Urban Life

Another Great Radiate Phoenix Meeting at Downtown Phoenix's Turf Pub

We had a great Radiate Phoenix gathering at Turf Pub last night. As always it was a rich mixture of downtown residents, personalities and simply people who love the urban life. A few people we've been missing like Don Keuth and the boys from Make Phoenix Weird were there as well as many new faces.

After a bit of social time, Catrina Knoebl started things off by inviting urban activist, Yuri Artibise to talk a bit about Jane's Walk that is happening this weekend. Next we were introduced to Malissa Geer, our speaker for the evening.

Malissa Geer acts as a liaison between the ASU downtown campus and the community. I was immediately taken by her calm , yet strong presentation skills; Few adults have the speaking ease this young woman possesses. She clearly loves her role helping students acclimate to new surroundings and have a great social and academic experience. This is no easy task as she juggles the needs/wants of students, ASU, the downtown business community, City of Phoenix players, residents and more. She may get a job with Cirque du Soleil after this experience.

A few items of note we came away with included:

• The downtown Phoenix Campus at ASU wants to be a part of the downtown experience at a core level.
• Incredible opportunities exist for collaboration on events, services and more.
• Approximately 5400 students attend classes downtown and this number is expected to rise to the 20,000 range by 2015.
• 1300 faculty and staff currently work downtown. this will rise over time as well.
• Upon completion, the Taylor Street Dorms will house 1250 students.
• The School of Criminology is, in large part, moving from Glendale to downtown Phoenix. Several thousand students will be part of this program.
• Students play a large role in the staffing of many downtown businesses including the Sheraton.
• The ASU College of Nursing provides a variety of services available to the community and often at lower costs. Contact them to learn more.

Many of us know ASU had a lot of interplay with the community, but not not at the levels discussed. It is very exciting for the downtown community and holds great rewards for the future.

The evening ended with lots of people enjoying the digs at Turf, an Irish Pub and Restaurant on 1st Street. Many of us grabbed a bit to eat and the food was very tasty. I tried their "Paddy Melt" while others treated themselves on more traditional Irish fare. Naturally, I pulled out a pack of cards and did some close-up magic for the gang... I don't think they'd let me come if I didn't.

All in all, another great time was had. Thanks go to Catrina, Claudia and the staff at Turf for making Phoenix a better place to live.

Gene Urban
The UrbanTeam at Realty Executives
602-234-5777

P.S. Downtown Phoenix presents unique opportunities to people looking to buy rental properties. ASU's growth in the region suggests rental housing will be in demand. Let us know if you'd like to explore this thought.

Radiate Phoenix Meets at Turf Restaurant on April 28th

Radiate Phoenix, the downtown non-traditional networking group is meeting tomorrow night at The Turf Restaurant & Pub in downtown Phoenix. Unlike most networking groups, Radiate Phoenix is more about knowledge than business cards. This month's featured speaker is Malissa Geer.

Malissa Geer is the Community Engagement Liaisonat the ASU Downtown Phoenix campus. Her job, as well as being a highly achieving student at ASU, is to be a catalyst to help enrich the downtown experience. Malissa's insightts will be both informative and valuable.

We will be gathering near the downtown campus at The Turf from 5:30-7:30pm and will also hear from Turf's owner Andrew Mirtich about how ASU and other factors influenced their decision in selecting Turf's location.

If you love downtown and want to be a part of making it even better, you should come Radiate with us. Look for our review of the evening is the next couple of days on Urban Life.

Gene Urban
the Urban Team at Realty Executives
602-234-5777
@geneurban

Previous Radiate Phoenix Posts:

Radiate Phx Meets at Maizies, Urban Farm Discussion
Radiate Phoenix at Sens Tapas with Patty Johnson
Radiate Phoenix meets at SideBar with Nan Ellin, author speaker
Radiate Phoenix (Formerly Called Ignite Phoenix) meets at Chez Nous
Radiate Phoenix celebrates 1 year anniversary

First Time Home Buyers & Investors... Now is the time to buy in Phoenix

That's a rather bold headline "First Time Home Buyers & Investors... Now is the time to buy." As our clients know, we're pretty cautious and conservative guys who, for the past year or so,  told a lot of people they were nuts to buy a home. Unless they got, as Randy Jackson would describe, "The Bomb", we were not advising buying.

Things have changed now and were ready to say that now is time to buy. All you first time buyers who've been on the fence, there are some Bombs out there just waiting for you. Just ask the investors who are busy building their real estate portfolios or look at the market indicators.

Several market indicators suggest the Greater Phoenix market is rebounding, primarily in the under $300,000 price range.  This is not to say prices are going to go up soon... that would be wishful thinking and I'd be stupid to suggest it. However, prices in the under $300,000 market are stabilizing and that market is pretty darn hot right now.

Another huge factor is the housing affordability index. The graph shows how affordable housing has been over time. The index is generated by looking at interest rates, personal income and cost of housing. The higher the number, the more affordable it is to buy a home.

Clearly, Arizona housing is the most affordable its been since the index was created in the 1970's. As a side note, I hear the current affordability index number is over 170.

As those who have read my analysis in the past know, I am a Supply & Demand guy. Supply & Demand numbers provide a good basis for predicting behavior. Recent figures support a trend towards pricing stability.

For what seemed like an eternity, we saw inventory (number of properties on the market) in the 55,000 range. This was a huge, scary, number that made realtors have nightmares and contemplate jumping from tall buildings.

Late 2008 saw a decline in invetory and it currently sits at 42,800.  Mind you, this is still a high number, yet it represents a 33% drop from just a few months ago. No more thoughts of leaping, fewer nightmares.

The demand side is equally hopeful. Property sales for 2009 are on the rise. The chart on the right shows sales figures provided by ARMLS.

The figures are significantly above their respective months in 2008 and the spike in March is very encouraging,

On the encouraging, make me smile front, sales/demand for April and May appear to be very strong. There are 13,573 homes in escrow as we speak. Naturally, not all of these will make it to the finish line, yet the data suggests April sales will easily beat March.

As I mentioned in the beginning, as well as in a prior article, most of the sales are for properties priced under $300,000. I believe the $300k -- $500K market is not yet stable and the luxury market has yet to be tested. Thus, I caution those looking at higher priced homes to still look for "The Bomb" or risk being upside down at the end of the year.

To sum things up, if your thinking about that first home, investment property or just getting back into home ownership in the under $300,000 range you may want to move forward. At the top-right portion of Urban Life there is a sweet home search tool. We invite you to take a look, dream a bit and maybe you'll find something that really excites and surprises you.

Have a great weekend. If you have any questions, we're here for you. We love to help first time home buyers and investors have the real estate experience of their life.

Gene Urban
The Urban Team at Realty Executives
602-234-5777

Jane's Walk -- Downtown Phoenix Celebrates Urban Activist Jane Jacobs

Our good friend and downtown activist, Yuri Artibise, is coordinating a downtown Phoenix walking tour to honor Jane Jacobs.  We asked him to write an article on Jane's Walk so we could post here on Urban Life. It sound like it is going to be a fun morning.  Read on to learn more.

_______________________________________________________________

Downtown Phoenix will be home to the city‟s inaugural Jane‟s Walk on Saturday, May 2, 2009. The free walking tour -- part of an international annual event commemorating the birthday of renowned urban activist Jane Jacobs, who died in 2006 -- will take place between 9:00 and 11:00 am. It will start, and end, at Portland Park on First Avenue and Portland Street (next to the Roosevelt light rail station).  Jane‟s Walk is a “street-level celebration” of Jacobs‟ legacy and ideas, combining the simple act of walking with personal observations, urban history and local lore as a means of knitting people together into a strong and resourceful community through bottom-up approaches and neighborhood involvement.

Jacobs was an urbanist and activist whose writings championed a fresh, community-based approach to city building. She had no formal training as a planner, yet wrote what many consider to be the "bible" of urban planning. Her 1961 treatise, The Death and Life of Great American Cities, introduced groundbreaking ideas about how cities function, evolve and fail -- concepts that are now common sense to generations of architects, planners, politicians and activists. Jacobs championed the interests and knowledge of local residents and pedestrians over a centralized, car-centered approach to planning. She also promoted refurbishing old buildings instead of tearing them down and building new ones, and demonstrated the desirability of increasing the density of cities instead of sprawling endlessly outward. 

You don‟t have to be familiar with Jacobs‟ work to walk. The event is intended to be fun and participatory – everyone has a story and they‟re usually keen to share it. Whether you‟re a local activist, resident, business owner, politician, preservationist, or simply a citizen who loves your community, participating in Jane‟s Walk Phoenix is a great way to celebrate the reemergence of Downtown Phoenix as a vital urban hub, and to honor Jacobs‟ legacy.

To become involved or get more information, please contact Yuri Artibise, coordinator of Jane‟s Walk Phoenix at janeswalkphx@gmail.com or visit http://janeswalkphx.wordpress.com. You can also follow us on http://Twitter.com/janeswalkphx.

HOA Problems Can Create A Home Buyer Nightmare

It's a beautiful Tuesday here in Phoenix, AZ.  However, it is not so pretty for some home and condo buyers. Some are finding their homeowners associations are underfunded or facing bankruptcy; This can result in large assessments being levied to cover HOA mandated costs such as maintenance, utility fees and repairs to common areas, pools, etc.

I've tried to uncover the actual numbers in Arizona... without success. However, in Florida (a some what similar state to Arizona) a poll of 500 associations resulted in scary feedback. According to an article in the Herald Tribune:  

• 60% say banks and lenders holding title to foreclosed homes are not paying fees or assessments.
• 40% said they had homes in their associations vacant for over 5 months.
• Most indicated they would need to raise rates or use special assessments to cover loses.

The problem is especially pronounced in condo/town-home developments where the maintenance, utility and repair costs can be high and ongoing. A malfunctioning central AC system can cost tens of thousands to repair; Elevators, pools, roofs, landscaping and blanket insurance policies all have to be maintained.

Single family home developments can have similar expenses, especially if they have community pools and lots of common areas. Some developments include front yard maintenance, playgrounds, tennis courts, recreational buildings and other amenities that can quickly cause HOA reserves to become depleted and vanish.

At this point you are probably wondering how to protect yourself. That's a very good question. Brother Ron, my business partner and actual brother, is a fiend for information. He does a lot of probing on behalf of his client. He suggests the following:

• Contact the HOA management company and ask about the financial health of the development.
• Get the names and numbers of HOA board members and contact them.
• The Arizona Corporation Commission may have information on the HOA.
• Talk to your future neighbors.
• If you have serious concerns you may want to hire a private investigator.
• IMPORTANT: You will want to uncover any potential problems during the inspection period. The default time period for inspections is 10 days unless you negotiated a longer inspection period.
  
  Under Arizona law, the HOA is required to provide a copy of the CC&R's covering your new home. It is very important you read it. If you have questions, a visit with an attorney who specializes in real estate law may be a good idea.

In conclusion, be proactive if the home or condo your thinking about buying is in an HOA development. Make sure and get as much of the information you request in writing. Peopletend to be a bit more forthcoming when they know there is a paper trail. Don't be afraid to walk away from the deal if it looks like the HOA is in trouble. A multi-thousand special assessment a few months down the line is a surprise you probably don't want.

Best of days to you and if you have additional questions, know we are there for you.

Gene Urban
The Urban Team at Realty Executives
602-234-5777

Urban Team & MetLife Home Loans Announce Real Estate Seminar

Some of our readers know about our new blog site, Real Estate Investing 101. If not, here is a quick overview of why we launched the site and what the seminars are about.

There are a lot of people teaching folks how to get rich-quick in real estate. They put on seminars, sell books, CD's, software and "stuff". When the seminars are happening in Phoenix we, as Realtors, know because of the calls we get. Seminar attendees call real estate agents and brokers asking us to make offers on their behalf... lots of offers. They do not want our advise or counsel, only our access to ARMLS and the ability to write contracts. Ron and I have gotten to know a few of these people and some of what they are taught is misleading or outright dangerous.

One example were two brothers from the the southeast. We asked them lot of questions and the answers were either vague such as' "oh they have that handled for us" or the response was simply bad information. The bottom line was last summer, when the market was really tanking, these two brothers were being taught that flipping properties was a great way to make a killing. Those of us in the business knew this was a risky proposition and probably a great way to lose a fortune rather than make one. We tried to caution them and were met with deaf ears.

In response, Ron and I decided to create a web site dedicated to providing new or would be residential real estate investors quality information and advice. To supplement the web site we've created a series of seminars designed to educate people about the ins and outs, dos and don'ts, and nuts and bolts of becoming an owner of residential rental property.

Our first seminar is being co-hosted by the good people at MetLife Home Loans. Ron Urban, who was the designated broker of a mid-size property management firm for several years, will be leading the discussion. His experience at buying and/or managing over 150 investment properties provides the foundation for the class and Judy Giel with MetLife Home Loans will discuss several loan options. A Q & A session will be part of the evening.

To learn more, get time and dates, or sign up for this fun event, go to our investment web site... Real Estate Investing 101. You can sign up for the workshop via a Meet-Up.com link provided on the site or by sending us an email. Naturally, if you have a friend or know someone at work who has an interest, pass on the link to them. The more the merrier is what we say.

Have a great Friday and we hope to see you at one of our events.

Gene Urban
The Urban Team at Realty Executives
602-234-5777

Media Says Foreclosures Down Due to Government Plan... Is that the real truth?

Many of you probably saw the story on AZCentral touting the government's Homeowner Affordability and Stability Plan (HASP) as the reason for foreclosures being down and banks responding to homeowners in trouble. Personally, I believe it has much less to do with the plan and more to do with banks finally having the infrastructure to deal with the problem.

The AZCentral article is an example of a reporter being too lazy or ignorant to understand an issue. The result is an article that simply does not reflect the facts. Judging by the 10+ pages of comments from readers, I don't think I am alone in these feelings.

The HASP has been helpful, but it is not the main reason banks are being more responsive to troubled homeowners. I do believe Obama's message opened the eyes of people facing foreclosure and helped prompt some into action.

I believe much of the change has been due to the banks finally having sufficient staff and systems in place to handle the work load. Look at it from a business standpoint.

Let's say you operate a car repair shop and suddenly your business increases 20% in two months. You probably respond by working your staff harder and trying to handle the load within the systems you have in place. Then the work load increases another 300% in the next 6 months. Your waist-deep in work now. You can't keep up with the work and you don't have the time to find solutions. This is what the banks faced in 2008.

At one point, bank management recognized the severity of the problems and started tackling them. Banks, traditionally, are not rapid responders. The problem has to be studied, departments have to learn to share data, solutions need to be evaluated, reviewed by attorneys, reevaluated and so on. It's a slow process and the solutions were often outdated before being implemented... a bit like our freeway system updates. In late 2008, new systems are in place, additional manpower hired/trained, computer systems bought, software reconfigured and they, the banks, are in a position to better serve their customers.

In February 2009 the politicians step in, create pretty policy and announce how they will get to the bottom of this problem and solve it. 

As Realtors we witnessed the change in bank performance regarding the sale of foreclosure properties. Last Fall it we often waited as long as three weeks to get a response to an offer made on an REO home. Today, the response time is 24-48 hours. The reason is simple... they have systems and personnel in place that can better handle the workload. They are still underwater but not like they were  a few months ago.

In conclusion, let's give credit where it's due. The Government's policy would have had little effect if the banks had not put in place the people and procedures to better serve the public.

Gene Urban
The Urban Team at Realty Executives
602-234-5777

Radiate Phoenix Meets at Maizie's and Talks Urban Gardens With Greg Peterson

It was a glorious green evening for the Radiate Phx gang last night. We met up on the patio at Maizie's Cafe on Central.  The evening began with a bit of social time, chilled beers, fine wine and a chance to say hi to old and new friends who love downtown Phoenix.

Claudia Bullmore took the helm, welcomed us to the Radiate Phoenix gathering and had each of us introduce ourselves and tell the group whether or not we had a personal garden. Why the garden question... because  our speaker for the evening was Greg Peterson, the Urban Farm guy.

Greg is a passionate sustainable living guru who has great credentials and lives his speak. Decked out in a garden inspired shirt, Greg talked the ins and outs of creating and maintaining an Urban Garden, reducing home energy costs and living a sustainable lifestyle.  He knows from which he speaks as the owner, planter, harvester of one of the country's best known urban gardens... The Urban Farm.

We learned a great deal last night. Greg talked about the variety of fruits and vegetables one is able to grow in our desert. The key, we learned, is both water and good soil amends. It seem, our environment simply sucks the nutrients out of the soil at a rapid rate so keeping the ground well fed is a must.

Several sources were provided as we explore planting our own gardens. Books like "Lasagna Gardening" and local gardening classes from the Phoenix Permaculture Guild and the Desert Botanical Gardens will help the home gardener thrive, enjoy and eat well.

If you would like to receive Greg's email series on living a green lifestyle, go to www.yourguidetogreen.com and sign up.  To keep informed about future Radiate Phoenix meetings, just check in with us at Urban Life and we'll keep you informed or you can join our group at Meetup.com.

Special thanks to Claudia Bullmore and Catrina Knoebl for putting together another fine program.

Gene Urban
The Urban Team at Realty Executives
602-234-5777