Arizona Luxury Lifestyle

SEPTEMBER | OCTOBER 2015

Specializing in Scottsdale and Paradise Valley

T

racy Fitzgerald is extremely well known and recognized in the Scottsdale and Paradise Valley marketplaces. Ranked as one of the top 10% Realtors in Arizona, success has been a constant partner.

Passionate about what she does and having the reputation of being one of the hardest working professionals in the business, Tracy is known as an intense ‘marketing guru’ who goes above and beyond to aggressively market her properties.

An unparalleled combination of experience, enthusiasm, integrity and commitment has catapulted her into the ratified realm of the industry’s top producers – and that is where she intends to stay.

“Helping my clients achieve their dreams gives me great satisfaction and happiness because I know that I am helping to make a difference in their world and mine.”

ARIZONA LUXURY

A Second Wind for Metro Phoenix After a bumpy 2014, this February saw the Metro Phoenix real estate recovery get a second wind, making significant progress in the first half of 2015. The market surge is being driven by ordinary owner-occupiers, while investors and second home buyers take the back seat. There has also been some increase in upward price momentum.

As of July 2015 the annual numbers were as follows (compared with July 2014): • The annual average price per sq. ft. rose by 5% from $125.38 to $131.02 • The annual average sales price increased 5% from $244,827 to $257,175 • The annual median sales price gained 7% from $187,000 to $200,000 These are tame compared with the 2012 and 2013 increases in home prices, but are far in excess of inflation which stayed between -0.2% and 2.0% throughout the last year.

Many families who lost their homes through foreclosure in 2008 are becoming eligible for conventional loans in 2015. A push from FHA to increase the affordability of mortgages to those with good but not great credit is stimulating an increase in demand for FHA loans in 2015 over 2014. Unemployment is declining and job growth improving although this is tempered by relatively slow growth in average earnings.

These trends are gradually shifting demand away from renting and towards home ownership. The Millennial generation is also expected to increase its rate of home buying.

Must-See TV

It’s Showtime!

The Greater Phoenix housing market is healthier now than at any time since 2005 with a clear advantage for sellers over buyers in most areas. The highest demand areas tend to be closer to employment opportunities and retail centers while demand is always weaker in outlying areas. However the recovery wave has now spread fully to the outlying rural areas and there are no longer any pockets with an unhealthy excess inventory. The remainder of 2015 is likely to see upward price movement well in excess of inflation and higher than we saw during 2014. This second wind of recovery should sail us nicely into a stronger 2016.

TRACY FITZGERALD 480.560.7000

tracy.fitzgerald@russlyon.com

By Michael Orr | Director of Real Estate Studies at ASU & Principal of The Cromford Report

Your referrals are the heart and soul of my business.

The highest compliment that I can receive is a referral to one of your friends, relatives or business associates.

Your trust and confidence is greatly appreciated.

TracyFitzgerald.com Call Tracy at 480.560.7000 for the most effective marketing for your Arizona Luxury property.

All information is deemed reliable but not guaranteed.

If your home is currently listed, this is not a solicitation for that listing.

Produced by Desert Lifestyle Publishing • 480.460.0996 • www.DesertLifestyle.net

Invest Wisely

Property Management

Autumn Harvest

Huckleberry Cheesecake

Market Report Presented by Tracy Fitzgerald

In Good Taste Roaring Fork RoaringFork.com | 480.947.0795

Huckleberry Cheesecake INGREDIENTS

C hanging C hannels Autumn is just around the corner … September 23rd to be exact. As the days get shorter and we all get back to our busy fall routines, the television beckons with new fall lineups and the return of some of our favorite shows. Gone for most, however, are the days of gathering round the TV at 8 pm sharp to watch a season premiere of a favorite show. Nor do people usually watch shows simply because “that’s what’s on next.”

With DVRs, Netflix, Hulu, Vudu, and Amazon Prime all crowding the streaming-media marketplace, the way we watch TV—and what we watch—has vastly changed in recent years. (Binge watched an entire season of an old show recently? We sure have!)

Crust 4 c 16 oz 3 tbsp

graham cracker crumbs unsalted butter, melted sugar

Filling 5 lbs 5 c 4 c 8 8 oz 4 tbsp 1 ¼ c 1 tsp

cream cheese sour cream granulated sugar eggs egg yolks vanilla extract heavy cream huckleberry purée (per cake)

Although the new season lineups still generate excitement, even new shows can be watched on streaming video websites, such as Hulu, for $7.99 a month (often the day after they premiere on cable). Missed the last episode—or want to re-watch the last season—of The Good Wife or Modern Family? You can watch it online from the comfort of any room in the house thanks to streaming video. Want to watch recent episodes of Nashville or old classics of I Love Lucy or Seinfeld? Hulu has it, and you can find your favorite episode with the touch of a button.

PREPARATION Crust In a small bowl, combine graham crackers, butter and sugar. Press ¼ cup of mixture in each spring form pan.

Bake at 300 degrees for 8 minutes. Cool and reserve.

Filling In a mixer, beat sour cream, cream cheese and sugar for 30 seconds on low then, turn up to medium. In a separate container, combine vanilla, eggs, yolks, and heavy cream and whisk together. On medium speed, slowly add egg mixture to mixer. Continue adding the rest of the egg mixture. Once all of its incorporated, pour 6 oz. of mixture into a spring form pan. Drizzle huckleberry puree into cheesecake mixture and swirl it with a skewer.

Wrap outside of each pan with aluminum foil. Pour hot water into spring form pans until its filled half way up.

Place spring form pans into a preheated oven at 250 degrees. Bake for one hour, then crack the door open for one minute and turn off oven. Close oven and let stand in oven for one more hour. Cool and refrigerate.

YIELD: 2 cheesecakes

Looking for unique programs like House of Cards or Orange is the New Black? Netflix will deliver with its own unique and award-winning content that can’t be found anywhere else (also for $7.99 for unlimited streaming). And Amazon Prime Instant Video offers a plethora of old movies, kids’ content, and even other network’s series (including HBO), such as The Newsroom and Downton Abbey, all with their Amazon Prime membership, which for $99 also gives subscribers free two-day shipping.

So we may wonder, are the days of aimless channel surfing gone? Viewers are now in control of what they watch, when they watch it, and for how long they watch a series. After all, back-toback binge watching episode after episode was never before an option, unless you purchased a DVD. The outlook for consumers? The TV times they are a-changing, and that’s all good news for viewers.

We have more control, more options, more say in our viewing habits. The only negative? With all the content out there to watch, the more time we may spend sitting and, well, watching. Time to turn that sofa into an exercise machine!

Should You Hire a Property Manager?

One of the first questions when buying rental property is whether to hire a professional property manager or manage the new rental yourself. Property managers will charge a fee, on average, of between 4% and 10% of the monthly gross income for the property. They also typically charge tenant placement fees which vary from a few hundred dollars to as much as one month’s rent.

Here are three scenarios to consider when making this decision.

Renting the Property When it is Vacant

Taking too long to fill a vacancy can quickly eat into your investment income.

Surprisingly, renting the property when it is vacant is typically the most time-consuming and difficult part of the process.

A rule of thumb is that you will probably have to show the property five to eight times and accept applications from several parties before you find your tenant. You will need to understand state and federal housing laws, pull credit reports and prepare lease documents – all things that might be better left to a professional.

When the tenant leaves, you will have to resolve the security deposit, understand what repairs are needed to the property and then start the leasing process all over again.

Managing the Property Once it is Occupied If your property is in good condition, this part of the process is the easiest. Experts suggest that regardless of the property’s condition, you will have to deal with 3 to 5 issues per year ranging from a neighbor’s dog barking to an emergency plumbing issue in the middle of the night.

Dealing with Serious Issues When They Arise You need to consider that major issues can occur. If your tenant stops paying rent, or there’s a major flood, or fire, you will have to deal with it. Those issues require a lot of work and time, especially if the property is far away from your primary residence.

SEPTEMBER | OCTOBER 2015 Downtown Phoenix Urban Ale Trail Downtown Phoenix | September 19 DTPHX.org This self-guided tour connects beer lovers to the vast assortment of greater Downtown restaurants and watering holes, known for their amazing craft beers on tap. Participating establishments will provide beer samples between $2-$3, as well as tasty snacks to pair with the selection of ales.

Summer Ends Music Festival Tempe Beach Park | September 24 – 27 SummerEndsMusicFestival.info | 480.829.0607 The Summer Ends Music Festival is a four-day event that is along the waterfront at Tempe Beach Park. Come enjoy O.A.R, Foster the People, Taking Back Sunday, Hozier, Brand New, J.Cole, Jimmy Eat World, Brandon Flowers, Capital Cities and many more!

5th Annual Bentley Scottsdale Polo Championships WestWorld of Scottsdale | October 24 ThePoloParty.com | 480.423.1414 The Arizona Republic has called the event “polo for the masses.” This year’s lineup features Polo Azteca vs. Club Cabo, the San Diego Polo Club vs. Arizona’s own Polo Club, and the reigning champions, the Clogau Wales Polo Team vs. Aspen Valley Polo Club.

Attendees will also enjoy a sneak preview of the 2016 Scottsdale Arabian Horse Show and see some serious horsepower with a preview of the world-famous BarrettJackson 2016 Collector Car Auction along with local car clubs lining the field.

Ballet Arizona’s Coppélia Ballet Arizona | October 29 – November 1 BalletAZ.org | 602.381.1096 A comic ballet for the whole family to enjoy. It tells the story of an eccentric toymaker, life-size dancing dolls, and a young couple in love. Love triumphs over all in this beloved ballet, but only after a case of mistaken identity and hilarious mayhem.

While property managers are not free, the investment may well be worth it. Is the stress of dealing with evictions, complaints and maintenance issues more than you want to take on?

Property managers are skilled in handling landlord-tenant conflict and they have an understanding of landlord-tenant law.

Event Calendar

Haunted Halloween Express

REAL ESTATE

corner

Good property managers are skilled at finding and screening tenants quickly, and will have a network of reliable, cost effective repairmen to handle emergencies.

Careful consideration for the scenarios above should help you put the decision into perspective.

Verde Canyon Railroad | October 31 VerdeCanyonRR.com | 800.320.0718 Verde Canyon Railroad has invited many of Jerome’s ghosts and goblins to socialize with passengers on the annual Haunted Halloween Express where there are no grown-ups, just kids of assorted sizes. The journey into the autumn-splashed canyon features a costume contest, spine tingling tales and plenty of treats without tricks.

In Good Taste Roaring Fork RoaringFork.com | 480.947.0795

Huckleberry Cheesecake INGREDIENTS

C hanging C hannels Autumn is just around the corner … September 23rd to be exact. As the days get shorter and we all get back to our busy fall routines, the television beckons with new fall lineups and the return of some of our favorite shows. Gone for most, however, are the days of gathering round the TV at 8 pm sharp to watch a season premiere of a favorite show. Nor do people usually watch shows simply because “that’s what’s on next.”

With DVRs, Netflix, Hulu, Vudu, and Amazon Prime all crowding the streaming-media marketplace, the way we watch TV—and what we watch—has vastly changed in recent years. (Binge watched an entire season of an old show recently? We sure have!)

Crust 4 c 16 oz 3 tbsp

graham cracker crumbs unsalted butter, melted sugar

Filling 5 lbs 5 c 4 c 8 8 oz 4 tbsp 1 ¼ c 1 tsp

cream cheese sour cream granulated sugar eggs egg yolks vanilla extract heavy cream huckleberry purée (per cake)

Although the new season lineups still generate excitement, even new shows can be watched on streaming video websites, such as Hulu, for $7.99 a month (often the day after they premiere on cable). Missed the last episode—or want to re-watch the last season—of The Good Wife or Modern Family? You can watch it online from the comfort of any room in the house thanks to streaming video. Want to watch recent episodes of Nashville or old classics of I Love Lucy or Seinfeld? Hulu has it, and you can find your favorite episode with the touch of a button.

PREPARATION Crust In a small bowl, combine graham crackers, butter and sugar. Press ¼ cup of mixture in each spring form pan.

Bake at 300 degrees for 8 minutes. Cool and reserve.

Filling In a mixer, beat sour cream, cream cheese and sugar for 30 seconds on low then, turn up to medium. In a separate container, combine vanilla, eggs, yolks, and heavy cream and whisk together. On medium speed, slowly add egg mixture to mixer. Continue adding the rest of the egg mixture. Once all of its incorporated, pour 6 oz. of mixture into a spring form pan. Drizzle huckleberry puree into cheesecake mixture and swirl it with a skewer.

Wrap outside of each pan with aluminum foil. Pour hot water into spring form pans until its filled half way up.

Place spring form pans into a preheated oven at 250 degrees. Bake for one hour, then crack the door open for one minute and turn off oven. Close oven and let stand in oven for one more hour. Cool and refrigerate.

YIELD: 2 cheesecakes

Looking for unique programs like House of Cards or Orange is the New Black? Netflix will deliver with its own unique and award-winning content that can’t be found anywhere else (also for $7.99 for unlimited streaming). And Amazon Prime Instant Video offers a plethora of old movies, kids’ content, and even other network’s series (including HBO), such as The Newsroom and Downton Abbey, all with their Amazon Prime membership, which for $99 also gives subscribers free two-day shipping.

So we may wonder, are the days of aimless channel surfing gone? Viewers are now in control of what they watch, when they watch it, and for how long they watch a series. After all, back-toback binge watching episode after episode was never before an option, unless you purchased a DVD. The outlook for consumers? The TV times they are a-changing, and that’s all good news for viewers.

We have more control, more options, more say in our viewing habits. The only negative? With all the content out there to watch, the more time we may spend sitting and, well, watching. Time to turn that sofa into an exercise machine!

Should You Hire a Property Manager?

One of the first questions when buying rental property is whether to hire a professional property manager or manage the new rental yourself. Property managers will charge a fee, on average, of between 4% and 10% of the monthly gross income for the property. They also typically charge tenant placement fees which vary from a few hundred dollars to as much as one month’s rent.

Here are three scenarios to consider when making this decision.

Renting the Property When it is Vacant

Taking too long to fill a vacancy can quickly eat into your investment income.

Surprisingly, renting the property when it is vacant is typically the most time-consuming and difficult part of the process.

A rule of thumb is that you will probably have to show the property five to eight times and accept applications from several parties before you find your tenant. You will need to understand state and federal housing laws, pull credit reports and prepare lease documents – all things that might be better left to a professional.

When the tenant leaves, you will have to resolve the security deposit, understand what repairs are needed to the property and then start the leasing process all over again.

Managing the Property Once it is Occupied If your property is in good condition, this part of the process is the easiest. Experts suggest that regardless of the property’s condition, you will have to deal with 3 to 5 issues per year ranging from a neighbor’s dog barking to an emergency plumbing issue in the middle of the night.

Dealing with Serious Issues When They Arise You need to consider that major issues can occur. If your tenant stops paying rent, or there’s a major flood, or fire, you will have to deal with it. Those issues require a lot of work and time, especially if the property is far away from your primary residence.

SEPTEMBER | OCTOBER 2015 Downtown Phoenix Urban Ale Trail Downtown Phoenix | September 19 DTPHX.org This self-guided tour connects beer lovers to the vast assortment of greater Downtown restaurants and watering holes, known for their amazing craft beers on tap. Participating establishments will provide beer samples between $2-$3, as well as tasty snacks to pair with the selection of ales.

Summer Ends Music Festival Tempe Beach Park | September 24 – 27 SummerEndsMusicFestival.info | 480.829.0607 The Summer Ends Music Festival is a four-day event that is along the waterfront at Tempe Beach Park. Come enjoy O.A.R, Foster the People, Taking Back Sunday, Hozier, Brand New, J.Cole, Jimmy Eat World, Brandon Flowers, Capital Cities and many more!

5th Annual Bentley Scottsdale Polo Championships WestWorld of Scottsdale | October 24 ThePoloParty.com | 480.423.1414 The Arizona Republic has called the event “polo for the masses.” This year’s lineup features Polo Azteca vs. Club Cabo, the San Diego Polo Club vs. Arizona’s own Polo Club, and the reigning champions, the Clogau Wales Polo Team vs. Aspen Valley Polo Club.

Attendees will also enjoy a sneak preview of the 2016 Scottsdale Arabian Horse Show and see some serious horsepower with a preview of the world-famous BarrettJackson 2016 Collector Car Auction along with local car clubs lining the field.

Ballet Arizona’s Coppélia Ballet Arizona | October 29 – November 1 BalletAZ.org | 602.381.1096 A comic ballet for the whole family to enjoy. It tells the story of an eccentric toymaker, life-size dancing dolls, and a young couple in love. Love triumphs over all in this beloved ballet, but only after a case of mistaken identity and hilarious mayhem.

While property managers are not free, the investment may well be worth it. Is the stress of dealing with evictions, complaints and maintenance issues more than you want to take on?

Property managers are skilled in handling landlord-tenant conflict and they have an understanding of landlord-tenant law.

Event Calendar

Haunted Halloween Express

REAL ESTATE

corner

Good property managers are skilled at finding and screening tenants quickly, and will have a network of reliable, cost effective repairmen to handle emergencies.

Careful consideration for the scenarios above should help you put the decision into perspective.

Verde Canyon Railroad | October 31 VerdeCanyonRR.com | 800.320.0718 Verde Canyon Railroad has invited many of Jerome’s ghosts and goblins to socialize with passengers on the annual Haunted Halloween Express where there are no grown-ups, just kids of assorted sizes. The journey into the autumn-splashed canyon features a costume contest, spine tingling tales and plenty of treats without tricks.

SEPTEMBER | OCTOBER 2015

Specializing in Scottsdale and Paradise Valley

T

racy Fitzgerald is extremely well known and recognized in the Scottsdale and Paradise Valley marketplaces. Ranked as one of the top 10% Realtors in Arizona, success has been a constant partner.

Passionate about what she does and having the reputation of being one of the hardest working professionals in the business, Tracy is known as an intense ‘marketing guru’ who goes above and beyond to aggressively market her properties.

An unparalleled combination of experience, enthusiasm, integrity and commitment has catapulted her into the ratified realm of the industry’s top producers – and that is where she intends to stay.

“Helping my clients achieve their dreams gives me great satisfaction and happiness because I know that I am helping to make a difference in their world and mine.”

ARIZONA LUXURY

A Second Wind for Metro Phoenix After a bumpy 2014, this February saw the Metro Phoenix real estate recovery get a second wind, making significant progress in the first half of 2015. The market surge is being driven by ordinary owner-occupiers, while investors and second home buyers take the back seat. There has also been some increase in upward price momentum.

As of July 2015 the annual numbers were as follows (compared with July 2014): • The annual average price per sq. ft. rose by 5% from $125.38 to $131.02 • The annual average sales price increased 5% from $244,827 to $257,175 • The annual median sales price gained 7% from $187,000 to $200,000 These are tame compared with the 2012 and 2013 increases in home prices, but are far in excess of inflation which stayed between -0.2% and 2.0% throughout the last year.

Many families who lost their homes through foreclosure in 2008 are becoming eligible for conventional loans in 2015. A push from FHA to increase the affordability of mortgages to those with good but not great credit is stimulating an increase in demand for FHA loans in 2015 over 2014. Unemployment is declining and job growth improving although this is tempered by relatively slow growth in average earnings.

These trends are gradually shifting demand away from renting and towards home ownership. The Millennial generation is also expected to increase its rate of home buying.

Must-See TV

It’s Showtime!

The Greater Phoenix housing market is healthier now than at any time since 2005 with a clear advantage for sellers over buyers in most areas. The highest demand areas tend to be closer to employment opportunities and retail centers while demand is always weaker in outlying areas. However the recovery wave has now spread fully to the outlying rural areas and there are no longer any pockets with an unhealthy excess inventory. The remainder of 2015 is likely to see upward price movement well in excess of inflation and higher than we saw during 2014. This second wind of recovery should sail us nicely into a stronger 2016.

TRACY FITZGERALD 480.560.7000

tracy.fitzgerald@russlyon.com

By Michael Orr | Director of Real Estate Studies at ASU & Principal of The Cromford Report

Your referrals are the heart and soul of my business.

The highest compliment that I can receive is a referral to one of your friends, relatives or business associates.

Your trust and confidence is greatly appreciated.

TracyFitzgerald.com Call Tracy at 480.560.7000 for the most effective marketing for your Arizona Luxury property.

All information is deemed reliable but not guaranteed.

If your home is currently listed, this is not a solicitation for that listing.

Produced by Desert Lifestyle Publishing • 480.460.0996 • www.DesertLifestyle.net

Invest Wisely

Property Management

Autumn Harvest

Huckleberry Cheesecake

Market Report Presented by Tracy Fitzgerald