Tag Archives: W.P. Carey School of Business

education.business

Educators say executives can increase workplace value

Despite signs of what most people view as a recovering economy, more than half of Arizona’s workforce stresses over job security.

A recent University of Phoenix survey revealed that 61 percent of working adults worry about losing their jobs in the current economic climate and 20 percent anguish over it at least once a week.

“In a challenging economic environment, workers should be doing more to position themselves as leaders in their organizations, but the survey finds that many are holding back at work, and this can have a negative effect on performance and productivity,” said Dr. Sam Sanders, college chair for University of Phoenix School of Business and a former human resources executive with more than 20 years of hiring and employee relations experience. “Those who understand the big picture and how their own skill sets help their companies achieve goals should have more confidence and can have an advantage in the workplace.”

To separate themselves from others and to create more job security, many executives are strengthening their skill sets through education.

“The trends in executive education is for shorter duration programs than those that preceded the recession, with emphases on acquiring skills that lead to promotions or career advancement and new market opportunities,” said Dr. Kevin McClean, interim dean, Ken Blanchard College of Business at Grand Canyon University. “Another key ingredient is the opportunity to network. These objectives are not really different from those that motivated people to pursue executive education in the past.”

Executive trends

Some of the shifts that educators are incorporating into graduate business programs include more emphasis on leading in turbulent times, developing organizational talent, innovation and creativity, and flexible, participative strategic planning.

“Executives are being asked to take on more responsibility and act more holistic in understanding the interdependencies of people and functions in organizations,” said Dr. Kirk Wessel, dean of Angell Snyder School of Business at Ottawa University. “This is being reflected in curricula.”

Educators are also being asked to help prepare executives and business students to deal with increasingly more complex business issues.

“For example, rather than teaching executives innovation or risk, we are talking about ‘risk-bound innovation,’” said Dennis Baltzley, Ph.D., senior vice president of executive education at Thunderbird School of Global Management. “Leaders want to know how to create an environment of innovation, while creating a ‘boundary’ of risk management. We must innovate, but more than ever, a bad decision can be fatal.”

Baltzley said Thunderbird is also seeing a dramatic interest in global global leadership.
Our customers want to know how to lead effectively across borders, cultures, different business models and philosophies,” Baltzley said. “Since 2008, growth has been slow in the U.S. and other mature markets. This led many businesses to leap into emerging markets with the promise of double digit growth whether they were ready or not, and most were not as ready as they would have liked.”

Paul Melendez, assistant dean of executive education at the Eller College of Management at the University of Arizona, said he is seeing four specific trends:
* Customization: Executive education is becoming much more tailored to specific organizations, with programs, content, and learning customized to the unique needs of the organization. While many business schools still offer one- or two-week open-enrollment programs, organizations are finding it more beneficial to develop a program that is tailored to their executives.
* Consulting: The natural extension of customized programs is a consulting model where education and problem-solving are combined into a program. “We have helped organizations develop their culture, strategically plan, and develop a wide variety of business improvement plans through programs that also provide education for leaders,” Melendez said.
* Strategic partnerships: Eller Executive Education has developed strategic partnerships with Miraval and Canyon Ranch to offer programs that join cutting-edge leadership and management principles and with world-class health and wellness programs which they have dubbed “integrative leadership.”
* Privatization: A year ago the university spun Eller Executive Education out of the UA to allow greater operating flexibility. “As a result, we are now providing many more custom program for private, governmental, and non-profit organizations,” Melendez  said. “We have seen a number of other state business schools also privatizing their executive education organizations.”

Increasing your stock

Michael Bevis, director of academic affairs at University of Phoenix, said more executives have started to approach their careers in the same way they approach business management by focusing on building their personal brands.

“When you think about a company brand, it isn’t just about what you are communicating, but how that brand addresses the needs of the intended audience,” Bevis said. “One of the things I work on with executives and other business students at University of Phoenix, is developing a personal business plan that starts with the personal mission statement. You wouldn’t run a business without a plan and the same should be true about your career. If you are not setting goals, measuring progress and making sure your knowledge stays current and relevant, your personal brand — like that of a company’s — can become stagnant.”

So what programs are out there for executives to utilize to strengthen their brand?

* University of Phoenix: Within the MBA programs, concentrations allow executives to grow specific skills. It is common for executives or business owners to have specific knowledge about an industry or certain aspects of business management, but skills or knowledge gaps in other areas. Concentrations can help professionals hone certain skills, such as people management, finance or marketing.

* Thunderbird School of Global Management: Thunderbird offers a range of options from its short programs — less than a week — to its more in-depth MBA offerings. “We have a Global MBA Online that allows you to learn global business from anywhere in the world and an Executive MBA that’s on-campus, but provides a schedule suited to the working professional. “ Baltzley  said. “We also offer online certificate programs which are designed specifically for working professionals looking to improve their marketability and gain a leading edge over their competition.

* W. P. Carey School of Business at Arizona State University: “Our executive-education programs, such as our leadership development workshops and our certificate programs in real estate, supply chain management, and service excellence, can give executives deeper skills and expose them to new ideas,” said Amy Hillman, dean of the W. P. Carey School of Business. “However, if they want to move into leadership roles beyond their current functional areas, then the MBA is the best option, though short non-degree courses that develop leadership skills are also helpful.”

* Eller College of Management: Eller Executive Education offers a variety of week-long programs and year-long programs for leaders of different types of organizations. “We are also launching a program in early 2014 that is specifically oriented toward CEOs of mid-sized to large companies,” Melendez said.

* DeVry University: Keller Graduate School of Management offers seven specialized master’s degree programs and 13 graduate certificate programs.

* Ken Blanchard College of Business: GCU offers very practical programs that include a master’s in leadership, a masters in accounting, and a masters in public administration.

* Angell Snyder School of Business: Case teaching methodologies teach executives to think critically about all internal and external factors that come into play in developing effective organizational strategies, irrespective of the industry.

Moving forward

The most important message that educators have for executives who may be worried about maintaining their position in the current economic climate is to stay current on trends in your industry, keep your brand current by understanding how your skills and experience fit into the big picture of an organization.

“This past year, we were asked repeatedly how to be effective in managing a diverse, multicultural, and geographically dispersed workforce, and how to stay relevant in a Volatile, Uncertain, Complex and Ambiguous (VUCA) world,” Baltzley said. “Without question the term ‘VUCA’ has come of age and has several implications for executives who want to remain relevant today.”

To stay in the game, Baltzley has three pieces of advice for executives:
1. Get your head into what it means to think globally. If you think your company is domestic and American, and it will never go global, you are wrong, global is coming to you. In fact, global is probably already there, in the form of complex supply chain issues or direct competitors, so you better get prepared.
2. A term coined in the late 1970’s is important here – “Permanent Whitewater” – That is, if you think the whitewater is going to slow down, or that a calm patch is just around the corner, you are mistaken. You have to prepare yourself for leading in constant change in scale and speed.
3. Check your personal leadership style. Are you able to influence people very different than yourself? Do you enjoy variety, the unknown, surprises? Is your self-confidence and personal energy level pretty high? Do you like to test yourself, take some risks? If you can’t answer “yes” to most of these, you have some work to do to become a more adaptive leader.

credit

Study: Young Credit Card Users Are MORE Responsible

If you think young people don’t know how to manage money and pay down their credit cards, then you should think again. A new study from the W. P. Carey School of Business at Arizona State University and the Federal Reserve Bank of Richmond shows young borrowers – 18 to 25 years old — are among the least likely credit card users to have a serious default on their cards. Not only that, they’re also more likely to be good credit risks later in life.

“Young credit card users actually default less than middle-age borrowers,” says Assistant Professor Andra Ghent of the W. P. Carey School of Business. “Also, those who choose to get credit cards early in life are more likely to learn from any minor defaults and move on, avoiding major credit card problems in the future. Plus, they’re more likely to be able to get a mortgage and become a homeowner at a young age.”

The new research by Ghent, as well as Peter Debbaut and Marianna Kudlyak of the Federal Reserve Bank of Richmond, is now a Federal Reserve working paper. In it, the researchers analyzed consumer data from the New York Federal Reserve Bank Consumer Credit Panel/Equifax to determine whether young borrowers are worse credit risks than others and to estimate the effect of individuals choosing to get a credit card at a young age.

The results demonstrate that part of the Credit Card Act of 2009 may not have been necessary. The act made it illegal to issue a credit card to individuals under 21 unless the person has a cosigner or submits financial information indicating an independent means of repaying the debt. It also includes a provision banning companies from recruiting credit card users within 1,000 feet of any college campus or at college events.

“Letting students apply for credit cards may actually make sense,” says Ghent. “These students are the people who want credit, need to build up a good credit history, and have a steeply sloped income profile. If they don’t have a student loan, then a credit card may be the only way they can establish a decent credit history.”

The researchers found that while people in their early 20s are more likely to experience minor delinquencies (30 or 60 days past due), they are much less likely to experience serious delinquency (90 days or more past due). In fact, someone age 40 to 44 is 12 percentage points more likely to have a serious delinquency than a 19 year old.

However, the Credit Card Act of 2009 has clearly had an impact on how many young people are getting credit cards. Individuals under 21 are 18-percent less likely to get a credit card following passage of the act, and that’s not necessarily a good thing.

“You can’t learn by just watching credit card use,” adds Ghent. “You have to get a card, pay it down every 30 days, and experience, in order to learn. It’s also hard to get a mortgage if you can’t get a credit card to build up your credit history.”

The full study is available at http://www.public.asu.edu/~aghent/research/DebbautGhentKudlyak_July2013.pdf.

Phoenix-Area Housing Market

Phoenix-area Housing Supply Increasing

Over the past two years, the tight supply of homes for sale in the Phoenix area has helped to dramatically drive up prices. However, a new report from the W. P. Carey School of Business at Arizona State University shows change on the horizon. The data for Maricopa and Pinal counties, as of August, reveals:

* The median single-family-home price is up 28 percent from last August, to $192,000.
* However, supply is finally starting to increase to help meet demand, and may be in balance by the end of the year.
* The luxury market is powering back, but might be derailed if the economy is pounded by the government shutdown and other events in Washington, D.C.

Phoenix-area home prices have shot up since hitting a low point in September 2011. From last August to this August, the median single-family-home price rose 28 percent – from $150,000 to $192,000. Realtors will note the average price per square foot went up 22 percent. The median townhouse/condo price rose 31 percent.

“We predicted the price-increase slowdown that happened over the summer months,” says the report’s author, Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. “Now that temperatures are cooling, prices will start rising again, at least for the near term. However, they’re likely to go up at a less furious pace than the last two years.”

Orr says increases in the amount of homes for sale are helping to stop the price boom. As of Sept. 1 this year, the area had 29 percent more active listings (not under contract) than at the same time last year. As supply has been going up, demand has gone down, with sales of single-family homes 12 percent lower this August than last August.

“Although demand still exceeds supply, they are fast moving toward each other,” says Orr. “If the current pace of change continues, they are likely to be in balance before the end of the year. The seller is no longer holding all the cards in the Greater Phoenix housing market, and if their offers are countered aggressively, some potential buyers may walk away because they now have more alternatives.”

The types of transactions happening in the market are also noticeably shifting. Luxury homes over $500,000 grew their market share from 15 to 21 percent of the money being spent over the past year, while the lowest-priced homes (below $150,000) fell from 25 to 14 percent of the market.

“Access to finance at the high end of the market is very good, and we are seeing interest rates for jumbo loans even lower than the rates for conventional loans,” Orr explains. “However, if the stock market is negatively affected by events in Washington, then this will have an impact on the luxury housing market in Arizona.”

Investors continue to lose interest in the Phoenix market, with better bargains available in other parts of the country. The percentage of residential properties purchased by investors fell from the peak activity of 39.7 percent in July 2012 down to just 23.7 percent this August. The rates of all-cash buyers and out-of-state buyers are also dropping. In fact, the percentage of Maricopa County residences sold to non-Arizona owners in August was only 17 percent, the lowest percentage since January 2009.

Prices in all areas of Maricopa County are up over last year, and cheap foreclosures are tough to find. Foreclosure starts – owners receiving notice their lenders may foreclose in 90 days – declined 61 percent from last August to this August. Completed foreclosures went down an incredible 73 percent.

Orr’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed and downloaded at www.wpcarey.asu.edu/realtyreports. A podcast with more analysis from Orr is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.

WPCarey-School-Sign

W. P. Carey School Honors Top Business Leaders

Three top business leaders will be honored for their innovation and achievements, when they are inducted into the W. P. Carey School of Business Homecoming Hall of Fame this month. They include the head of a famed jewelry company, a high-profile business founder from China, and a corporate leader at one of Arizona’s biggest companies.

On Oct. 17, they will join previous Arizona State University alumni inductees from such diverse organizations as the American Red Cross, Motorola, the U.S. Air Force, Wells Fargo Bank, XM Satellite Radio and the Arizona Diamondbacks.

“These stellar inductees represent strength, leadership and accomplishment in the business world,” says W. P. Carey School of Business Dean Amy Hillman. “They demonstrate how far our students can go and have gone in making their mark on the global economy.”

The 36th annual W. P. Carey School honorees are:

> Eddie LeVian, chief executive officer of the Le Vian Corporation, who has made Chocolate Diamonds® a red-carpet staple in Hollywood. LeVian earned a business degree from the W. P. Carey School in 1979 and took his innovative marketing ideas back to his family’s fine jewelry business in New York. The company’s sales have more than quadrupled over the past decade, and the LeVian family is active with many charities, raising $75 million in the past decade alone.

> Canglong Liu, a high-profile business leader in China, who founded one fertilizer factory in 1979, which grew into a conglomerate of major companies, including the Sichuan Hongda Group, now with 30,000 employees and 60 subsidiaries around the world. Liu is chairman of businesses that focus on finance, minerals and real estate. He is also a member of the national committee of the Chinese People’s Political Consultative Conference and the standing committee of the All-China Federation of Industry and Commerce. The Hongda Group has given $8 million to AIDS prevention and research in China. Liu received his MBA from the W. P. Carey School’s prestigious executive MBA program in Shanghai in 2007.

> MaryAnn Miller, chief human resources officer and executive leader of corporate communications for Avnet, a Phoenix-based Fortune 500 company with more than 18,000 employees and customers in 80 countries. Avnet is one of the largest distributors of electronic components, computer products and embedded technology in the world. Miller has more than 30 years of experience in human resources and operations management, and is responsible for leading the company’s human resources, organizational development and corporate communications worldwide. She is also a member of the Avnet Executive Board. She received her MBA from the W. P. Carey School’s executive MBA program in 2001.

About 200 alumni, business leaders and students are expected to attend the Homecoming Hall of Fame event on Thursday, Oct. 17 at the JW Marriott Desert Ridge Resort & Spa in Phoenix. A reception starts at 5:30 p.m., followed by the awards ceremony.

Space is limited. For more information on tickets or sponsorship, go to www.wpcarey.asu.edu/homecoming or call (480) 965-2597.

home.prices

Rising Interest Rates Can’t Stop Phoenix Housing Recovery

Rising interest rates don’t appear to be stopping the big comeback in the Phoenix-area housing market. A new report from the W. P. Carey School of Business at Arizona State University reveals highlights for Maricopa and Pinal counties, as of June:

* The median single-family-home price rose again to $190,000, up about 27 percent from June of last year.
* The luxury market is finally booming back, now that more banks are willing to finance jumbo loans.
* Rising interest rates have caused some people to accelerate their housing purchases, not significantly slowed things down.

Phoenix-area home prices have risen dramatically since they hit a low point in September 2011. The median price for a single-family home went up 26.7 percent – from $150,000 to $190,000 – between June 2012 and this June. Realtors will note the average price per square foot jumped 21.1 percent over the same time. The median price for condominiums/townhomes went up 38.9 percent to $125,000.

The tight supply of homes available for sale continues to drive the upward price movement in the market, with multiple bids being offered for most resale homes in the lower price ranges. However, the luxury market is also roaring back, with sales higher this summer than for any of the last six years.

“Access to finance at the high end of the market has improved recently with more lenders offering jumbo loans,” says the report’s author, Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. “Along with good returns from the stock market, this has strengthened a recovery in the luxury market, where sales volumes were back to 2007 levels in June.”

Overall, the Phoenix-area market had 11,178 active single-family-home listings available without an existing contract as of July 1. However, about 84 percent of those were priced above $150,000, leaving just 26 days worth of inventory for buyers at the lower end of the market.

New-home builders aren’t completing houses fast enough to make a big dent in the supply problem. While analysts expected 17,000 construction permits to be issued this year, the area is only on track to have about 12,500.

“Current new-home sales rates are less than a third of what would normally be needed to keep up with the current population growth in the area,” says Orr. “Census estimates show that between 2010 and 2012, the combined population of Maricopa and Pinal counties grew by 2.9 percent, while the number of dwelling units – both owned and leased – grew by just 1 percent. Tight lending standards and a shortage of construction labor are two reasons for this.”

The Phoenix area is also seeing less cheap, “distressed” supply coming onto the market. Completed foreclosures on homes and condos in June were down 61 percent from last June. Foreclosure starts – owners receiving notice their lenders may foreclose in 90 days – were down 64 percent. Foreclosure starts finally just dipped back below “normal” historical levels for the area this June.

Institutional investors are showing less interest in the Valley as bargains are more readily available in other areas of the country. The percentage of Maricopa County homes and condos acquired by investors, including mostly “mom and pop” investors, was down from 34.9 percent last June to 26.7 percent this June. However, the area is still seeing a lot of all-cash home purchases. In fact, 44 percent of the Maricopa County property transactions under $150,000 were all-cash deals this June.

“For those who need mortgages, there has been much talk of rising interest rates and the effect this might have on demand,” adds Orr. “Rising rates have certainly reduced the motivation to refinance existing loans, but they have also sped up purchases by some buyers who want to lock in prices and rates. Still, other buyers will stop to reconsider their options, likely causing a pause in new contract signings in July and August, but I expect normal activity to resume in October.”

Rental activity remains strong, with relatively low vacancy rates and no surge in vacancies expected. Orr says the supply of rental homes in the Phoenix area represents just about two months of inventory, and there’s fast turnover.

“President Obama referred to his objective of making it easier for middle-class renters to qualify for home loans, when he visited Phoenix on Aug. 6,” says Orr. “The low-end market will depend to a considerable extent on whether he can make this happen through the actions of the Federal Housing Administration, Fannie Mae and Freddie Mac.”

Orr’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at http://wpcarey.asu.edu/finance/real-estate/upload/Full-Report-201307.pdf. A podcast with more analysis from Orr is also available fromknowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.

education.business

W. P. Carey Offers New Degrees for Evolving Business World

Thousands of students are descending on the Arizona State University campus for the new school year, with move-in starting tomorrow. Those coming to the highly ranked W. P. Carey School of Business will have several brand new degree options available to them. The three degrees are designed to address the needs of a rapidly changing business world.

“We always try to evaluate what businesses and recruiters are telling us they want in the workplace,” explains W. P. Carey School of Business Dean Amy Hillman. “They say they’re looking for talented individuals to analyze the mountains of ‘big data’ now coming in from social media and other technology. They’re also looking for great hires in HR, and we’re rounding out the new offerings with a degree in sports and media studies, which should be popular with students.”

The new graduate-level program starting this fall is the Master of Science in Business Analytics. The “big data” program is a joint effort between the school’s Information Systems and Supply Chain Management departments, both ranked Top 20 in the nation by U.S. News & World Report. The nine-month program was created largely for those who recently graduated from college, but who want to position themselves for faster advancement in the booming information field.

“The business-analytics program is an opportunity to jumpstart your career in using big data and computer models to solve complex business problems and really add value to your company,” says Professor Michael Goul, chair of the school’s Information Systems Department. “Only about a dozen master’s programs like this exist in the United States. It’s estimated 4.4 million data analysts will be needed worldwide by 2015, so it’s a big area of career growth.”

At the undergraduate level, the W. P. Carey School is introducing a Bachelor of Arts in Business with a human resources concentration and one with a sports and media studies concentration:

The HR degree focuses on learning how to help an organization of any size manage its personnel and make informed decisions about employees. This includes learning about staffing and employment law, as well as developing critical thinking and writing skills for effective corporate communication.
The sports and media studies degree covers fan loyalty, strategically leveraging communication channels, and increasing revenue. Classes include sports administration, sports relationship management, and sports media. The concentration courses for this degree are offered through ASU’s prestigious Walter Cronkite School of Journalism and Mass Communication.

Both of the new undergraduate programs are offered at ASU’s Polytechnic campus in Mesa. That’s also where the school is offering Bachelor of Arts in Business degrees with concentrations in agribusiness, business entrepreneurship, communication, food industry management, management and technology.

The W. P. Carey School of Business is currently ranked Top 30 in the nation by U.S. News & World Report for both undergraduate and graduate business programs. For more information on the school’s programs, go to www.wpcarey.asu.edu.

shopping

Are Republicans More Open to New Product Choices?

Some people may think of political conservatives as having a desire to maintain traditions, but a new study shows they also have a more adventurous side that seeks out variety in products.

The new research from the W. P. Carey School of Business at Arizona State University was recently posted online by the Journal of Consumer Psychology. It includes three experiments in which political conservatives prove they are more likely to choose a variety of consumer products than their liberal counterparts.

“Although political conservatives have been found in previous studies to have a higher desire for control, they have an even stronger motivation to follow social norms when there is no threat to the system or individual,” explains Professor Naomi Mandel of the W. P. Carey School of Business, one of the study authors. “Since we have a very individualistic culture in the United States and Europe, people tend to think of others more favorably when they include more variety in their consumption choices. Therefore, political conservatives may seek out that approval and positive evaluation.”

In a series of experiments, Mandel and her co-author – Assistant Professor Daniel Fernandes of the Catholic University of Portugal – found political conservatives wanted more variety in their products than liberals.

For example, the researchers first used several established scales to question and determine the political leanings of 192 college undergraduates. Then, they told the students to imagine four consecutive weekly grocery shopping trips during which they could select from four brands of snack chips. Overwhelmingly, the politically conservative students chose more variety in their chips for the month than the more liberal students did.

In another experiment, 111 undergrads were polled for their political leanings. Then, they completed other tasks before ultimately being asked to select three candy bars from five options as a reward for participating. Again, the political conservatives exhibited much more variety in the candy bars chosen.

“Differences between liberals and conservatives are rooted in basic personality dispositions that reflect and reinforce differences in fundamental psychological needs and motives,” says Mandel. “We wanted to understand how and why a consumer’s political ideology could affect his or her consumption choices.”

Mandel explains the findings could help marketing managers with future ad placements. For example, if a company wants to introduce a new product, it might decide to target politically conservative neighborhoods and outlets like Fox News and The Wall Street Journal.

To read the full study, go to http://www.sciencedirect.com/science/article/pii/S1057740813000478.

WPCarey-School-Sign

Mayo Clinic and W. P. Carey School Team Up

Mayo Clinic is known as a nonprofit worldwide leader in medical care, research and education. Now, a select number of students from the Mayo Medical School are going through a cutting-edge program that allows them to get both their M.D. degree from Mayo Medical School and an MBA from the highly ranked W. P. Carey School of Business at Arizona State University.

“This program is helping to educate some of the brightest medical minds of our future in such a way that they will be more aware of the business side of medicine, the patient experience and the costs for us, the taxpayers,” explains W. P. Carey School of Business Dean Amy Hillman.

Dr. Michele Halyard, vice dean of the Mayo Medical School – Arizona Campus, adds, “The collaboration between Mayo Medical School and the W. P. Carey School of Business brings valuable synergies to the education of both future physicians and business leaders. The dual-degree program provides Mayo Clinic physicians in training with complementary competencies in business management, payer systems and accounting practices. This, along with a superb clinical education at Mayo Medical School, will prepare them to be leaders in the complex world of medicine in the 21st century.”

ASU began a strong collaborative relationship with Mayo Clinic in 2002. This particular joint degree program was launched in 2009 and has turned into a highly desirable choice for just a handful of select students from the Mayo Medical School.

Yingying Kumar was one of the first to graduate from the joint M.D./MBA program. She was looking for a way to supplement her strong medical education with a business background to help her stand out in the job market.

“I realized that the business and leadership skills I would learn in the MBA program could help me advance to a higher position in a clinic or even run my own practice in the future,” says Kumar. “I got a better understanding of roles and how hospitals run. I also got the perspective of non-medical students from my business classmates. I think the MBA will help me keep the patients’ voice in consideration at all times.”

Students who take the dual-degree program spend two years at the Mayo Medical School. Then they spend one or two years in the W. P. Carey School’s MBA program, currently ranked Top 30 in the nation by U.S. News & World Report. They return to medical school afterward to finish up their studies. The whole experience is facilitated by both schools to be virtually seamless for the Mayo students who qualify.

“I first began considering this program after volunteering in Honduras on a medical service trip and learning that the villagers we helped had little or no access to health care,” says Mayo M.D./W. P. Carey MBA student Jack Jeng. “We visited an empty rural medical clinic abandoned by its staff because it did not have a sustainable business model. That helped me realize that a successful health care organization needs more than a great medical facility, dedicated professionals and good intentions. Proper planning and smart business principles are also required to ensure patients continue to benefit from high-quality care, something I personally experienced at the Mayo Clinic.”

Jeng, who has already completed the MBA portion of the joint program, adds, “I was blown away by the opportunities and support at the W. P. Carey School of Business. They offered me valuable knowledge and experience I hope to use throughout my career. As a future physician with business understanding, I aspire not only to help people directly, but also to make meaningful contributions to improve the lives of countless patients who aren’t actually sitting in front of me.”

Amy Hillman - 50 Most Influential Women in AZ Business

Amy Hillman – 50 Most Influential Women in Arizona Business

Amy Hillman – Dean, W. P. Carey School of Business at Arizona State University

Hillman, a world-renowned management expert, popular teacher and noted researcher, took over as dean of the W. P. Carey School on March 1. Hillman is the first-ever female dean of the school, which has undergraduate, full-time MBA, part-time MBA and online MBA programs all ranked Top 30 in the country by U.S. News & World Report.

Surprising fact: “One of my earliest executive education experiences was helping give tools to Czech professors to train managers in their country after the Berlin Wall came down.”

Biggest challenge: “Managing dual careers, since my husband is also an academic. We commuted long distance and traded off ideal positions. We both couldn’t be happier at ASU.”

Fifty Most Influential Women in Arizona Business – Every year in its July/August issue Arizona Business Magazine features 50 women who make an impact on Arizona business. To see the full list, read the digital issue >>

98427193

Phoenix-area Foreclosure Saga Ending

The Phoenix-area housing market has finally hit “normal, historical levels” for those going into foreclosure. After years of severe foreclosure trouble, a new report from the W. P. Carey School of Business at Arizona State University reveals that good news and more for Maricopa and Pinal counties, as of May:

* The median single-family home price rose again to $185,000, up about 26 percent from May of last year.
* The final chapter of the foreclosure crisis is wrapping up in Phoenix, as foreclosure starts — homeowners receiving notice their lenders may foreclose in 90 days – finally hit normal, historical levels in May.
* On the negative side, the chronic shortage of area homes available for sale continues to be an issue and could last for years.

Phoenix-area home prices hit a low point in September 2011 and have risen dramatically since then. The median single-family-home price reached $185,000 this May, up from $147,000 last May. That’s a boost of 25.9 percent. Realtors will note the average price per square foot went up 22 percent at the same time. The median townhouse/condo price went up about 27.1 percent.

“Between this January and May alone, the average price per square foot rose about 13 percent for area single-family homes,” says the report’s author, Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. “However, the upward pricing pressure should disappear during the summer. I expect the prices to resume their strong upward direction in the fall, once temperatures drop below 100 degrees and snowbirds return.”

Rising prices don’t appear to be dampening the housing recovery in the Phoenix area at this point. In fact, home-and-condo sales activity went up 6.6 percent between April and May. May is the second month in a row where activity increased from the same time during the prior year, reversing a long negative trend. Even the luxury market is gaining, with more sales in May than in any other single month over the past six years.

“There has been much talk of rising interest rates and the negative effect this might have on demand,” says Orr. “The sudden and recent increase in rates has certainly reduced the motivation to refinance existing home loans. However, it is almost certainly increasing buyers’ determination to purchase homes now, rather than later, when rates may go even higher.”

Orr adds he sees early signs some lenders may react to higher interest rates by easing up their rules, allowing more people to buy homes. He also believes prospective buyers may simply settle for purchasing smaller, more affordable houses than they originally wanted, in order to manage the higher interest payments.

At the same time, the wave of foreclosures triggered by the housing crisis appears to be ending in the Phoenix area. Completed foreclosures on single-family homes and townhome/condos in May were down 53 percent from last May. Foreclosure starts – owners receiving notice their lenders may foreclose in 90 days – went down an incredible 67 percent in the same period. Given population growth, this means the area finally hit its normal, historical level of foreclosure starts this May.

“Foreclosure starts dropped 15 percent just between April and May alone,” says Orr. “Foreclosure levels are now far below the peak levels of March 2009, and the number of pending foreclosures is below the level from the first quarter of 2002. We expect these numbers to continue to fall over the next several years due to the very tight underwriting standards in place.”

Without cheap foreclosures coming into the market — and with ordinary homeowners reluctant to sell because they’re either locked in by negative equity or waiting for prices to keep rising — the Phoenix-area housing market continues to struggle with a chronic shortage of homes available for sale that may last for years. The number of active single-family listings without an existing contract was just over 11,000 as of June 1. That’s down 0.4 percent since May 1, and 83 percent of the available homes are priced above $150,000, creating a problem for those looking in the lower price range. At least the shortage has improved somewhat from last year, when supply was dropping at a rate of 6 percent per month.

“The chronic shortage applies to both homes for purchase and homes for lease,” Orr explains. “The average time for a leased home to be on the market is down to about one month. With this fast turnover and relatively low vacancy rates, it’s perhaps surprising that single-family and condo rents have only very modestly increased.”

New-home builders don’t appear too anxious to help meet the demand. They are trying to make sure they don’t overbuild like they did before the housing crisis, and they want to keep prices moving up. Current new-home sales rates are less than a third of what would normally be needed to keep up with local population growth. As a result, Orr says the combined population of Maricopa and Pinal counties grew 2.9 percent from 2010 to 2012, but the number of owned and leased dwelling units only grew by 1 percent.

Lastly, institutional investors continue to lose interest in the Phoenix area. Their buying spree that began in 2011 is in a downward trend. The percentage of the area’s total single-family-home and condo sales carried out by investors is down from 39.7 in July 2012 to 27.3 percent this May. Most investor transactions are actually going to so-called “mom and pop” purchasers. Orr says they own roughly 96 percent of the area’s rental-home inventory.

Orr’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at http://wpcarey.asu.edu/finance/real-estate/upload/Full_Report_201306.pdf. A podcast with more analysis from Orr is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.

housing.prices

No Housing Bubble for the Phoenix Area?

Despite dramatic home-price boosts, don’t expect another housing bubble anytime soon in the Phoenix area. A new report from the W. P. Carey School of Business at Arizona State University breaks down what’s happening in the Maricopa and Pinal County housing market, as of April:

* The median single-family home price climbed again to $181,399, up almost 30 percent from April of last year.
* The report’s author sees no housing bubble on the way, with a very tight supply of available homes for sale.
* He also sees no significant negative effect yet from rising interest rates on local housing demand.

Phoenix-area home prices have been soaring since they reached a low point in September 2011. The median single-family home price rose 29.6 percent — from $140,000 to $181,399 — between April 2012 and April 2013. Realtors will note the average price per square foot went up 23.5 percent. The median townhouse/condo price went up 34.6 percent.

“In previous reports, we predicted prices would rise significantly during the strong annual buying season that lasts until June,” says the report’s author, Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. “From February through April, the average price per square foot did rise more than 9 percent for single-family homes, but the upward pricing pressure may finally ease somewhat this month.”

One big reason for the price gains has been the chronic shortage of available homes for sale in the Phoenix area. The number of active single-family-home listings (not including those already under contract) fell 7.3 percent just from April 1 to May 1. Only 24 days of lower-end supply (priced under $150,000) is out there. However, the frequent drops in supply have at least slowed down enough to let the market accumulate 20 percent more listings than it had at the same time last year.

Investor interest in Phoenix has also waned as prices went up and better bargains were still available in other areas of the country. Orr says the institutional-investor buying spree here began in 2011, peaked in summer 2012, and is now in a downward trend. The percentage of homes purchased by both small and institutional investors in Maricopa and Pinal counties in April was 26.8 percent, down all the way from 39.7 percent in July 2012, and most of these purchases were actually made by small-scale investors.

Many of the investor-purchased homes have already been turned into rentals for people who lost their houses during the recession. Some commentators have been saying there might be another housing bubble when investors decide to sell these homes, but Orr strongly disagrees.

“Some commentators talk ominously of a bubble bursting when these homes come back onto the market,” he says. “Such talk gets a lot of attention because we are over-sensitized to bubble talk after the disruptive events of 2004 to 2006. However, this idea falls flat when we examine the actual number of homes involved. The entire institutional inventory of 10,000 to 11,000 rental homes here represents a tiny fraction, less than 1 percent, of our housing stock. If every single one were to be placed for sale next month, we would still have less supply than in a normal balanced market.”

Demand from investors is already being replaced by demand from owner-occupiers and second-home buyers. Most homes priced below $600,000 continue to attract multiple offers within a short time. The luxury market is also gaining some steam. Single-family-home sales activity overall went up 4 percent from April 2012 to this April, beginning to reverse a long downward trend in year-over-year activity.

“There has been much talk of the negative effect that rising interest rates might have on demand,” says Orr. “So far, the increases have been minor, and the main effect has been to reduce the motivation to refinance existing home loans. At the same time, higher interest rates often create a greater sense of urgency among home buyers, so if lenders simultaneously relax their underwriting rules, this could stimulate demand, rather than reduce it.”

The market also continues to recover from the foreclosure crisis. The number of completed foreclosures on homes and condos in April of this year was down 46 percent from April last year. Foreclosure starts – homeowners receiving notice their lenders may foreclose in 90 days – dropped 60 percent. Orr expects the rates to fall below long-term averages soon.

With fewer foreclosures coming on the market, some buyers have turned to new-home builders. However, Orr says the construction industry is still building far fewer homes than needed to keep up with rising population and demand in the area. This is partly because the prices of land, materials and construction labor are all rising as subcontractors struggle to attract more workers. He says the developers are also being very cautious in their expansion. They enjoy the fact that limited supply allows them to continue increasing prices faster than their costs and don’t want to disturb this trend by overbuilding.

“Given the balance between supply and population growth in Phoenix, home prices are unlikely to fall below today’s level and are more likely to continue to climb for a long time, though at a more gentle pace.”

Orr’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at http://wpcarey.asu.edu/finance/real-estate/upload/Full-Report-201305.pdf. A podcast with more analysis from Orr is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.

Arizona Is Losing Economic Grounds To Other Southwestern States, 2008

Rebound for Arizona and U.S. Slows Down

Jobs, home prices and population growth are all slowly rebounding in Arizona. However, experts from the W. P. Carey School of Business at Arizona State University say we still have a long way to go, and the automatic federal budget cuts known as the sequester aren’t helping our momentum. The experts delivered their forecasts today at the annual Economic Outlook Luncheon sponsored by the Economic Club of Phoenix.

Research Professor Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School, confirmed Arizona is once again a Top 15 growth state for both employment and population, but we’re not back to normal levels. From 1960 to 2007, we routinely ranked among the Top 5 states for both employment and population growth. In the rough years from 2008 to 2011, we dropped down to No. 48 and No. 14 in those areas.

“Last year, we finally bounced back to No. 8 for employment growth and No. 7 for population growth,” said McPheters. “However, the sequester and other factors have been clouding the economy here in recent months, and the year-over-year job-growth ranking issued this March dropped Arizona down to No. 13. The state will have to wait a couple more years for full recovery.”

Arizona added 48,900 jobs in 2012. The state is projected to add 61,000 jobs this year. The fastest-growing industries are construction, wholesale trade, information, state government and leisure/hospitality.

“Arizona has gained back 39 percent of the 314,000 jobs we lost in the recession,” explained McPheters. “However, that’s a pace well behind the nation as a whole, which has regained 67 percent of its 8.8 million lost jobs.”

In recent years, population growth in Arizona had dropped from the state’s typical 2- to 3-percent range to less than 1 percent. Finally last year we popped back up to 1.3 percent.

Personal income may also be coming back. The consensus of Arizona Blue Chip economists shows growth in this area of 3.7 percent in 2012, 5.1 percent expected in 2013, and 6 percent expected in 2014.

“The bottom line is that Arizona is doing better than most states, but this will still be the seventh year in a row of lean, subpar growth for us,” said McPheters.

Dennis Hoffman, economics professor and director of the L. William Seidman Research Institute at the W. P. Carey School of Business, reiterated that Arizona is recovering more slowly from this recession than from others in the past. However, we are coming back stronger than the nation as a whole in most areas of the economy. Hoffman expects the United States to see 2- to 3-percent gross-domestic-product (GDP) growth this year. That will likely include more moderate job growth and low inflation.

“The economy is plodding along, assisted by the real-estate and stock-market recoveries, low fuel prices and innovation in the business world,” said Hoffman. “Still, we face a lot of uncertainty from our national-debt crisis, political squabbling in Washington, economic difficulties in Europe and China, and changing demographics. One huge issue remains the problem of future funding for Social Security and Medicare.”

At the state level, Hoffman says we’re going to be strongly affected by the decisions still to be made this year on possible Medicaid expansion, the loss of the temporary sales tax, the potential taxing of online sales, and other big issues. For now, state revenue has been coming back with the rebounding economy.

When it comes to the housing market, Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business, delivered good news about the recovery. Specifically, the median Phoenix-area home price was up a whopping 58 percent from a low of $111,000 in May 2011 to $175,000 this March. Foreclosures were down 60 percent just over the last year from March 2012 to March 2013, and Orr expects foreclosure rates to dip below long-term averages by the end of next year. Also, less than 5 percent of Arizona home loans (not already in foreclosure) are delinquent now.

However, we do face some problems in the housing market. For one thing, there’s a chronic shortage of homes for sale. Now that there’s no flood of cheap foreclosures and short sales coming onto the market, buyers are dependent mostly on normal resales and new-home sales.

“Higher prices would normally bring more ordinary home sellers into the market, but many are either locked into their homes because of negative equity, or they’re simply waiting for prices to go up more,” explained Orr. “As a result, some buyers are turning to new-home sales, but developers are reluctant to overbuild as much as they did at the market peak. Therefore, we may see about 50,000 to 60,000 new people being added to our local population this year, but only around 12,000 new single-family homes being built.”

Today’s Economic Outlook Luncheon was held at the JW Marriott Desert Ridge Resort & Spa in Phoenix. The Economic Club of Phoenix hosts this event every spring, as one of its opportunities for Valley business leaders and others to network and engage. The club was founded by a group of prominent business executives called the Dean’s Council of 100, in conjunction with the W. P. Carey School of Business. More information about the club can be found at www.wpcarey.asu.edu/ecp.

Today’s presentations will be posted at knowWPCarey, the business school’s online resource, at http://knowwpcarey.com.

home.prices

Phoenix-area Housing Prices Keep Soaring

Home prices continue their upward climb in the Phoenix area, with more momentum expected until at least June. A new report from the W. P. Carey School of Business at Arizona State University reveals the latest information about the Maricopa and Pinal County housing market, as of March:

The median single-family home price was all the way up to $175,000, about a 30-percent increase from March of last year.
The supply of homes for sale continued to fall, but the problem is not so much the high demand, but more the lack of sellers getting into the market.
Rebounding population growth in the Phoenix area is also blasting past the rate at which builders are constructing new homes.

Phoenix-area home prices reached a low in September 2011 and have largely shot up since then. The median single-family home price went up 29.7 percent – from $134,900 to $175,000 – in the year from March 2012 to March 2013. Realtors will note the average price per square foot went up 23.6 percent during the same time. The median townhouse/condo price increased 43.2 percent – from $81,000 to $116,000. A big reason for all this upward movement is the scarcity of affordable homes for sale.

“The number of active single-family listings has been dropping fast and went down another 4 percent from March 1 to April 1,” says the report’s author, Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. “Fewer than 12,000 single-family homes were up for sale (without an existing contract) on April 1, and 80 percent of those were priced above $150,000, making it very tough to find properties in the lower price range.”

Orr adds it’s actually not high demand that’s the major culprit here.

“The low number of sellers is what’s unusual, not the number of buyers, which is only slightly above normal,” he says. “Higher prices would normally encourage more ordinary home sellers into the market, but many are either locked into their homes because of negative equity, or they’re simply waiting for prices to go up more.”

Orr says most homes priced below $600,000 continue to attract multiple offers, and March is the peak of the buying season that lasts from January to June. However, due to the chronic supply shortage, the amount of single-family home sales actually went down 8 percent from March 2012 to March 2013.

Investors are also starting to lose some interest in the Phoenix area, since bigger bargains can be found in other areas of the country that haven’t rebounded as fast. The percentage of residential properties bought by investors dropped from 29.2 percent in February to 27.1 percent in March, the lowest percentage in several years. The market is now seeing increased demand from owner-occupiers and second-home buyers, instead.

Completed foreclosures were down an incredible 60 percent from March 2012 to March 2013. Foreclosure starts – homeowners receiving notice their lenders may foreclose in 90 days – dropped 53 percent. Orr believes we’ll see foreclosure-notice rates “below long-term averages” by the end of next year.

Meantime, new-home sales are also going up, in tandem with resale prices. In Maricopa County alone, new-home sales increased 37 percent from March 2012 to March 2013. However, new-home construction isn’t keeping pace with the Phoenix area’s rebounding post-recession population growth. The U.S. Census reports 1,220 single-family-home construction permits were issued in March, a very small number by historic standards. For example, the total in March 1996 was 3,071, and the total in March 2004 was 5,490.

“The population is growing much faster than the housing supply, with an expected 50,000 to 60,000 people being added to the Phoenix-area population this year, but only around 12,000 new single-family homes being built,” Orr explains. “Builders are scratching their heads, trying to figure out what to do. They don’t want to overbuild like they did during the peak, and they don’t want to build a bunch of new homes for people who can’t secure the mortgages needed to buy them with such tight lending conditions.”

Orr’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at http://wpcarey.asu.edu/finance/real-estate/upload/Full-Report-201304.pdf. A podcast with more analysis from Orr is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.

energy.bill

Navajo Generating Station worth Billions to Navajo Nation

The Navajo Generating Station in northern Arizona will help contribute nearly $13 billion to the Navajo economy and help support thousands of jobs from 2020 through 2044 – if agreements can be reached to keep the plant operating beyond 2019 – according to a study prepared for the Navajo Nation and Salt River Project by the L William Seidman Research Institute at the W.P. Carey School of Business at Arizona State University.

Located on the Navajo Nation, near Page, NGS is one of the largest and most important suppliers of electricity in the Southwest.

According to the ASU report, Navajo Generating Station and Kayenta Mine: An Economic Impact Analysis for the Navajo Nation, NGS and the Kayenta Mine, the plant’s coal supplier, will contribute $12.94 billion to the Navajo Nation economy through sustained jobs and wages if the plant was to remain operational through 2044.

NGS currently employs about 518 people, nearly 86 percent of whom are Native American.  The Kayenta Mine has more than 400 employees, of whom about 90 percent are also Native American.

“I have been saying we need to protect existing jobs on the Navajo Nation,” said Navajo Nation President Ben Shelly.  “This study shows that the plant and the mine not only support existing jobs at the plant and mine, but support other jobs in the area.”

The ASU report examined the direct, indirect and induced economic impact of NGS and Kayenta Mine on the Navajo Nation using the IMPLAN model employed by the state of Arizona to examine various economic projections.  A full copy of the report is available at www.ngspower.com.

The study on the plant’s economic impact on the Navajo Nation is separate from a 2012 study from ASU that concluded that NGS and the Kayenta Mine will provide more than $20 billion in economic contributions throughout the state for the period measured from 2011 to 2044.  The new study examined the economic effects exclusively for the Navajo Nation.

Despite its economic importance, a number of significant challenges threaten the future viability of NGS.  To ensure future operations of NGS, the plant’s lease and various rights of way with the Navajo Nation must be extended and the coal supply contract with Peabody Energy renegotiated prior to any additional costly emission controls from the EPA.

The plant’s lease and various rights of way with the Navajo Nation are set to expire around 2019 and the Navajo Nation Council is currently considering legislation to extend them.  In addition, the plant’s owners are also renegotiating the coal supply contract with Peabody Energy.  Perhaps most significantly, the U.S. Environmental Protection has proposed additional and costly environmental rules to address regional visibility.

NGS is a coal-fired power plant that provides electricity to customers in Arizona, Nevada and California, and energy to pump water through the Central Arizona Project.  The participants in NGS include the plant’s operator, SRP; the U.S. Bureau of Reclamation; Arizona Public Service Co.; Los Angeles Department of Water and Power; Tucson Electric Power Co. and NV Energy.

Chandler Innovation Center

Nominate Your Favorite for a Spirit of Enterprise Award

Want to help honor your favorite Arizona company? Nominate it for a 2013 Spirit of Enterprise Award.

The awards from the W. P. Carey School of Business at Arizona State University recognize some of Arizona’s best businesses for creating jobs, boosting our economy and treating customers right. Past winners include well-known names like Cold Stone Creamery, China Mist, Ollie the Trolley and Total Transit (Discount Cab), as well as rapidly growing businesses, such as GlobalMed and WebPT.

“We’re looking for firms that demonstrate ethics, energy and excellence in entrepreneurship,” says Gary Naumann, director of the Spirit of Enterprise Center at the W. P. Carey School of Business. “They should have a great story and a positive culture internally, and be exemplary community partners in terms of how they give back.”

You can nominate any company that is:

* A for-profit enterprise in business for at least four years;
* Incorporated, headquartered or having a majority of its business operations in Arizona;
* Employing at least three or more full-time workers;
* Able to demonstrate profitability over the last three years combined.

In addition, one minority-owned business will receive the Gary L. Trujillo Minority Enterprise Award sponsored by Blue Cross Blue Shield of Arizona.

Once a company is nominated, it will have until July 31 to complete an awards application.

The winners of the 17th annual Spirit of Enterprise Awards will be announced at a luncheon at the JW Marriott Desert Ridge Resort & Spa in Phoenix on Nov. 22. Hundreds of Arizona business and community leaders attend this annual event.

For more information on nominating a company, applying for the awards, or attending the luncheon, call (480) 965-0474 or visit spiritofenterprise.org.

These awards are just one focus of the Spirit of Enterprise Center, which helps hundreds of businesses each year. The center offers companies the chance to recruit and meet with top student talent, while also allowing students to get hands-on business experience. In addition, companies can use the center to access other ASU business resources. The center is self-funded and utilizes community sponsorships and volunteers to sustain its activities.

homes

Prices Up, Foreclosures Down, Investors Losing Interest

Phoenix-area home prices are back on their way up again, after a short drop in January. The latest housing report from the W. P. Carey School of Business at Arizona State University shows soaring prices, dropping foreclosures and waning interest from investors looking at Maricopa and Pinal counties, as of February.

* The median single-family home price shot up more than 4 percent in just one month — January to February.
* The median single-family home price went up 36.5 percent from February 2012 to February 2013.
* Foreclosures have resumed their downward trend, after a brief post-holiday bump, and they are likely to fall below the “normal,” long-term level by the end of next year.

Phoenix-area home prices have risen sharply since hitting a low point in September 2011. The median single-family home price went up 4.3 percent from January to February. It went up 36.5 percent – $124,500 to $170,000 – from last February to this February. Realtors will note the average price per square foot rose 30.9 percent year-over-year. The median townhouse/condo price increased 39.4 percent – from $77,500 to $108,000.

“These substantial increases were predicted in our last report and are almost certain to continue in March,” says the report’s author, Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business at Arizona State University. “Pricing typically strengthens during the peak buying season from February to June each year.”

Orr adds the market is still dealing with a chronic shortage of homes available for sale. The number of active single-family-home listings (without an existing contract) in the greater Phoenix area fell about 5 percent just from February 1 to March 1. Also, 79 percent of the available supply is priced above $150,000, creating a real problem in the lower range.

“The shortage continues to get more severe among the most affordable housing sectors,” says Orr. “Overall, ‘distressed,’ bargain supply is down 32 percent from last February, since we’re seeing fewer foreclosures and short sales. First-time home buyers face tough competition from investors and other bidders for the relatively small number of properties available in their target price range.”

Thanks to the tight inventory, the amount of single-family-home sales activity was down 10 percent this February from last February. Things don’t appear to be getting better.

“Higher prices would normally encourage more ordinary home sellers to enter the market, but it seems many potential sellers are either locked in by negative equity and/or staying on the sidelines, waiting for prices to rise further,” explains Orr. “At some point, we will reach a pricing level where resale supply will free up, but we are not there yet.”

While high-end, luxury-home resales are picking up some steam, many frustrated home buyers in the lower price range have been turning to new-home construction. As a result, new-home sales were up an incredible 67 percent from last February to this February. New-home sales have almost doubled their market share from 6 percent to 11 percent over the last 12 months. Still, Orr says new-home sales have a long way to go to recover their normal percentage of the market.

He adds, “New homes are not being built in sufficient quantity to match the population growth in the Phoenix area. The construction industry remembers overbuilding from 2003 to 2007, contributing to the disaster in 2008 that resulted in layoffs and bankruptcies for some developers. For now, it looks like they will probably build fewer than half the homes needed to keep pace with current population trends.”

Investor interest also continues to wane in the Phoenix area. The percentage of homes bought by investors from 2011 to mid-2012 was way up, but it declined in Maricopa County from 37 percent last February to 29.7 percent this February. Many investors are looking at other areas of the nation where prices haven’t recovered as much and more bargains are available. Orr labels it a “significant down trend” here.

Foreclosures and foreclosure starts (homeowners receiving notice their lenders may foreclose in 90 days) are both back on a downward trend, too, after a short post-holiday bump. Completed foreclosures on single-family homes and townhome/condos fell 25 percent from January to February alone. They were down 52 percent from last February. Foreclosure starts were down 61 percent from last February. Orr predicts foreclosure-notice rates may be down to “below long-term averages” by the end of 2014. Meantime, the lack of cheap foreclosed homes continues to help push prices up.

“The significant annual price increase over the last 12 months has now spread to all areas of greater Phoenix,” says Orr.

Orr’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at http://wpcarey.asu.edu/finance/real-estate/upload/Full-Report-201303.pdf. A podcast with more analysis from Orr is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.

Phoenix-Area Housing Market

How to Survive the Phoenix-area Housing Market

The Phoenix-area housing market is especially difficult for home buyers to navigate right now. They face rising prices, competition from investors and other bidders, and a short supply of available homes for sale. That’s why The Arizona Republic and the ASU Real Estate Council at the W. P. Carey School of Business are hosting a free event to help people sort through the complications.

“We keep hearing from potential home buyers how tough it is to deal with current conditions in the Valley housing market,” says Catherine Reagor, who covers the real estate market for The Arizona Republic and azcentral.com. “This is one way to help.”

The event called “Phoenix Housing Market Explained” will be held Saturday, April 6, starting at 9:30 a.m. at Arizona State University’s Tempe campus.

It will feature:

* Catherine Reagor, senior real estate reporter for The Arizona Republic
* Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business
* Mark Stapp, the Fred E. Taylor Professor in Real Estate and director of the Master of Real Estate Development (MRED) program at the W. P. Carey School of Business

The three will participate in a panel discussion and then take questions from the audience. Reagor will offer insight into what she’s seeing as buyers and sellers negotiate ever-changing market conditions…and prospective buyers try to secure a mortgage.

Orr, a prominent real estate expert whose monthly reports on the Phoenix-area housing market are often covered by the national media, will talk about many factors that could affect prospective home buyers right now.

“Everything from investors to rising prices and the short supply of houses are coming into play for people who want to own a new home,” says Orr. “It can be frustrating to bid repeatedly for properties and still come up dry. I’ll go over some of the latest data that could help provide an edge.”

Stapp, an established real estate developer himself, will moderate the discussion and explain current trends in new-home building.

The event will be held in the Business Administration C-Wing Building, or BAC, at 400 E. Lemon St. at ASU in Tempe. Parking is available just across the street at the intersection of Apache Boulevard and Normal Avenue. Signage will direct participants from the garage to room BAC 116 on the first floor of the BAC building.

Because space is limited, registration is encouraged at conversations.azcentral.com. More information about the event can be found at www.money.azcentral.com, www.wpcarey.asu.edu, or by calling (602) 444-4931.

More information about the Valley real estate market is available in the W. P. Carey School’s monthly reports at http://wpcarey.asu.edu/finance/real-estate/market-reports.cfm.

Chandler Innovation Center

Spirit of Enterprise kicks off process

The W.P. Carey School of Business at ASU launched its 17th annual Spirit of Enterprise Kick-off Breakfast at the Edward Jones Training Facility on Wednesday.  This annual breakfast marked the start of the nomination process for 2013 Spirit of Enterprise and honored the 2012 sponsors and award recipients.

Highlights of the breakfast, according to Gary Naumann, director of the Spirit of Enterprise Center at the W.P. Carey School of business, were:

·  More than 25  Spirit alumni in attendance at the breakfast from as early as 2001 right on through 2012;
·  More than 30 companies nominated by Spirit alumni;
·  12 STEP projects (Student Teams for Entrepreneurship Projects);
·  12 Review sessions (each one comprised of one alumnus reviewing 50+ applications for Spirit Awards for a particular year);
·  6 separate guest speaking engagements in undergraduate and MBA entrepreneurship courses;

The Spirit of Enterprise celebrates ethics, energy and excellence in entrepreneurship and opens the door for entrepreneurs to have access to the tools listed above.  For more information, and to nominate your company for an opportunity to participate in these programs, go to http://wpcarey.asu.edu/spirit/.

WPCarey-School-Sign

W. P. Carey School Ranks Top 30 in the Nation

U.S. News & World Report announces its prestigious annual rankings for “Best Graduate Schools” today. For the sixth year in a row, the W. P. Carey School of Business at Arizona State University ranks Top 30 among the best graduate business schools in the nation.

“We’re really proud to demonstrate consistent excellence at the W. P. Carey School of Business,” says the school’s dean, Amy Hillman. “This particular ranking is largely determined by our peer business schools and corporate recruiters who offer our students jobs, so they are very aware of the great work happening here. Thank you to the dedicated faculty members, staff and students who do their best every day to keep us on the cutting edge of education.”

The new list for 2014 ranks the W. P. Carey School No. 30 for its full-time MBA program. It’s the best ranking for any Arizona school. The full-time program also ranks among the Top 20 nationwide for career placement at graduation, demonstrating the school’s keen interest in preparing students to succeed in the real world.

“In addition, our full-time MBA is among the two least expensive programs in the Top 30, a clear value,” says Stacey Whitecotton, senior associate dean of graduate programs at the W. P. Carey School. “It’s also among the two smallest programs in the Top 30, allowing us to keep class sizes at a personal level.”

In January, U.S. News & World Report also pre-announced that the W. P. Carey School’s online MBA program ranks No. 2 among online graduate business programs in the country. The online MBA program is known for its flexibility, convenience and offering of the same stellar faculty members who teach in the school’s highly ranked face-to-face programs.

Several other W. P. Carey School programs also appear on new graduate-level “specialties” lists from U.S. News & World Report this week. The evening MBA program ranks No. 22 among part-time MBA programs nationwide, the highest ranking for any Arizona school on that list. The renowned supply chain management program ranks No. 6 for supply chain/logistics, and the information systems program ranks No. 16 in its category. Also, the Ph.D. program in economics ranks No. 36 in its field.

Other recent high rankings for marquee programs at the W. P. Carey School:

* U.S. News & World Report ranks the undergraduate business program No. 24 in the nation.
* The Wall Street Journal ranks the executive MBA program in the Phoenix area No. 13 in the world.
* Britain’s Financial Times ranks the school’s China-based executive MBA program No. 21 in the world.
* The Center for World-Class Universities at Shanghai Jiao Tong University ranks the school No. 18 in the world for “economics/business.”

housing.prices

Phoenix Area Ready for Even Higher Home Prices

Even though the median Phoenix-area home price shot up by more than a third last year, we can expect area prices to keep soaring in 2013. That’s according to a new housing report from the W. P. Carey School of Business at Arizona State University, which offers the latest numbers for Maricopa and Pinal counties, as of January:

The median single-family home price went up 35.3 percent — from $120,500 to $163,000 – between January 2012 and January 2013.
The very limited supply of homes available for sale in the lower price range is expected to keep pushing prices higher.
Foreclosures went up somewhat in January, but it’s believed to be a normal, post-holiday-season bump that is already reversing.

Home prices have risen dramatically in the Phoenix area since reaching a low point in September 2011. The median single-family home price actually went slightly down between December 2012 and January 2013, but it’s expected to be a tiny blip on the radar. The new report by Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business, says low inventory will keep forcing home prices higher in the Phoenix area this year.

“The recent decline was predicted in our last report and is a seasonal effect,” explains Orr. “Pricing is almost always weaker in January, but February signals the start of peak buying season that lasts until the end of June. Make no mistake – prices are going to rise significantly during this period. There is nowhere else for them to go until a significant new source of active listings enters this supply-constrained market.”

The median single-family home price was already up 35.3 percent – from $120,500 to $163,000 – from January 2012 to this January. Realtors will note the average price per square foot went up 28.5 percent at the same time. The median price of a townhouse/condominium went up a whopping 45 percent – from $70,000 to $101,500.

Sales activity fell 12 percent from January to January, largely because of the lack of inexpensive homes available for sale. At the higher end of the market, sales are up somewhat from last year, but at the low end, multiple bidders face tough competition for few homes. Discounted, “distressed supply” – like homes from foreclosures and short sales — dropped 38 percent from the beginning of February 2012 to the beginning of February 2013. Overall, the number of single-family homes for sale priced under $150,000 (without a signed contract) is only a 43-day supply. Still, this is better than the 18 days of inventory available in June.

“We still have a long-term supply shortage with only about 50 percent of the active listings (without contracts) that we would expect to see in a normal market,” says Orr. “Consequently, the trend is for prices to continue to rise across most sectors. Most homes priced reasonably below $500,000 continue to attract multiple offers in a short time. Sellers are firmly in control.”

Since the number of bargain foreclosed homes and short sales available is generally dropping, many buyers are turning to alternatives like new-home sales, which are up an incredible 61 percent this January from last January. New-home construction permits are up 42 percent from a year ago. Home builders bought up a massive 2,272 lots in December to help meet demand. However, the trend dropped off in January, with only 143 lots changing hands, so Orr says the sales appear to have been timed for tax purposes by sellers concerned about paying higher tax rates in 2013.

Also, investor purchases are declining slowly after peaking in late summer, and Orr anticipates they will decline further as fewer bargains can be found. The percentage of investor purchases in Maricopa County dropped from 39.2 percent in January 2012 to 31.8 percent this January. Orr adds he doesn’t think large investors are driving the market as much as some analysts would have you believe.

“Some commentators have suggested that the presence of large investors is causing the recent price rise,” says Orr. “This vastly exaggerates their effect on our market. Large investors account for only around 8 percent of purchases, and if they disappeared overnight, there still would not be enough homes on the market to satisfy the small investors, second-home buyers and regular owner-occupiers.”

Foreclosures and foreclosure starts (homeowners receiving notice their lenders may foreclose in 90 days) went up a little from December to January. However, this is a normal yearly occurrence, because banks typically pull back on foreclosures during the holiday season. Completed foreclosures on single-family homes and condos were still down 45 percent this January from last January. Foreclosure starts went down 33 percent at the same time.

Orr’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at http://wpcarey.asu.edu/finance/real-estate/upload/Full-Report-201302.pdf. A podcast with more analysis from Orr is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.

Amy-Hillman

New Carey School Dean Takes Over

One of the top business schools in the nation will have a new dean at the helm, starting tomorrow. Current Executive Dean Amy Hillman — a world-renowned management expert, popular teacher and noted researcher — will take over as dean of the W. P. Carey School of Business at Arizona State University, effective March 1.

Hillman is the first-ever female dean of the school, which has undergraduate, full-time MBA, part-time MBA and online MBA programs all ranked Top 30 in the country by U.S. News & World Report. She is outlining a clear vision for the future.

“We’re going to keep advancing what we do to help our students achieve career and life successes,” says Hillman, who has played a key role in the growth of the school in her four years as second-in-command/executive dean. “Our world-class faculty is full of researchers who teach cutting-edge skills. We want to use this knowledge and our excellent position in a major metropolitan area (the Phoenix area) to help support the business world. We plan to broaden and deepen our business partnerships to become a ‘go-to’ place for firms to come to advance their work force and get help with real-life projects. We’re also going to focus on providing even more value and connections throughout the world for our vast 80,000-plus alumni network.”

Hillman never had dreams of academia when she was younger. She actually got her MBA on evenings and weekends, while striving to improve as general manager of a small retail and manufacturing business. However, several of her professors had such a profound influence on her that she realized she’d rather teach others about business than stay in her current job.

“As both an undergraduate and graduate student, I had individual faculty members who had a huge influence on my life,” says Hillman, who has been recognized with outstanding teaching awards every place she has worked. “I felt a sense that if I could make a difference for one student, like these faculty members did for me, then I would personally feel more accomplished than I did in the corporate world.”

Hillman has already made a clear mark on the W. P. Carey School in her decade-plus on the faculty as a management professor. She has championed entrepreneurship projects through the Spirit of Enterprise Center and helped to expand the school’s degree offerings to allow access to more students. (The school’s current total is more than 10,000 students). Recently, she was instrumental in the school introducing several new specialized master’s degrees to help undergraduates from other fields combine their passions with a solid business foundation. These include nine-month master’s programs in management and business analytics.

“I love ASU, and this opportunity to be a leader here, at a place that I love, is a real privilege,” says Hillman. “This is especially significant, since this year is the 10th anniversary of the gift from businessman/philanthropist Wm. Polk Carey that gave the school its name. We’ve come so far, thanks to this transformative gift, and we plan to go even further over the next 10 years.”

Hillman will preside over the opening of the new 129,000-square-foot, state-of-the-art McCord Hall this summer. The building will complement the two existing business-school structures, providing more classrooms for graduate and undergraduate honors students, technologically advanced team study rooms, a new career center, world-class conference facilities and outdoor assembly areas.

“This is a chance for us to really advance the science and culture of learning business,” says Hillman. “The way the building is set up, it will actually help our students to develop teamwork, communication and critical thinking skills.”

Hillman is also a strong supporter of the school’s research efforts. She is a renowned researcher in management, focusing on boards of directors, corporate political strategies, and how links between firms and their external contingencies improve financial performance. Her work has been featured in USA Today, The Washington Post and U.S. News & World Report, among other venues. The journal Technovation recently ranked the W. P. Carey School No. 1 among all business schools worldwide for authoring research in the Top 45 academic business journals with the most global impact.

“What makes this school special, though, is the people,” says Hillman. “The faculty, staff and students are so amazing, supportive and encouraging of each other. At some older, established schools, there is a sense of complacency. The W. P. Carey School is like a nimble entrepreneur, seeking to constantly improve. That feeling permeates our culture, helping us to transform and advance lives, the school and the business world.”

Hillman takes over for current dean, Robert Mittelstaedt, who is semi-retiring after 40 years in academia, including various leadership positions at the prestigious Wharton School at the University of Pennsylvania. He is an experienced business co-founder, a board member of three public companies and author of two business books. He will continue to serve at ASU as an adviser to the president and provost, as well as work on a project focused on the business and technical issues facing electric utilities in the future.

For more information about the W. P. Carey School of Business and its programs, visit www.wpcarey.asu.edu.

Phoenix-Area Housing Market

Phoenix Housing Report: 2012 Numbers and Look Ahead at 2013

Though home prices continue rising, things are still far from perfect in the Phoenix-area housing market. A new year-end report from the W. P. Carey School of Business at Arizona State University provides a 2012 summary of the numbers for Maricopa and Pinal counties, as well as some insight on what’s ahead:

* The median single-family-home sales price shot up almost 34 percent — $122,500 to $164,000 — from December 2011 to December 2012.
* The supply of homes for sale fell 6 percent from January 2012 to January 2013, with discounted, “distressed” supply down a whopping 42 percent.
* Foreclosures finally plummeted 51 percent from December 2011 to December 2012, signaling we are near the end of a terrible chapter in the Phoenix-area housing market.

Mike Orr, the report’s author, says things have dramatically changed in the Phoenix-area market over the past year or so. Prices have risen significantly since they reached a low point in September 2011.

“2012 was all about low inventory, which has been driving up home prices,” explains Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. “Foreclosures and short sales have gone down, eliminating the sources of many cheap homes, so the more expensive types of transactions, like normal resales and new-home sales, went up. As a result, new-home construction, which was at rock bottom in 2011, also really came roaring back in 2012.”

The median single-family-home price in the Valley went up about 33.9 percent from December 2011 to December 2012, rising from $122,500 to $164,000. Realtors will note the average price per square foot went up 27.2 percent. The median townhouse/condominium price went up 42.7 percent, from $70,000 to $99,900.

“However, we expect to see that prices held steady or even fell slightly between December 2012 and January 2013,” says Orr. “Between Christmas and the Super Bowl is always a quiet time for home sales in Greater Phoenix, with ordinary home buyers much less active than average and investors continuing to concentrate on the lower price range.”

On the overall supply of homes for sale last year – Orr says inventory went down 6 percent from the beginning of January 2012 to the start of January 2013. Still, the supply began to bounce back toward the end of the year, increasing 13 percent in the fourth quarter. The supply of cheap, “distressed supply” plunged 42 percent over the year, as foreclosures and short sales fell. Overall sales activity also fell 12 percent for single-family homes and 13 percent for townhomes/condos from December to December.

“With prices moving substantially higher, it’s not surprising that buyer interest eased a little,” says Orr. “We still see multiple bids for many resale listings, but demand isn’t as strong as it was in spring 2012.”

Investor interest has dropped somewhat in recent months, after peaking in late summer. This means ordinary home buyers face less competition from investors’ all-cash offers. Still, all-cash purchases accounted for more than a third (35.5 percent) of the deals in Maricopa County in December. Some investment groups have started buying homes wholesale in bulk from other investors, since the market has become more competitive. Nevertheless, Orr asserts most investors are using their own money and not debt, so he doesn’t expect another housing bubble from this activity.

“Developers are also becoming more active, as bargains become tougher for the average buyer to find and those buyers turn to new-home construction,” says Orr. “Developers are stocking up on vacant lots – having purchased almost 2,300 of them, plus several tracts of undeveloped land, in December alone. However, the number of permits to build on the lots hasn’t shot up, so it looks like developers are trying to remain flexible, deciding whether to build or hold the land for the future.”

Foreclosure starts – homeowners receiving notice their lenders may foreclose in 90 days – are down 40 percent from December 2011 to December 2012. Completed foreclosures are down 51 percent.

Almost all areas of the Valley rebounded significantly in 2012. In fact, Wickenburg is the only city where the average price per square foot went down from December 2011 to December 2012.

Orr’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at http://wpcarey.asu.edu/finance/real-estate/upload/Full-Report-201301.pdf. A podcast with more analysis from Orr is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.

My Electronic Pillbox can help with complex medicine regimes

Cheap medicine more vital, study reveals

People may think it’s more vital to take their medicine, if that medicine is cheap. A new study from the W. P. Carey School of Business at Arizona State University shows consumers believe prices for lifesaving products are based on need and not profit. Therefore, they often assume their risk of getting a serious illness is higher when the medicine is less expensive, and they’re also more likely to plan to get the treatment, including flu shots.

“We find that people have a fundamental belief that everyone should have access to lifesaving care, such as vaccines, doctor’s visits, screening tests like mammograms, and cancer treatments,” says Assistant Professor Adriana Samper of the W. P. Carey School of Business. “Nobody wants anyone to die because they didn’t have the resources to cover the treatment. Therefore, they believe communal pricing (based on need), rather than the normal market pricing for other goods, applies in these situations. They expect medicine for a serious illness to be inexpensive.”

Samper’s new marketing study, co-authored with Assistant Professor Janet Schwartz of Tulane University, will appear in the April edition of the Journal of Consumer Research. In a series of experiments, the researchers demonstrated several interesting points about medication pricing, and those points held true, even if insurance — not the consumer — was going to pay for the treatments.

In the first experiment, participants in an online study were asked to evaluate 10 products and services based on whether they were priced for “communal” purposes or market value. Vaccines, doctor’s visits and drugs used to prevent serious illnesses all ranked as being driven by communal pricing, while items like tax-preparation services, restaurant menu items and home electronics all ranked as market-driven.

In the next experiment, online participants were asked about a fictitious cream described as either preventing skin cancer or preventing age spots. The cream was also offered at a low price of $25 or a high price of $250. Price had no effect on attitudes toward the cosmetic cream, but when the skin-cancer treatment was only $25, respondents believed they needed it more — that they were at higher risk for the disease.

“We see the same thing for a flu shot,” says Samper. “People are more concerned about getting the disease and addressing prevention if the vaccine is cheaper. That’s an important note for health officials during our especially tough flu season right now.”

A third experiment showed participants an ad for the same cream, with the same image, but slightly different versions of text, again reflecting whether the cream was for skin-cancer prevention or cosmetic purposes. The two different price points were offered in each case. Consumers were much more likely to keep reading the ad and planned to pursue the treatment in the case where the cream was for skin cancer and the price was lower. This happened even when insurance was going to pay for the cream at either price.

“This implies a possible problem with the recent push for price transparency,” adds Samper. “In some cases, high prices may signal lower self-risk, and people may not think it’s important to get needed treatments just because the cost is high.”

In the last experiment, the researchers tested the effects of different types of messages meant to encourage people to get flu shots. They used the two prices again and also varied whether the flu’s consequences were described as self-focused — such as missing work or paying medical bills if you got the flu — or societally-focused — such as getting other people sick or hurting economic productivity with the flu’s spread. Very clearly, individuals again increased their assumption of risk and intentions to get the vaccine in response to lower price, but only when the message focused on personal consequences of the flu.

“Therefore, public health officials should take note: Ads emphasizing the protection of other people do not appear to convince people to get vaccinated,” say Samper. “People respond best to messages that emphasize how illness will personally affect them.”

The full study can be found at http://www.jstor.org/stable/info/10.1086/668639.

flinn scholars

W. P. Carey School Offers Free College Prep Program

High school students who want to know what it’s really like to attend one of the top business schools in the nation are about to get their chance. The W. P. Carey School of Business at Arizona State University is now accepting applications for its annual free Fleischer Scholars college-prep program.

This is the fourth year of the business program, which is being doubled in size to accommodate about 60 Arizona high school students. Economically disadvantaged students between their junior and senior years are encouraged to attend. Participants will spend a week with supervising mentors in Barrett, the Honors College at ASU’s Tempe campus, while learning business skills and preparing for college.

“The Fleischer Scholars Program is designed to help deserving students learn about business careers, college study skills, and application tips, including financial-aid advice,” explains Robert Mittelstaedt, dean of the W. P. Carey School of Business, which has an undergraduate business program ranked Top 25 in the nation by U.S. News & World Report. “Students will get to work with current W. P. Carey School students and faculty members, as well as local business leaders. We want to set them on the path to success.”

High school counselors and teachers are asked to identify strong candidates interested in business to attend this summer. Students from the W. P. Carey School’s business magnet-school programs at Marcos de Niza High School in Tempe and Liberty High School in Peoria are among those who will consider this.

“These kids are in for a great week and an amazing experience,” says Sebastian Navarro, a past Fleischer Scholar, who now attends the W. P. Carey School of Business. “I can’t say enough how valuable this program was. I learned about the business school and did some incredible networking with the college staff. I also got a student mentor who still helps me plan out my classes, and I was able to choose a major based on what I learned. I got a feel for living in a dorm atmosphere and what college life is really like.”

The program is available in two different sessions this year: June 9-14 or 23-28. Applications are due April 1. For more information, go to www.wpcarey.asu.edu/summerscholar or call or e-mail Katie Cobos at (480) 965-5187 or Katherine.Cobos@asu.edu.

The entire program is sponsored by local entrepreneur Morton Fleischer and his wife, ASU alum Donna Fleischer. They want to educate young people about the opportunities and achievements freedom provide, so students can add to the legacy of American entrepreneurs.