While some areas of the country will continue to encounter difficulties with the economy and their real estate market in 2010, there are some encouraging signs that the nation’s real estate market is improving. Since housing prices have recently decreased, we are also entering a period where homes are more affordable than they have been in almost twenty years, making it an optimal time to buy.

There are markets that are showing signs of improvement and recovery. Approximately 44 cities are predicted to show appreciation this year, which exceeds totals over the last four years. Almost all of the nation’s markets will become more stable as buyers begin to purchase the surplus inventory of homes.

WHY HAVE PRICES FALLEN?
A high number of foreclosures and bank assisted short sales is causing an increase in housing supply on the market. High unemployment is contributing to a weak economy. The U.S. economy was diminished by 2.4% in 2009, its worst performance in decades.

WHERE ARE MARKETS STRONG?
High employment rates are the best indicators of strong housing markets. The best real estate markets have strong regional economies. College and university towns also perform well in a weak economy. Enrollments tend to rise during bad economic times, and the local economies in these towns benefit from the increased enrollments.

SIGNS OF IMPROVEMENT
In a report issued in February, the U.S. Commerce Department stated that new housing starts in January 2010 rose to their highest level in six months (see www.census.gov/const/www/newresconsthist.html). Sales of existing homes and condominiums also increased in 3 out of 4 regions in the country- up 10% in the Northeast, 9% in the West, and 1% in the South. Real estate sales increased in 48 states and the District of Columbia in the fourth quarter of 2009 and showed double digit increases in 32 states. Total sales were up by 14% in the 4th quarter of 2009.

SHOULD I CONSIDER BUYING NOW?
The National Home Builders Association and Wells Fargo have presented a report stating that the Housing Opportunity Index (HOI) shows that 70.8 percent of all new and existing homes sold in the fourth quarter of 2009 were affordable to families earning the national median income of $64,000. Conditions such as lower housing prices, lower mortgage interest rates, and two federal housing tax credits available to first-time and repeat purchasers are making homes more affordable now than at any time in nearly twenty years. Consult with your realtor today and learn how you may benefit by purchasing a home.

There are several strong signs that the Tucson real estate market is gaining positive momentum, and that the Southern Arizona regional economy is faring well. As the local real estate market and economy appear to be improving, and with incentives such as low mortgage rates, tax breaks, and lower housing prices, now may be a very opportune time to discuss purchasing a home with your realtor.

Many types of real estate transactions occurred in 2009, with specialized types of sales including short sales, REOs, and foreclosures being mixed with traditional home sales. Overall, the volume of home unit sales increased by 10.24% in 2009 over 2008, according to the Tucson Association of Realtors Multiple Listing Service (see www.tucsonrealtors.org/tar-v2/2009yearend.pdf). Tucson area realtors sold a total of 11,661 homes, representing an increase of 1,083 more homes sold than in 2008.

Active housing inventory decreased by 20% compared to the end of 2008, and there was a 38.56% increase in pending sales contracts at the close of December 2009 compared to the previous year.

The Tucson real estate market is off to a strong start in 2010. In January, total home sales volume increased 13.03% over January 2009, pending sales contracts were up 22.74%, and new listings were up 34.74% over this time last year. In addition, active listings increased 7.96% over December 2009, but are down 12.13% from January 2009.

These statistics show that the local housing market began to show signs of recovery in 2009, and it is encouraging to see that the progress is continuing early this year. These sales increases are strong indicators that the local market is strengthening.

More good news is that the Southern Arizona regional economy appears solid and stable. The unemployment rate in the Tucson metropolitan area as of December 2009 was 8.0%, compared to 10.0% nationally. Southern Arizona has a broad- based economy which contributes to its strength, with jobs in the hi-tech, banking, medical, government, and education fields providing stability. Additionally, enrollment in the Arizona University system has increased 13% over the last 5 years. The University of Arizona provides 14,576 jobs to the area, and much of the money it receives for research funding is spent directly in the area. Southern Arizona’s economy benefits from all of these factors.

Considering the rise of the local market, the solid regional economy, and the current incentives available such as federal tax credits, low interest rates, and reduced housing prices, you may want to explore the benefits of purchasing a home in the Tucson area. Conditions are favorable, and prices are lower than they’ve been in several years. Why not get in touch today, and see what we can do for you?

Tucson is an active city year round, known for its warm, sunny weather and friendly embrace of tourists. Remember that our hotels are busiest in the winter and spring months, so try to book early!

Free maps and guides to the city are available at many of the city’s visitor centers. Check in with www.visittucson.org to learn about the “Official Visitor Guide.”

The following is a broad list of upcoming events in Tucson that visitors, newcomers, and locals alike may enjoy:

Have a great night of entertainment with one of America’s favorite comediennes, Lily Tomlin, live at the University of Arizona’s Centennial Theater on Saturday, March 6 at 8PM. You’re sure to remember her hilarious characters Ernestine and Edith Ann from the classic TV show Laugh In, come see what she has in store for you now!
Visit www.uapresents.org for more information.

Don’t miss the Tucson Festival of Books, a great event for the whole family on Saturday and Sunday March 13-14 at the U of A campus. Parking and admission are free, and there will be hundreds of great authors on hand, including several New York Times best-selling authors, J.A. Jance, and Elmore Leonard. There will also be great food available and activities for children and youths. Find out more at www.tucsonfestivalofbooks.org.

Catch Major League Baseball Spring Training with the Arizona Diamondbacks at Electric Park or the Colorado Rockies at Hi Corbett Field. Both teams will play host to other Major League teams games on their diamonds in Tucson. You can see the spring schedules for both teams at www.visittucson.org/visitor/events/st.

The Arts in the Park-Fine Arts and Jazz Festival will be held at the lovely Canada Del Oro Riverfront Park on Saturday and Sunday, April 10-11. You’ll see live jazz performances from regional and national musicians, enjoy gourmet foods and beverages, and beautiful artwork against the backdrop of the magnificent Catalina Mountains. The children’s art activities will help make it a great experience for all.

Come to the 99th Annual Pima County Fair on April 15-25. Enjoy all the animals, exhibits, concerts, auto shows, carnival rides, delicious food, and more. Visit www.pimacountyfair.com for all the details.

See the unique playwright, author, humorist and commentator David Sedaris live at Tucson Music Hall on Sunday April 25 at 7PM. Known well for his appearances on NPR’s This American Life, you’re sure to enjoy the experience even more in person. Tickets are available at www.ticketmaster.com.

Try the “Bike –In Movie”- go by bike to watch a great movie outdoors. Last Sunday of each month @ BICAS 44 West Sixth St. Check back soon for more great events!

Tuscon: A Town of Excitement Jan 10^th – Feb 28th

Southern Arizona is packed with fun and exciting things to experience. All you need to do is know where to look and have good company. January and February of 2010 start the year off with a bang. Listed here are just a few of the interesting things you can do in Tuscon.

Something that the whole family can enjoy is the “Meanwhile Back at the Ranch” exhibit held at Tohono Chul Park, beginning January 14, 2010. This exhibit was inspired by a cowboy rodeo and will include real-life cowboys and cowgirls. After all, nothing says “fun in Arizona” like warm weather and a rodeo. Even Cowgirl Hall of Fame photographer Louise Serpa’s exhibit will be there! Best of all this event is free! You can find out more information about the rodeo by clicking here

Another fun, no-cost activity is being held at the Paradiso Bar and Lounge. They have started having “Free Concert Thursdays,” starting January 14, 2010. All of these concerts will start promptly at 8 p.m., every Thursday night. This will include tributes to rock and country legends such as Elvis Presley, Aerosmith, and Tim McGraw. More information about these concerts can be found by clicking here: Paradiso Bar and Lounge

On the other end of the music spectrum, the musical “Legally Blonde” is making its way to the Tuscon Music Hall starting January 19, 2010 through January 24, 2010. Based off of the 2001 hit movie starring Reese Witherspoon, Tuscon Music Hall is offering quality entertainment at an affordable price. This family show is selling tickets for as low as $29 a ticket. This is definitely a show where everyone can find something to enjoy, even if it’s just the idea of a dog named Bruiser, running around in a musical. All the information you will need to purchase tickets will be found by clicking here: Legally Blonde Musical.

February brings about a brand new type excitement, starting off with the “Carnival of Illusion” that opens on February 5, 2010. This will be held at the Doubletree Hotel in Reid Park until late May. Roland Sarlot and Susan Eyed will be performing their exclusive parlour show each night. This extraordinary experience will include a 2-for-1 dinner special and a night that you will never forget. Hurry and purchase tickets because they only allot space for 35 guests per show! You can find out more information and purchase tickets at: http://www.carnivalofillusion.com. This is an absolute great show in Tuscon!

On a more romantic note, you can celebrate Valentine’s Day with that special someone or those whom you love at the Valentine’s Day Homecoming Concert on February 13, 2010. This will be held in the Westin La Paloma Ballroom and tickets are selling for $35-75. Both grammy-winning Diana Schuur and the Jeff Daniel Band will be performing to set the right mood for the evening. What better way to swoon your loved one than with some drinks and sexy music? And for the full resort experience you can stay at the The Westin La Paloma for only $149 a night.

February ends with the “Walking with Dinosaurs” exhibit at the Tuscon Convention Center. It is the only show of its kind where you will get to be in an arena with life-size dinosaurs! This exhibit is a little boy’s dream come true! You can find more information on this exhibit at Walking with Dinosaurs 

Tuscon is a wonderful place to visit which contains plenty of adventure for its guests. Please come back to see our Feb – Mar picks for fun soon!!

Short Sales in Tucson

Although there are no actual figures recorded for the number of short sales done each year, many thousands of short sales occur annually. Many short sales are completed in the Tucson, AZ real estate market. Since a short sale is recorded just like a normal individual to individual sale rather than a foreclosure where legal title is transferred to a bank, statistics on the number of short sales completed each year cannot be compiled; however, one knows this number is high with current market conditions, perhaps almost as high as the number of foreclosures.

From an investor standpoint, buying short sales in Tucson, AZ is in many ways preferable to buying foreclosed properties. A short sale has many of the same advantages to an investor as a foreclosure; a short sale allows an investor to buy a property with all of the original owner’s equity wiped out, in addition to the bank generally taking a loss on the face value of their loan, as they do with a foreclosed property. Short sales in Tucson, AZ can be an excellent investment vehicle. Moreover, a short sale is generally in better condition than a foreclosure. Since the current owner of the property must consent to a short sale, and it is a ‘peaceful’ transfer of the asset rather than a ‘hostile’ transfer like with a foreclosure, the owner generally leaves the property in better shape.

To a Tucson property owner in distress, a short sale of their property is highly preferable to a foreclosure. The simple fact is that foreclosure destroys credit. A short sale does not negatively impact credit.

To the bank, a short sale has many advantages over a foreclosed property. A bank may be inclined to take a deeper discount on a short sale in Tucson, AZ than on a foreclosed property because they are able to avoid the cost of taking title to the property and avoid the expensive legal and other costs associated with foreclosure.

Short sales can also become a lengthy process for the home buyer looking to get into a home right away sometimes taking up to 6 months to facilitate. Since most real estate agents are not trained properly in processing short sales the purchasing process can take even longer. For this reason ask your agent how many short sale transactions they have “completed” and what their success ratios are. An experienced agent should have a 45.5 day processing time from beginning to end. Tucson, AZ can be an excellent way to capitalize on current market conditions, as the area will continue to grow and Tucson will continue to be a popular choice among investors and homeowners alike.