April 23rd, 2009 by Michael Oliver

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First time buyers in both Tucson AZ and across the country right now essentially are the real estate market a new report came out today showing that almost HALF of all home sales were first time buyers! This is a very good sign for the real estate market (in my mind anyway) when the first time buyers enter the market it allows the other sellers and buyers in the move up categories to do just that “move-up”. So for the time being I high percentage of the market is first time homebuyers here in Tucson this is also ho0lding true as the under $200k market seems pretty hot. In the past month I have represented several first time buyers and in almost all cases there has been a lot of activity and small bidding wars. Low interest rates, (sub 5% currently) combined with sub 2002 home prices in Tucson, (in most situations) and a federal $8,000 tax credit for making a first home purchase are simply making it to cheap for first time buyers not to step up and make a purchase.

In other national home stats the home sale rate fell 3% to an annually adjusted pace of 4.71 million units. The median sales price in March sat at $175,200 down 12% from last March but higher then February’s median sales price of $168,200. The largest sales increases were seen in the western cities where prices have fallen steepest. This would include Tucson Arizona as we have seen prices fall generally speaking in most situations roughly 40% from 2005-2006 highs.

In other real estate news I have personally seen the higher price ranges starting to move as homes in the 300k-500k price range generally speaking are getting a lot more showings and offers then in the past 18 months. I think more willing buyers and low rates and substantial price declines have awakened buyers who otherwise would not be willing to sell their current home in a bad sellers market to make the larger move up purchase.