Tucson Real Estate News

Yesterday, I was at a brown-bag think session with members of the Tucson Downtown Partnership, Metropolitan Pima Alliance and Southern Arizona Home Builders Association.  What we were learning about was a draft proposal for invigorating Tucson's core that the Downtown Partnership is working on - which is very impressive & well thought-out. 

One of the beautiful things of luncheons like these are the ideas that flow from them...and this one had a beauty pop up!

Scott Greenburg had an idea that really made sense to a lot of people (myself included) that would do a lot of good in a variety of ways - private developers build apartments in downtown Tucson or the 4th Avenue area, but with no parking spaces...and lease the building to the University of Arizona for student housing.

• University of Arizona needs student housing, but is landlocked
• U of A and the City of Tucson are looking for ways to utilize Downtown together
• No parking facilities will keep the cost down & encourage use of public transportation (plus campus is a walkable or bicycle distance anyhow)...and these areas are right where the new streetcar route is going
  
• A no-car dorm is very parent-friendly
• Everything a student would need is very accessible by either walking, biking or public transport - including the entertainment venues that students already frequent

After mulling over Mr. Greenburg's idea some more, the brilliance of it really stands out.  Perhaps having the street-level as retail & restaurants could further add value to all sides.  Town/Gown relationships would have a great opportunity to grow even futher.

Now if only we can get the department of frozen molasses, I mean, the planning & zoning department to pull their heads out & look at something practical for a change, this could really work!

Anyone care to share examples from your corner of the world?

With most of the action happening on the lower end of the market in Tucson - the luxury market is still in a slump.
This fact leads to opportunities for buyers looking to take advantage of their strong position and pick up the home of their dreams or make an investment in resort property.

It was the best of times.         It was the worst of times.

(apologies to Dickensian scholars worldwide)

It is a buyer’s market.              It is a seller’s market.

Both statements are true—it all depends on what part of the market you’re looking at. There are some very interesting dynamics at play in the Tucson real estate market this summer—we’ve got 2 markets going at the same time in one city.

On one end of the spectrum, multiple offers and bidding wars are reminding people of the “boom days” of 2005-06, when offers would start pouring in on properties before the “For Sale” sign was in the ground.

At the opposite end of the market, homes are languishing for months and months without much activity while prospective buyers are demanding (and getting) price reductions, repairs, upgrades and other concessions from sellers.

Overall, there are just over 4,000 single family homes on the market today in the immediate Metro Tucson area. Since June 1—just over 2,000 have sold (about 6 weeks). That means that there is roughly 3 months of inventory on the market today, which is a drastic improvement from the year’s supply we had last year.

Here’s where it gets interesting: out of those 4,000 homes on today’s market...950 are priced at $500,000 or more. Only 730 are priced under $150,000. Guess which market segment sold the most homes the past 6 weeks?

Ready? Drum roll please...

         Comfortable & Affordable?                    OR                                  Luxury ?

Out of 2047 homes sold since June first, 762 were under $150,000. Only 114 in the half-million and up range have sold since the beginning of summer. Not too hard to figure out where the action is.

Purchasing a home in Tucson right now is an exercise in different disciplines: in the lower end of the market, things are fast, furious and ultra-competitive while the luxury market is begging buyers to “Pick Me! Pick ME!!!!”

The best part of it all? Bargains are in all areas of the market—you just need to work with someone who understands market dynamics and is adept at identifying the contenders in a sea of pretenders—someone like me.