Tucson Real Estate Blog

Take a look at this city planning project and the technology used. It wouldn’t surprise me if the development and revamping of new cities was achieved just like this! This video gets really interesting at 1:26 mark

Keller Williams Nationally Welcomes Tucson! Top Producing Agent Peter Saavedra Featured

Last modified on 2010-07-23 21:35:03 GMT. 0 comments. Top.

The following article was featured in OutFront Magazine. Please click on the picture to the right to get a feel for Keller Williams Tucson and a few of its Realtors. OutFront is a publication which reaches out across the nation regarding Keller Williams Real Estate. Keller Williams Southern Arizona is a new company which was formed fairly recently, adding to the long tradition already established in Tucson. The following article points out some opinions and advantages for agents joining the Keller Williams Tucson family.

The 2010 United States Real Estate Market at a Glance

Last modified on 2010-05-18 16:46:25 GMT. 0 comments. Top.

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.

Tucson Real Estate overview/statistics March 2010 and what they mean to you

Last modified on 2010-03-18 18:12:34 GMT. 0 comments. Top.

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?

Moving skyscrapers that conserve energy. Could this be what the future holds for Real Estate?

Tucson Real Estate 2009 Snapshot

Last modified on 2010-03-18 18:10:35 GMT. 0 comments. Top.

Tucson Real Estate 2009 Snapshot

2009 was a turbulent year for Tucson Real Estate, but we’re heading in the right direction. The Tucson residential housing market is showing general signs of improvement across major statistical indicators. Home sales have shown a 54.59% year over year increase from November 2008 to November 2009. Although the average sales price is down year over year from 2008 to 2009 by 12.45%, sales prices tend to follow sales volume. As volume increases, so does the average price. It’s the law of supply and demand. Especially since there aren’t many developers starting new projects these days, all of those condos and homes we heard about being new and vacant will be absorbed. People love the fun and sun of Tucson after all, they will still move here and the population will increase faster than most other regions. The Tucson Real Estate market will benefit from these demographic shifts. The Tucson Commercial Real Estate Market will likely take a little longer to recover. The commercial cycle generally lags behind the residential cycle by about twelve months. Decreased consumer spending in times of economic difficulty lead to retailers having difficulty as sales decline. Decreased retail volume leads to less demand for warehouse, storage and industrial space. These factors lead to decreased revenue for commercial property owners. As consumer spending increases again, the cycle reverses. Income to commercial landlords increases, and property values go up accordingly. Taking a look at the multifamily apartment market, average rental rates for one bedroom apartments were down 3.63%, to $547. The average rental rate for a two bedroom apartment remained flat, fluctuating less than one percent and hovering at about $750. Expect prices to climb in double digits next year and continue growing solidly for years to come as Baby Boomer couples retire and look to move away from their currently frigid locales to sunny Tucson. Two bedroom configurations are in high demand with retirees, as it gives them the flexibility of a second bedroom that is easily convertible to a den or home office. Developers will doubtless seize this opportunity to add some specialized communities, creating jobs and spurring consumer spending and helping to drive new economic growth for Tucson and Tucson Real Estate. All said, 2009 was an encouraging year with some positive signs of recovery and 2010 promises to be an exciting year for Tucson Real Estate!

Everything you need to know about the First Time Buyer tax credit

Last modified on 2010-03-18 18:10:54 GMT. 0 comments. Top.

First Time home buyer Tax Credit

Over the last several years real estate prices have been in a sharp decline. Part of the reason for this is the high valuations that were seen in 2005, as prices were climbing at some of the fastest rates ever. Now, with housing markets around the country facing large inventories of unsold homes means that there are very reasonably priced homes for the first time home buyer. To help improve demand the federal government is offering a program that will give first time home buyers assistance with purchasing their home, the first time home buyer tax credit. However, like all government programs there are various qualifications that must be met by all first time home buyers to be eligible.

First Time Home Buy Eligibility

To qualify for the first time home buyer tax credit, everyone must be purchasing the property as their primary residence. This is the residence that someone will be living in most of the time. It can include: condominiums, homes, co ops, houseboats and mobile homes. However, there is an exception to this rule, an individual can qualify for the tax credit if they own rental or vacation homes, provided that they can show that they these were not their primary residences over the last three years.

Limited Time

The first time home buyer tax credit will not always remain in place, instead the government is going to be phasing it out over the next two years. Currently, all first time home buyers are eligible for the $8,000.00 tax credit for purchasing a home until April 2010. At this point, the credit will be closed to the general public and will only be available to members of the military, intelligence community along with Foreign Service until April 2011.

Purchase

The maximum value of the property that can be purchased with the first time home buyer tax credit is $800,000.00.

Income

There are income restrictions to qualify for the tax credit. What happens is the credit can be phased out based on annual income; with the maximum limits being placed on those who make more than $125,000.00 per year individually or couples that make $225,000.00.

Clearly, the first time home buyer tax credit has many different benefits. Yet, there are various qualifications that must be met to be eligible for this program. It is through understanding the different qualifications that will help all first time home buyers determine if this is something they should be using to purchase their first home.

To buy or not to buy a short sale

Last modified on 2010-05-18 16:53:41 GMT. 0 comments. Top.

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.

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