Tucson Kent's World: Arizona: Tucson: University Of Arizona

Early this evening, I got a call from a young man looking to begin investing in real estate, but unsure of where to start.  After a few questions, it was apparent that he really was at the very beginning of his journey, and was reaching out for some guidance.  What resulted was the most rewarding conversation I've had with a prospective first-time buyer in a l-o-o-n-g time.  I won't make a penny from this phone call, but that isn't the point.

Turns out, this young man is 19 years old, going to school in an area of the country hit extremely hard by the implosion of the real estate market, raw & inexperienced in purchasing real estate - but careful with his money & eager to learn. He has heard about predatory lending and "0 Down, EZ Qualify" scams.

His goal is to purchase a duplex, triplex or fourplex, live in one unit and rent the others to help him pay for the investment.  Good idea.  He spoke about his lack of knowledge as a challenge to be solved by consulting with professionals who would take the time to explain the process along the way & guide him to a smart decision "because I don't want to be a foreclosure victim, I want to start building my nest egg now, since prices are so low."  Great idea.

We spoke about the pros & cons of investment property:  what can happen when a tenant moves out unexpectedly - or doesn't pay the rent on time.  Landlord responsibilities, maintenance issues, taxes, insurance and fair housing laws, cash flow & reserves, the reality vs the hype of short sales, factors involved in choosing an area to start looking, vacancy rates and much, much more.

As the conversation went on, I suggested he take advantage of some seminars and classes put on by the Association of Mortgage Brokers and the REALTOR® Association in order to have a clearer basis of understanding concerning the process and procedures in buying real property.  Since I was by my computer, I looked up the contact information for these associations in his area and gave him the websites.  Oh, did I mention that he lives nearly 1,000 miles away from Tucson?  This young first-time homebuyer has never seen Southern Arizona, except for in movies & photos.  He won't be buying in Tucson, either.

At the beginning of this phone call, my inquisitive young caller asked if I could spare 10 minutes of my time - we talked for just over 45 minutes.

In the first few minutes of the call, I already knew that this buyer was not interested in my market - but he was reaching out to me to help get him pointed in the right direction.  Whether it was something I had written on my blog, posted on Facebook, Twitter, YouTube or somewhere else that caused him to ask me - or some random quirk of keywords on Google...it doesn't matter.  He is the public, took the time to call me, and had realistic, rational goals in mind.

After hanging up with him, I felt a certain fulfillment - a feeling of living up to the vows I took to become a REALTOR®.  It isn't all about the money or the deal.  There is a service commitment implied in that oath.  Sometimes all it takes is a conversation and some frank discussion.  This was the best phone call I've had in a long time.

Thank you, Abraham, you made my day. 
I wish you success and happiness in all of your goals...and yes, I WILL buy you lunch near the University of Arizona if you ever visit Tucson so that we can dine in the presence of "all those HOT Arizona girls!"  (Now it is in writing - verbals don't count as a contract)

Being a REALTOR® has its moments, and this is one of them.

What's the market like?  How are sales?  What are prices doing? Here are some answers for you:

In the chart below are 7 different analysis metrics to help you get a picture of how the flow of the real estate market is going.  This chart is for the 85719 Zip Code - which covers a lot of the University of Arizona area, including the Sam Hughes, Rincon Heights, Iron Horse, Blenman Elm, Catalina Vista, Jefferson Park & North University neighborhoods.

Single Family Homes Only  (The chart is timed to switch every 5 seconds, so if you miss one aspect, it will be around again shortly. You see 4 different color lines on all the charts - which show the market broken up into 4 segments by price quarters)

1. Median Price -kind of like average price, but weighted towards how many properties are priced similarly
   
2. Inventory - how many homes are on the market at any one time
   
3. Market Action - activity...offers, sales, withdrawals, etc
4. Days On Market - how long properties have been for sale
5. New Listings  - new on the market properties
6. Absorption - rate at which properties are sold
7. Price Per Square Foot - another indicator of price

So...are you ready for the explanation of what you're seeing?  Fair enough - lets go:

Prices are relatively flat, but there is a slight uptic in the bottom half of the market - inventory has gone down markedly, with market action warming up...you'll see peaks & valleys with an overall trend towards more activity.  Days on market is trending sharply up...because there is more inventory than buyers and there are still a lot of homes on the market, and there isn't a lot of interest by sellers to put new listings up for sale.

Now that there aren't as many homes for sale, and buying activity is going up, absorption is also going up...and we're seeing the price per square foot go up a little bit too.  Why is the $/sq ft going up, but not the median price?  Easy - smaller homes are selling, but at a higher price per square foot, which makes the median/average price of properties stay along the same line.

All of this makes sense if you put it together to tell the story...to understand the market, you've got to look at more than one indicator, and these are just a few to work with.

If you're thinking about buying property in Tucson, you might want to consider a REALTOR® who understands how to read the market, not just unlock doors and tell you how much you're going to l-o-v-e the neighborhood.  I'm your man.  Lets talk.

Art.

Architecture.  Arizona.

The Desert.  Shape, form, function.

Stunning views, the harmony of life & habitat.

Elegance, comfort and making best use of the world that surrounds a location.

For years, decades even, architects have found inspiration in the desert beauty of Arizona.  Names like Frank Lloyd Wright, Paolo Soleri, Josias Joesler, Henry C. Trost and others have graced our towns and cities with their work.  Creations by Rick Joy, Kevin B. Howard, Jack Moses and a host of many talented professionals are noted in Tucson homes.

The School of Architecture and Landscape Design at the University of Arizona is training the next generation of talented, inspired scholars of design.  So well, in fact, that the Design Futures Council has ranked the undergraduate program in the top 12 in the country. 

Perhaps the U of A School of Architecture will produce the next Frank Lloyd Wright or I.M. Pei, perhaps not.  One thing you can count on though - the graduates of this program are among the best in the United States.

We're proud of our educational offerings in Tucson.  For good reason.  Please pardon us if we brag...but the quality of what is taught here on so many levels, in so many fields gives us the recognition to back it up.

Well done University of Arizona!

One of the things that Tucson is most proud of is its educational opportunities & offerings.  We've got highly competitive public schools (including BASIS Charter - consistently one of the nation's best ranked), highly selective private schools & specialized academies, Pima Community College - one of the largest in the west, and the granddaddy of them all:  The University of Arizona, which is ranked 25th in the country by The Washington Monthly.

There are many schools within the U of A that are highly regarded, several on a global basis.  The College of Optical Sciences, the Department of Astronomy & Steward Observatory are considered "world class."  What a lot of people don't know is that the Eller College of Management at the University of Arizona Business School is also one of the highest regarded on the planet.

Financial Times latest rankings has the Eller College program rated as 5th among U.S. public universities and 41st in the world (up from 57th last year).  Ask any MBA:  "What does ROI mean?"  Considering that the cost of education at University of Arizona & Eller College of Management, the Return On Investment is positively stellar!

Congratulations Eller College and U of A:  your example is yet another point of pride in Tucson Education.

Remember watching the holograph of Princess Leia in the first Star Wars movie?  Think it'd be pretty cool to watch the Super Bowl in 3D (and not have to wear those funky, annoying glasses)?  It may be a reality sooner than you think.

In stories reported by the Arizona Daily Star and aired by KVOA News 4 (no video at time of post), University of Arizona scientists in the College of Optical Sciences have made a breakthrough in laser technology that will lead to such benefits.

Just a few years ago, the College of Optical Sciences opened up a new building to house world-class lab facilities...looks like it is starting to reap rewards.  I'm sure there are many other things that don't make the news, but having such a facility and the attraction of such for leading scientists in their field are something for Tucson to be proud of!

Investment in cutting-edge research facilities like this are one way to diversify the economic profile of Tucson, and a fantastic example of forward-thinking.  To learn more about the economics of Tucson & Southern Arizona visit the Tucson Regional Economic Opportunities website:  TREO AZ

For all your real estate needs:
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Commercial call 520.940.6951