Monday, June 30, 2008

The smell that quells a home sale


I was out showing some clients a home the other day and as we entered through the property's front door we were broadsided with a wall of cigarette smoke. Suddenly I realized why this home has been on the market so long....

Mind you the home owner that greeted us at the door was not even smoking at the time, so this was residual smoke that stopped us in our tracks. Once my clients had walked into the home they said they wanted to see the backyard and quickly excused themselves out the backdoor. Then it was just a waiting game; as we admired the home's sparkling pool, we were actually planning out our escape. They didn't even want to see the rest of the home, in their eyes they were done with this house.

In my experience nothing can turn off a potential home buyer more then the smell of cigarette smoke. For those of us that are "smoke sensitive", the smell of cigarettes is offensive and a deal breaker. I think many homeowners underestimate the impact cigarette smoke has on the sale of their home. Though it's hard t believe, cigarette smoke permeates into everything in the home, the walls, carpet, window coverings, furniture and even the grout between tiles. One home in particular I remember well; the home had just been vacated and there were cigarette smoke outlines where the pictures had been hanging on the walls. That home sat on the market for YEARS!!!

The smell of cigarette smoke can be very difficult to remove once it's seeped its way into the walls, flooring and cabinets. Buyers understand this and more often then not just skip over a property with smoke issues. If you plan on putting your home on the market and you're a smoker, bring in your real estate professional early to discuss potential problems with cigarette smoke and options for removing/reducing the smells. It's a deal breaker in most real estate markets, and with the current excess housing inventories and slow sales, don't you want your home to be at its best?
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Thursday, June 26, 2008

More buyers are buying as prices keep dropping


Some good and bad news for those homeowners trying to sell right now. The National Association of Realtors reports that existing home sales were up 2% in May, but the median sales price has gone down.

Areas that were hit hardest during the housing bust (like California, Nevada and Arizona) are the same areas that are seeing increased sales. While this is good news for home sellers, prices continue to go down each month. Great news for buyers! The national median sales price for May was $208,600, which is a decline of 6.3% from the previous year. When you look at Tucson's sales statistics for May, unit sales, median sale price and average sales price were down for the same period.

We're seeing more activity in the Tucson real estate market right now; mostly buyers that are out to take advantage of low prices and desperate sellers. Some are investors, others are pre retirement folks that have realized now is the perfect time to find that second home. Many of the buyers I've encountered are paying cash, giving them even more negotiating power. These buyers are slowly helping to balance out Tucson's housing market, but we still have a heck of an inventory to move through before we can really stabilize.
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First of monsoon storms for Tucson

Photo courtesy of NOAA


Tucson saw it's first monsoon storm last night. I always get excited when I know a storm is coming; I keep a constant watch on the local radar, just waiting for the rain to begin. How pathetic am I?!

Though my part of town (Oro Valley) didn't see much rain, the lightening was incredible; more then 2,000 strikes were recorded. I really wish I had a better camera so I could capture Mother Nature in action. Tucson is known for some fantastic lightening displays, but the increased number of ground strikes combined with a lack of rain (dry lightening) is already contributing to wildfires in surrounding areas.

I found a great link to a YouTube video of Tucson lightening displays. Something to check out!



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Saturday, June 21, 2008

Ozone levels high in Tucson during hot months

As I've mentioned in several other posts, it's really hot in Tucson right now. June is typically the hottest month here, and this year we're really seeing our share of 100+ temperatures. Unfortunately the extreme heat and intense sunlight trigger higher concentrations of ozone, wreaking havoc on those that suffer from respiratory problems.

Last Tuesday Tucson saw higher ozone readings then we've seen in over two years. For those with lung and respiratory problems, the smog and other particles associated with ozone can make it difficult to breathe. A few of my friends have commented that they've had some trouble breathing in the late morning and afternoon hours, when the sun and heat are strongest. One has had to receive medication to help control her asthma.

When Tucson sees this type of heat Pima County and the American Lung Association of Arizona generally issue advisories to the public, suggesting that people avoid outdoor activities. Most people try to head out for their walks, bike rides or runs early before temperatures begin to rise. Once the monsoon rains make their way into the area, the air will begin to clear and ozone levels will go down.
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Tuesday, June 17, 2008

Tucson monsoons can cause traffic havoc


The monsoon season is already upon Tucson, and most residents can't wait for the rains to begin. After weeks of consecutive 100+ temperatures, the late afternoon storms and lightening that accompany monsoons are refreshing and exciting to watch. Still the heavy rains that accompany these seasonal storms can cause some major hassles when it comes to flooded roadways.


On Sunday the Arizona Daily Star featured a few stories about Tucson monsoons and provided a great map showing Tucson's most common flood areas. Unfortunately the map isn't available online so I created one on Google Maps and included it below. There are several major roadways that flood and put traffic to a standstill when heavy rains hit, so it's generally better to avoid the areas all together. Even though there's usually fair warning that roadways are closed due to flash flooding, many drivers chose to take a risk and drive through barricaded streets. A number of drivers have gotten stuck in the flooded roads and required emergency assistance to get out. Now many rescue agencies in Arizona charge drivers for the cost of being rescued, something we call the "Stupid Motorist Law".



The Tucson monsoon season generally begins in June and ends sometime in late September.


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Monday, June 16, 2008

On the prowl



Even the desert critters are avoiding the heat!

Our resident bobcat can usually be seen heading out in the evening hours, once the sun is beginning to set. I've seen him (or her, not sure) cruising in our backyard early in the morning as well, scouting out breakfast before settling down under some shrubs for the day.
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I'ts just plain hot


I'm going to whine a little bit this morning about Tucson weather. Tucson's in a much better place then the rest of the country when we look at our climate and weather conditions; we never need to worry about flooding (except flash flooding during the monsoon season), tornadoes or blizzards. What we do have is HEAT. As we move into the summer months, Tucson's seeing temperatures consistently over 100 degrees on a daily basis. While it's true that it's a dry heat, it's still hot. The lack of humidity makes it very tolerable compared to other parts of the country. Being from the Midwest I remember all to well walking out to pick up my mail and returning soaked. Still I've got to be honest and say that even a dry heat is hot once our temperatures reach 100 degrees. Tucson's expected high today is 108 degrees. Temperatures like these can be difficult to deal with. When you walk out into this type of heat it takes your breath away for a moment.


During the summer I generally head out early for my runs; if I'm not out by 5:30am it's just too hot for me. Tucson's no longer cooling down at night like we were in May; now we dip down to the mid 70's. Needless to say most homeowners are running their air conditioners non-stop. Electric bills are increasing, generally running between $200-$300 as homeowners crank up their cooling units to survive the extreme temperatures. Luckily we're heading into our monsoon season, which will bring in afternoon rains and some cooler temperatures. Nothing like hearing that the rumble of thunder, the first sign of our summer respite!
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Tuesday, June 10, 2008

Oro Valley one of Top 100 places to live



Fortune Small Business Magazine recently posted their list of the top 100 places to live, and Oro Valley Arizona ranked in at 44.


Fortune Magazine ranks towns based on several factors including economic opportunity, good schools, safe streets and sense of community.

Oro Valley is located at the base of Pusch Ridge, and it's home to a large number of residents from all around the U.S. that maintain second or winter homes. There's is all sorts of housing available in Oro Valley, with several different Active Adult communities , as well as the master planned community of Rancho Vistoso and a number of golf course communities.

Development in Oro Valley has really exploded in the last few years, but it still maintains a small town feel. Oro Valley Hospital is celebrating it's third year in operation, while the new Oro Valley Marketplace is slated to open Phase 1 this Fall. Several other retail developments are also in the works.

If you really love the great outdoors, Oro Valley is the place for you. Streets are lined with walking/running paths and bike trails, and hikers can enjoy a leisurely trek in Catalina State Park. And of course golfers can spend the day on any one of the many different courses located in the area. Oro Valley is home to several different competitive events, including the Tucson Marathon, the Arizona Distance Classic Half Marathon, and the El Tour De Tucson bike race.
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Taken a break in the shade


Summer is here in my eyes.

The temperature reached 103 degrees today, and it felt every bit of it. This little fella decided to take a break from the heat and rest in the shade for awhile. He's hard to see since he blends in so well with the landscape.Hard to believe that summer doesn't officially start for another 11 days. At least it's a dry heat!
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Monday, June 9, 2008

Who knew IKEA built homes?


I know that IKEA sells about everything you could want for your home, but who knew they actually built homes?

IKEA is providing low cost, high quality housing for low income buyers in Gateshead, England. These prefabricated apartments were first introduced in Sweden in 1996 and then expanded to Finland, Norway and Denmark. Qualified buyers are randomly chosen in a lottery to prevent flippers from buying in.
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Tucson real estate sales statistics for May

The latest Tucson real estate sales statistics for May show that our market is beginning to pick up a little steam, at least in the short term. Tucson's median sales price, home unit sales and home sales volume increased over the previous month's numbers, but these numbers were still down from May 2007.


- Tucson again saw a decrease in our average sale's price in May; we saw an average price of $250,803, a 1.15% decrease from April's average of $253,729 and a 10% decrease from May 2007 ($278,619).


Tucson average sales price for April



- Tucson's median sales price for May '08 was $201,000, a 3.07% increase from April's median price of $195,000, but a 9.86% decrease from May 2007's median price of $223,000.

- There were 1,485 Pending contracts in May 2008, a decrease of 4% from the number of Pending's in April (1,547). It's a 24.68% increase over the number of Pending contracts in May 2007 (1,191).

- The average days on market decreased to 77 in May 2008, a 1.28% increase from April '08 (78) and a 24.2% increase over May 2007 (62).


Tucson average days on market for April


- Tucson had 8,527 Active listings in May, a 3.19% decrease from 8,808 in April 2008, and a 12.28% decrease from May 2007 (9,721).

- Tucson saw 2,282 New listings in May 2008, a 6.51% decrease from April 2008, and a 22.9% decrease from May 2007 (2,960).

- The number of units sold in May 2008 (1,025) increased by 5.34% over April's number of 973. It's a 27.71% decrease from May 2007 (1,418).

It's hard to predict what's going to happen with Tucson's housing market. When you look at the average sale's price over the last five years, prices have generally increased during the Spring and early Summer months, dropped slightly in July and August, and then slowly increased through the Fall. Looking at 2008's statistics, we've seen a steady decrease since January. The median sale's price has hovered around the $200K mark since January. Active listings have decreased each month since January as total unit sales has increased, so it looks like there's hope on the horizon. As food and fuel prices continue to increase it's going to be interesting to see how the economy affects Tucson's housing sales.

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Friday, June 6, 2008

More big name foreclosures

Another celebrity (or this time athlete) is losing their home to foreclosure.

Former heavyweight champion Evander Holyfield's estate is under foreclosure. His 10 million dollar home is set to be auctioned off July 1st. The 5400 sqft home has 109 rooms, including 17 bathrooms, three kitchens and a bowling alley. Seems like almost no one is left untouched by foreclosure!
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Wednesday, June 4, 2008

Foreclosure can affect anyone

Foreclosures are affecting any and everyone, even celebrities. Who would have thought?


Looks like Ed McMahon is currently struggling to hold onto his home. Countrywide Financial has initiated foreclosure proceedings on McMahon's 4.8 million dollar home. The property has been on the market for two years and and is listed at $5.75 million.
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Monday, June 2, 2008

Now that's a deal!


You know the real estate market is bad when you see deals like these. One San Diego developer is offering the incentive of a lifetime; buy one home get one free!


Buy one home with a starting price of $1.6 million and get a $400K home for free (what can you get for $400K in San Diego???) I'm not too familiar with the California real estate market, but there must be one heck of a mark up on the $1.6 million property to offset the cost of the free home that comes with it!
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Sunday, June 1, 2008

Foreclosures affecting appraiser valuations

Rising foreclosure numbers are now having a big impact on home appraisers and the property valuations they're making. The Arizona Daily Star featured on article on today's front page reporting that foreclosure are pushing down home's selling prices.


Usually one foreclosure in a neighborhood doesn't have much influence on other property values because they are other comparable sales to measure against. The current real estate market is different; now high foreclosure numbers can't help but impact neighboring property values because these sales are the only comparables around. Fourteen percent of homes sold in Tucson in April were repossessed by lenders. Tucson foreclosure filings in April were up about 40 percent from March, and more then 80 percent from April 2007.

Foreclosures aren't the only thing impacting property values. Some home owners are drastically dropping their prices in order to sell. Many buyers are ready to move if the find a great deal, so the lowest priced homes are selling and lowering neighboring property values. This is not the standard; the majority of home sellers are perfectly willing to hold onto their home until the right deal comes along. But many will be holding onto their homes for a long time if they expect to get the price their hoping for.
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