Brenda's Tucson Housing Market Report
Spring Season 2011 Very Strong! Sales Up Dramatically
Average Days On Market = 107 ~ Sales Price as a % of List Price = 95.02%
Prices still creeping down, Sales Up Dramatically: Same song, different verse. Sales continue to pick up as prices creep lower. Many buyers are recognizing that we are very near the end of this once in a lifetime buying opportunity. Many other parts of the country have already started back up with positive percentage gains in prices. It's taking a little longer in the hardest hit "boom states" of the mid 2000's but it's coming. Again this reporting period there were more homes sold than any February since back in 2007.
Economy Improving: America is starting to feel it. A stronger stock market and a slightly decreasing unemployment rate are helping. The mood out there is improving, just check out any Mall or Restaurant in your area, the parking lots are full and there are waiting lines for the restaurants. The year is off to a good start and we continue to expect steady improvement in the housing market in Tucson throughout 2011. There may still be a few months of slightly declining average prices but sales activity is very strong and should remain so throughout the year. Expect Higher Average Prices AND Higher Interest Rates by the end of the year.
Interest Rates on the rise: Interest rates are starting to creep back up as expected. There is starting to be talk of future inflation which will drive rates higher as all the base commodities appreciate in value. Gas is already shooting up and Gold is at all time high's. Expect inflation to be the new buzzword in the media for the next couple years as that concept takes hold.
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 February 2011 Report show:
Total Tucson Home Sales Units: 879, Increased 18.62% from February 2010. Increased 12.69% from last month.
Total Tucson Homes Under Contract: 2,272, Increased 30.34% from February 2010. Increased 12.87% from last month.
Tucson Average Sale Price: $182,388 Down 6.94% from $195,996 in 2010.
Northwest Tucson Average Listing Price: $226,619 Up from $217,679 last month.
Catalina Foothills Average Listing Price: $404,764 Up from $367,922 last month.
Total Tucson Active Listings: 6,947, Up 3.09% from 6,739 in February of 2010.
Northwest Tucson Active Listings: 1,772 Down 82 units from last month.
Catalina Foothills Active Listings: 727, Down 6 units from last month.
Total Tucson New Listings: 1,487, Down 617 units from 2,104 in February of 2010.
Northwest Tucson New Listings: 355, Down 145 units from last month.
Catalina Foothills New Listings: 140, Down 59 units from last month.
Some quick conclusions we can draw from these Tucson home sales statistics are:
Positive Market Indicators this month: Total units sold up 18% from same period last year. Units under Contract up 60% over same period last year. New listings down 29% over same period last year. We are in the middle of our prime annual selling season now and the buyers are stepping up to the plate! Lots of great deals to be had now, that's for sure.
Negative Market Indicators this month: Average Sales Price still creeping lower, but this will end soon. Currently down 6.94% from last year. Interest rates have started back up. We believe we have now passed the bottom in interest rates and expect to see rates gradually increase throughout the year.
Market Outlook: As we predicted last month, February was busy, Very Busy. We expect the next few months to be very strong also before we head into our midsummer slump. Still lots of buyers out there looking so if you're a seller make sure your home looks it's absolute best as we try and catch the last couple months of this sales season.
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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