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Tucson Real Estate News - from Mikey Girard
This is your best source for Tucson Real Estate News
06/20/08
10:59:43 am Tucsonans Indicted of Mortgage Fraud / X-Bear Stern executives face charges
400 in US have been accused of Mortgage Fraud, 36 in Arizona, 2 in Tucson. Chris Nero and Roy Fife of Tucson Arizona are accused of inflating home values of at least 17 Tucson properties. This is part of a larger takedown of mortgage fraud schemes, indictment was handed up in US District Court for Arizona. Investigation is part of the nationwide "Operation Cash Back" which resulted in the 400 indictments. Arizona is one of the states where everyone one and their bothers were flocking to, and certain individuals took advantage of the real estate market for their own person gain resulting in the crisis that we find ourselves in. John Lewis FBI agent in charge of Tucson states that innocent homeowners and businesses are currently paying a steep price for the selfish and illlegal acts of others who attempted to capitalize on the market. Nero and Fife were indicted on 48 counts including wire fraud, conspiracy and money laundering. The two used "straw buyers" and paid them ($99,000 in one example) to participate in fraud. No one knows how much properties were overvalued but looks like government will seek judgement of $4,000,000.
Jack Gillum
Arizona Daily Star 6/20/2008
In New York two former Bear Stern hedge fund managers were taken to jail and charged with lying to investors about colapse of subprime mortgage market. Ralph Cioffi and Matthew Tannin are accused of lying to invetors telling them to stay in their hedge funds when they knew the credit market was in serious trouble. Cioffi pulled $2,000,000 of his own money from the funds while at the same tiem encouraging investors to stay put. The implosion of the two hedge funds cost investors $1.8 billion which resulted in Bear Sterns going under and being bought by JP Morgan Chase. FBI says this is more than mismanagement of hedge fund, it's about lying to investors and lenders. In addition to Cioffi pulling his cash out, looks like there are some pretty damaging emails floating around.
Tom Hays
Arizona Daily Star 6/20/2008
06/19/08
10:12:20 am Tucson Arizona Home Prices Returning to Normal
In May residential home sales showed a more normal market. Tucson had 295 new home sales in May which is down from 588 in May of 2007 but still higher than April 2008 where we had 269. As far as resale homes go, we had 1150 sales in May 2008 which is down from 1536 in May of 2007 but up from 1111 in April of 2007. John Strobeck of Bright Future Business Consiultants reports the findings. Strobeck also mentions that Tucson Arizona housing prices have yet to hit a price floor. Strobeck reports that median sales price for homes is at $195,000 and those prices could dip another 4-5%. Strobeck admits that like others he didn't see the bubble developing back in 2005. Part of the problem with new construction is that Buyers signed affidavits of occupancy and the same Buyers bought 3-4 homes in the same of similar new construction developments.... so Buyers and builders alike participated in their share of his honesty.
Jack Gillum
Arizona Daily Star
June 18, 2008
Editiorial Comments Mikey Girard, Long Realty
06/10/08
09:31:06 am Selling homes with art in Tucson Arizona could be a way to lure a Buyer
Not a great time to sell in Tucson Arizona area therefore agents are being more creative (we've heard about the cars, vacations), this time including high-end art from are galleries. Although the upper end market is stronger than the rest of the market, there are some areas where creativity could help both Buyers and Sellers. Canyon Pass in Dove Mountain Marana just north of Tucson currently has a home listed at $4.5 million which includes more than 50 art pieces each valued between $1,000 and $55,000. Dove Mountain is a little slow due to being located on outskirts of Tucson and due to new construction(built during the new construction boom when developers over built). Apparently this isn't the first time art has been added to help stage and sell a home. We have had a couple recent sales where house sold for more than asking price due to art and art collections.
Christie Smythe
Arizona Daily Star
6/10/2007
Additional comments by Mikey Girard
06/09/08
02:07:17 pm May 2008 MLS Tucson Arizona Monthly Report
May 2008 Residential Sales Overview from MLS for Tucson Arizona:
Year to year comparison; in 2008 home sales volume decreased 35%, home sale units decreased 28%, average sales price dcecreased 10% to $251k, median sales price decreased 10%, pending contracts increased 25%, active listings decreased 12% and new listings decreased 23%.
Month to month comparison; home sales volume increased 4%, home sale units increased 5%, average sales price decreased 1%, pending contracts decreased 4%, active listings decreased 3% and new listings decreased 6.5%.
Increased activity is typical for this time of year in Tucson Arizona. Historically sales activity increases starting in January and starts to decrease in August when children go back to school.
It's great that number of listings are on the decline; but we have a long way to go before the excessive builder and short/sale foreclosure inventory is absorbed.
06/06/08
04:11:16 pm Arizona takes a huge hit on housing due to foreclosures
Nationally .99% of mortgages are in foreclosure and Arizona ranks in the top 4 for foreclosures. Mortgage Banker Association reported that foreclosures in Arizona are at 2.58% of mortgages. Yet 4.05% of mortgages are seriously deliquent being more than 90 days past due. And more than 24% of the subprime loans fit in the seriously deliquent catagory. All foreclosure rates are highest since 1979 and rates are expected in increase in coming months.
The southwest states are responsible for 89% of the increase and include Arizona, Nevada, Florida and California. These states had the hughest appreiciation gains, most new construction... too much supply. Prices rose, supply increased, Buyers decided that prices were too high and stopped buying. Inventory increased and there are no to few Buyers. After the 5 year boom, prices decreased especially in areas with new construction. And to think, this frenzy was just enough to send the country into recession. Consumers and businesses are tightening their belts, with employers cutting 250,000 jobs firts quarter 2008.
Arizona Daily Star Tucson Arizona
6/6/2008
03:37:56 pm Arizona trails nation in 2007 economic growth
Arizona economy worse than nation on the whole in 2007. Arizona gross domestic product rose 1.8% and US rose 2.0%. What a contrast to 2006 when Arizona was at 6.7% and nation growth was 3.1%. Of course the house industry is responsible for both the upswing and the downturn. Gain observed in 2007 be it ever so slight is mostly due to professional and technical services. And of course it's not just simply fewer homes being built it's all the industry around it including financing, furniture, landscaping, pools ... etc. And as bad as we think we have it, others are fairing worse;
California is at 1.8% increase in 2007, Nevada posted .6% and Florida is at 0%.
Arizona Daily Star
6/6/2008
06/04/08
11:15:18 am Oro Valley Market Place; north of Tucson Arizona
Oro Valley Market Place is located north of Tucson Arizona and is scheduled to open this September with grand opening in October. The shopping center will be Oro Valley's largest center and so far 25 businesses are scheduled to move in. More information can be found at www.orovalleymarketplace.com. Vestar of Phoenix is the developer and they started work in 2007 after the voters approved a $23.2 million economic development between Vestar and Oro Valley. 115 acre site is located at corner of Tangerine and Oracle. So far, sales tax will stay in Oro Valley. Wal-Mart Supercenter will anchor the center. Sounds like some were upset with decision to move Wal-Mart in, as some wanted more upscale anchor. Looks like they plan to include some "green" features including riparian habitat, trails, replanted trees, open space, water collection system designed to capture 80 million gallons of water over 20 years and water will be used to irrigate landscape. Center will also house police station and transit bus stops.
Arizona Daily Star
Lourdes Medrano
6/3/2008
05/24/08
01:54:48 pm Arizona home prices fall at fastest rate ever.
First quarter of 2008 falls 5.5% (compared to same time period in 2007) representing Arizona's largest drop since US agency began reports in 1985. So a home valued at $200k a year ago is now worth $189k. Market is even worse in Florida, Nevada and California. Other states in the southwest are doing better and are reporting gains, which includes Colorado, New Mexico and Utah. Supply and demand rules. Where you have excess inventory, you will have price decreases and in areas where sharp appreciation occured you now have price decreases. And changes in value are not constant thoughout Arizona. Prices in metro area of Phoenix Arizona are down 6.7% compared to same period in 2007. Tucson Arizona is faring a little better seeing a decrfease of 2.9% over same time period of 2007. And despite the declines in Arizona, if you purchased a home at lease 5 years ago, you are still doing better than most other states. Federal agency shows Arizona up 72% from same period only 5 years ago. Nationwide appreciation over the last 5 years is up 39%. If you go back to 1980 the numbers are more astonishing with Arizona up 307%, Nevada up 267%, California up 469%.
Howard Fischer
Arizona Daily Star
5/23/2008
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