You’ve heard me ramble on about how great it is to live in Central Phoenix. It’s the truth! CenPho is the place to live and offers residents so much that other cities just don’t offer.

But, check this out. Here’s another reason you should consider moving in to CenPho if you are not already here: a long commute may increase your chances of divorce by 40%. Really.

One recent study in particular conducted by the Umea University in Sweden showed that there was a large increase in the risk of divorce with an increased commute.

OK. I’m being a little facetious. But there is probably some truth here. The two hours you are NOT travelling to and from work you could spend with your main squeeze at the Phoenix Art Museum, or one of the upteen thousand new restaurants downtown.

One thing the study does not mention is the importance of the aesthetic on our lives. Even though Phoenix has torn town waaay too much of its architectural heritage, what’s left still gives people something that the burbs can’t –a sense of space and identity.

A sense of history really brings out the artistic side of people with architecture and individuality when it comes to homes and businesses.

The various cultures and demographics of everyone living in CenPho make it so unique and lively that there is something for everyone. I’m constantly reminded of Richard Florida’s book The Rise of the Creative Class.  Its kinda old news now. Remember when he came to Phoenix in about 2003 to speak and we filled up the Orpheum? Much of what he said has held true, despite the economic downtown

1) If you build an organic (versus top-down) community, the creative class will come.

2) Areas with dense urban centers and creative outlets survive economic downturn better than other areas.

This is true of Phoenix. We saw it ten years ago and we see it today.

I’m just sayin’.

I’ve had first time home buyer clients who are frustrated by how much distressed property there is in the market. They can’t afford a renovated home, but they can’t afford to fix up the property on their own.

Well, there is an answer.

The U.S. Department of Housing and Urban Development (HUD) offers homebuyers the opportunity to secure a loan known as a 203(k) loan. This loan is administered through the Federal Housing Administration (FHA) and gives homebuyers the necessary funds to rehabilitate a home.

Many times, a bank will be hesitant and may reject lending money when the home is not habitable. This is where the 203(k) loan comes into play and can help homebuyers obtain the necessary funds to not only buy the home but to purchase the necessary upgrades to make it habitable.

This loan is an incredible opportunity and is coming into play more now than ever since the housing market took a dive. With many people facing foreclosure, they stripped their house of everything that wasn’t, or was, bolted down leaving the house a complete disaster. This loan gives homebuyers the chance to come in and fix up the house.

This does two things: 1) increases the value of the home and surrounding area and 2) boosts the economy of the community by having another family living and buying in the area.

My friend Jeannie Bolger, of Nova Home Loans is well versed in helping you get these “fixer-upper” loans. Jeannie has been trained to help guide clients through the entire process.

But as with any mortgage, there are some criteria both the homebuyer and the home must meet:

1)      The homebuyer must meet FHA financing guidelines which means a FICO score of 640 or more and a debt to income ratio of 31/43 (see FHA for more info)

2)      The home must be the primary residence

3)      For the home to qualify, it must be existing for more than one year

4)      The work must be completed by a Licensed General Contractor – sorry do-it-yourselfers

5)      Work starts after you close on the home and must be completed within 6 months

There are also two types of 203(k)s that homeowners can choose from depending on the extent of the work required:

1)      Streamline 203(k) – this includes uncomplicated repairs and improvements to home up to $35,000 and no more than 2 subcontractors needed for entire project

2)      Standard 203K – this is for major repairs and improvements along with structural improvements to property exceeding $35,000 – up to 6 months PITI (principle, interest, taxes and insurance) can be included in mortgage if property cannot be occupied during construction. A Licensed General Contractor is needed if layered work is involved

These 203(k) loans are a great way to get our housing market back up and running. With a wide selection of homes in the Central Phoenix area, there is something for everyone.

And don’t forget, the Realtor, Lender, HUD Consultant and Contractor will hold your hand throughout the WHOLE process.

If you would like more information on the 203(k) loan, or just on homes in CenPho, give me a call today at 602-456-9388.

If I have to hear another person predict a massive “shadow inventory” I’m going to turn green, and you wouldn’t like me when I turn green.

Well, not really green, more like red with some veins popping out on my forehead and my head spinning around.

So what am I talking about? Well, I’m a news junkie and when I hear every pundit on TV prattle on about  a shadow inventory, like its the forthcoming of the “four horsemen of the house-pocolypse,”  Where is the data to back it up? If they were looking at the same data as I am, then they wouldn’t be saying this nonsense.

I mean, come on, just do some quick research and see for yourself. The Cromford Index is the best guide out there and comes directly from the MLS as well as the county court and recorder’s documents. I would say those are just a teensy bit credible, I mean after all, they take the information directly from sales, right?

Yeah, that’s what I thought.

So what exactly is a shadow inventory? At its core, shadow inventory refers to properties, which are on their way to foreclosure or are already foreclosed that have not yet been sold or put on the market (for whatever reason, we don’t know).

Well, here is why there will be no shadow inventory in the Phoenix area:

1)      A house will not be part of any inventory of foreclosed homes until it has been given a foreclosure notice (see “Pending Foreclosures” on the graphs below). Even if it is a short sale, it probably has a foreclosure notice pending, so it is likely part of the big purple area below. A foreclosure notice is when the bank sends you a note to say, “Dearest customer. We noticed you stopped paying your mortgage. While we love you very much, we will throw your sorry butt out on the street by such and such date unless you pay up. Signed, Your Favorite Bank.”

(Click on graphs to enlarge)

That’s it. That is all there is. You could try to argue that more homes are going to go in to foreclosure because the economy is going to go in to a double-dip recession, but it is waaaay too early to predict that. Further, the foreclosures are going down because the market is clearing of those properties that were purchased at the peak of the market. There are just fewer of them now.

So, please. Tell your friends. Tell your family. Tell your neighbors and strangers whom you don’t even know.

Let’s put this shadow inventory myth to bed for good…

If you are buying a house, this means the inventory is dropping and prices are going to go up. So, don’t delay. If you are looking to sell a house, times are getting better for you. Either way, call me at 602-456-9388.

Did you notice how some major stores are starting to close up shop in urban settings which in turn is affecting the surrounding areas?

I’m talking about major stores such as Target, Best Buy, even Safeway – these stores are considered “anchor stores” because they “anchor” and are supposed to bring stability to the local area. That Target at 7th Ave and Camelback has been closed for a couple years now.

So, what happens when one of those stores closes its doors?

I started thinking about this over the weekend after hearing an interview on National Public Radio about the subject and they used the book store Borders as an example since they are closing up stores after filing for bankruptcy.

You may be thinking the same thing I was at first that with these anchor stores leaving, the surrounding neighborhoods and community would be greatly affected in a negative way. Well, in many cases that may be, but for cities and developers who get on the ball, these closures can lead to positive developments.

If approached with the right mindset by city leaders, smaller stores and boutiques can come in and flourish, filling the void and revitalizing the area. This is what makes the Central Phoenix area so amazing! There may not necessarily be major anchor stores in the area, but it’s the artistic boutiques and small shops that fill in the holes like grains of sand between large rocks that make the area a solid and thriving community!

Most of you probably remember when, Richard Florida (of the famed book Rise of the Creative Class) came to town in about 2003. The interview on NPR with a Brookings Institute researcher really just backs up the same arguments.  Although major anchor stores leave and are replaced, as long as there is a culture that brings people together, you will have a community.

Further, a few failed stores in a whole line of smaller stores has less of a devastating impact that the loss of an anchor store.

This is what makes Central Phoenix such a dynamic micro-economy and why I love working and selling homes in the area. There is so much life and vitality that is often missing in other areas. There has been so much work done over the past decades to revive the area that just makes it the place to live!

I’ve love to hear what you think about this.

The Phoenix Business Journal recently praised Phoenix for boasting “one of the nation’s top clean economies” in the nation. It seems they would be better off praising Warren Buffet for getting a part time job at McDonalds.

What I mean is why is Phoenix only ranked 20^th? This beautiful city is ranked behind other cities such as New York, Chicago, Washington, and Philadelphia. And the last I checked we are one of the sunniest cities in the nation.

Want to know something even more pitiful? Phoenix added only 4,000 jobs between 2003 and 2009, ranking it 34^th in the nation.

34^TH!?!

I realize I shouldn’t be so negative since Phoenix does boast almost 23,000 jobs in the clean job sector.  Any job is a good job, right?

But I still can’t get over the fact that this is a far cry from what it should be given our prime location for clean renewable energy. In fact, the Phoenix area has the potential to power the entire state with solar energy. Not only that, but clean renewable energy brings high-paying jobs and can help stabilize our local economy and the Phoenix real estate market! This is a no-brainer and we need to take advantage of our amazing location.

Granted there have been large energy companies taking root in the Phoenix area, First Solar Inc. and Suntech Power Holdings, but it seems to be the economy that is holding other companies back.

I have a friend at a large employee placement firm who is telling me that they are placing many new employees in Arizona as renewable energy jobs are created. But, he says, we could be moving so much faster if we can just get over the economic hurdle.

“When the capital markets get going, you’re going to see the market really take off,” said Steve Zylstra, president and CEO of the Arizona Technology Council.

Until then, write your legislator and tell them we want solar jobs today!

If you build it (out), they will come.

There were two really interesting historical perspective articles this week from the Arizona Republic. One article is about how our spread outward was driven by a constant “boosterism” by all who came here. The other article is about what early city leaders hoped for our city.

There was always a tension between building up and building out. It seems that building out won, for now.

The desire to live miles from the city in suburban living can take a toll on residents, I mean come on, there is only so much drive-time radio you can stand during your daily 2 hours in traffic to get to your job.

Instead, residents and home buyers are rediscovering the city and want to move to where historic meets modern (that’s central Phoenix for those who haven’t caught on).

With so many historic homes in the central Phoenix area at such great prices, buyers are scooping up amazing deals in incredible neighborhoods that are full of life and history. In other words, Phoenicians are looking for new life in an old home.

Data indicates that the CenPho zip codes have dropped less in home value and are returning to normal more quickly than other parts of the valley.

Since the population of the Valley of the Sun has increased at a mind-boggling pace (24% since 2000), the only way to keep up was with tract housing that had less character, and we all know how important character is in a home.

But what central Phoenix is experiencing is exciting – new restaurants and nightlife hot spots are popping up. Residents are taking notice and it is only a matter of time before central Phoenix becomes the place to be!

Ever heard of John Henry Peirce, or just John Peirce?

Ever been in the FQ Story historic neighborhood and noticed the patinad copper chimney caps or window dressings that appear on houses now and again?

These are works designed specifically for the homes in this neighborhood, inspired by Spanish artist Antoni Gaudí.

The artist, you’ve probably never heard of. But he represents one of the many reasons that I love CenPho: whether you love Gaudi-influenced art, or not. You won’t find this anywhere else in Phoenix, maybe all of Arizona.

The window frame under the gable is a Peirce.

I don’t particularly go out of my way for Gaudi works. Although I’m a fan of Brian Froud‘s work with Jim Henson, whom I think borrows a little from Gaudí.

Regardless of my taste, these pieces are an incredibly unique contribution to downtown Phoenix. We have John Peirce and his son Clifton Peirce to thank for it.

Clifton was actually the one formally schooled in the arts. But after returning from Spain in the 1980s and retelling of his visit to Gaudí’s master works, his father was hooked. Together they returned to Barcelona 5 times over the next decade. According to Clifton, “My father had every book there ever was on Gaudí.

Peirce, the senior became an artist at the age of 56 and kept it up until his death in 2011.

Casa Batlló

But together, they tried to bring a little Gaudí home with them. They went in to the business of making tiles that fit together in to elaborate Gaudí-esque ceilings. Gaudí put these ceilings together, like this one at the Casa Batlló, using woven straw and plaster.

The Peirce version, as seen in the photo below, is done with more modern materials, but is basically the same principle.

You can probably guess that these were a product that appealed to a very, very niche market. So, the business sputtered.

Calming ceiling waves in the living room.

What came next was what you can see now on the houses of neighbors, and especially on the Peirce residence.

See below for a whole stream of pictures from my visit to the home today. I was saddened to learn that the family is having an estate sale tomorrow, Saturday and Sunday from 6am to 2pm at 914 West Willetta. The future of the home is unknown, but I certainly hope that we can find a way to preserve this little treasure, which I am guessing few would appreciate until long after the owners are gone.

John Peirce left us a message through his art; a little whisper that you can hear only in FQ Story, if you stop to listen. He and Clifton respected what was unique about this historic neighborhood and added to it in a subtle and unique way.

For that, I thank Mr. Peirce and Mr. Peirce.

I can only hope that 60 years from now historic property buffs will say that FQ Story is known for its John Henry Peirce influence.

The underside of the artists outdoor work space.

More of the outdoor work space.

Mr. Peirce made a special urn for his wife, who passed years ago.

A piece between the Peirce home and the neighbor’s house.

Tea lights or tree lights?

Who DOESN’T want a dragon on the front of their house!

I know what you are thinking: “What do the Australians think of the influence of money on the American political system?”

Okay, maybe you were not thinking that. But the folks at the Victorian Labor Party were asking the question when they asked me to write a multi-part series on the topic. Here is part one.  My article is on page 14, but you might find this magazine an interesting glimpse into campaigns and elections in this lovely paradise of a country.

I’m a particular fan of their list of important political movies to see, called “Showbiz for Ugly People.”

You do know that politics is supposed to be showbiz for ugly people, right? It explains so much.