rains more often

-Additional rain makes for a much more abundant desert both in plant sizes and in amount/ diversity.

-It’s about 10 degrees cooler in Tucson then Phoenix. Somewhat a big difference in the summer-

-Tucson is much more serious about desert conservation on the whole then Phoenix. This makes for Tucson to be a much more “green” city then Phoenix

-Tucson still has a small town fell in a lot of aspects.

So those where the pluses what are the downsides?

-The freeway system is not as advanced as Phoenix Arizona. Tucson has no east to west freeway going across town takes a while.

-The economy is not as diverse

-Jobs pay a little less in Tucson than Phoenix. I also believe living expenses are less in Tucson however.

Now let’s move to the Phoenix, AZ area and what it offers residents. Phoenix Arizona is a metropolis in every way one thinks of a metropolis. It offers literally everything a person could want at any time. Within Maricopa County the County where Phoenix resides roughly 75% of Arizona’s state population lives. The Phoenix Metro region has a population of about 4.3 million. Everything about Phoenix is higher end than Tucson the malls are larger, more variety of restaurants, shops, and housing developments all trump Tucson’s by a long ways. Phoenix also offers first class attractions including MLB, NBA, NFL, NHL, and well as an arena football team for sports fans.  The economy is also much more diverse as a major business hub of the southwestern US. Due to the serious decline in prices of Phoenix real estate I would say currently homes in Phoenix are lower in price for an apples to apples comparison. With that being said Tucson has no areas like Tempe and Scottsdale to compare with Tucson’s high end area is called The Catalina Foothills and really no comparison to Scottsdale or even the more high end district of Fountain Hills. So with all that being said here are the other additional advantages of living in Phoenix over Tucson;

-More diverse economy

-Better business climate

-Better shopping and services

-Much larger city allows for more opportunities and all the other benefits of living in a large metropolis.

Now what’s not better in Phoenix;

-It’s a very busy city, and the people in it are generally in a hurry. Tucson is much more laid back and easy going.

-It’s hotter in Phoenix by about 10 degrees over Tucson

-Traffic is much worse in Phoenix although Tucson does not have the advanced freeway systems it’s for the reason Tucson does not have the need for them. Large traffic jams are an everyday occurrence in Phoenix.

-The Phoenix desert is not as lush and diverse many areas of it sparsely grow compared to Tucson.

If you have questions about either the Tucson or Phoenix area and it’s real estate and would like unbiased and honest information feel free to email/ call me with your questions or concerns and I will be more then happy to go over them with you. All emails and calls are generally returned within the hour or by the end of the day for sure.

Moving to Tucson Arizona from another part of the country can bring with it all sorts of questions for those about to relocate. The first question that comes to many people’s mind when they are in the process of Moving to Tucson, Arizona is “Is there enough water?” It’s a very common misconception that because Tucson sits within the Sonoran Desert that there is no water or vegetation or wildlife. All are simply not true people moving to Tucson once they arrive will realize Tucson sits within a valley and the actual desert surrounding it is diverse and lush. Tucson’s desert is much more diverse then either of it’s large southwest neighbor cities such as Phoenix or Las Vegas; Tucson sits at a better elevation and receives more rainfall then either Las Vegas or Phoenix.

When moving to Tucson what else should you know?

Relocating to Tucson brings up several questions such as:

What are home prices like in Tucson and what can I get for my money compared to maybe a Los Angeles, or Chicago?

This question can be answered prety simply as Tucson is at about the national average for home prices. If your relocating or moving from a higher priced area of the US such as; Los Angeles, San Diego, San Fransisco, Seattle, Chicago, New York City, or Boston you will be able to find roughly two times as much house for your money (maybe more for those coming from NYC, or SF) for comparable areas. If your moving or relocating from an area such as Atlanta, Las Vegas, or Orlando you should see comparable home sizes and areas for the same or very close in price. The average home size in Tucson is roughly a little over 1,800sf. For those moving from the Midwest or east coast however you should realize Tucson homes do not have basements (or attics for the most part) so storage is a little harder to come by. One other thing worth mentioning is garage size is NOT included in the square footage of a home here in Tucson as in some parts of the country.

What do people in Tucson do for fun?

This is another question we get a lot, especially those from the faster paced cities of L.A. and New York City. While Tucson cannot compete with the attractions and entertainment options of those cities Tucson does have a lot to offer. Tucson as previously mentioned sits within a valley it has mountains, parks, the University of Arizona, and the regular high schools and other amenities other cities across the nation have. Tucson is known for its bike riding due to the weather and the biking community that resides here. Tucson along with being about an hour north of the US- Mexico border allows residents to make short day trips into Mexico for shopping and vacations. Tucson is also roughly 8 hours from Los Angeles, 6.5 hours from Las Vegas, and 1.5 hours from Phoenix for those with family in those cities or looking for weekend trips to them.

What are the established areas to live within Tucson? Where are the newer places people are moving?

Since I am a real estate agent a majority of the questions fielded by out of state buyers moving to Tucson are about the areas/Tucson neighborhoods and which ones are growing and which are already established. While it is against the law for an Realtor in Arizona to quote/ advise, or interpret crime stats and/or where a particular person should move/ live for whatever reason it is important for out of state buyers moving to Tucson to understand how the dynamics of its real estate market. Some people moving to Tucson want to live in a remote area, while other want to find new housing, still others want to move to where the close by amenities are.

To make it simple for those reading this to understand Tucson is a fast growing city the population is continually growing. The city keeps growing outward from downtown. The most established areas are those in central Tucson, north Tucson (The Catalina Foothills), Northeast Tucson, and the east side of Tucson.

The newer areas where you will find new homes available and new shopping as well as a suburban feel will be the areas of Northwest Tucson, Southeast Tucson, Southwest Tucson, as well as the cities of Sahuarita, Marana, Oro Valley, Vail, and Catalina.

Also generally speaking the further you go away from the city the lower the housing prices and the longer the commutes. Unlike the Phoenix area, or L.A. or the other mega metro areas of the country Tucson for the most part does not have traffic issues. While like anywhere sometimes traffic is backed up it is nothing like most of Southern California and many people moving here from a mega city enjoy the ability to get places relatively quickly.

For those interested in learning more about Tucson Arizona and its real estate market feel free to send an email or call directly as I have been selling homes in Tucson since 2002 and for the most part understand what people that are moving to Tucson from out of state are looking for and what questions they want answered. Moving from across country is not always easy or stress-free, but working with a Tucson Realtor who understands the process and the complexities of a cross-country move should make life a little bit easier on everyone involved.

Share on Facebook The Case-Shiller report just came out today showing home prices are going up in many of the 20 closely watched major markets Case-Shiller reports on. In those cities homes prices as an average went up 1.2% and that marks the third straight month that the Case-Shiller report has showed a net gain in real estate prices. Economists had expected a 0.5% increase from June to July of 2009. While the Case-Shiller numbers are always a couple months behind other reports it is considered one of the most accurate gauges of the real estate markets as it uses a unique formula to account for a lot of the inconsistencies normally found in comparing real estate values.

Of the 20 cities followed by the Case-Shiller report only two of them saw price declines in July. Those two cities were; Las Vegas, which reported a 1.1% monthly drop and the relatively unscathed Seattle market, which fell a moderate 0.1%. The closest market to Tucson that is tracked is Phoenix, and the Phoenix market showed a 1.8% price increase in July. This of course is after the Phoenix market fell 28.5% over the previous 12 months so it has a long ways to go just to erase last year’s losses but it’s headed in the right direction.

In listening to a lot of interviews Gary Shiller (one half of who the Case-Shiller report is named after) has done he’s somewhat pessimistic on the real estate market over the next year. He has a lot of issues with all the government incentives being offered and what it is doing to prop up a real estate market that would otherwise be in worse shape. To be honest I don’t think I have ever heard a Gary Shiller interview that was optimistic in any way so it seems like more of the same, however for the past couple years his assessments of the national real estate markets have been pretty right on. Hopefully this time Shiller’s assessments are not as on as some of his others in the past but there is a lot of government intervention in the real estate markets currently and most experts that understand what’s going on have serious concerns of how things are going to work when the government starts to pull out.

Share

Everyone wants to get a great deal on a homebuilders spec home in Tucson AZ but how do you do it? Well hopefully these tips will help you truly get the best deal on a brand new builder spec home in the Tucson/ Phoenix area. When trying to get the best deal it’s always best for a few things to line up for you as a buyer and these would include the following:

1) The longer the home has been on the market completely finished typically means the better for the buyer when trying to negotiate the price.

2) The more expensive options the home has also typically means the better for a buyer to get a better then average deal/ discount on that spec home. Since expensive options included in the home equal higher profit margins most builders if need be will make heavy discounts to a home that has a high dollar amount of options in it to get the sale and move on. Homes that have little to no options (in this market) are most likely priced at a close to bottom dollar price while a buyer should still be able to save some money the higher percentage savings typically come with the more “loaded up” homes vs. the builders “standard home”

3) Buying at the end of a home builders’ fiscal year or fiscal end of the quarter also generally speaking will yield the buyers buying spec homes the absolute best deal as builders and home builders’ management teams get paid yearly/ quarterly bonuses to meet certain sales goals. Well if you’re a ready and willing buyer and a couple sales stand between that home builder’s business goals (and ultimately the management’s bonus pay) then it’s a very safe bet they will slash prices and do a lot more then normal to make a deal happen.

4) Look for homes that are “ugly”. Meaning that who ever the previous buyer was they did a bad job picking colors or something else. If you walk into a builder’s spec home in Tucson AZ and think it is “ugly” as far as colors etc. chances are everyone else said the same exact thing and that’s why the builder is having a hard time selling it. What most people never think of is that the builder (most times) will slash a lot of money off the home to get it sold OR they will rip out what you don’t like and as part of the sale put in what you do like. This is why as long as a builder is willing to work with you an “ugly” home can be one that saves you a lot of money off your new home purchase with the right negotiation and tactics.

Now there are a lot of other things to take into account when trying to negotiate and get the lowest price on your new home spec home in Tucson Arizona. Spec homes are very appealing to most buyers as they allow for a buyer to purchase and move into a brand new home within 30 days vs. having to wait 4-8 months to have a home built. As always negotiating with a home builder is generally best left to the experts and if you hire a Realtor who has a long track record negotiating with the local Tucson homebuilders and understand how they operate and what is typical in these complex and sometimes lengthy negotiations you stand to have the best chance of getting an above average deal. When I personally sold homes for a large homebuilder in Tucson the buyers who got the best overall deals 9 times out of 10 had a very skilled and experienced Realtor working on their behalf and without a doubt it is probably the best choice a buyer can make is to enlist the help of a Realtor to work for them as their representation.

Besides that “deal” they can typically get you as a buyer the Tucson homebuilders actually also pay your Realtors commission! Yes they pay for you to bring someone to negotiate against them! It makes very little sense for someone who buys and sells a couple homes a lifetime (and probably NEVER dealt with a buying a brand new home) to walk in and think they are going to out-smart and out-negotiate a multi-billion dollar homebuilder and their trained and highly experienced sales staffs and management. (Just trust me on this one) By the way if your looking for a Realtor who understands how to negotiate and get you a much better then average deal on a new home please let me know and I can see what options and discounts you should be able to get off of your new home. For new homes I represent clients in Tucson AZ, and the Phoenix AZ area as most of the homebuilders are generally speaking the same companies and use the same tactics and “incentives” strategies. You can call me directly at (520) 247-4134 or use the contact form and send me an email about what type of home you’re looking for.

I think Phoenix Arizona is offering a perfect (well maybe not “perfect” but a very good plan) incentive to get (or help) buyers decide to make a home purchase specifically pertaining to lowering the amount of foreclosure inventories within the city limits. Basically what the $15,000 “grant” or incentive states is this: Buy a foreclosure home in the Phoenix city limits and the city will “grant” you up to $15,000 for your down payment. Here’s actually the more specific details provided from

http://arizonarealestatehome.com

As part of the Housing and Economic Recovery Act (HERA), passed by Congress in July 2008, $3.92 billion was provided to communities hardest hit by residential foreclosures and mortgage delinquencies. The city of Phoenix received $39,478,000 in Neighborhood Stabilization Program

(NSP) funds to help families purchase foreclosed homes at a discount, which in turn helps stabilize neighborhoods. NSP Homeownership Assistance funds are for down payment and closing cost assistance for eligible homebuyers.

Homeownership Assistance Description

The NSP Homeownership Assistance Program provides a $15,000 loan for down payment and closing cost assistance for buyers of foreclosed homes anywhere in the city of Phoenix. The full amount of the loan is paid back to the city when the homebuyer sells the home or refinances. The program targets foreclosed single family homes, townhouses and condominiums (condo conversions are not eligible) that meet HUD Housing Quality Standards (HSQ). The Homeownership Assistance program is for down payment and closing cost assistance only and cannot be used to fund rehabilitation activities.

Eligible Homebuyer

Eligible families can earn up to 120 percent of area median income (AMI), which is based on family size. In determining a family’s income, all wages and salaries of all family members over age 18 are considered as well as other sources of income.

Family Size 120% AMI Income

1 $53,950

2 $61,650

3 $69,350

4 $77,050

5 $83,200

6 $89,400

7 $95,550

8 $101,700

Families must be FHA creditworthy and have completed the NSP-required eight-hour Homeownership Education and Credit Assessment counseling. Families must maintain the property as their principal residence.

Eligible Property

To be eligible for NSP Homeownership Assistance funds, properties must meet the following requirements:

Located in the city of Phoenix

Foreclosed and have changed title

Appraised within 60 days of the purchase contract

Purchase contract must contain four contingencies:

Sales price at least 15 percent below appraised value

Property clear of the city’s top eight neighborhood code violations (see phoenix.gov/CLEANPHXltopseng.pdf)

Pass inspection according to HQS before close of escrow

Signed “Lead Disclosure Form” from seller for properties built pre-Jan. l, 1978

Program Description

The NSP Homeownership Assistance program consists of three-phases – each with very specific requirements:

Home buyer Education and Credit Assessment

Complete eight hours of counseling from a HUD-certified housing counselor

Receive a Certificate of Completion from the HUD-certified counselor

Qualify for a 30 year, fixed rate, amortizing loan (not subprime)

Eligibility Verification

Determine income eligibility and invest $1,000 from own funds
Find eligible bank.-owned foreclosed property

Verify purchase price of at least 15 percent below appraised value

Closing Requirements

Sign purchase contract with city required contingencies (see above)

Pass Housing Quality Standards (HQS) inspection before close of escrow

Completed HUD environmental impact assessment (provided by the city)

Lead Disclosure Form signed by seller if property pre-Jan. 1, 1978

Obtain three-year Home Warranty contract, not to exceed $1,500

Execute city Homeownership Assistance loan documents/agreements

Fulton Homes a huge builder in the Phoenix area filed for Chapter 11 bankruptcy protection this morning. Chapter 11 allows for the company to restructure its debts, Fulton Homes should still be around but this is obviously a serious blow to them. In Phoenix the new home industry was one of the best (if not “THE” best) homebuilding market in the nation. Actually I believe statistically the Phoenix area was the #1 new home market in the country by units delivered. As reported here many times in Phoenix the real estate market was white hot for 3 solid years. For 3 years there were waiting lists and price increases, and incredible demand. In Tucson this same white hot demand only lasted from roughly February of 2005 until September of 2005 so about 8 months. In my opinion Phoenix has a lot longer to go to get through the downturn as it has been so, so overbuilt that huge mega builders like Fulton Homes is now declaring Chapter 11.

Fulton Homes more then likely did a decent job of running their business, but in this current real estate environment home builders have few options as foreclosure homes are typically lower in price then a builder can build for. I think as far as Arizona homebuilders to file for bankruptcy protection Fulton is by far the largest. Fulton Homes is actually Arizona’s largest privatly held home builder. As reported here I think there will be more to come. I personally wouldn’t be surprised if one of the major builders started having trouble with needing capital soon. The homebuilders in general are weathering this storm pretty well but if the real estate markets don’t start to show life by 2010 even the largest builders will start to look a lot like the financial sector presently looks. Home builders came into this downturn with record profits and tons of cash but currently a majority of their land holdings are virtually worthless as demand has ceased in some areas of the country. Locally the SW side of Tucson has been a ghost town for builders when previously the SW side was looked at as “the next expansion side” of the Tucson area. When demand just dries up there’s not a whole lot a builder can do but to hope it turns around soon. My thinking is at least locally the Tucson real estate market should be off its death bed and back into a general “good health” by 2011. Builders “should” start to see some demand in late 2009 early 2010 as the number of premium foreclosure properties starts to (it’s currently happening) be absorbed. Buyers are out there, but their mindset is all about “the deal” and trying to minimize any losses this market continues to experience by buying as low as then can which ultimately means shopping the foreclosure home rack.

Additional Links:

ABC 15 In Phoenix

Phoenix’s East Valley Tribune Newspaper

Are you in the market for Tucson real estate and want to know what the top 10 things to know about the Tucson area? Ok here is my breakdown:

#1 It’s hot here in the Summer! Imagine this; you take your hairdryer turn it on and point it towards yourself (don’t try this at home) but if that hairdryer is about let’s call it 12-15 inches from you that’s what Tucson Arizona is like during the summer, IT’S HOT! You will burn your hands on the steering wheel of your car, asphalt can become very sticky, and when you walk from air conditioning to the outside (well go get the hairdryer again and there you go.). WHY would anyone put up with that? Well eventually comes the night and when the sun goes down people actually come outside and the nights are very nice, cool, and comfortable. It doesn’t rain here (very much) so almost any day or night event you want to do can be done and weather isn’t much of a concern.

#2 Winter is almost absolutely perfect again sunny and any day you want you could wear a tee-shirt, shorts, with flip flops and would not be cold. It’s that nice during the winter and I do this weekly.

#3 Were in the Sonoran Desert NOT the Sahara. People from other areas think “desert” and think of huge sand dunes, and no vegetation. That’s not Tucson we have cacti, trees, bushes, and lots of wildlife. In fact I think the Tucson’s surroundings are very diverse and extremely easy to go and do hikes and other wildlife activities. Other people think Tucson is like Las Vegas with just small cacti and lots of very small scrub brush again that’s not Tucson either. Las Vegas is in the Mojave Desert and that’s a different deal altogether. Believe me many of people love the Tucson desert in my opinion next to the weather our natural desert is our biggest asset to making people want to move here.

#4 Tucson is roughly 6 hours from The Pacific Ocean via San Diego, or you can go to Puerto Peñasco, Mexico that’s about 6.5 hours (drive time). Or let’s say you have a gambling itch you can drive to Las Vegas in 6.5 hours (I have done it in less but….) OR Tucson also has 3 very nice large casinos within it.(On Native American Lands) Plus about an hour and a half north you can get to Phoenix which offers Professional sports, and anything else you could want.

#5 Tucson is NOT AS HOT AS PHOENIX! During the summer Phoenix Arizona is typically 10-12 degrees hotter then Tucson due to elevation and urban sprawl. At night this same rough average stays meaning that while at 10PM at night Tucson maybe 75-80 degrees Phoenix on the other hand is still just shy of 100 degrees and that makes a BIG difference. I have been in Phoenix at 11PM and still saw triple digit temperatures this doesn’t happen in Tucson.

#6 If your looking for a cooler destination (or skiing) you can go to Mt Lemmon in the Catalina Foothills (45 minutes away)or you can go to the White Mountains about 3-4 hours away to escape the heat in the summer or go skiing during the winter.

#7 Tucson is a large area just to get from the NW side of Tucson to the SE takes approximately 45 minutes by interstate! So the good news is that within this giant area known as Tucson you can find almost any lifestyle you would like.

#8 Tucson is an avid “outdoors” city every weekend you will see people biking along all streets, hiking, doing outdoor activities. If you’re from a colder climate and you live in Tucson after a month or two you will never understand why 3-4 months a year you sat inside your home during the winter when you could have been living in Tucson enjoying the outdoors. Whatever outdoor activity interests you, you will be able to quickly find several people that also have the same interests within weeks of being brand new. The reason why is because in every park/ public area there is every outdoor activity you can imagine taking place. Horse riding, hiking, mountain biking, anything happens every weekend throughout the year. (During the summer all these events just start much, much sooner at like 6am and are finished promptly by 10am.)

#9 Since Tucson is home of The University of Arizona there is always a sports season where Tucson residents can watch a game. During the spring Tucson hosts spring training and brings in crowds from all over the country. In February Tucson hosts “The Gem Show” this show is the premier “Gem Show” in the world and people from literally all over the world come to Tucson to buy and look at Gems. During the Tucson Gem show the city is packed with people, vendors, and onlookers it’s a very busy time to be in Tucson during early spring/ late winter.

#10 World Class Golf: Tucson Arizona is home to some without a doubt World Class Golf. In February the World Match Play Championship is played on the NW side of town. This tournament is one of the most prestigious championships in the world to win and the top 64 professional players come to play the event. Even beyond that event Tucson courses, views, and conditions make for arguably the best golf on Earth. Several courses in the Tucson area have been former PGA tour stops and the resorts that host some of the best courses also are rated as some of the most luxurious and accommodating resorts in North America. Whether it’s La Paloma, Ventana Canyon, Canyon Ranch, Starr Pass, Tucson National, or Westward Look Tucson has a top resort and golf developments that will make the most demanding person feel accommodated nicely. In all of these resorts there is also real estate developments attached to them so that if a person chooses they can live within the resort and take advantage of all that the resort offers. (Membership to the resort is additional however many people think of the membership costs as “part of living expenses”

So there you have it the top 10 things to know about Tucson. If I left some out or if you think you can add to the list post a comment. Few people that I ever talk too come to Tucson for the first time and “hate it” most fall in love with the natural surroundings, the people, and the lifestyle Tucson provides.

Local Phoenix homebuilder Brown Family Communities closed it’s doors today. As already noted here I think in both Phoenix and in Tucson Arizona we will continue to see builders fold up as the lending standards have become very difficult for smaller builders to lend money to fund operations. Brown as most small builders (those that build less the 1000 homes a year) need to use large sums of financing to get the money for buying parcels of land to develop, and then actually build a home on. After that then the tough part begins to actually be able to FIND A BUYER FOR IT oh, and don’t forget it’s a lot nicer if they can actually make a profit on that sale. I would say most homebuilders are NOT making any money off of the home sales. A lot of them are scraping by due to the fact that they have alliances with local lenders to share in revenues made off of loans originated off their home sales. This kind of boom and bust is actually a very familiar concept to homebuilders so most planned for hard times way before the boom even started and knew how to protect themselves the best they can. This for a homebuilder usually means taking options on land vs outright purchases until it is actually needed. Also having large lines of credit available and tremendous relationships with large banks is a basic “must” for any builder to get through tough times.

However I think as Brown Family Communities has discovered the length of rope is only so long and for many builders they are probably nearing the end of it. No builder/ banker/ stockholder or business investor had planned for such a deep serious depression for the new home industry. As a whole the industry is at all time lows for confidence. New home starts across the nation are at the lowest level since WWII! Keep in mind the nation was at war during that time AND the population of the USA was roughly less then half that it is currently! I don’t think honestly it could get much worse for homebuilders across the nation, here in Tucson I still think we will see more builders go out of business or need to be re-organized as time goes by. Few new communities are being opened, and builders are having a harder time then ever obtaining the large loans they need for land purchases and capital needed before a home is ever even completed in a neighborhood. Keep in mind this is really only for the smaller non-publicly traded homebuilders. Nation homebuilders have access to stock markets to infuse large sums of capital and are mostly very diversified meaning that if a builder is losing money in Tucson they can make that up by building homes in Texas where the real estate markets are much more profitable currently. Stay tuned as obviously the real estate market is still in flux and will continue to shake out over the next couple years.

The Phoenix, Arizona, real estate market is, in my opinion, much worse shape than Tucson’s. Phoenix experienced more speculation for a longer period of time than Tucson. During the boom, I remember speaking with agents in Phoenix who talked about the wave of speculators arriving and buying Phoenix up for a full two years before the same type of speculators came to Tucson in droves. When they came to town, the buying frenzy only lasted roughly 8 months, whereas Phoenix experienced well over two years of blatant overbuilding and speculation. However, just because the Phoenix AZ real estate market is in worse shape than Tucson’s, it doesn’t mean the market is dead.

The Phoenix real estate market and especially the new home marketplace (the largest in America) have had a rough time the past two years, but the numbers are still staggering. The Phoenix market is just a juggernaut and is many times larger than Tucson’s. 2008 will be a slower than normal year for the Phoenix new home builders. Only 22,000-24,000 home building permits are expected to be issued. That’s about a 20% drop from 2007, which was even much slower than 2006. By comparison, I believe the Tucson home building numbers come in around the 6,500 mark for 2007, down from 7,831 in 2006 and 11,270 in 2005 when the housing boom reached its peak. The leading homebuilder by number of sales in Phoenix for 2007 was D.R. Horton. They logged over 5850 sales last year alone! Coming in second was Pulte Homes, and they had sales figures in excess of 4250 sales! Those numbers are still huge. In Tucson, the leading homebuilders top out around only 600-800 total sales. It’s easy to see the Phoenix market is still churning out a large number of sales.

It is expected that the Phoenix real estate market will stay in its current downtrend for at least another two years. Some predict longer. There is just way too much inventory in the Phoenix area to be burned off by natural demand from expanding families and population growth. Look for 2010 to be the year that the Phoenix market starts to stabilize and starts to once again produce net appreciation in home prices that beats out inflation. Some areas of Phoenix like Scottsdale and Fountain Hills are still somewhat sheltered from the major downturn because of their exclusivity and way above average homebuyer types who can wait out downturns. Many of these homes are in the highest of price ranges and were obviously not purchased on speculation with the intent to rent the home out and double their money in 3 years, like so very many others tried to do.