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.
Specializing in Buyer Representation in the Tucson, Arizona real estate market.
"Never forget - Real Estate Is About People"
Kent,
Clearly the high end market is a tough one right now. If Fannie Mae would increase the loan limits up to about $550,000, that market would rev up. People don't want Jumbo loans and neither do the banks. Thus 6 to 6.5% interest with 25% down. Good Post!
Howdy there Kent
It sure does look as folks, are not at all want-en to saddle them selves with high monthly payments. Just like folks in most of the Country right now. My frirnd, you sure did a real fine job with this post, to help folks understand, whats go-en on in the Tucson area.
P.S. It sure is good to see you!
Hi Kent, great post with good information. As a Tucson lender I am really glad to see things moving in the right direction. Keep on writing, your posts are very interesting. Thanks.
I enjoyed your post Kent, but then I alwyas like what you write...I will make it a point to check you out and sign up on twitter. Thanks for the info! Glad you liked my post!
Patrick - I think we may see some more action in the mid-market now - especially if the changes in the Homebuyer Tax Credit give any juice to the trade-up & trade-down buyers.
Dale - thanks buddy!
Michael - I appreciate your kind words
Terry - you do a great job yourself - lets connect more often!