2009 BEST CITIES
No. 9 Flagstaff, Arizona
By Jessica L. Anderson, Associate Editor
From Kiplinger's Personal Finance magazine, July 2009
OLD WEST, NEW JOBS

Population: 126,087
Income Growth: 9.8%
Cost of Living Index: 116
Median Household Income: $48,171
Percentage of Workforce in Creative Class: 29%

Unlike the trains that regularly come through town, singing out reminders of Flagstaff's heritage, this city is far from predictable. You can feel its Old West charm through and through, but Flagstaff is infused with new energy -- both from its residents and college students at Northern Arizona University. The university adds jobs to the city's economy, plus arts and entertainment to its cultural scene.

The government is big business in Flagstaff, which is the Coconino County seat. The second-biggest industry is tourism, a result of the city's proximity to the Grand Canyon and Indian ruins at Wupatki and Walnut Canyon.

Because the city is nestled at the base of the San Francisco Peaks, the last thing you'd expect to find is a manufacturing sector. But Nestlé Purina and SCA Tissue have facilities here, and Southwest Windpower calls Flagstaff home.

URL address: http://www.kiplinger.com/magazine/archives/2009/07/2009-best-city-flagstaff.html

It's Time To Buy!

The 2009 First Time Homebuyers Credit has created an opportunity you may never see again. Use this program to make the most of your first home purchase, and start enjoying the benefits of owning a home now ...

$8,000 Homebuyer Tax Credit Program:

• First time homebuyers may be eligible for up to $8,000 in tax credit when they purchase a home. The credit is based on 10% of the home's value up to a maximum credit of $8,000.
• Buyers that have not owned a primary residence for three years are considered a first time homebuyer.
• The home must be purchased between January 1 and December 1 of 2009. Those purchasing before or after these dates are not eligible.
• To qualify, adjusted Gross Income of $75,000 for an individual and $150,000 for a married couple are the markers for a full refund. If you make more, a reduced refund may apply.
• Buyers must live in the home for at least 3 years, or they will be obligated to pay back the credit.

By GAIL COLLINS
Special to the Daily Sun
Sunday, July 13, 2008



Common Goal Realty took their name to heart with team-building for health. They revolutionized the office refrigerator with lean meats, sugar snap peas, fruit and protein drinks.

Their energy levels soared and carried over to their personal lives. Lenders don't bring sausage biscuits to meetings anymore because the staff recoils.

"The Pawlickis teach 'clean' eating," said Joe Haughey. "We eat five meals a day. It speeds up our metabolism, and we don't get hungry."

Valerie Caro, co-founder with father Joe, confirmed this. "I've eaten more than ever before in my life and lost weight."

Sarah Pawlicki of Build Your Own Body Gym works with local employers to get a handle on good health to reap radical results. She evaluates businesses to establish needs particular to their workplace.

Does a job require small, repetitive movements? Or are injuries from heavy lifting a concern? Could your team of desk jockeys be at risk due to poor ergonomics? And is absenteeism on the rise?

Other consultants assess companies, but simply hand employers a report and walk away. Pawlicki, a certified Sports Nutrition Counselor and Life Style Fitness Coach, implements the fix. She organizes classes in diet and tobacco cessation, for example, or designs and teaches a workout program to address specific problems.

"Americans should be the healthiest people in the world when you look at how much money is spent, but not enough attention is given to preventative care," said Pawlicki.

She utilizes mind, body and soul and explained, "We're not solely focused on your weight or lifting weights in our gym. The attention is on emotional and physical well-being."

HEALTH COSTS SOAR
Recent talk has centered on rising food and fuel prices, but health insurance premiums have ratcheted up 10 times faster. And while these health costs hiked 30 percent from 2001-2005, salaries grew only 3 percent. The average policy for family coverage now totals $12,106. This makes it tough for employers to offer health care benefits and maintain a healthy bottom line, too.

In a 2007 survey, Kaiser and the Health Research and Education Trust noted a growing awareness in preventative care for controlling these escalating costs.

But how do care and costs affect one another? The obesity epidemic, for example, if left unchecked, seeds a host of other diseases like hypertension, heart disease and Type II Diabetes. These compromise work performance while conversely upping the price tag to treat this medical tornado.

At Armstrong McCall, a beauty supplier, heavy lifting is the issue. Pawlicki designed eating and workout plans that resulted in weight loss and muscle gain to prevent strain injuries. Their workers and workplace got leaner with her passionate support.

Stress is a huge factor in many settings. When employees are under pressure, they might cope with destructive behaviors like smoking, drinking and drugs.

"People run on such high levels of stress that the cortisol never drops, and their bodies run on overtime. All the time!" Pawlicki said. "We teach them how to recognize stress -- mental and physical -- and bring those levels down."

NUTRITION IS KEY
Nutrition is the key to health. Every client is counseled on diet regardless of size or condition to promote immune health and well-balanced eating.

"People know they need to eat right, but they have no clue to how to make it work in their lives," said Pawlicki. "We show them."

Since their assessment, Ciao Bella Salon owners Risha Campbell and Desirea Gutierrez coordinate meals for work. "I'll bring the chicken and she'll bring the salad and rice," said Campbell. "We prepare good food ahead of time, so we don't grab things that are bad for us."

74% of the population doesn't engage in regular physical activity, so coaches create both individualized programs and group activities to get people moving. Clients perform their routines at Build Your Own Body gym or other fitness centers or at home. "It's essential to find something that you enjoy and stay active," Pawlicki said.

Documented in over 120 studies, promoting health for employee well-being increases productivity and lowers costs for a positive return. The results for Common Goal Realty: fewer sick days, high efficiency, focus and discipline for the long haul.

"The investment is small for the large personal return," confirmed Realtor Stephani Allen. "And we're modeling good behavior for our family."

The agency fosters friendly competition aided by watchdog accountability. Their Inspiration Board -- a goal-setting technique -- is plastered with articles, mottos, and of course, dreams like a trip to Mexico to show off their new bodies.



URL Web Address:
http://www.azdailysun.com/articles/2008/07/13/news/business/20080713_busin_177339.txt

Tuesday, July 8, 2008

Elden Lookout Trail
For a challenging hike with a fantastic rewarding view of Flagstaff, you can take the 6 mile round trip hike up to the top of Mount Elden via the Elden Lookout Trail. This hike is fairly difficult and will take about 4 to 5 hours.To get here, take Route 66 east out of Flagstaff toward the mall. Continue past the mall where Route 66 becomes Highway 89. Just past the mall and the McDonalds and Safeway that are on the right, you will see signs to the trailhead on the lefft. Park here and set off on the hike. Make sure you look at the map of the hike posted at the trailhead before you head up, because there are a few trails in this area that cross each other and you don't want to get lost. The trail starts as the Fatman's Loop, an easier and very pleasant loop in this area for those not eager to reach the top of the mountain. Halfway around the loop, the Elden Lookout Trail splits from the Fatman's Loop, and starts to zig-zag up the mountain. The trail is steep but the switchbacks make it managable. Be prepared for hot and exposed weather at the top. A fire burned much of the top of Mount Elden in the late 70's, and the remnants of old dead trees are still very visible. Plan for a few minutes at the top to hang out, enjoy the view from 9295 feet, and maybe have a quick snack. Make sure you avoid the top when there are large, dark grey clouds nearby. Being the on the highest point around with large metal towers around you is not a good idea when lightning strikes. Be Safe and Enjoy!

Thanks to Cosmic Ray for the directions and description.

Weatherford Trail - San Francisco Peaks
This hike travels up the side of the San Francisco Peaks and can be as hard or easy as you want to make it. To get to the very top of the peaks (12,633 feet, the highest point in AZ) is about 20 miles and will take all day (10+ hours) but it's an up-and-back hike, so you can turn around at any point, once you'vec had enough. It is a steep but rewarding climb, as the views get more and more spectacular as you climb up the side of these mountains.To get here, take Highway 180 north out of Flagstaff. Turn right on Schultz Pass Road, and continue 5 miles up this road to the trailhead and parking lot, which are at Schultz tank. Park on the right and head off on the hike just across the road. The trail quickly begins to climb, and in a mile and a half you'll reach the Aspen Spring. You can choose to make this hike a short one by turing around here, or continue hiking on the trail to the right. After this point, the trail really starts to climb the mountains. Remember to be safe and reasonable about deciding when to turn around. It's easy to convince yourself to just go a little farther, but every step up the mountain is another step down and you do NOT want to get caught up here after the sun has gone down. So be safe and enjoy this terrific hike!Thanks to Cosmic Ray for the description and directions.


Veit Springs Loop
This is an easy hike on the side of the San Francisco Peaks. It's a two mile round trip and will take about an hour. It will take you past old cabins, springs, and pictographs left by the ancient people who lived here.To get here, take Highway 180 north out of Flagstaff toward the Grand Canyon. Turn right on Snow Bowl Road, and continue up for four and a half miles until you see the trailhead on the right as the road curves to the left. Just park here in front of the trail head and start hiking. You will head into the forest and soon come across a wide trail that goes both ways. Turn right, and then just follow the trail. When it splits, take a left on the small foot trail, then left again at the next split. This will bring you to the cabins, and you can continue past them to the springs and pictographs. On your way back, you can go the other way at the splits to see a nice view on the return trip.Props to Cosmic Ray for this route and description

Don't break out the champagne glasses quite yet, but there are more economic signs this week that the worst is over for the three year real estate correction cycle.

One of the country's most prestigious groups of market forecasters, the National Association of Business Economists, says housing and consumer credit conditions will stabilize and begin improving as the year moves on. Equally important, said Ellen Hughes-Cromwick, chief economist at Ford Motor and president of the association: The entire U.S. economy will "slowly return to health" this year.

The housing market offered some immediate hints of that recovery with new home starts up by 8.2 percent last month and building permits up by 5 percent. Even in hard-hit southern California, home sales in April were up 22 percent compared to March, according to DataQuick Information Systems.

The mortgage sector continued to cooperate: Rates fell again for the third straight week. Thirty year fixed rate conventional mortgages averaged 5.8 percent, down from 5.8 percent the week before, according to the Mortgage Bankers Association of America. Fifteen year rates also dropped, averaging 5.5 percent.

Any time we're quoting mortgage rates in the fives, that's GOT to be positive news for home buyers with reasonably good credit.

Why the continuing decline in rates? One reason is that inflation is not a major worry for capital markets investors at the moment -- even if gas and food prices are over the top for most of us. The latest Consumer Price Index report -- that's the federal government's measure of inflation -- came in at just zero point two percent (0.2%) for April, which is very low. Year over year, inflation is still only around 2.3 percent.

Despite these positive signs, the fact is that consumers are still worried about the overall direction of the U.S. economy. The University of Michigan's bellwether Consumer Sentiment Index registered a 3.1 percent decline last month, continuing a steady downward trend.
That's not helpful for home sales for sure -- and that negative mindset will certainly keep some buyers on the sidelines in the months ahead.

Which is a shame if you look at conditions in most markets objectively. Most of the current numbers add up to an excellent buying opportunity.

Prices are more affordable they've been in several years. There's a bumper crop of houses to choose from. And mortgage money is cheap and getting cheaper.

Maybe the message is just taking a little time to get out there.

Borrowed by our friends at http://realtytimes.com/rtpages/20080522_realestateoutlook.htm

By Gerri Willis
WHETHER YOU’RE A BUYER OR SELLER, you need a competitive edge to get ahead in real estate today. Here are some solid strategies to help you get the most out of the market.

IF YOU WANT TO BUY
Be an attractive risk. Your credit score determines the interest rate a bank will give you on a mortgage. The difference between decent and terrific credit can ass tens of thousands dollars over the life of the loan. To improve your rating, pay down your credit card bills. Lenders want to see that your debt doesn’t exceed 30% of your available credit. But don’t close an account once you’ve paid it off- doing so will actually hurt your score.

Buy only what you can afford. Most banks now require a down payment of 20%, but if you’re an attractive borrower, 10% may suffice. Still, the less you put down, the more you’ll pay in fees and interest. Spend no more than a third of your total pre-tax income on housing costs: mortgage, maintenance and property tax. Figure maintenance to be about 1% of the value of your house each year.

Chose your loan carefully. Many homeowners are in trouble because they took out adjustable mortgages with low interest rates that later spiked. A 30 year, fixed-rate mortgage is your best bet- adjustable mortgages don’t offer the rate breaks they did during the boom. Use the internet to do your research. You’ll find articles, statistics and general resources that will help you determine which banks offer the best rates in your area and around the country.

Lowball’em. Bidding wars over a house are uncommon in today’s climate. Sellers anticipate having to drop their asking price. Bid low and see if the seller will come down.

IF YOU WANT TO SELL
Think twice before you sell. This is a bad time to expect big returns. If you don’t have to sell now, don’t. Make inexpensive improvements and wait until market factors are more in your favor.

Find the best broker. A year ago, you could have asked agents to cut their commissions because houses sold themselves. Now you’re better off paying the full 6% to ensure you’ll get the best service. Local agents are the best. They know the selling points of your community-and your house- and can be present to show it to buyers at a moment’s notice. If they worked in the business before the boom, they’ll do more than just weigh the best offers.

Make sure the price is right. A good agent will know what numbers get the best response from consumers. Studies show that buyers react to break points, or psychological limits. For example, a buyer with a budget of $250,000 may be willing to pay $249,000 but not $251,000. If your home is valued at $310,000, consider listing it at $300,000 or even $299,000 to maximize its sales potential.

Know which way the wind it blowing. Pricing in a free falling market is dicey. Brad Inman, publisher of a real estate trade publication, recently helped his parents sell their condo in Las Vegas. Pricing it at a market value of $185,000 to $195,000, he says, would have been a disaster. “We had to anticipate how much prices would fall in the time it would take to closes [30 to 60 days].” So they listed the condo at $179,000 and accepted an offer of $175,000 while owners cut prices by 10,000 to 20,000. “You want to avoid time on the market to stay ahead of the falling knife,” says Inman.

By Claes Bell • Bankrate.com

Are you a first-time homebuyer eager to get into the market? Here are steps to take to help you decide whether you're ready to take the plunge.

1. Check the selling prices of comparable homes in your area. Web sites like Zillow and Homegain can give you a general idea of what you should expect to pay. You can also do a quick search of actual MLS listings in your area on a number of Web sites, including the National Association of Realtors.

2. Use Bankrate's mortgage calculator to get an idea of what your monthly mortgage payments would be if you bought today.

3. Find out what your total monthly housing cost would be, including taxes and homeowners insurance. In some areas, what you'll pay for your taxes and insurance escrow can almost double your mortgage payment. According to the Insurance Information Institute, the average yearly premium can range from $477 a year in Utah to $1,372 a year for unlucky Texans.
To get an idea of what you'll pay in insurance, pick a property in the area where you want to live and make a call to a local insurance agent for an estimate. You won't be obligated to get the insurance, but you'll have a good idea of what you'll pay if you do buy. For an idea of what you'll pay in taxes, Zillow publishes property-tax information for homes all over the country. Just remember that exemptions and the intricacies of local tax law (like Florida's Save Our Homes value cap) can create differences between what a homeowner is currently paying and what you can expect to pay as a new homeowner.

4. Find out how much you'll likely pay in closing costs. The upfront cost of settling on your home shouldn't be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items like homeowners insurance or homeowners' association fees. You can see what closing costs average in your state by looking at Bankrate.com's annual closing cost survey.

5. Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28 percent of their income on housing costs. Go much past 30 percent and you risk becoming house poor.

6. Talk to a reputable Realtor in your area about the real estate climate. Do they believe prices will continue falling or do they think your area has hit bottom or will rise soon?

7. Remember to look at the big picture. While a buying a house is a great way to build wealth, maintaining your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there's no landlord to turn to, and these costs and can quickly drain your bank account.

So consider whether you're ready for the expense and effort of homeownership before pulling the trigger.

By Claes Bell • Bankrate.com


During the run-up in real estate prices over the last decade, many millennials were either in college or in entry-level jobs, watching helplessly as they were priced out of the market while aging boomers gleefully cashed in their newfound equity and used excess money for real estate speculation, driving prices even higher.

But now, as the real estate bubble deflates, is this a good time for frustrated millennials to finally buy a home? The answer, unfortunately, may be no.

"But why not?" prospective homebuyers may ask, probably with gritted teeth. Well, you may have heard the words "credit crunch" circulating around the water cooler lately, and for good reason. In the aftermath of the subprime mortgage mess, mortgage brokers and banks have sworn to tighten lending standards. Gone are the days when a 5 percent -- or less -- down payment was commonplace and banks glossed over problems in employment history, credit history or proof of income. Now, new homebuyers are likely to need at least 10 percent down and can expect lenders to scrutinize every aspect of their financial pictures.

"First-time homebuyers would be better off renting and accumulating a larger down payment rather than jumping into a soft housing market," says Dr. Anthony B. Sanders, professor of finance and real estate at Arizona State University.

What this means for first-time homebuyers is a steeper price of admission in the form of a higher down payment, and likely some difficulty getting financing at all for those with sketchy credit or high debt-to-income ratios, which includes the many millennials who come out of college with stratospheric credit card bills and tattered credit histories.

You can buy, but should you?But even if you can afford to buy a home under these conditions -- and with many distressed homeowners and builders desperate to sell, chances are you can -- the real question is, should you?

Again, the answers here will probably be frustrating for homebuying hopefuls. While falling prices may seem like a blessing for young homebuyers, they also create an element of risk. According to the National Association of Realtors, or NAR, the median existing-home price fell 3.3 percent nationally in 2007, and as much as 10 percent to 12 percent in troubled markets like Florida and California. A probable wave of foreclosures resulting from rate resets on adjustable-rate mortgages signed in 2005 and 2006 threatens to drop prices even further in 2008.

Don't get upside down in first homeWith no one quite sure when real estate prices will stop sliding, young homebuyers who can put down only between 5 percent and 10 percent of the price of their homes may see what little equity they have eroded by their homes' falling values. This can leave them "upside down," or owing more on their mortgages than their homes are worth.

"Certainly, there is a chance that the housing market has hit the bottom, but this is not a bet that first-time buyers should be taking," Sanders says.

by Blanche Evans
If gas prices are any indicator of what's going to happen to housing, then home builders should listen to what new car buyers are planning to do.

The latest Kelley Blue Book Marketing Research study says that high gas prices are affecting new-car shoppers to the point that they're changing their spending habits. Nearly half said that they would buy a new fuel-efficient vehicle if gas prices increase much further.

Since October, new-car buyers are eating out less often (53 percent), joining more carpools (15 percent), shopping less for non-essentials (65 percent), and media entertainment (48 percent.)
But interestingly, only 10 percent say they are delaying the purchase of the biggest ticket item -- a new home.

That should be good news for home builders, which has just reported continuing slow sales. The Census Bureau says that March sales were down 8.5 percent from February and 36 percent below the same period in 2007. That's 62 percent below the peak month for sales set in July 2007.

Good news for homebuyers -- inventories rose to an 11-month supply, the most in 27 years, mostly due to competition from foreclosures and existing home sellers pricing their homes more attractively. But prices for new homes are getting more attractive too, having fallen 13.3 percent year-over-year to $227,600. That's the biggest discount in 38 years.

This followed equally sour news from the National Association of Realtors that home sales in March dipped two percent, down over 19 percent from March 2007. Inventories rose one percent and are now at a nearly 10-month supply.

Both the National Association of Home Builders and the National Association of Realtors blamed the credit crisis for discouraging home buyers.

But this too shall pass.

Since the Kelly Blue Book study, oil prices hit $120 a barrel, rice is being rationed at Costco, and food prices are out of control, but Wall Street pundits who anticipate the markets are starting to call for a bottom in housing and in stocks. On Marketwatch yesterday, no less than three articles featured headlines or quotes suggesting that the panic over the credit crunch is over. Housing isn't as nimble as stocks, so it could take a few months.

barrowed by our friends at http://realtytimes.com/rtpages/20080425_realtyviewpoint.htm