Flood Insurance Becoming More Expensive

Private insurance companies do not offer flood insurance for properties that are in the flood plain. Using tax payer funds, the National Flood Insurance Program provides subsidized flood insurance. The program borrowed $18 billion to pay claims from the Katrina hurricane, and had just $3 billion in borrowing power left prior to the Sandy super storm, which could require $6 to $12 billion in payouts.

Flood insurance premiums will increase an average of 20% in January on second homes and businesses. Houses built before there was a NFIP have rates that are half those of new construction. The discounted policies will be gradually eliminated through annual 25% premium increases.

Read more in this New York Times article.

1307 S Harmon Lane

You've got it made in the shade on your private patio.

The lodge pole ramada with corrogated metal roof and big old mesquite tree create your serenity space.

Lots of trees in the common area near the community pool complete your desert oasis.

Just outside Starr Pass Resort, and only 10 minutes from downtown.
Close to hiking and mountain biking in Tucson Mountain Park.

Check out the interactive floor plan here. A bedroom wall was removed to make a family room with French doors, a fireplace and dining area open to the kitchen. The original living room is still in the front of the house. Potential third bedroom?

Perfect for first time buyers, investors, or your vacation hideaway.

Homeowner's association fee is $132 per month and covers common area, building exterior and front yard maintenance, roof, termite control, water, and trash collection. Sold for $100,000 March 15, 2013.

October Residential Sales Statistics

The Tucson Association of Realtors has released the Residential Sales Statistics for October. Average sale price decreased 3.4% from September to October, but is still 16% higher than a year ago. 1,074 properties were sold in October, a 9.37% increase from a year ago. As the holidays approach, I expect we will see the usual decline in sales activity until the market gets lively again in January.

Let Housing Lead the Recovery

With election day tomorrow finally putting an end to all the campaign drama, it is important to remember that the winner of the Presidential election can either help or hurt our economic recovery with their policies regarding the housing industry. Unfortunately, neither candidate has address this extremely important issue.

Our government has the power to let the housing market lead the economic recovery. Even if neither party wants to spend money to help the housing market, they could be very effective if they eliminated policies that hurt the housing market.

 Dave Liniger, Co-Founder and Chairman, RE/MAX, LLC, put it beautifully in this open letter to Obama and Romney.

Cat on a Elastomeric Roof

Our little orange tabby, Sunbeam, loves to go outside, especially when she can help her body guard, Steve, do yard work. When she doesn't want to go out, it's a cinch that there's bobcat in the yard. Sure enough, Steve went out and nearly stepped on this sleeping bobcat. The bobcat's reaction was much closer to the annoyed range of the scale than frightened. He slowly ambled away, jumped on the five-foot wall, and glared over his shoulder at Steve. He jumped down behind the wall, but soon re-appeared on the roof of the carport and resumed his cat nap. Even when I pulled a chair out into the yard to stand on it and take photos from 20 feet away, he continued his snooze. This all happened at our house near Ft Lowell and Campbell.

Cactus Ed Lives!

Below you'll find a link to a rare video of the Thoreau of the American Southwest, Edward Abbey. This doesn't have much to do with Tucson, except that Ed lived and died in the Tucson Mountains, as I hope I will.

Here's the back ground, written by Ned Judge, the co-producer of an eight minute film essay about Ed's curmudgeonly perspective on the "improvements" to Arches National Park, the subject of Ed's book Desert Solitaire.

Essay by Edward Abbey "I Loved it...I Loved it All"

by Ned Judge Plus

An eight minute film essay that I co-produced and directed with Ed Abbey in 1985. At the time I was working for a network magazine show. The executive producer took me to lunch one day. He told me that he was having trouble with his son who was 18. The son thought his dad was a corporate whore. He had told his father if he had any balls at all he’d put Ed Abbey on his show. That’s why the EP was talking to me. Would I see if it was possible? I had an acquaintance who knew Ed and he passed the request along. Ed responded that he’d give it a try. He signed the contract and wrote a script. We met in Moab and went out to Arches National Park to shoot some practice sessions with a home video camera. We would review them at the motel in the evening. After a day or two, Ed was feeling pretty comfortable on camera so we scheduled the shoot. We were all happy with the way it went. But then we ran head-on into network reality. Roger Mudd, the show’s host, was extremely negative about putting an “eco-terrorist” on the show. The executive producer caved (his son was right about him apparently). So this Abbey essay was put on the shelf and never aired. Abbey died 3 years later in March 1989.

And here's an endearing video of my hero, Cactus Ed. Steve got to meet him at readings. As a member of Earth First! he was even invited to Ed's memorial service. Unfortunately, I arrived home in Tucson in 1990, a year too late to meet this wonderful philosopher, anarchist and defender of wilderness.

September Residential Sale Statistics

The Tucson Association of Realtors has released the Residential Sales Statistics for September. Average sale price was $182,041, up 1% from a month ago and up 21% after bottoming out exactly a year ago.

The report says days-on-market dropped from 65 in August to 45 in September. Next month we'll see if that is an aberration. There sure have been a lot of bidding wars lately, so it seems possible.

The 938 closed sales indicated a 20% decline in units sold in one month. Again, that looks like a fluke. However, we do typically see a less dramatic decline in sales from September through December. Sale activity has historically accelerated after the holidays.

Short sales and foreclosures are still 41% of the sales.

In September 2011, 38% of the sales were cash. Cash buyers are frequently investors. Last month, 30% of the sales were cash. This is probably because the prices of houses are going up, and the opportunities to fix and flip for profit are getting scarce.