Brenda's Tucson Housing Market Report
Sales Continue Strong Thru March, Prices Continue to Slip
Average Days On Market = 84 ~ Sales Price as a % of List Price = 94.46%
Sales continued strong thru March: Sales Strong but Prices keep creeping lower. Amazingly enough this March saw exactly the same number of sales (1169) as March of 2010. We don't see that often! Lots of bargain hunters & investors out there with the lower price points moving well.
Days on Market Drop: We saw a dramatic drop in Days on Market this reporting period, from 107 in February to 84 in March. This may be an indicator that buyers are starting to feel a tiny bit of urgency and are making better offers, and or, that sellers are starting to see the end of our spring selling season approaching and are being a little more flexible in what they will accept. Either way, Days on Market dropped significantly and this is a good sign.
National Economic Indicators continue to slowly improve and unemployment rates are continuing to slowly decline. The year is off to a good start, lets hope it continues. We still have 6-8 weeks of the spring season left so if you're a seller, start checking your hole card before outright rejecting that next offer. At least counter those goofy offers, keep the parties talking, often you can come together. Come summer those offers that we rejected back in the spring may start looking pretty good. We now are expecting sales to slow this summer.
Interest Rates on the rise: Interest rates continue their slow creep back up as predicted. The historic lows in interest rates have passed folks. If you're waiting for those rates to return you're betting on the wrong horse. Inflation is coming and interest rates will raise in the face of that. Buy soon, for these current rates will not be around next year.
We're leaving this paragraph from last month in because it is so pertinent to the market today!
Historically any recession is always followed by an inflationary period of rising prices and higher interest rates. That's where we're headed, particularly after the unprecedented spending spree the government has been on trying to kick start the economy. We firmly believe we've seen the lowest interest rates we'll see in our lifetimes. Here's the chorus again, It's time to Buy! Any slight price discount you get by waiting will probably be offset by higher interest rates.
Feel free to contact us with your questions. We're easy to talk to and we can answer any questions you might have about current market conditions, interest rates or where home prices are headed. If you're interested in talking about listing your home we'd be happy to provide our recommendations on how best to proceed.
Key prior month statistics from the Tucson Association of Realtor’s April 2011 Report show:
Total Tucson Home Sales Units: 1169, Exactly the same as March 2010. Increased 32.99% from last month.
Total Tucson Homes Under Contract: 2,152, Increased 38.93% from March 2010. Decreased 5.28% from last month.
Tucson Average Sale Price: $163,590 Down 18.90% from $201,710 in 2010.
Northwest Tucson Average Listing Price: $210,773 Down from $226,619 last month.
Catalina Foothills Average Listing Price: $378,116 Down from $404,764 last month.
Total Tucson Active Listings: 6,703, Down 1.41% from 6,799 in March of 2010.
Northwest Tucson Active Listings: 1,717 Down 55 units from last month.
Catalina Foothills Active Listings: 679, Down 48 units from last month.
Total Tucson New Listings: 1,623, Down 681 units from 2,304 in March of 2010.
Northwest Tucson New Listings: 392, Up 37 units from last month.
Catalina Foothills New Listings: 127, Down 13 units from last month.
Some quick conclusions we can draw from these Tucson home sales statistics are:
Positive Market Indicators this month: Sales activity still strong, Units under Contract up almost 40% over same period last year. New listings down 681 units from same period last year & Active Listings down slightly from last year. We are in still in our prime annual selling season with lots of buyers out there.
Negative Market Indicators this month: Average Sales Prices still creeping lower & Interest rates are increasing. We are past the midpoint of our spring selling season and summer will bring a slump.
Market Outlook: We expect April and May to be good with sales tapering off after that as we enter our seasonally slower summer season. Sellers, heads up, make sure your home shows it's absolute best & look at every offer very seriously now as we try and catch the last couple months of this sales season. Buyers, Make reasonable offers and you will have much better luck, offers of 20% - 30% off list price are just not going to fly. The average sales price for all sales city wide this period is 94.46% of asking price (see headline above). All those low ball offers do is insult the sellers and make them harder to work with.
The Tucson Market Reports below will give you a detailed look inside the current Tucson Housing Market.
Questions about current Tucson Housing Market Conditions?
Email Brenda or call her Today at 520-918-5968
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