Lucas Group News and Real Estate Report Issue 1
Local Home Sales Up an Average of 6% in 2003
Never say die! So seems to be the attitude of the housing market in the Kyrene Corridor.
Local home sales appreciated in 2003 to the tune of over six percent, continuing the upward trend that local residents have enjoyed for over a decade now.
And there seems to be no end in sight. As long as mortgage rates stay low and the area continues to attract new residents, there is no reason for a large downturn.
One of the reasons that the local market has been able to sustain such a great housing environment is because appreciation has remained steady at around four to six percent per year. This is a healthy pace that should prevent a large downturn.
Even if the Valley as a whole starts to see a slowdown, Kyrene Corridor residents hold a distinct advantage in several areas.
Real estate is location based. We are fortunate to be central to many of the Valley’s attractions. And with four highways bordering our community, access to nearly everything is just a hop and a skip away.
We also enjoy the benefits of our reputable
Bottom line, the outlook for local residents looks good and 2004 should be another great year to buy or sell a home in the Kyrene Corridor.
Warner Ranch Garage Sale
It’s back!! The Lucas Realty Group sponsored Annual Warner Ranch Spring Clean Garage Sale will be held March 27th. We provide all the signage and advertising. To sign up for this popular event call 480-940-7100.
Babysitter Classes
Sign up now for the Lucas Realty Group sponsored CPR/ Babysitter classes. Classes are scheduled nearly every month. To sign up today call 480-940-7100.
Silent Auction
The PTO at Kyrene de las Manitas is sponsoring their 5th annual Silent Auction and Dinner/Dance on March 6, 2004. The Hawaiian Luau themed fund raiser will be held at the
1031 Exchange Alternative
Do capital gains prevent you from selling your highly appreciated property? Would you like to know how you could defer capital gains without interest or penalty?
The Private Annuity Trust is an IRS approved product that might just be what you have been looking for. The Trust allows you to defer capital gains taxes. You will receive income for life from the sale of your property, remove the sales proceeds from your taxable estate and transfer the balance of your trust’s assets to your chosen heirs when you die.
Example: John and Mary have an apartment complex. They are age 60 and wish to retire from the property rental business. They have an adjusted basis in their building of approximately $50,000 and the building will sell for $500,000 net. Their capital gain is $450,000 and the taxes will be over $126,000. If they sell outright, the taxes are due. If they 1031 Exchange, the taxes are deferred, however, they are still in the rental business.
If they have a Private Annuity Trust they will receive an income for life of over $34,476 per year, stretch the capital gains over their entire lifetime, without penalty or interest, and leave the balance of the Trust assets to their chosen heirs when they die. The Trust assets are not subject to federal estate taxes, family liabilities, probate or Medicare.
The program is very affordable, easy to understand and implement. Call David today at 480-940-0922 for more information.
Mortgage Insurance Options
Better than term and whole life for you and your spouse’s protection.
Why? Because this one policy covers both you and your wife, not just one of you as with traditional policies.
So, if either of you should depart this world unexpectedly, your mortgage is paid. Also, unlike other mortgage insurance policies, the amount of protection doesn’t go down as the mortgage balance declines.
Therefore, if your $250,000 mortgage has been paid down to $100,000 and one of you dies, the remaining spouse will have the mortgage paid and $150,000 in the bank.
The cost of mortgage insurance is a little more than term, but much less than whole life. Yet, a feature of this policy which resembles whole life – and probably the best part of this insurance protection – if you don’t use it (i.e. if neither spouse dies), you get all the premium dollars you invested returned at the end of the policy.
With such strong protection available for so little – and considering if you don’t use it, you get all your investment returned, some would consider it almost irresponsible not to take advantage of this excellent coverage.
Other details can be obtained by calling David Lucas at 480-940-7100. David Lucas is a licensed
The Importance Of Internet Marketing
Studies Show That Most Homebuyers Start Their Search On The Internet
New research by the National Association of Realtors states that 72% of all recent home purchasers used the Internet to search for their home. Compare this with 1995, NAR says, when barely two percent of home buyers used the Web.
This is why Lucas Realty Group has put so much emphasis on marketing our homes for sale on the Internet.
Of course we have our own Internet site at LucasRealtyGroup.com which showcases all of our homes for sale with 360 degree virtual tours. You can also access the entire MLS with information on over 20,000 homes for sale in
Besides our site, we promote our homes for sale on the local MLS site where other real estate agents can gain access. We optimize our listings by including multiple pictures and a link to the virtual tour. Marketing to other agents is the single most important action we take, so we make sure that we do it right.
Realtor.com is the largest real estate portal on the web. It is the official web site of the National Association of Realtors. Many homebuyers start their search here. We have a relationship with Realtor.com that allows us to enhance our homes for sale (see photo) by uploading virtual tours, multiple photos and a description of the home.
Realtor.com drives the real estate section of AOL and MSN. Between these three giants, Lucas Realty Group’s homes for sale are exposed to the vast majority of homebuyers who are searching on the Internet.
The facts remain clear...outside of contacting a real estate agent, the Internet is the most popular place to start the home buying process. Furthermore, we expect these numbers to increase...as will our Internet marketing efforts.
Lucas Group News and Real Estate Report Issue 2
Tips For Move Up Buyers
If your family is growing, you're earning more money than you were five years ago, or you want to live in a larger or better-appointed house, you might be considering selling your house and "moving up."
Many homeowners are also motivated to move up because of increasing appreciation rates; they can sell their existing house and have a hefty down payment.
There are a host of things you should do as you consider whether now is the time to move up, including:
Get an accurate picture of your financial situation. How much more mortgage payment can you afford? Just because a bank approves you for a certain amount doesn't mean you should spend that much on a house.
Get pre-approved for a loan. This way you'll know if you can get approved and how much you can spend on a house. It also puts you in a stronger position when you ultimately make an offer on a house.
Be realistic about how much you can sell your house for and how much of the proceeds you'll have available for a down payment on your next house. Ask your REALTOR for a market analysis. And don't forget closing costs -- origination fees, taxes, title insurance, and financing costs.
Be specific about your needs and don't cater to emotion. If you have two kids with another on the way, be on the lookout for houses with plenty of bedrooms and areas to entertain growing children. Take play and study spaces into account.
Keep your options open. With prices continuing to rise and inventory low in many areas, you're likely to encounter a depleted inventory of homes. If you wanted something fairly new, think about something a few years older. Many 'older' homes have now been remodeled.
If you're considering an existing house, check out the property's insurance history. This could affect your ability to obtain insurance if you buy it. You will have to ask the seller to provide a copy of their CLUE report.
The representation of a good REALTOR to help you through the process can be priceless. If you are going to look at new homes don’t forget that you need to take your REALTOR along the first time in order to receive representation.
Lucas Realty Group in tandem with Lucas Mortgage can assist you with all of the above issues as well as walking you through the intricacies of the contracts, inspections, appraisals, and the numerous other issues that arise when buying and selling a home.
How Kyrene Got Its Name
For native Arizonans as well as newcomers to the area, anyone who enjoys learning about the "local color" of an area will be enriched by the following tidbits of history pertaining to the Kyrene Corridor.
• The area was inhabited 10,000 years B.C. by paleo (ancient) Indians and the climate was wet and humid.
• About 400 years B.C., the area was inhabited by Hohokam Indians, skilled engineers and farmers, who developed an extensive system of canals to irrigate the land from the
• The name "Kyrene" is attributed to an area classical scholar, "Lord" Darrell Duppa, who is also credited with renaming what was originally known as "Pumpkinville" to
• The first American settlement in what is now the Kyrene area was in the early 1880's. In 1888 nine families with a total of 17 children successfully petitioned the Maricopa County Board of Supervisors to establish the
• Samuel S. Warner served on the Kyrene Board of Governors from 1916-1919. He and his wife,
• As late as the 1970's, what are now major arterials were only 2 lanes and lined with huge
• Flooding was a constant problem in the Rio Salado and connecting irrigation canals until Roosevelt Dam was completed in 1911. Until then, bridges on the Salt were regularly wiped out by the floods and
• On February 14, 1912, President Taft signed a proclamation admitting
• The water table was so high in many parts of the Kyrene area that the ground remained soggy and unsuitable for farming until SRP built a canal 25 feet deep running south along what is now
• As late as the 1980's, the Kyrene district was a major sheep ranching area. During the summer months, 10's of thousands of sheep were herded (that's right, herded) from the Kyrene area to the
• Today, the Kyrene Corridor is truly one of the most desirable places to live in the Valley. The farms and open space may be gone but they have been replaced by a thriving community which boasts top notch schools and all the amenities a homeowner could hope for.
NAR Predicts Low Rates
The National Association of Realtors, the
A total of 6.96 million new and existing single-family homes likely will be sold, 0.06 percent higher than a month-ago forecast of 6.92 million, the Washington-based group said.
Last year's record of 7.19 million will still stand, the industry group says.
Slow job growth will help keep interest rates low, fueling demand for housing, Realtors Association chief economist David Lereah said. The economy created only 21,000 jobs in February, fewer than the median forecast of 130,000, according to the latest government data.
As a result, the average rate for a 30-year fixed mortgage, which dropped to 5.41 percent last week, may rise to only 6.3 percent by the fourth quarter, lower than the 6.5 percent the group had called for a month ago.
"The silver lining now is that interest rates probably won't move much until late in the year when the unemployment rate is expected to drop to 5.4 percent," Lereah said.
This year, 5.92 million existing homes and 1.04 million new homes likely will sell, the group said. That would make 2004 the second-best year on record, following last year's high of 6.1 million existing-home sales and 1.1 million new-home sales.
Community Corner
Babysitter Classes
Sign up now for the Lucas Realty Group sponsored CPR/ Babysitter classes. Classes are scheduled nearly every month. To sign up today call 480-940-7100.
Art On Display
We are starting to display the artwork of some local and regional artists on the walls of our
Garage Sales
Lucas Realty Group has been happy to sponsor several neighborhood garage sales over the past few weeks. If you need free signage for your garage sale, call to reserve them today.
Philosophy
We are local residents and we like to give back to the community in which we work and live. A portion of each transaction is donated to a local charity.
A large portion of our business comes from referrals, friends and past clients. We thank you for instilling your trust in us - it is not a job that we take lightly. If you or someone you know is looking to buy or sell a home, please call today - we love referrals!
Lucas Group News and Real Estate Report Issue 3
Lucas Realty Group’s Value Proposition
“Creating excellent real estate experiences while enriching the lives of our customers and the community we serve.”
A Value Proposition is the primary and essential benefit of a product or service. For any company, it is the reason for being. At Lucas Realty Group we pride ourselves on our Value Proposition. In fact, it is the very basis upon which we have grown our company over the past decade.
You may ask what creates an excellent experience. We believe all of the following ingredients have to occur:
• Selling your home for the highest possible price.
• Selling your home in the least amount of time possible.
• Making the sale or purchase of your home as enjoyable as possible.
You may also ask how we are able to do this so consistently. We do it by implementing these systems:
• Our “Aggressive Marketing Plan” is how we get results when it comes to price and speed of sale. We believe that the level of marketing that we initiate to sell a home is unparalleled by any brokerage in the
• Our “Unique Team System” is how we get results when it comes to delivering a pleasant and hassle free experience. We have a highly trained and knowledgeable staff of agents and transaction coordinators who will walk you through the home buying or selling process. Their availability and commitment to customer service is truly the engine that drives our company.
And finally, you may be asking how we enrich the lives of our customers and the community we serve?
• We enrich our customers by helping them in making one of the biggest transitions in their lives - moving. Many of our past clients are now friends and we pride ourselves on the fact that most of our business comes from word of mouth and referrals.
• We try to enrich the communities in which we live by giving back and being involved. Over the years we have done everything from putting on CPR and babysitting classes to giving to the local
What does this all mean to you?
• We believe we have created a truly unique brokerage that offers Value. And as you know, Value has become a rare commodity in today’s society.
Community Corner
• Babysitter Classes •
Sign up now for the Lucas Realty Group sponsored CPR/ Babysitter classes. Classes are scheduled nearly every month. To sign up today call 480-940-7100.
• Garage Sales •
The Annual Warner Ranch Garage Sale was once again a great success with over 125 families participating in this year’s event. We would like to thank everyone who participated. If you need free signs for your garage sale, call to reserve them today.
• Football Camp •
It’s time to get your kids signed up for the 2nd annual Arizona Youth Football Camp. The camp lasts for two weeks in mid June and is organized by Javier Zuluaga, a Kyrene Corridor resident. For more info call 602-686-8354 or go online to www.azyfc.com.
• Cancer Society •
We were happy last month to donate to the American Cancer Society East Mesa Relay on behalf of our agent, Cheryl Jones, who with her team walked for 20 hours for the cause. Her team raised $5,500 and the event raised over $100,000.
1031 Exchange Alternative
David Lucas, who heads up our mortgage department, is branching out and offering a few unique financial products that compliment our real estate business.
The product that he is most excited about is one that allows individuals with highly appreciated property to sell and defer capital gains without interest or penalty.
The Private Annuity Trust is an IRS approved product that will allow you to receive income for life from the sale of your property, remove the sales proceeds from your taxable estate and transfer the balance of your trust’s assets to your chosen heirs when you die.
Example: John and Mary have an apartment complex. They are age 60 and wish to retire from the property rental business. They have an adjusted basis in their building of approximately $50,000 and the building will sell for $500,000 net. Their capital gain is $450,000 and the taxes will be over $126,000. If they sell outright, the taxes are due. If they 1031 Exchange, the taxes are deferred, however, they are still in the rental business.
If they opt instead for a Private Annuity Trust they will receive an income for life of over $34,476 per year, stretch the capital gains over their entire lifetime, without penalty or interest, and leave the balance of the Trust assets to their chosen heirs when they die. The Trust assets are not subject to federal estate taxes, family liabilities, probate or Medicare.
The program is very affordable, easy to understand and implement. Form more information please call us today at 480-940-0922.
Lucas Group News and Real Estate Report Issue 4
It’s A Sellers Market
How did we get here and what to do now
While doomsayers once again kicked off the year by predicting the end of the ride for the local real estate market, a funny thing happened...the market went wild!
Much of the current phenomenon can be attributed to a low supply of homes for sale. In the Kyrene Corridor, the inventory of homes for sale is down nearly sixty percent compared to this time last year. This, combined with an increase in buyers, makes it easy to see why the market has shifted so dramatically. The increase in buyers is due to several factors:
• The population in the area continues to increase as people flock here for retirement or new jobs. The Kyrene Corridor has the added benefit of being one of the most desirable areas in the Valley for residents to call home.
• Investor interests have skyrocketed as they gamble on what they perceive
as an undervalued market. While prices may seem high to us, they are still under the average for other regional cities. The median price in
• The final factor that is giving fuel to the fire is interest rates. Most analysts as well as consumers feel that interest rates will continue to gradually rise over the next year as the economy recovers. So we are finding many buyers wanting to get in while they can afford more home.
Will the sellers’ market continue at such a frenzied pace? Probably not, but we’re certainly not going to try to predict the future - as even the most seasoned analysts have been proven wrong over and over again. We do know that other regional cities are on the downside of a sellers market as their inventory of homes and market time are increasing.
What does all of this mean to you? If you are a seller, it is a great time to get a nice return on your home or investment properties. If you are a buyer, chances are pretty good that prices won’t be coming down anytime soon but rates will probably be going up - translation: now is the time to buy.
A seller’s market brings up a host of new issues when it comes to selling a home. Ironically, most Realtors work harder in this type of market than in a balanced market. While the marketing of your home becomes easier, more issues arise with pricing, dealing with multiple offers, resolving inspection issues and handling appraisal disputes.
If you are thinking of buying or selling, you will want the representation of a brokerage that has experience in all types of markets. Call Lucas Realty Group today at 480-496-7100.
Home Inspections In A Hot Market
Don't let the stiff competition in hot seller's markets this spring persuade you to forego a home inspection on a home you want to buy.
As with any spring crop of seller's markets, this year's comes with perennial "as-is" listings and others that prompt the buyer to make an offer without the contingency of a home inspection.
Don't do it. How do you know what the 'as-is' is if you don't have the home inspected?
With the buyer tagging along, a licensed and/or trade group-certified home inspector gives a property the once over, inspecting systems, structures and components -- that are visually accessible -- to identify material defects, conditions that may significantly affect the value, desirability, habitability or safety of the home.
Housing Continues To Shine Even as Rates Hover Above Six Percent
In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.32 percent, with an average 0.6 point, for the week ending May 27, 2004, up slightly from last week when it averaged 6.30 percent. Last year at this time, the 30-year FRM averaged 5.31 percent.
The average for the 15-year FRM this week is 5.69 percent, with an average 0.6 point, up a little from last week when it averaged 5.67 percent. A year ago, the 15-year FRM averaged 4.73 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.87 percent this week, with an average 0.6 point, down from last week when it averaged 3.99 percent. At this time last year, the one-year ARM averaged 3.63 percent.
"Although new home sales fell in April, existing home sales rose to the second highest level on record as homebuyers rushed to close in the face of low, but surely rising, mortgage rates," said Frank Nothaft, Freddie Mac vice president and chief economist. "Current mortgage rates are now a full point above where they were last year, and almost half a point higher than they were last month.”
"Housing will, however, continue to be a pillar of strength for the economy in the coming years. In fact, we expect demand for housing will require production of about 2 million new housing units per year over the next decade, thus fueling growth in the various industries that support housing."
Lucas Group News and Real Estate Report Issue 5
First Half Numbers Reflect Hot Market
Despite a recent increase in interest rates and the possibility of more in the future, Federal Reserve Chairman Alan Greenspan still thinks there is no place quite like home.
In testimony before the Senate Banking, Housing, and Urban Affairs Committee, Greenspan said that there are no indications of any abrupt or significant about-face in the housing market.
If he is looking for proof, it can be found right here in the Kyrene Corridor where the inventory of homes for sale has dwindled substantially in the last six months as the seller’s market continues.
The number of homes currently on the market is down 70% compared to the summer of 2003. This has the effect of lowering the average days a home stays on the market and even creates an auction atmosphere for popular floorplans in certain coveted neighborhoods.
What’s driving the local market? Besides low interest rates and a continuing supply of new residents, the real difference this year is the interest that regional investors are paying to the Valley. Investors see an undervalued market here and are swarming in to take advantage of good deals.
The 85284 zip code has experienced a three percent increase in homes sold through the first half of this year compared to the first half of 2003. For these homes, the average price is up 14.8% this year. This number is not the best gauge of appreciation as more luxury homes have sold this year (19 compared to 11 last year) thus skewing the numbers a bit. A better gauge is the average price per square foot which has increased 9.6% from $117.24 in 2003 to $128.51 in 2004. The average days a home for sale stays on the market has decreased by 14.6%.
Homeowners in the 85226 zip code have also witnessed a three percent increase in home sales with 510 homes sold. The average price has increased 7.8% from the first half of 2003 while the average price per square foot has increased 5.8%. The average days on the market has decreased 13% to 46 days.
Mortgage Update
Mortgage interest rates rose recently breaking the 6 percent barrier for the second time this year.
Fixed interest rates had been falling from 6.32 percent on June 16 to 5.98 percent July 22, before turning up July 29 to 6.08 percent on 30-year conforming loans, according to Freddie Mac's Primary Mortgage Market Survey.
Rates could be rising in anticipation of the next Federal Reserve Board's rate hike on benchmark rates, said Frank Nothaft, Freddie Mac's chief economist.
"Mortgage rates rose a little this week in response to expectations that the Federal Reserve Board (Fed) is willing to move more aggressively if inflation should become an issue," said Nothaft.
The average 15-year fixed rate reported on July 29 was 5.49 percent, up from 5.39 percent a week ago and 1-year Treasury-indexed adjustable rate mortgages averaged 4.17 percent, up from 4.12 percent, last week.
In related news, the national home ownership rate inched toward 70 percent, hitting a record 69.2 percent according to the U.S. Census Bureau.
"This is but one indicator of how strong the housing market has been over the last number of years," said Nothaft.
A Virtual Experience
Lucas Realty Group provides a 360° virtual tour for all of the homes we market and sell. We display the tour on our company web site, the Arizona Regional Multiple Listing Service, AOL, MSN, Netscape, and Realtor.com.
This innovative marketing technique allows prospective buyers to take a virtual walk through your home. It’s like having an Open House 24 hours a day, 7 days a week!
Exposing your home on the Internet is one the most important actions we take. Here are the reasons why:
• 92% of home buyers use the Internet sometime during the home buying process.
• 72% of all people looking for a new home start their search on the Web.
• 77% of homebuyers consider detailed property information "extremely valuable."
• 67% of homebuyers believe using the Internet saved them time in their home search.
• Buyers who use the Internet spend 2 weeks working with a REALTOR®, one third the time it takes for traditional homebuyers.
• Buyers using the Internet are more satisfied with the home buying process than traditional homebuyers.
• 92% of Internet users found multiple photos to be considered extremely or very important. This is why we always enhance our listings with multiple photos and a 360º virtual tour.
Lucas Community Friendly Projects
As part of our continuing efforts to give back to the community in which we work and live, Lucas Realty Group and its agents are preparing backpacks for the beginning of school with needed school supplies.
These backpacks will be distributed by school personnel to the neediest families. It is not too late to donate even if your local school has already begun its school year. Backpacks and supplies can be dropped at either Lucas location or picked up by a Lucas agent.
Supplies needed include: backpacks, pencils (#2), erasers, crayons, colored pencils, rulers, lined notebook paper, notebook binders, pocket folders, glue sticks, facial tissue (Kleenex, etc.), blue or black pens, pencil pouches (for notebooks).
You can feel good about getting a child started out right for the 2004-2005 school year. Its small kindnesses that make great differences in a child’s life.
