Brenda's Tucson Housing Market Report
February 2009

January started off with a bang, we are optimistic about a good year ahead

January Was Busy. Things really picked up in January as expected. We were out with lots of clients and got several transactions together. Although there are lots of buyers out there looking, they are being Very Particular. Everybody still thinks things are terrible in the real estate market and they are reluctant to put their hard earned money on the table right now.

Buyers are looking closely at Quality and Value, more so than ever in the current economic environment and they are making low offers. We are constantly challenged to explain to buyers that people here are not going to give away their property and that homes here are still selling at approximately 95% of asking price.

We Expect 2009 to be a Recovery Year. The flood gates are open and federal funding is flooding into the markets. This should get the economy going again and people's mood should start swinging from negative to positive and that will translate into improving real estate markets across the country

Tucson is uniquely positioned to benefit from any improvements in the market with our retirement destination, our wonderful weather and the affordability of our housing stock improving every month. Those baby boomers have been sitting on the sidelines long enough and they will start coming back into the market soon as they sense the change coming.

It's Going To be Gradual, but we strongly believe that 2009 will be a better year than 2008 and at the end of the year it will be obvious to all, that we are past the bottom.

Spring Looks Great, The Weather is improving and the buyers are here. We're Very Optimistic about a Strong Spring Buying Season!

Key prior month statistics from the Tucson Association of Realtor’s February 2009 Report show:

Total Tucson Home Sales Units: 588, Decreased 5.31% from January 2008. Decreased 24.13% from last month.

Total Tucson Pending Sales: 941, Decreased 12.79% from January 2008. Increased 53.76% from last month.

Tucson Average Sale Price: $208,133, Down 21.51% from $265,178 in 2008.
Northwest Tucson Average Sale Price: $269,464 Up from $247,578 last month.
Catalina Foothills Average Sale Price: $458,242 Up from $365,094 last month.

Total Tucson Active Listings: 7,694, Down 16.08% from 9,168 in January of 2008.
Northwest Tucson Active Listings: 2,053, Up 63 units from last month.
Catalina Foothills Active Listings: 780, Up 55 units from last month.

Total Tucson New Listings: 2,361, Down 36.94% from 3,744 in January of 2008.
Northwest Tucson New Listings: 648, Up 266 units from last month.
Catalina Foothills New Listings: 276, Up 163 units from last month.

Some quick conclusions we draw from these Tucson home sales statistics are:

Positive Market Indicators this month. Active Listings continue their steady decline, we had well over 9,000 active listings this time last year. Declining Average Sales Price has now become a Positive Factor and buyers are seeing Value in this market, This is evidenced by the large number of buyers in the market now and the huge spike in Pending Sales in January, Homes Are Selling! Current Interest Rates are at historic lows and Congress has passed an Economic Stimulus Package which includes a First Time Home Buyer Tax Credit of up to $8,000!

Negative Market Indicators this month. This is still a soft market, the foreclosures and short sales are still having a dampening effect on our market comprising about 25% of all sales. Buyers are low balling almost every offer.

Still Bottoming. Eventually the foreclosures and short sales will work their way out of the system. We do expect the economy to start improving as the people in Washington are flooding the system with money. This will work its way into the economy and will almost certainly start to change the public perception as new jobs are created and the economy starts improving. This massive influx of federal funding will certainly stimulate the economy.

The Tucson Market Reports below will give you a detailed look inside the current Tucson Housing Market.

February 2009 Tucson Multiple Listing Service Report

2009 February Housing Report - Northwest Tucson

2009 February Housing Report - Catalina Foothills

2008 (Year in Review) Tucson Multiple Listing Service Report

Brenda's 2008 Year End Tucson Housing Report

Long Realty 2007 Year End Market Report

Tucson Housing Market Report Archives

Questions about current Tucson Housing Market Conditions?
Email Brenda or call her Today at 520-918-5968
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