Tucson Real Estate News - from Mikey Girard

02/12/10

11:52:36 am Realtors ready to fight Washington to save the homeowners mortgage interest tax deduction 

Until jobs return and "we put people in
foreclosed homes;' recovery of Southern
Arizona's real estate, home building and
overall economy will lag behind most of the
rest of the nation. The process will be slow
and steady, with a full recovery not expected
until late 2013 or early 2014.
That was the sobering message from
economist Marshall Vest of the University of
Arizona's Eller College of Management
speaking to about 300 otherwise upbeat
attendees at the Tucson Association of
Realtors Annual Forecast Jan. 22.
Financial experts and studies consistently
rank the state's economic performance
during the recession as being one of the
nation's fiveworst. Vest said he could make
a case that Arizona "is the nation's hardest
hit state:'
Arizona ranks last in job growth, 43rd in
revenue growth, fourth in home foreclosures,
and second in homeowners with
negative equity.
"Since the economy peaked in March
2007, Arizona has lost 275,000 jobs. Tucson
has lost 26,000 jobs. The declines are just
stunning;' he said.
On a percentage basis, Arizona's job
losses are actually worse than Michigan,
notoriously hard-hit by what's happened to
the auto manufacturing industry. From
January through October last year, Arizona's
job growth rate fell by 6.8 percent compared
to a 6.3 percent drop in Michigan.
Outside "the crisis in state government;'
Vest pinpointed some encouraging signs of
a turnaround in Arizona.
Retail sales have bottomed out and a
modest 5 percent increase is expected this
year. Tucson's unemployment rate will peak
at about 8.1 percent during the first half of
2010, with full job recovery not returning
until about 2014.
Improved labor and housing performance
will lead our region's recovery.
"Weary consumers" will not, Vest said.
"Housing is beginning to stabilize,
building permits have reached bottom," he
said. For 2009, the region recorded 2,077
new home permits.
"Housing prices also are approaching
bottom; he said. "They will decline further
in 2010, but at a slower pace".
Vest told the Realtors "we must put
people in foreclosed homes before building
more new ones." According to U.S.Postal
Service officials, there are currently 25,000
vacant homes in the Tucson region.
As this year's president of the National
Association of Realtors (NAR),Tucson
Realtor Vicki Cox Golder's "Washington
Outlook" is focused on reform and preservation.
Because Congress has approved;l.so
many newprograrns, "we're going to have
some heavy-duty tax reform to pay for
them," she said.
The national association is most concerned
about preserving the mortgage
interest deduction on homes. The Obama
Administration views it as a new source of
revenue for the government
"The deduction is the Holy Grail to
anybody with a mortgage. We are going to
fight this tooth and nail." Golder said. "It
does not matter what your income level is, it
will affect everyone."
Under Golder, NAR also wants to reform
Fannie Mae and Freddie Mac. In 2008, both
fell into federal government receivership.
The organizations purchase residential
mortgages in the secondary market from
mortgage bankers.
The Realtors want stronger regulatory
oversight of the two agencies and eventually,
want both of them to once again become
independent of government control. NAR
also is also working to reform and strengthen
the Federal Housing Authority,
Regarding the federal home buyers tax
credit that expires April 30, Golder said it
will not be renewed. That presents a
challenge, to come up with programs "that
will keep our economy going" she said.
Lawrence Yon, chief economist for the
NAR,says the tax credit put about 2 million
first-time buyers into homes across the
country. By the end of the program, he
estimates another 2.4 million buyers will
take advantage of the incentive.
"Clearly, this was preservation of
middle-class wealth of about $730 billion.
Existing home sales got a 15 percent boost
and home prices saw a boost of three to five
percent." Yun said.
After the credit ends, home sales are
expected to stall this spring, then pick up
again later in the year. Although prices have
been falling in what he called the "sand
states" - Arizona, Florida, Nevada and
California - buyers are returning to the
market.
"It's just a matter of time before we get
price stabilization or even a modest price
increase." he said. "In Arizona, there has
been a clear overcorrection of prices. There
is room for prices to move up a little, more
quickly than in other markets."
This "snap back" from the overcorrection
will come from consumers who perceive
that prices have hit bottom. Most transactions
will continue to be foreclosures, and
smaller, lower-priced homes. Consumer
confidence will increase throughout 2010
because the "price fear factor" is gone from
the market, he said.
For the past two years, buyers held back
due to their fear that values would continue
to fall after their purchase. People who
bought homes last fall probably will see an
increase in value a year later.
Yun expects mortgage interest rates will
hit 5.5 percent this year.
"I don't know if anyone can really
forecast this economy;' Golder said. "With
this Congress, how can you predict what is
going to happen?"
The presentations by Golder, Yun and
Vest are on the Realtors' website at
https://tar.getlamps.net/Default.aspx

By Roger Yohem
Inside Tucson Business
Feb. 1 2010

01/19/10

10:30:53 am $8 million forclosure for Golf Clu at Vistoso 

Touchstone Golf LLC, a California-based company
that manages golf courses, has been appointed receiver
of The Golf Club at Vistoso in Oro Valley by the
Pima County Superior Court. Touchstone became
custodian of the property on Dec. 18 in advance of a
March 11 trustee's sale for $8 by the lende
Textron Financial Corporation of Atlanta.
In a related action, on Dec. 9 at the Pima County
Recorders Office, Textron Financial filed a notice of
trustee's sale on the property, located at 955 W. Vis-
toso Highlands Drive, and owned by Vistoso Golf
Partners LLC, based in Tempe.
The trustee sale will be 2 p.m., March 11, at the
Pima County Superior Court, 110 W.Congress Street
The foreclosure is being handled for the lender by
Greenberg Traurig LLP of Phoenix.
According to Arizona Corporation Commission
documents, Vistoso Golf Partners is owned by brothers
Ashton and Brandon Wolfswinkel. Their father;
Conley Wolfswinkel, developed most of the Rancho
Vistoso master-planned community
The Superior Court records show Vistoso Golf
Partners secured an $8 million loan in June 2001 from
Textron Financial. The loan was modified on July
1, 2008. In July 2009, Vistoso Golf Partners stopped
making payments, prompting the lender to issue a
default notice on Oct 16.
Touchstone Golf, based in Berkeley, Calif., manages
golf complexes in California, Texas, and Louisiana.
Parties involved in the situation did not return
phone calls or e-mails or declined to comment.
The Golf Club at Vistoso opened in 1995 and was
designed by Tom Weiskopf: In 1999, it was voted the
"Best Course in Tucson" by Golf Digest magazine.

Inside Tucson Business
1/4/2010

12/11/09

09:12:45 am Local housing's gain tied to federal tax credit 

Tucson's housing market
showed solid numbers in November,
fueled by the first-time
home-buyer tax credit.
The latest monthly report by
the Tucson Association of Realtors
Multiple Listing Service
shows a 55 percent increase in
home sales per unit this November
compared with last year.
The median sales price in November
- while down from the
same month last year - increased
slightly since October when the
number dipped below $160,000
for the first time in years.
The median sales price edged
up to $162,500 in November, the
report says. The median sales
price means half of homes sold
for prices higher than the medi-
, an and half sold for lower prices.
Still, the average sales price
, dropped 3.5 percent since October,
dipping to $188,384 in November.
A year ago, the average
sales price was $215,168.
Home sales continue to absorb
inventory as active listings have'
decreased year over year. While
inventory remained relatively
steady since October, there were
6,3 active listings in November - a 20.6 percent decrease
From the previous November.
New listings are down to 1,564,'
which is about a 3.2 percent decrease
from November last year.
Multiple Listing Service President
Kimberly Clifton said in her
note accompanying the report
that the extension of the first time
home-buyer credit through
April 30 should help continue to
push the market forward.
"Another positive note is
mortgage rates are continuing to
fall:' Clifton said. "According to
. a survey by Freddie Mac, rates
decreased to 4.71 percent, the
lowest since the survey began
in 1971. This should continue to
help home sales!'

Contact reporter Dale Quinnat 573-4197
ordquinn@3lStamet.com

Arizona Daily Star

12/03/09

07:50:04 am Foreclosures still flood housing market 

Despite the extension of the new home
buyer's federal tax credit, it is becoming more
apparent that foreclosures are too deeply
entrenched in the housing market to be
resolved in the foreseeable future. The latest
housing data indicates it could take up to
three more years to sort through the problem.
October housing statistics, released last
week by John Strobeck in his Southern
Arizona Housing Market Letter, showed
that foreclosures made up 30.6 percent of
resale home closings since the beginning
of the year.
"The extension of the tax credit is not
significant, there are too many foreclosures
out there with many still to come" said
Strobeck, owner of Bright Future Business
Consultants. "I hear that close to 40 percent
of the home sales were to people taking
advantage of the tax credit, but that's 40
percent of a lousy number".
Since March, every month has recorded
foreclosed-home closings in the range of
300 units. October was 330; the peak was
352 units in June. Year-to-date, there have
been 3,152 foreclosure sales.
Those conditions have embedded
foreclosed homes as the major factor driving
down prices for both new and resale
home sales.
Strobeck said although some consumer
interest in buying foreclosed homes has
been "quite spirited" with many foreclosures
receiving multiple offers, "the fact
remains that the final closing price still
comes in at or below the current market
in October, for example, the average
resale home price was $206,355 excluding
foreclosures. With foreclosures included,
the average home price was 8.5 percent
lower at $188,670. The average sales price
of a foreclosure was $145,583.
"We will be in this situation at least
through 2011 and possibly through 2012,
depending upon the severity of the foreclosures
in 2010 when the five-year, interest-only
mortgages are due to reset" Strobeck said.
New-built homes continue to lose market
share. In 2000, one out of every 3.23 homes
sold was a new unit. Since January, only one
out of every five homes sold was new.
Strobeck emphasized that new home
builders are doing their best to meet the
pricing pressures brought on by foreclosures,
but "there is a point where it does not become
profitable to build. Many foreclosures
and some resales are below that point.
For new home construction to regain
market share, the total market needs to
shed the foreclosure homes and return to a
two-product market: new and resale.
Tracking a seasonal trend, the number
of new, single-family home permits started
its typical annual dip in the fourth quarter.
In October, just 170 permits were issued
compared to 221 in September. Since May,
new home permits had been above 200
each month.
The most new permits were taken out by
Richmond American Homes with 26. Next
was Pulte Homes with 20, KB Home at 19,
Meritage Homes at 18, D.H.Horton Homes
and Robson Communities with 16 each,
and Lennar Corporation with 10 permits.
Region-wide for all of 2009, Strobeck
estimates 2,100 permits will be issued by
year's end.
Also in line with annual performance
tendencies, October recorded the most new
home closings of the year at 227. The previous
high had been 224 transactions in June.

By Roger Yohem
11/23/2009
Inside Real Estate & Construction

11/18/09

10:16:46 am Realtors Assoc. narrows search for chief exec 

With help from their national association,
the Tucson Association of Realtors is
on track to name a new executive director by
the end of the year, but officials there aren't
saying much more than that except to say
they're down to a short list of fewer than 10
candidates.
Usa Suarez, of EMS Realty and this year's
association president, led the executive
search committee that focused on finding a
candidate with broad business, real estate
and association management experience.
The committee plans to meet again this week.
"For an association to succeed, there
must be a leadership model in place, which
we have; said Suarez. "Because of the
economy, there is a good talent pool out
there. We are looking for someone who is a
visionary leader and" strategic thinker. We
want someone to further strengthen our
ability and commitment to be a resource for
the community:'
Suarez added the new chief executive also
will be required to "bring harmony and value
in the arena of governmental advocacy:'
Internally, the new executive director will
be asked to implement a heightened focus
on member retention, professional staff
development, and pursue new opportunities
to increase non-dues revenues.
The nine-person search committee is
comprised primarily of members from the
Tucson Association of Realtors and its Multiple
listing Services executive committees. The
members are Bob Herd, of TIerra Antigua
Realty and 2010 president-elect of the
association; Jill Knox,of Long Realty; TImothy
Bott, of Casas Adobes Realty; Tim Sloyan, of
, Re/Max All~tives; Gary Best,of Rea1ty
Executives; Vicki Cox GoldeI; of VickiL.Cox &
Associates; Kim Clifton, of TIerra Antigua
Realty and president of Multiple listing
Services; and Laura Mance, of Long Realty.
Since the May resignation of Rick Hodges,
Senior Vice President Cheryl Meadows has
served as interim chief executive of the
Tucson Association of Realtors. Hodges had
been in the job since December 2005.
"For a new CEO, the timeline has always
been fourth quarter;' said Meadows. "Our
staff has done a great job moving things
forward. The search committee hit the
ground running, working with our national
association, advertising nationally:'
Suarez said the search committee has no
preference for a local or out-of-state leader,
wanting "only to take the best candidate .'
identified."

by Roger Yohem
Inside Tucson Business
11/16/09

10/12/09

12:29:33 pm September MLS Report 

Not much has changed over August 2009. Pending contracts were at 1333 up from 1274 in Aug 09', and up 60% from 836 pendings in Sep 08'. Median home sales at $163k were up .25% over Aug 09', and down 9.4% over Sep 08'. Median price has dipped 1.7% this year... so at least prices seem to be leveling somewhat. Number of homes sold this Sep decreased a bit over Aug 09' to 945 homes... which is following seasonal Tucosn MLS trend. Thankfully number of active listings continue to drop and we are down 24% over the same time last year.

10/10/09

11:30:41 am Full-year TARP Results: Banks Hoard Cash, Make Fewer Loans 

In the year since the Troubled Asset Relief Program was enacted by Congress under pressure from Federal Reserve Chairman Ben Bernanke and then Treasury Secretary Henry Paulson, the nation’s commercial banks reduced loan balances by more than $400 billion and increased their cash-on-hand by over $500 billion, according to a report by the Federal Reserve.

Fox Business

10/09/09

09:08:15 pm Number of home building permits slowly going up 

Slowly, new home builders in the region
are continuing to take out more home
building permits. In August builders took
out 235 permits, the most of any month this
year, according to Bright Future Business
Consultants, which tracks the new home
building industry in Southern Arizona.
The year's low was set in February when
just 99 permits were pulled.
"Indications are that builders are putting
product in the ground to ensure that they
have product ready through November
when the $8,000 government credit to new
homebuyers ends," said Bright Future's John
Strobeck in his monthly housing letter.
Among jurisdictions, Sahuarita issued
the most single family home pennits, 63,
followed by Pima County's 56 permits,
Marana's 44, Tucson's 43 and Oro Valley,
which issued four permits.
The average new home price in August
was $220,264, up $9,000 from June and July,
but down by more than $32,000 from August
2008.
Foreclosure sales are continuing to put
downward pressure on new homes. The
median new home price in August was
$181,988, the lowest median of the year,
down $3,000 from July and down more than
$50,000 from August 2008.
There were 330 foreclosure sales in
August, the third highest volume month of
the year. They accounted for 31 percent of
home resales for the month.
Without foreclosures, the median resale
home price was $175,000 but even that is a
record low for 2009. The previous record low
was $178,000 in June. In August 65 percent
of foreclosure sales were priced below
$150,000.
New construction homes accounted for
17percent of all sales priced below $150,000
in August and 45 percent of sales in the
$150,('00-to-$200,000 price range.
-- ---------
Transfer Station and Recycling Center, 5890
S.Mann Ave.on the the southeast side.
A 1,326 square-foot administration building
and 390 square-foot scale house as well
as the entire 18-acre site all received the
certification, although the transfer station
itself was not included.
It is the seventh project to be LEED
certified in the Tucson region. It is third to
achieve Gold certification, after the Corona
de Tucson Fire Station in Vail and part of a
data center building that has asked to
remain undisclosed.
Robert Caylor Construction Company
was the general contractor for the Waste
Management project that was constructed
between February and November 2008.
Stantec Consulting was the architect.

Inside Tucson Business Sept. 28 2009

10/08/09

11:56:57 am Sept. Tucson home sales, prices decline from a year ago 

Home sales in the Tucson market fell 2
percent in September compared with the
same month last year, while the median
price was down about 9.5 percent, according to
the most recent report from the Tucson
Association of Realtors Multiple Listing
Service.
Homes sold last month at a median price
of $163,000, down from $180,000 last year
but up slightly from $162,595in August, the -
Realtors group said.
The median price- which falls in the
middle of prices paid - is considered a
more accurate measure than average price
because it negates the effect of very low
and very high prices.
The average sales price in September
was $196,755,down from $199,626'in September
2008, the Realtors'said.
Pending sales contracts were up nearly 60
percent in September from the same month
last year,and up 4.6 percent from August.
In the third quarter compared with the
first quarter, sales were up 39.5percent, the
median price was down 1.7 percent and active
listings were down 20 percent.
MLS President Kimberly Clifton noted
that active listings have been dropping all
year and the Realtors expect that trend to
continue as home buyer take advantage of
tax credits.

AZ Daily Star, Business, 10/8/2009

10/07/09

01:27:10 pm Del Lago reopens 

Pulte Homes has opened Rancho del
Lago by Del Webb for sales in time for the
arrival of snow birds.
Pulte purchased the 480-1ot community in
the master-planned community of Rancho
del Lago near Vailfrom K. Hovnanian
Homes, the original develope!; in July. The
community has 276 completed lots with 35
homes closed.
"While it's been a tough market, we
continue to receive considerable interest for a
Del Webb-branded community in Southern
Arizona," said Shawn Chlarson, Thcson
Division prsident for Pulte Homes and the
Communities of Del Webb. "This is a
milestone that allows us to contiime the Del
Webb legacy that started nearly 50 years ago,
right here in Arizona."
There are 12floor plans ranging from 1,212
to 2,823square feet and are priced from the
$130,OOOTs.he company has also refurbished
12 model homes for the sales opening.
The community has a 14,000 square foot
recreation cente!; outdoor pool complex,
4,500-square-foot Sales Pavilion, the largest
18-hole putting course in Arizona, tennis and
bocce ball courts.
Rancho del Lago by dell Webb is at 10260
S. Blendu Way, Vail.

Inside Tucson Business, 10/5/2009