There is a great business rule - when one becomes too content and comfortable - it is time to move on and change. Usually, it is a difficult decision to make. This time around, however, it was an easy one for me.

Being in Real Estate for over 4 years and going through the Real Estate bubble and its burst, I’ve seen and experienced a lot. My clients & I have discovered that my financial background is immensely useful in understanding market conditions, dealing with the challenges and finding the opportunities. More and more often I assume the role of a Real Estate advisor, rather than just an agent.

As such, moving to Realty Executives - a company that fosters independence, flexibility and executive-type thinking is a great way for me to serve my clients better.

Here is the summary (click on image to open .pdf):

On August 21st starting at 10 pm until August 25th at 5 am there will be an interstate closure in Tucson, AZ that will move all traffic between St. Mary’s Road and 29th Street to the east side of the freeway in order to begin reconstruction on the Westside. Motorists will be detoured to the frontage roads during the closure.

On August 19th starting at 10 pm through August 25th at 5 am, the ramp from northbound I-19 to westbound I-10 in Tucson, AZ is scheduled to be closed. I-19 traffic will be detoured to the westbound I-10 frontage road.

Up until now, Foothills Office of Long Realty was located in a one-story unimpressive building in the local shopping plaza on NW corner of Sunrise and Swan:

Long Realty Company - Foothills
5683 N. Swan Rd.
Tucson, AZ 85718
Tel: (520) 299-2201
Fax: (520) 529-1548

On September 8, 2008 it is scheduled to occupy prime Foothills real estate in a brand new building at:

Long Realty Company - Foothills
4051 E Sunrise Dr., Suite 101
Tucson, AZ 85718
Tel: (520) 299-2201
Fax: (520) 529-1548

Consequently, Anjelina Belakovskaia's Foothills Insider new contact information will be:

Foothills Insider - Tucson Luxury Real Estate & Homes for Sale
4051 E Sunrise Dr., Suite 101
Tucson, AZ 85718
Tel: (520) 370-0700
Fax: (520) 838-8080
Anjelina@FoothillsInsider.com
www.FoothillsInsider.com

Re/Max is using a video campaign "Reach For The Sky" & "RE/MAX 365" that comes via e-mail and also can be seen on YouTube. (I didn't count how many e-mails I got, but it was definitely more than two).

Coldwell Banker brokers call agents from other real estate companies directly, trying to setup appointments (I personally got two calls so far, other agents told me about similar calls).

A number of other real estate agencies use an old, trusted method - sending promotional flyers by mail.

Long Realty went even further - trying to minimize cost of the campaign and save on video production, mailing costs and phone calls - Long Realty is recruiting its own agents to look for the new "labor force". During the usual Long Realty Foothills Tuesday meeting, the Branch Manager suggested thinking of all the Tucson real estate agents from other companies that we would want to invite to the new Foothills office. To make sure we don't miss any valuable agent from Coldwell Banker, Re/Max, Realty Executives and other Tucson real estate agencies, we are going to get printouts with the names of all the agents we have ever dealt with.

What an idea!

Still, there are probably plenty of people who has visited Rocky Point (Puerto Peñasco, Sonora) and other beach areas on the Sea of Cortez and fell in love with it. I know we did. I and my husband rented a condo for a few days in the "Las Palmas" beachfront resort in Rocky Point - http://www.laspalmas-mex.com/ back in March of 2006.

Puerto Peñasco (Rocky Point), Condos and Hotels

Our short vacation was awesome and it was nice to be able to reach Mexican paradise in mere 3.5 hours of driving from the desert of Tucson, Arizona.

Las Palmas Condo, Rocky Point (Puerto Peñasco), Sonora, Mexico

Soon after our arrival, sitting on the Condo's balcony and enjoying the magnificent view of the Sea of Cortez, we started to discuss a possibility of owning one of those Puerto Peñasco Beach Condos. Next day, exploring the downtown of Rocky Point, we stopped by the Long Realty's Rocky Point office. There were plenty of properties available for sale, but quite away from where we were staying. Many for sale homes and condos were a brand new projects, still in the development phase. Being aware of some issues with Mexican projects and their possibility to be stuck in those phases forever, we were more inclined to invest in the currently existing property.

Back at Las Palmas, we discovered that a few Condos were for sale, but 2BR/2BA were priced well above $400,000 - a ridiculous amount, compared to the prices of Luxury Condos in Tucson - barely touching $200,000 in the midst of housing market boom. In addition, hearing the story of Las Palmas Casitas (3-4BR homes) appreciating over 100% in the past 2 years (from original $600K+ to $1.3MM+) , we realized that it was simply too late to pour money into this market.

As such, we spent more time on the beach and in the restaurants, enjoying wonderful weather and delicious culinary creations.

"The Reef" restaurant in Puerto Peñasco (Rocky Point), Sonora, Mexico.

…

In July of 2008, browsing through the real estate articles in the Arizona Daily Star, I saw a headline that caught my attention: "Investors left holding sand as condo deals falter, go bad in Sonora" written By Gabriela Rico, Tucson, Arizona | Published: 03.09.2008.

If the question in this post title has anything to do with your future plans, I'd suggest to go through the trouble of registering with Arizona Daily Star and read this article, otherwise you might end up burying your money in the beautiful Sonoran sand.

Out of 40 Condos presented, first two were bid up the most - both to $160,000. This however was the highest point of the auction. Steadily, the activity was drying up, with a few investors picking up handful of units that nobody else really wanted. The price ranged in between $122,500 and $145,000, though it is hard to pinpoint what was affecting the difference. Out of the five 3 BR Units (1,209 square feet each), the only upgraded one was sold for $160,000 (one of the above mentioned first two), the rest end up with the following prices: $140,000, $140,000, $135,000, $130,000 in the auction’s order.

During the auction, nine of the units came back (one of them twice), probably due to bidders’ inability to qualify or lack of the necessary paperwork / money. Overall, that cost the developer extra $52,500, as the consequent bids were lower in eight instances. For example, 2 BR/2 BA Unit 9-105 (1,017 square feet), described as “upgraded, private location, corner unit, fireplace” (auction sequence #22) was at first sold for $140,000. Yet, after it was re-auctioned, the final bid was $125,000.

Most of the vacant units were already completely renovated and upgraded by the developer and included granite counter tops, tiles in the kitchen, bathrooms and living area, new carpet in the bedrooms, new stainless steel appliances, bathtubs, sinks, etc… Two models even included flat screen plasma TV attached to the wall.

Overall, the auction was an amazing experience, worth even just to hear 120-125-120-125-125-125-120-125-120-125… with the speed of 120 words per minute or faster. It was though surprising for me to see starting bids of $89,000-$109,000 going up to $120,000-$125,000 almost immediately and then abruptly stop right there. Why wouldn’t the bidders get up there slowly? It might have saved them “a few bucks” at least in a few cases. However, looking at the face of the person opening the auction, one can strongly suspect that results didn’t meet Seller’s / Auctioneers’ expectations. Only time will show if this auction was a great buy for the investors or a timely escape for the Seller.

One thing is obvious. Those who were buying Condos to live in it have definitely won. They paid half of what was paid by their future neighbors just a few months prior. The location is definitely superior, considering proximity to Sabino Canyon, Ventana Golf and Racquet Club, Canyon Ranch Resort, etc… Moreover, those upgraded luxury condos are in the desirable by many School District 16, yet the new auction prices were still slightly better than many recently sold older non-upgraded condos in the TUSD school district. It was also much easier and safer process than buying short sales and foreclosures.

Good luck to those who won. Enjoy your new home!

"Tucson: A Boomtown Becomes a Desert Metropolis"
by Robert Lindsey, special for the New York Times
Copyright, The New York Times

Tucson, Arizona, December 14, 1979

At the fringes of this city, housing developments are edging close to the Titan II missile silos built by the Air Force 15 years ago, seemingly in the wilderness; traffic jams and air pollution have begun to bedevil the vaunted desert lifestyle; city dwellers are at war with ranchers because of fears there will not be enough water for all the people who want to move here.  And soon, as if from the grave, the late Howard R. Hughes will begin encouraging even more growth for, a classic boomtown of the American Southwest that is growing rapidly these days, partly because of newcomers' disenchantment with other Sunbelt boomtowns that grew too much.

In the 1950s, Mr. Hughes, who operated an aircraft manufacturing plant here that is still the city's largest industrial employer, bought more than 13,000 acres of land in and near the city, and left most of it to lie vacant, while houses, shopping centers, and factories sprouted up around and beside it.

Last week, his holding company, the Summa Corporation, said that, largely to raise money to pay estate taxes, it would soon begin a three year program to sell the nearly 17 square miles of under-developed land it still owns in the city, and it's immediate environment, hundreds of pieces of property that make up more than 8% of the total metropolitan area.

On assessment roles, the value of the land is listed at $22 million, although in this city where real estate values have tripled in the past three years, and one out of 10 residents is said to have a real estate sales license, some specialists here expect the sale to bring the Hughes estate more than $50 million.

How the land is used once it is sold, city officials say, is likely to help determine 's future shape, although if recent patterns are a guide, little effort will be made to use the massive sale to change the course of the city's future.

Tucson, in recent years, has undergone stormy debate over its future.  Some local officials argued that  should control the rate of its growth, especially at the city's edges, to avoid becoming "another San Jose, "the California city that earned a national reputation for unbridled urban sprawl in the 1960s.

But the local business interests and local residents that oppose the slow-the-growth movement eventually prevailed, and when a new city master plan was adopted last spring, the proposed growth-control strategies were gone, and  is now a city where, with relatively few exceptions, growth at any price seems to be the official civic doctrine.

It is a city where old faster boosterism still prevails, where local officials boast regularly about how few regulations are imposed on business and industry, and where there are signs everywhere of a tradition from cow town to metropolitan area.

"Tucson real estate is like a gold rush."  Said Dave Taylor, a city planning official, "and we've got the camp followers of a mining camp - the white shoe, white belt types, who come over here from California and try to buy up everything."  Real estate agents talk about how a syndicate of California investors bought more than 400 single family houses last year, and about another syndicate that bought 200 homes. Despite recent increases, housing prices here are still considered a bargain.

Tucson is Arizona's second city: with about 312,000 residents within the city limits, plus 200,000 more at the edges.  It is less than half as large as Phoenix, which is 100 miles to the north.

Life in Tucson is slower and less urban and feels closer to Arizona's frontier roots than bustling  Phoenix.  There is more influence of Mexico, which is 65 miles to the south, and Tucson has fewer urban problems than Phoenix.

Still, Tucson, where the population has increased by almost 19% in this decade, is changing.  Traditionally, its economy has had only four elements: the Hughes Plant, tourism, the University of Arizona, and Davis-Monthan Air Force Base.  In the past two years, it has begun to develop a significant electronics industry, led by several companies fleeing California's so-called Silicon Valley near San Jose, where growth has been pinched particularly by soaring home prices.

Few Environmental Restrictions

Besides Tucson's climate and housing prices, industry appears to have been attacked by relatively low wage  levels, weak unions, and combatively breezy environmental restrictions.  "We're the last bastion of the laissez-faire, free enterprise city," said one planner, Jack Siry, unenthusiastically.

Last year, the international business machines corporations opened the plant here, and it is building a much larger one for part of a company division in San Jose; National Semi-conductor.  A San Jose area manufacturing company has also opened a facility as have several smaller companies.  "We're just seeing the tip of the iceberg for these companies,"  said James Cocke, a vice president of Valley National Bank.

Tucson is the nation's largest city, relying exclusively on underground wells and in recent years has been taking three times as much water from the ground each day than has been replaced.  Local officials insist, however, that the city is not facing a water crisis.

Farm Versus Urban Demands

If all goes according to plan, they say, the Central Arizona Project, a massive federal effort to tap the Colorado river, should be delivering water here by 1987.  Moreover, they say that local cotton growers and other farmers who make up less than 3% of the population, have now used more than 80% of the water, will eventually have to surrender some of their water to urban demands.

Mr. Taylor and other officials, said that Summa Corporations' decision to sell would be advantageous to the city's industrial development because much of its land is in the southern part of Tucson, which has been the center of the electronics industry growth.

Some residents here express fears about the economic effects of the recent growth. A year ago, the average price of a new home here was slightly more than $40,000; now, it is $62,000. Tucson's overall cost of living, meanwhile, has soared at a faster rate than the national average and, by federal standards, now ranks above such cities as Chicago and Detroit.

Still the mood here is buoyant. The jobless rate is 4.4%, below the national average, and despite occasional references to concern over energy shortages, most official speak glowingly about the march of bulldozers across the desert and into the foothills overlooking the city saying that development is inevitable.

May 19th   TAX BENEFITS for the Realtors®.
May 20th   MARKETING YOURSELF AND YOUR LISTINGS ONLINE, 2:00-4:00, Home office–In this market you really need a way to differentiate yourself from the competition and reach the online population. — Please check my www.FoothillsInsider.com and tell me how I am doing in that area.
May 21st  CODE OF ETHICS 2008, TAR, 9:00-11:50.

Here are the properties on Long Realty tour:

MLS #:20805390: 9230 E Springwater Ct, Tucson, AZ 85749. Lakes at Castle Rock. $469,000.
MLS #:20813441: 10080 E Prairie Dog Ln, Tucson, AZ 85749. Powder Horn Ranch. $849,000.
MLS #:20813619: 12851 E Nighthawk Ranch Pl, Tucson, AZ 85749. $875,000 - $899,000.
MLS #:20807595: 12321 E Barry Baker Pl, Tucson, AZ 85749. Sneller Hills. $595,000 - $625,000.
MLS #:20809610: 3114 N Spirit Dancer, Tucson, AZ 85749. $849,900.
MLS #:20811696: 3820 N Whiptail Wash Pl, Tucson, AZ 85749. Canada Verde Estates. $1,799,000.
MLS #:20806298: 2111 S Magnolia Ave, Tucson, AZ 85711. Ferry. $165,000 - $175,000.
MLS #:20810979: 3229 E 3rd St, Tucson, AZ 85716. $599,000.
MLS #:20810984: 3221 E 3rd St, Tucson, AZ 85716. $635,000.

Meanwhile, Tucson Multiple Listing Service is implementing some changes. On Monday, May 5th Tucson MLS will add "Cumulative Days on Market" in a new field showing DOM/CDOM. This will help agents to see total number of days the property has been listed without a 30 days break (regardless of any change of agent or brokerage). This information, however, will not be available on the public MLS site.

Long Realty agent's tour:

MLS #:20816312: 5436 N Highpoint Ct, Tucson, AZ 85718. Promontory. $595,000.
MLS #:20811320: 4699 N Placita Ventana Del Rio, Tucson, AZ 85750. Ventana Del Rio. $649,900.
MLS #:20816130: 7365 E Autumn Dusk Pl, Tucson, AZ 85750. Ventana Reserve. $1,049,000.
MLS #:20813276: 7317 E Calle Alba Serena, Tucson, AZ 85750. Ventana Serena. $469,000.
MLS #:20815337: 5540 E Silver Mine Pl, Tucson, AZ 85750. Silverton. $749,000.
MLS #:20816763: 3614 E Kingler Spring Pl, Tucson, AZ 85718. Foothills Clusters. $499,000. Active contingent as of 05/08/08.
MLS #:20814755: 5651 N Paseo Niguel, Tucson, AZ 85718. Shadow Hills. $449,000.
MLS #:20814750: 5200 N Via Condesa, Tucson, AZ 85718. Catalina Foothills Estates. $749,000.

A 40-luxury-condo unit Public Home Auction will be taking place on May 10th in the Villas at Sabino Canyon. The Villas at Sabino Canyon are located on East Snyder Road just off of Kolb Road. This is a choice Catalina Foothills location, just minutes away from Sabino Canyon. The world renowned Canyon Ranch Health Resort is located nearby, along with Ventana Canyon Golf and Racquet Club, Loews Ventana Canyon Resort, and numerous restaurants, shops and spas clustered around the Sunrise Drive and Kolb Road Intersections.

One would think that any home in this neighborhood would cost a fortune and not so long ago, these condos were selling for up to $255,000. Now the situation has drastically shifted and the squeezed developer is unloading his inventory, so the same two-and- three-bedroom condo units have a starting bid range of $89,000 to $109,000.

Due to the uncertainty embedded in the auction process, it’s hard to tell what would be the final price for those condos. There could be plenty of out-of-state buyers, looking for a winter haven, that find this opportunity extremely attractive. There might be some real estate investors, looking to buy properties at deep discount. Alternatively just a handful of people may show up at auction and these luxury condos will be snagged for half-price or less. Whatever the outcome, it’s definitely an interesting event happening in our backyard and it will be indicative of the future direction of the Tucson’s real estate market.

One thing to note is there is a mandatory 5% buyer’s fee added to the final auction price.

If you are interested to find out more about the auction or preview these condos, feel free to give me, Anjelina, a call at (520) 370-0700. Otherwise, I am planning to review the results of the auction in one of my future blog posts, after May 10th, 2008.