SMARTMONEY.COM: Thursday, Apr. 10, 2008 | WEBLINK
7 recession-proof places to retire: Tuscon, Arizona

A warm, sunny climate and rich cultural heritage have long kept Tucson at the top of retirees' list of winter vacation destinations. However, with a cost of living that's 3% below the national average, a strong job market and steady home prices, there's plenty to enjoy about this city all year.
"Tucson is a dynamic, growing retirement spot, so there are plenty of job opportunities, although the pay is often low," Bland says.

Though it's not quite a college town, Tucson relies heavily on the University of Arizona as its second-largest employer. Technology and tourism (mostly from snowbirds) also provide plenty of jobs.

Steady expansion and new developments have kept housing relatively affordable, with costs at about 20% below the national average. The average sale price for existing homes dropped just 0.01% in 2007, to $244,800. Expect real-state prices to remain solid, thanks to increasing interest in the area as a retirement destination.

The most popular areas are planned communities (retirement-specific and otherwise) northwest of the city, including Oro Valley and other towns in the foothills of the Santa Catalina Mountains.

This article was reported and written by Kelli B. Grant for SmartMoney.com.

TUCSON CITIZEN: Saturday, Feb. 16, 2008
Tucson Citizen reported on Feb 16th that MetroStudy, a Houston based Market research firm, predicted that the Tucson Housing market would hit bottom in the next few months. This was part of an article in which MetroStudy was highlighting the strength of the Sahuarita submarket in 2007.

ARIZONA DAILY STAR: Sunday, Feb. 10, 2008 | WEBLINK
Tucson should be OK if the economy tanks
Four key industries here won't be hurt significantly by recession...

Two-thirds of Tucson's housing goes to retirees, a relatively stable market, and Tucson did not get caught in the speculative frenzy to the same degree as Florida and Las Vegas. Tucson's new retirees alone need about 7,000 new units a year, but the region will build only about 4,000 units in 2008. As a result, the inventory of unsold homes will soon disappear...

Tucson real estate executives and a national industry analyst said Wednesday that they expect the local market will start to improve either this year or in 2009.

"I think we've stabilized," said Judy Lowe, executive vice president of Realty Executives Southern Arizona, at the Tucson Association of Realtors annual forecast Wednesday. "Our inventory is shrinking. The phones are ringing more. The pent-up demand is there."

Lowe was part of a panel discussion at the event, held at the Sheraton Tucson Hotel & Suites. Lawrence Yun, chief economist for the National Association of Realtors, also spoke in a separate presentation.

Although Yun and the local industry panel provided some thoughts on the coming year, most of the event was not focused on the future. Rather, speakers spent considerable time criticizing media coverage of the slowdown and urging attendees to keep up their spirits.

Yun said media-fueled consumer anxiety has caused the real estate market to be slower than it should be given the job market, household wealth, relatively low mortgage rates and falling home prices.

U.S. homes sales fell by about 2 million from 2005 to 2007, Yun said. Meanwhile, the economy has added 4 million jobs, $700 billion in total wages and $8 trillion in household wealth since 2005, he said.

"This is the battle we're fighting, the consumer confidence battle," Yun said. "(The information) is implying that clearly there is excessive pessimism in the marketplace."

Yun said he expects Tucson to rebound from the slump with help from retiring baby boomers and the region's growing reputation as a recreation destination.

"Ten years from now, people will say, '2007, 2008, there was a great opportunity to enter the market then,'" Yun said.

What's in store for '08
The Tucson Association of Realtors 2008 forecast included a panel discussion in which local real estate industry leaders passed along a half-filled glass of water — their "crystal ball," as it was described — and provided their projections for the market in 2008. Here is what they had to say:

"I see a stabilizing market in '08 and a recovery market in '09. I think we've hit the bottom, but we're going to be trawling along the bottom for a while."
Laura Mance Regional vice president of Coldwell Banker Residential Brokerage

"I think we will see some price increase in 2008 — very slightly."
Judy Lowe Executive vice president of Realty Executives Southern Arizona and president of the Tucson Association of Realtors Multiple Listing Service

"My feeling is, we're going to go sideways here for a while, and in the last half of '08, we're going to see a price tick-up."
Rosey Koberlein CEO of The Long Cos.

"There are going to be better agents out there to assist buyers. I think '08 is going to be great, and we're going to see an upturn by '08 to '09."
Kimberly Clifton Owner of Tierra Antigua Realty

By the numbers
6.5 million
Total homes sold in the U.S. in 2007, according to the National Association of Realtors.

11,427
Total homes sold through November in Tucson, according to the Tucson Association of Realtors Multiple Listing Service.

9 percent
Percent of U.S. homeowners with subprime loans, according to NAR.

TUCSON CITIZEN: Saturday, Jan. 5, 2008 | WEBLINK
Ron Yudd, a nationally known restaurant consultant who helps independent restaurateurs compete against chains, begrudgingly admits that The Cheesecake Factory and others have raised the bar on chain dining.

"If these types of upscale outfits come to your town, it speaks to the sophistication of an area," said Yudd, who is based in Washington, D.C. "When a Capital Grille (steakhouse) or a Morton's decides to go into a market, it is speaking loud and clear about what's going on in a city in terms of growth and business activity."