Brenda's Tucson Housing Market Report
May 2008 Tucson Home Sales

This month we continue to see declining inventory, declining new listings and increasing sales under contract. The April MLS Statistical report also shows increases on a month over month basis in sales volume, units sold and even the Median sales price.

Market Improving, We are slowly and surely coming up out of the bottom of this market cycle. The statistics from the mls are quite clear and easy to understand in this respect. Current inventory is down almost over 1,200 units from this time last year!

It's difficult out there right now, we are in a little bit of a strange time. As the market begins to turn, Buyers are still trying to get the Deal of the Century and Sellers are firming up on their prices which makes for some interesting negotiations.

Bottom Line: Buyers and Sellers both need to be reasonable in their expectations and willing to compromise in order to put the transaction together.

Key current month statistics from the Tucson Association of Realtor’s May 2008 Report show:

Total Tucson Home Sales Units: 1,025, Decreased 27.71% from May 2007. Increased 5.34% from last month.

Total Tucson Pending Sales: 1,485, Increased 24.68% from May 2007. Decreased 4% from last month.

Tucson Average Sale Price: $250,803, Down 9.98% from $278,619 in May 2007.
Northwest Tucson Average Sale Price: $267,556, Down from $298,496 last month.
Catalina Foothills Average Sale Price: $480,830, Up from $466,000 last month.

Total Tucson Active Listings: 8,527, Down 12.28% from 9,721 in May of 2007.
Northwest Tucson Active Listings: 2,172, Down 156 units from last month.
Catalina Foothills Active Listings: 784, Down 56 units from last month.

Total Tucson New Listings: 2,282, Down 22.9% from 2,960 in May of 2007.
Northwest New Listings: 503, Down 76 units from last month.
Catalina Foothills New Listings: 178, Down 80 units from last month.

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

Positive Market Indicators this month. Large decrease in Active Listings. Large decrease in New Listings which dropped 22.9% from May 2007. Another huge increase in Pending Contracts (up 24.68% over April 2007). These last couple of months of huge increases in pending sales show us that the savvy buyers are in the market now buying right before the prices head back up.

Negative Market Indicators this month. Units sold and average prices were down again this month. We may see this continue for a few more months as the last of the desperation sales work through the system. This is a very normal process as the market starts to change direction.

The Bottom Line: this is pure and simple, Economics 101. Declining supply (inventory) plus increasing demand (pending contracts) will eventually lead to higher prices. It is just a matter of time, and probably not too much time either.

This Market is Changing, that's for sure!. We are seeing more buyers actively looking around. Sales are still a little harder to put together as both buyers and sellers are negotiating hard. Inventory keeps creeping down and increasing sales activity are certainly positive signs.

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

May 2008 Tucson Multiple Listing Service Report

NEW 2008 1st. Quarter Report - Northwest Tucson

NEW 2008 1st. Quarter Report - Catalina Foothills

2007 (Year in Review) Tucson Multiple Listing Service Report

Brenda's 2007 Year End Tucson Housing Report

Long Realty 2007 Year End Market Report

Tucson Housing Market Report Archives

Questions about current Tucson Housing Market Conditions?
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