[Note: To follow is an excerpt of an interview with several leaders of the 43,000-member Arizona Association of REALTORS and students of its prestigious Leadership Academy. To listen to the show archive or download an MP3, go to www.IncomePropertyInvestmentTalk.com/042209.]

Mosca: Where is the economy today, and what do you expect in 2009 and beyond? Can you talk to us about what is happening right now in the Phoenix and Scottsdale area?

Foree: [Sandy Foree, CRS, GRI, and broker with Second-Home Arizona] It is busy, busy, busy. I have probably personally written about 19 contracts in the last 30 days. There's a multiple offer property situation taking place again. The pricing of the homes are reasonable. In the Surprise area, for example, on the west side of Phoenix, homes that are maybe five years old priced at $105,000 are getting offers higher than the asking price. They are FHA purchases and are fabulous deals.

Mosca: What impact, if any, is this $8,000 tax credit having on the market?

Foree: Huge impact. Many parents are helping their children pay for a home knowing that they'll get their $8,000 refund.

Mosca: While buying a home basically the best long-term investment, and a place where you're going to live, what about opportnuties that exist through Arizona for strictly investing purposes. Are you seeing a lot of investors – domestic and international -- coming through your doors?

Essa: I have had some Europeans, quite a few Canadian investors and some coming from south of the border. The bulk are from the United States and a lot of those are cash buyers.

Mosca: Sandy, what is your golden nugget for today?

Foree: I would buy now. I think we are on the way up with the prices and multiple offers climbing. It's time to sign your name on the bottom of a contract.

Mosca: Our next guests are Frank Dickens, immediate past president of the 43,000 member Arizona Association of Realtors and broker with RE/MAX Achievers in Phoenix, and Holly Eslinger, 2009 president elect and incoming 2010 president of AAR, and broker with Exclusive Homes in Scottsdale. What are your expereinces right now with the Phoenix/Scottsdale market? Dickens: Typically, real estate agents that handle REO accounts for the various lenders have seen a real surge in activity within the past 30 days. It's a mix of investors and owner occupants. It looks as though people are taking advantage of the FHA financing and the tax credits that are available but we are also seeing a number of investors that have looked at the price reductions in homes and are moving forward and investing. We are going to see a real flurry of activity. That's a very positive sign in the Arizona market.

Eslinger: We are seeing a reduction in the inventory right now because lenders are trying to do workouts with former borrowers. The amount of inventory is a little bit less than it was in months past and there is a greater demand right now than there is a supply, which means that we are in a recovery instead of a decline which is a positive thing for our whole market. This is a phenomenal time because of the rates and because there still is inventory.

Mosca: Frank, what is happening with commercial in and around your marketplace?

Dickens: I primarily handle land, commercial and industrial properties throughout Arizona and I am seeing a lot of interest. There are a lot of folks motivated in vacant properties and are bolstering their inventory for potential development in the future. Overall, within two to three years we are going to see a number of new subdivisions and a lot of new growth and those folks will start to increase their portfolios. Plus, smaller commercial properties have garnered a lot of interest in the market. In the mid to late '80s we wondered why developers were building shopping centers and they were vacant. Developers back then knew that it was cheaper to build and go ahead and have some vacancies knowing that they would lease out in the future. We are going to see that same phenomenon.

Eslinger: I don't do a lot of commercial anymore but I did do a fair amount of commercial leasing in the past. We are seeing lease space available right now especially in the Scottsdale market, and with economy changing around with the opportunity for businesses now to be able to acquire financing and that part of the commercial market becoming more fluid, we should see a lot of the commercial leasing start to change and people moving back into these markets.

Mosca: [Holly Maybury, 2009 Treasurer and broker with Coldwell Banker in Sedona joins the conversation] Can you tell us what is happening in Sedona submarket, is it similar to the Phoenix/Scottsdale market?

Maybury: Great things are happening in Sedona. The weather has warmed up, buyers have thawed out and are starting to buy. Sedona is predominantly a second and third home market. Prices in Sedona proper have dropped so substantially that now it is possible to find a three bedroom, two bath 2000 ft.² for $250,000 to $450,000, which is extremely reasonable for Sedona. Acreage has also adjusted downward.

Mosca: Living in New Jersey affords me everything I could possibly want in particular the four seasons. That is one of the things I like about Sedona. Is that something that makes Sedona an attractive second or third home area?

Maybury: Absolutely the climate and then the proximity to do just about anything you would like to do. We are only about an hour and a half north of Phoenix so if you're going down to the Metropolitan area, whether it is to catch a ball game or do some major shopping, Sedona gives you that small-town feel but allows you to get out into nature which so many people enjoy. Whether it is hiking in the red rocks, skiing up in Flagstaff, great restaurants, lots of arts and entertainment, it's kind of that year round, small town that offers so many things for so many different people from retirees to people with young families.

Mosca: A major value that the REALTOR Association accomplishes that the listener, the real estate consumer might not be aware of is the fact that you guys volunteer your time to maintain a marketplace for those consumers, for our listeners to buy, own, and transfer real estate. Real estate, like I said in the beginning, purchased well is the single best investment one can make. Frank, as the past president of the Arizona Association of Realtors, what do you see as the benefit and what do you hope the Association does for those real estate consumers as you continue to be involved in the Association?

Dickens: One significant impact we made on the market this year is passing a constitutional amendment in Arizona to stop transfer taxes in real estate. Throughout the country, we've noticed states that have transfer taxes and they negatively affect the real estate market. We knew that the state was going to be short on budgeting so we worked hard with our members, our leadership and our elected official friends, who all came together, and stopped the idea in its tracks.

Mosca: Holly E., kudos to you and again that's just one of many things I want consumers and listeners to know about the REALTOR Association. As 2009 President-elect you are going to be in a position of leadership now for the next two to three years. Do you have a goal, a vision or a value that you want to articulate to our audience right now?

Eslinger: My passion has always been education and the Arizona Association is a vehicle for wonderful education, so that is my focus. We've developed many programs that allow our members, at minimal cost, to get quality education and stay current on issues that affect the marketplace and us.

Mosca: Holly M. as treasurer and as someone who I am presuming is looking to take on the leadership position here on the state level, what are you going to be looking to do as an individual and pass on to the association and its membership?

Maybury: It is important for us to continue to raise the bar, to make sure that our members are the best prepared that they can be when interacting with their clients and helping the consumer in the largest transaction and the biggest purchase that they may ever make in their life. Protecting that at its kernel is what we are all about whether it is educating our members on the latest trends or practices in our industry or protecting private property rights. We're here to do what is right for the property owners of Arizona.

Mosca: What is your golden nugget for today?

Maybury: When it comes to Arizona, now is a great place to buy. Arizona is primed and ready and the doors are open for business. With the interest rates, with the prices, with the prospects of equity over the next couple of years that you can enjoy, now is it. If you are waiting for that right time in the market and your timing, welcome. Come on down and buy.

Mosca: Frank, what is if your golden nugget?

Dickens: I would like to quote a gentleman who I went to a seminar about 30 years ago, named Cavet Robert and he was known among a lot of real estate practitioners back then and his mantra was consistently, “Don't wait to buy real estate, but buy real estate and wait.” Real estate has always been a good investment. Even in the downturn we see that folks have a roof over their head, they have investment property and those investment properties are going to continue to increase in value and overall the real estate market in Arizona is incredible.

Mosca: Welcome back. Our next guest on the program from the Arizona Association of Realtors Leadership Academy is Mary Frances Cullman. Mary is a broker with Western Traditions Realty but as is the case with numerous brokers and agents across the country, they wear many hats and one of the other hats that Mary wears is as vice president of Default Services for Fidelity National Title. I would think that we couldn't do a program about Arizona if we don't address the foreclosure situation. What have you seen, where are we today and what do you think is going to happen in the future?

Cullman: There are a couple of good news, bad news things as far as the market itself and related to foreclosures. We've seen a lot of improvement in the past eight weeks in the market. The FHA programs available and the $8,000 credit is garnering a lot of interest and buyers are starting to understand that this is an opportunity market. This is a great chance to start buying property and amassing a portfolio. The bad news is there are more delinquencies being filed. We've got a lot of properties owned by banks that have been foreclosed on or are about to be foreclosed on that aren't even for sale yet. People don't know what to do yet. We are trying to get people to understand that it is not a speculative nature right now. This is the time to buy.

Mosca: Can you give us a golden nugget from an investor perspective?

Cullman: A lot of investors have enough cash right now that they can purchase properties for cash and then charge whatever they want for rent but the most important statistic I think for investors is that out of the 65 and older age group, a lot of those people are selling their properties right now but less than half of those 25 to 35 buyer age groups right now are buying those properties. So, it's a great time for investors. The 25 to 35-year-old purchaser or homebuyer is more hesitant. They want to rent. Find the areas where those people live. Look at the actuarial tables in those neighborhoods. Find out where that hustle and bustle is and purchase a property there.

Mosca: Our next guest is going to be Joanne George, associate broker with Royalty Real Estate Services in the East Valley. Are you seeing an influx of people and or businesses coming into that area?

George: Yes, we are seeing a lot of growth. Builders who moved away are coming back because people are coming into the Chandler, Mesa, and Gilbert areas. You will get a newer home for less money as long as you are willing to make a drive. We, too, are seeing multiple bids, some as high as 30 offers on a property, and bidding that reaches over list price. Absolutely, the market is there.

Mosca: What would be your golden nugget?

George: Do it now. It's a great time to buy. If you are looking to move up, do it.

Mosca: Our last guest today is Samantha Takash, professional development assistant here at the Arizona Association of REALTORS. Sam, please talk to us about your experiences looking for homes in the Northeast Phoenix, and Cape Creek submarkets here in Arizona.

Takish: We've been looking for homes for approximately a month and there have been several that we have put offers on, a couple short sales and a couple foreclosures. One in particular we found on the MLS on Monday, looked at it that night, put in an offer and by Wednesday the home had been taken off the market because they had had so many offers. We actually offered significantly over the asking price and we were outbid. We are still looking for a single family stand-alone home with three and four bedrooms, two to two and a half baths and about 2400 to 2600 sq. ft. Our price range is under $250,000. I'm confident we will be successful.

Mosca: Sam we really appreciate coming on with us. I know that you were not primed to do this with us today on Income Property Investment Talk. Your experiences codify what our guests have been saying that Arizona seems to be a great market to get into right now.

Published: May 21, 2009

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Peter L. Mosca is president and founder of BAK Communications, Inc. He has over 22 years of communications and media consulting experience, serving a variety of nonprofit organizations, including the CCIM Institute and the REALTOR Association on all three levels – national, state and local. He is the Spokesperson Trainer for the CCIM's Jay Levine Academy and trains hundreds of residential REALTORS nationwide to be effective industry spokespeople. He is consistently ranked as "excellent" by about 90% of those who attend his presentations. While his principal consulting focuses are public speaking and media relations development and content delivery and management, Peter is also the host of the Voice America Network's weekly radio program, "Income Property Investment Talk," a one-hour program that brings the powerhouses of commercial and residential real estate to property investors every Wednesday at 11 a.m. EST. Peter is married 17 years to his wife Barbara. They have two children: Ashley, 15 and Kelli, 12. Hence, the name BAK Communications, Inc.