Great time of year to visit the Arizona Sonora Desert Museum

Whenever I meet people that are visiting Tucson for the first time, I always suggest they check out the Arizona Sonora Desert Museum before they leave. The desert museum is a great place to really learn about Tucson's environment and wildlife in the natural setting of the Sonoran Desert.

I visited the Arizona Sonora Desert Museum last Saturday and took lots a great pictures that I've included. The Desert Museum is located in Saguaro National Park, on Tucson's West side, so it's a bit of a drive, but the views are incredible so the time really passes by quickly. Following the winding road to the musuem makes most people feel humble and small as they gaze up at the saguaro covered moutains.

I don't want to fill this blog with too much talk so I'll just include some great pictures and a link to the Desert Museum website. Tucson's winter months are great for visiting the museum because the animals are more active and visible in the cooler temperatures. During the summer they all disappear into their caves by 9am to avoid the heat.

Mountain Lion during his morning nap time

(looks like sombody else was hoping for that sleeping spot!)

Native Arizona wolves

These Arizona Ground hogs are my favorite exhibit!

This little Ocelot found the perfect spot for a sun bath!

Check out some of the beautiful minerals and stones on display

The Desert Museum has an incredible enclosed bird sanctuary where you can sit back and watch birds in their natural habitat

The Arizona Sonora Desert Museum has a number of educational programs in which volunteers teach visitors about animals native to our area

This is only a small sample of what you'll find at the Arizona Sonora Desert Museum. I only touched on a few of the animals, but you'll also find a reptile exhibit, a hummingbird exhibit, a display showing the evolution of the our planet and Arizona's Sonoran Desert, a butterfly garden, an art gallery, and several restuarants. Just plan on making your visit an all day event. There are all sorts of educational classes for kids as well as adults, and studies ranging from meeting the museum animals to ecological research and promotion of habitat conservation.

The Desert Museum opens at 8:30 am in the Spring, so I always recommend going early. As the sun rises it can get warm, so make sure to where comfy shoes and carry a bottle of water. Have fun and don't forget your camera!

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2007 National foreclosure statistics in review

According to the latest stats from RealtyTrac, more then 1 percent of all US homes were in some phase of foreclosure in 2007, a 79 percent increase over the previous year. Arizona ranked in at number eight for states with the highest foreclosure rates.

Map of 2007 foreclosures rates

Arizona saw 69,970 total foreclosure filings in 2007, and more then 1.5 percent of Arizona households entered some stage of foreclosure. This is a 150 percent increase over 2006 foreclosure numbers.

Maricopa County Arizona ( in and around the Phoenix area) is one of the nation's hardest hit foreclosure hot spots, with many homeowners owing much more then their home is worth. In 2007 there were 3336 Maricopa County homes in foreclosure with negative equity. About 1900 of those homeowners had negative equity of between $10,000 and $49,000.

Unfortunately foreclosure rates are expected to increase in 2008 as more homeowners are going to be hit with rate adjustments on loans. We are seeing some lenders attempt to help borrowers straighten out their loan issues so as to avoid foreclosure, but lets hope we see more intervention from the government before these numbers escalate.

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Everybody's makin a buck from the Arizona Superbowl

We here in Arizona are anxiously counting down the days until Sunday's Superbowl game that's being played in our University of Phoenix stadium. Though most of us are only concerned about the game, the half time commercials and the food, we must remember those that actually depend on the event to make money.

Luckily the Arizona Daily Star has included a reminder about those hardworking "ladies" who are counting on making big bucks during the week preceding the Superbowl game.

And for those of you that are still having trouble finding Superbowl lodging during your visit to Phoenix, the Benedictine Sisters of Phoenix, who are looking to pay off a loan, are opening their hearts and their doors to football fans. The Our Lady of Guadalupe Monastery is renting rooms with prices starting at $250 per night, and they offer more amenities then many nice hotels in the area. Where else are you going to get free wireless Internet and free bottled water, all in the safety of a gated property? I only hope that some of the hardworking ladies previously mentioned in this post don't decide to reserve rooms for their businesses practices!

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Mexican real estate is booming while US market sinks

Though we here in the United States are still suffering with a turbulent real estate market, it seems that the housing market in Mexico is going strong. Many buyers see Mexico real estate as a stable alternative to the US's sluggish market, and find they can get much more "bang for their buck" there.


The country's big housing boom is attributed to six years of economic growth and stability. Mexico's housing market is more stable then the United States, and this is drawing in American buyers looking for investment properties or second homes. Mexico doesn't have the credit issues that our country sees because lenders don't offer sub prime mortgages and few homeowners refinance or flip their homes. Only 6% of the country's 25.7 million homes are financed compared to 67 percent of US homes, which means fewer loan defaults.

I recently met a couple who own property in San Carlos Mexico and are concerned about the impact the US housing market will eventually have on Mexican real estate. They've decided to sell their San Carlos vacation home now while the Mexico market is still hot, before the US housing slow down begins to trickle South. Then they plan to buy in Tucson while our market is more reasonable then it's been in past years.

I've met a lot of people that chose to buy second homes in Mexico. Puerto Penasco Mexico, or Rocky Point as most people know it, has seen an incredible amount of growth lately as new condos continue to go up to accommodate investors from the states. Rocky Point, which is actually a small fishing town, is just 4-5 hours Southwest of Tucson in Sonora Mexico. The climate there is very similar to that in Arizona; sunny and dry but Rocky Point has the ocean and water sports! It's located on the Sea of Cortez , and many people find it the perfect weekend escape. Eight to ten years ago property was dirt cheap in Rocky Point, but the area's popularity has driven demand and prices up. Nothing beats a vacation home by the beach, mountains and ocean!

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Federal funds rate is cut by three-quarter percent in emergency meeting

The Federal Reserve decided once again to cut interest rates Tuesday morning in hopes of stabilizing the nation's weakening economy. The federal funds rate was cut by three-quarters of a percent, bringing it down to 3.5 percent.



The decision to cut the federal fund rate was made during an emergency phone conference with Federal Reserve officials late Monday night. The plunging financial markets worldwide and fears of a potential recession are the main reasons for this cut. The federal funds rate affects consumer loans, including home equity, credit card and auto loans. The hope is that lower interest rates will increase the number of buyers that can afford to buy homes. Most buyers aren't as concerned with how much their home actually costs as they are with how big their monthly payments will be. Lower interest rates mean lower monthly debt obligations. This in turn could mean more buyers, which increases property demands and stabilize home prices.

Read more about the latest federal rate cut

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Tucson's December Sales Stats by Area

Here's the latest and greatest about Tucson home sales by area for December. As usual some areas saw sales price increases while others saw large declines. The average days on market increased while the number of active listings went down.


Once again a couple of Tucson's extended areas saw big price increases over November's numbers. The extended Northwest portion of Tucson recorded a December price increase of about 55% over November's numbers, but this number is a bit skewed. Many of the properties located in this extended area are manufactured homes, which generally carry a sales prices in the low $100K's. During December there were only eleven property sales in the extended NW Tucson area, and seven of them were manufactured homes. Four were single family residences, with one priced at $654K. This high sales price caused the average to make a big jump over November's average sales price of $156,417. This is also the reason for the large sales price increase in Tucson's extended West area as well. Out of four properties that sold in December, three were manufactured homes. One single family residence sold for $440K, which raised that month's average sales price by 34% over November's number.

In December Northeast Tucson saw a big sales price decrease from November's number of $447,632. There were 34 sales for the month, and about ten were town homes or condos that sold for anywhere from $60K to $250K. These low dollar sales really impacted the areas average sales price.

Tucson Average Sales Price by Area for December

Tucson's average days on market increased again in December, up to 76 from November's average of 72. Not surprising since it was the holiday season and most people were worried about shopping and parties rather then buying a home.

Tucson Average Days on Market by Area

The number of Active listings in Tucson dropped to 8,708 for December, down 5.7% from November. Northwest and Central Tucson still carry the highest number of active listings with 2,338 and 1,000 respectively.

Tucson Active Listings by Area for December

With the holidays over most people are shifting their focus onto the economy, politics and the Superbowl. I've heard a lot of people comment they don't feel the market will turn until we know who will be representing each party in November's election. It's amazing the impact politics can play in peoples decision to buy or sell homes. It's going to be a fun ride!

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Arizona real estate predictions

More predictions for the Arizona real estate market! Local economist Elliot Pollack gazed into his trusty crystal ball and came to the conclusion that Arizona's real estate market hasn't hit rock bottom yet.

Some of the reasons aren't so mysterious; fewer new jobs and slower population growth. According to the latest Blue Chip job growth update by Arizona State University, Arizona's job growth dropped from 4.9% in November 2006 to 1.9% in November 2007. Arizona's population increased by 2.8% in 2007, down from a 3.6% increase in 2006. The fact that lenders have gotten much stricter is also a big factor. There are a lot of interested buyers that have great credit but just can't get the kind of financing they're hoping for. Tighter lending practices are attributed to shrinking the Phoenix buyer pool by 20%.

Pollack predicts that Arizona's real estate market won't bottom out until late 2008, early 2009. He expects a full recovery to take three to five years. This means we can expect more foreclosures and lower home prices.

Recently I've seen several articles and interviews with local real estate professionals predicting that Tucson's housing market will make a comeback in 2008, but I personally feel that we're not likely to see a big improvement until early 2009. Though we're continuing to see high foreclosure rates and falling prices, the Tucson market is still much better then the rest of the nation. Unfortunately I think there's still more room to fall and we'll see this play out during 2008. New home builders are slashing prices to bring in buyers, and resale home sellers are dropping prices to compete. A huge number of adjustable rate mortgages are "re adjusting" this year, making it difficult or impossible for some home owners to afford the payments. This will most likely lead to an increase in foreclosures. I don't want to be a pessimist, but I think we should look at the reality of what we're up against. Let's just hope I'm wrong and everyone can tell me they told me so!

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Sluggish Tucson housing market means great home builder incentives

Recently I've been working a lot with clients interested in new construction, and it's amazing to see the impact that the sluggish housing market is having on local home builders.


The Commerce Department on Thursday reported that in 2007 new construction was down 25% from the previous year. That's the biggest drop in 27 years. In December alone construction fell by over 14% nationwide. As I've visited various new home sites in Tucson, it's easy to see the local impact. Many big name builders are laying off employees left and right, or consolidating home site offices to save money. On several occasions I've found that new builder home sites are cutting back the days and hours they're open to save money.

I've also noticed that several builders are desperate to sell. Certain areas in Tucson will always be stronger price wise, and certain builders aren't as flexible with pricing as others, but in certain areas there are great deals to be found. This week I've visited Rancho Sahuarita and found some incredible incentives with several builders. One builder site in particular is offering prices about $100K lower then what they were in 2005. For those of you that aren't familiar with Rancho Sahuarita, it's a master planned community about 20 minutes South of Tucson. It's really a great little community with tree lined streets, several clubhouses, pools, a huge fitness center and lots of other amenities. At one time the community felt somewhat isolated, but the addition of several new retail sites has helped the area tremendously. Home prices in Rancho Sahuarita tend to be lower then Tucson because of it's distance from the city. It's a straight shot North on I-19 into Tucson, so for those that work in Central, South or West Tucson, Rancho Sahuarita is pretty convenient location to live. The area is now saturated with homes for sale; the slow housing market has increased inventory and availability in Tucson so fewer people are considering Sahuarita.

As we all know, when the real estate market is hot, people will buy homes every and anywhere they can find them. When the market slows and there's a bigger inventory, areas that may be a little more isolated begin to struggle. That's when we see the great incentives and deals to draw buyers in.

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Tucson Real Estate sales statistics for December

Tucson's real estate statistics for December 2007 were just released and as expected the numbers are down from November's. The average sales price, median sales prices, number of home sales and number of new listings were all down, while Pending sales and the number of days on market was up.

- Tucson's average sales price for December $260,196, down 3.8% from November's average of $269,968. It's also a .4% decrease from the average sales price in December of 2006.

Tucson Average Sale's Price for November

- Tucson median sales price for December was $210,000, down 1.5 % from November's median price of $213,000. This number was also a 2.3% decrease from December 2006's median price of $215,000.

- There were 799 pending contracts in December, down 14% from November's number of 910, but up 17.84% from December 2006's number of 678. Pending sales have actually been on the rise over the last several months, yet the number of closed sales continues to go down. The Arizona Daily Star featured an article about this last week, and attributed this discrepancy to many new home builders seeing cancellations before the homes are complete. The fact that a lot of potential buyers can't get financing is another possible cause. Although a home may receive an offer and go into escrow, the deal might fall through if the buyer can't lock down a mortgage.

- The average days on market for December rose to 76, up 5.5% from November's number of 72, and up 19% from December 2006.

Tucson Average Day's on Market

- Tucson had 8,708 Active listings in December, down 6% from November's number of 8,518 but up 2.23% from December 2006.

- Tucson saw 1,590 New listings in December, down almost 40% from November's number of 2,224 and down 11.17% from December 2006.

- The number of units sold in Tucson during December was 682, down 11% from November's number of 759 and down a whopping 30.5% from December 2006's number of 981.

These sales numbers are not surprising considering the time of year. Though Tucson is beautiful in December, it's the holiday season and most homeowners aren't interested in selling while they have all the decorations up and the gifts under the tree. Potential home buyers were spending their money on gifts and food rather then homes. With the current state of the nation's economy, more people are just holding on to their money right now and looking for a great deal.

I myself am already starting to see a swing; there's a lot of people poking their heads out and asking questions about available homes. I'm really seeing an interest from second home buyers right now. The hectic holiday season is over and there's a huge inventory and some great deals to be made. Many out of state residents are beginning to jump at the opportunities in front of them. Can't wait to see what January's sales stats will hold.

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Arizona schools rank poorly in education funding

Here's some news for parents with school age children; Arizona ranks worst in the nation when it comes to education funding.

According to an education report by Education Week, Arizona ranked near the bottom for student chance of success, K-12 achievement, teacher pay and school finance. Arizona did place in the top ten for education standards and accountability. In K-12 Ratings, Arizona scored a C- while the national average is a C. Arizona teachers salaries, about $39,957, are well below the national average salary of $45,000. The rest of the scores are as follow -

Chance for success - C
K 12 Achievement - D
Standards, Assessments and Accountability - A
Transitions / Alignment - C-
The Teaching Profession - D+
School finance - D

To read more about Arizona School Funding

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Arizona home inspectors rank higher then most states

Good news for Arizona home buyers! It looks like Arizona ranks third among states with home inspection laws, which means our laws regulating home inspections is much stricter then most states.

Each year the American Society of Home Inspectors ranks states based on their home inspection regulation laws. Ranking is based on criteria including experience, education, code of ethics and several other factors.

View the full report at the ASHI's position statement for Regulation of Home Inspectors

Although Arizona ranks high on this list, home buyers still need to be careful when selecting a home inspector. Arizona home inspectors aren't required to carry Error and Omissions insurance, liability or worker's compensation. Our state only requires that inspectors carry a $25K bond annually, which costs the inspector about $300 a year. E&O insurance costs about $3000 a year, so if your inspector has it, it's a good bet that he's experienced and has a good client base to support his fees. Protect yourself by making sure you find a home inspector that has E&O insurance, liability, worker's comp and a money back guarantee.

Experienced real estate agents have worked with a variety of home inspectors and may have their favorites, but it's wise to investigate a number of inspection companies rather then relying on a referral from you agent. You want an inspector that's going to be firm and point out every and any possible issue with your future home. Once you know what problems exist, what you do with the information lies in your hands.

Find a ASHI home inspector

What your home inspection should cover

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Make your home stand out to Tucson buyers

It's a new year and everywhere we look we continue to see the sad facts about our nation's real estate market; prices are dropping, the market is saturated with homes that just won't sell, foreclosures still remain high, and buyers continue to have difficulty getting loans to buy homes. It's enough to drive anyone crazy! The Tucson market is better then much of the country; people are still buying homes here. But it's a difficult time for home sellers due to the excess housing inventory. A home practically needs to be perfect to compete and sell.

Right now buyers are in great shape because they have an endless variety of homes to chose from; they can afford to be picky and choose the best. My home sellers are the ones having difficulty right now. Because there are so many homes currently on the market, home sellers have a lot of competition. In November 2007 there were approximately 9234 active listings in Tucson. That's about 3700 more listings then in November 2005. Large supply and little demand ultimately results in a lower sales price for homes. Worse yet home prices are expected to fall more in 2008 and eventually pick up in 2009.

Tucson's real estate market is on average stronger then the rest of the nation because we see a lot of retirees and vacation home buyers choosing Tucson for their next home. That' why I'm giving my sellers the cold hard facts about their homes; strive to make your home perfect or it's not likely to sell for quite awhile. On several occasions I've showed listings and found that my buyers aren't interested in homes that are messy or need paint or new carpet because there are more homes down the street that are in perfect condition.

My advice to those thinking about selling is wait if you can, but if you can't, make your house stand out from the rest.

Clean, clean, clean! - That means clean every inch of the house and remove all the "stuff" that clutters your home. Many sellers expect home buyers to "look past" the personal items like excessive pictures, knick knacks, magazines and books. Today's buyers don't need to do this because if they don't like what they see when they walk in the door they can move on to the next home.

Create space - Buyers are looking for homes that feel open and bright; it's great for entertaining and a person's well being. Many homes have too much furniture crammed into too small of an area. And not every inch of a home's walls need to be covered with pictures or other artwork! When it comes to selling your home, less is more. Clear out one of the lounge chairs in the family room and take down the collection of family photos on the hallway wall. If you're not sure what should be removed contact a home stager to take a look at your house and tell you what can be done. Professional stagers can be a true asset because they see your home through the eyes of potential buyers. They're job is to tell you what's wrong and how to improve it before your home goes on the market.

Paint - I can't tell you how many listings I've viewed that had either gotten a very poor paint job or hadn't been painted in five years. Newly painted interior walls stand out and help a home to look clean and new. It's relatively cheap to have the interior of a home painted, but it's also something a handy homeowner can do themselves to save money. Just remember to keep the colors neutral (like antique white) and make sure the lines/edges are neat. Nothing's worse then sloppy paint that runs into the ceiling, baseboards or tile grout.

Clean/Replace Carpet - The condition of home's carpet is an important issue to many buyers. If spots and stains are evident it can be hard to overlook, and many buyers see the condition of the carpet as a representation of the rest of the house. If your home's carpet has stains that can't be removed by professional cleaning it's probably wise to replace it before putting the house on the market. It's best to keep carpet colors neutral but dark enough to hide everyday dirt. Your goal is to have colors that appeal to everyone so that you're not eliminating potential buyers.

Keep up the yard's landscape - In the Desert Southwest our landscape consists of rock, cactus, rock, a few flowering, drought tolerant plants, an occasional Palo Verde tree, accent boulders and more rock. It's pretty simple to maintain, but after the cold winter months (yes, I'm serious; it does occasionally freeze in Tucson) most plants will need to be trimmed back and some replaced. Don't overlook this step. You've all heard the phrase "curb appeal" and it does ring true. If someone is interested in a home that's for sale, they usually drive by it a few times and evaluate the exterior before the ever see the interior. If they don't like they way the outside looks then the won't care to see the inside.

Sure there are other steps to make sure you house will sell in today's market, but a lot of that relies on your real estate agent. As a home seller your goal should be to make your house look better then your competition. If your house stands out and is priced right from the beginning then it's most likely going to sell more quickly and bring you a higher dollar.

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Subprime is Word of the Year

You can tell 2007 was a bad year for real estate when the American Dialect Society chose to make "Subprime" it's annual word of the year. Yikes!

Seems like no one knew the word until summer 2007 when other terms like "mortgage meltdown" came to be common household phrases. Other popular words that were in the running were "Facebook", "green", "Googleganger" and "waterboarding". Hmmmmmm, interesting.....

To read more about "Subprime" being choosen as word of the year

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Tucson hotel prices high during early months

I've had several clients tell me they plan on visiting Tucson for the first time sometime in January or February, and I just wanted to note that hotel prices will be ridiculously high because of some huge Tucson events scheduled at these times.

January and February are big months for Tucson. The weather is incredible compared to the rest of the country so we have a lot of visitors stopping by to enjoy our climate. Tucson also plays host to several events that draw in hundreds of thousands of visitors, which really causes hotel prices and home rental fees to sky rocket. The annual Tucson Gem and Mineral Show is HUGE, and pulls in about 20% of Tucson's revenue each year. This event begins February 2nd and continues through February 17th. Exhibitors will be arriving in Tucson by mid to late January so some hotels are most likely booked already.

The Accenture Match Play Championship golf tournament is scheduled for February 18th through the 24 at The Gallery at Dove Mountain. The worlds top 64 golfers play in this match and spend a lot of time in some of Tucson's finest resorts during their stay.

This year Superbowl XLII is being played at Glendale Arena in Phoenix on February 3rd. Hotels in Phoenix are already booked so many lucky ticket holders are staying in Tucson.

How high can prices go you ask? The La Quinta Inn at the airport is usually priced at about $80-90 dollars per night though much of the year, but during late January and into February the nightly rate goes up to $187 per night. Some of Tucson's finest luxury resorts are priced well over $400 per night during this time. Needless to say if you plan on visiting Tucson during January, February or March, better make your reservation now if you hope to get a room!

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Where did all our new Tucsonans come from?

A Happy New Year to everyone! It's been a rough two weeks as I've been dealing with the loss of my little kitty Texas, so I'm going to keep my posts lite for a few more days. I found an interesting article in the Arizona Daily Star on January 1st regarding where most Arizona newcomers are moving from.

As everyone would expect, most of our state's new residents come from California; almost 100,000 new residents in 2007. Surprisingly the state of Texas was number two, with 22,183 (gotta figure that one out) . Illinois was a close third adding 21,280 new Arizona residents, with the rest of the list including Colorado, Washington, Michigan, Florida, New York, Nevada and New Mexico.

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