The Pepper Group
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Arizona Million Dollar Exclusive Homes For Sale
Tucson, Arizona Experiences Explosive Sales and Builder Growth in
Beautiful Multi-Million Dollars Fine Home Mansions
It wasn't too long ago, say less than ten years ago, when there was a map published in the local paper pointing out all "ten" houses worth a million dollars and more. In contrast, the U.S. Census Bureau published in 2004 that Pima County (Tucson, Arizona) had 1,500 homes worth one million dollars or more.
However, a million dollars won't buy you a mansion in Tucson anymore. It will get you a nice family home. In the past few years, the threshold for an exclusive dwelling has jumped from one million to two million dollars. In 2002, the most expensive home that year cost 2.2 million dollars. In 2005, the most expensive home sold so far was a 3.6 million dollar home.
The surge in high-end prices has happened rather quickly. The Census Bureau's 2004 American Community Survey found more than one million homes worth at least one million dollars in 2004, compared to 595,000 in 2002 and only 395,000 in 2000.
Demand for housing is still exceeding supply in many U.S. markets, said John M. Clapp, a professor of finance and real estate at the University of Connecticut. Low interest rates have made it easier for people to afford more of a house, as well as have some new financing methods, like interest-only adjustable mortgages, which initially allows buyers to lower their monthly payments.
The prices of homes may have increased, but the number of millionaire families in America has exploded to new heights. And the fun part of this, is Tucson is sharing in the wealth, so to speak; Tucsonans are finding themselves right in the middle of all the economic real estate growth. The official proof has come from British market research firm TNS Financial Services just releasing their yearly report on multi millionaire homes in America.
The number of American households with a net worth of one million dollars or more, excluding their principal residence, grew to a record nine million in 2005. Even more surprisingly, is the fact that more than one in seven of the households, are in just 13 of the nation's 3,200 counties.
Phoenix, Arizona's Maricopa County is ranked fourth in the United States, with Tucson, Arizona's Pima County rapidly rising along up the charts in America. This is where investors both personal and professional can "be at the right place at the right time." Tucson has a real estate market that has long been overlooked and misunderstood by outsiders, and wisely invested in by insiders -- we have a unique buffered real estate economy here, due to many factors -- specifically the number of relocations from colder climates and purchases of second homes. There are also many other interesting factors that we can discuss in detail with you.
The number of millionaire families in America was at 5.5 million by 2002. The ranks of millionaire households rose to 6.2 million in 2003 and 8.2 million in 2004. In most large counties, about one household in twelve, or about nine percent, was worth one million dollars or more. The households had an average net worth, excluding principal residence, of nearly 2.2 million dollars, of which more than 1.4 million dollars was in liquid, or investable, assets.
Despite a growing stock market, TNS reported that more than half of those surveyed said they had "become much more conservative in their investment approach over the past year." The survey found that 30 percent of the millionaire households in America did not own stocks or bonds, and 33 percent did not own mutual funds. One in four multi millionaire families in America had a second mortgage on a home.
Even in land-rich cities like Tucson, the demand for housing in mature neighborhoods has for a long time far exceeded supply. In a few exclusive communities, one million dollars won't buy you more than "an acre of land." In other parts of town, one million dollars is still enough to build a 4,000 square foot villa with a pool and a three-car garage.
Some people are surprised when they get to Tucson. Which is particularly noticed in the northerners who continue to arrive in droves. They don't realize how much the Tucson real estate market has appreciated in the last few years. Thus, real estate has become so hot that the boom has spread to neighborhoods formerly written off by many outside investors.
As you can see the housing market in Tucson has changed dramatically in recent years, real estate brokers say the Old Pueblo has been undervalued for a significant period of time compared to California. Investors and home owners have watched Tucson turn from a one-horse town to an investor's gold mine. Out-of-state investors sell a property for a couple million dollars in California and come out here to southern Arizona and buy themselves a million dollar fine home along with a few others homes they use as rental investments.
Along with the resale value of the out-of-state investor's old home -- low interest rates are also making additional financing affordable. All of these incentives are encouraging a lot of home buyers into the market -- and out of rental homes. With so much demand and so little supply -- home prices have made for wise sales investments, and will continue to be for a long time to come. "I bought my home four years ago almost to the day, and I could not afford to buy my house now," said Cathryn, a Tucson homeowner investor. "I think it's changing who can live in Tucson, particularly who can live in town in Tucson. It starts changing the face of our neighborhoods for sure."
Tucson is rich, with history as well. Continuously settled for more than 12,000 years, making it one of the oldest towns in the United States, Tucson prides itself on its diversity of cultures, architecture, and people. It is also the home of the "Optics Valley," a hotbed for the phototronics industry, due to the prominent optics-related companies located there. Tucson is home to Kitt Peak National Observatory, one of the premier astronomy centers of the world. Tucson is also home to the University of Arizona, which is not only a leading research institute, but also beloved for its cultural events and sports teams (Tucson residents love their Wildcats!).
Tucson also draws many tourists throughout the year, especially during the winter. In fact, tourism accounts for one of every ten jobs, and adds more than two billion dollars to the local economy every year. The Tucson area's most popular attractions are the Saguaro National Park, the Arizona-Sonora Desert Museum offering a living zoological park and geological museum, and the Tucson Botanical Gardens. The Old Tucson Studios is a family theme park and movie location. John Wayne and Harrison Ford are just a few of the stars who have filmed there. Other attractions include the Tucson Museum of Art and Historic Block, and Columbia University's Biosphere 2 Center.
So who is buying here...and why? Greater Tucson is attracting over 3,000 new residents each month...and for good reasons. The weather here is absolutely tremendous. We have only three or four months of really hot weather and that's a dry heat, local residents say with a chuckle. Even in the hot months, once the sun sets the evenings are delightful. The southern Arizona area has very few bugs, and of course combined with the winter months, you really couldn't ask for a better home anywhere in the world.
Another encouraging relocation factor is the relatively low cost of buying a new affordable home on a substantial lot. While the majority of the current real estate activity involves residents who are buying up or buying down, about 25 percent of the market is made up of people buying second homes. Most of these buyers are coming from California, Colorado, the Pacific Northwest, Chicago, and the Midwestern states. Californians anticipating retirement three or four years down the road are taking equity out of their California homes and not just buying a second home but an additional home as well, for investment purposes.
Tucson has always had a long time star-studded appreciation, most notably Linda Ronstadt as well as her past generations grew up in Tucson, with her family continuing to be a cornerstone of the community. Paul McCartney owned property in the area for quite some time, and Whoopi Goldberg is also rumored to be a property owner. As well as Sharon Stone, Gene Hackman, and a long celebrity red carpet list continue to called Tucson "home."
You will find comforting earth tones that match the desert scape combine with the vivid colors that represent the town's Hispanic/Mexican heritage. The most popular architecture is based on the work of early Tucson architect Josias Joesler, which is characterized by rambling one-story homes with archways and courtyards. It's free flowing and relaxed. It's common to have your home flow directly to the outside to exterior kitchens and dining areas. Landscaping is very natural and desert-like. Of course with the new influx of cosmopolitan relocating families, architects are presenting a large modernist selection of homes as well. So now you really can find any style of architecture you desire in the modern city of Tucson, and still feel the charm of the Old Pueblo.
Tucson is surrounded on three sides by mountain ranges, and some of the most luxurious Tucson homes are right against those mountains. The average size of a luxury home is just under 5,000 square feet. Tucson's most expensive property as of 2005 is the Campbell Cliffs at Cobblestone. Listed at eighteen million dollars.
It should also be noted the luxury markets near Tucson include Sonoita, Patagonia, and Tubac. Many times you can find a larger amount of acreage out in these areas, and still get a large luxury estate home, on say approximately 40 acres for about one million dollars. So as you can see, there are many choices for the luxury estate buyer. The Pepper Group Diversified Real Estate company is experienced on this close-knit community of selective fine homes sales. Contact us as soon as possible. We have a lot of fun showing people the possibilities.
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