October 23rd, 2012 by Michael Oliver
It’s rare in the past 10 years I have been selling homes I can’t remember a time when I would say it was a great time for sellers to sell AND buyers to buy. Usually you are in either a buyers market when prices are low and there aren’t enough buyers buying so prices are weak, allowing buyers to be picky and get good discounts. The Tucson home market saw this type of market in 2007,2008, half of 2009, and severely in 2010, with the first half of 2011 also being a strong buyers marketplace.
Then other times it’s clearly a sellers market where sellers win out with not enough homes available to buyers; prices tighten or go up and buyers have to outbid each other to get a home. 2004, 2005, most of 2006, second half of 2009 and the summer of 2012 we were in a seller’s marketplace. Today I would say we are in kind of both where buyers can take advantage of ultra-low prices and interest rates, barely enough inventory available so sellers can get good prices enabling them to sell.
I think this market will continue for the near future as Tucson is seeing more homes hit the market but low interest rates with slight loosening of mortgage requirements is allowing more buyers to buy meeting supply. In this market prices are able to go up 10% or so with buyers still paying less in a mortgage payment then they would have last year due to lower interest rates. The last quarter of 2012 and the start of 2013 should be great times to sell a home and move into something else which I have seen a lot of sellers recently looking to do. This return of the move up buyer has been absent in the Tucson housing market since roughly 2007 as sellers decided not to sell for lower prices then they originally thought their home was worth and buyers had a lot of issues with the confidence in Tucson housing stability. Today this has changed, buyers feel pretty good with buying at today’s prices and rates while sellers feel good selling in most situations knowing the bottom has passed with not having to compete with foreclosures as in years past.
All in all I would say the Tucson market is going to be pretty steady for the next 12 months with price gains of around 10% assuming interest rates stay low. If you are looking to buy I think today is a great time to lock in low prices and get great rates. Seller’s I would say the same is true while prices are lower then in 2005 they are significantly up off of 2010 and 2011 price lows allowing you to get a fair price for your property. if you would like more info about buying or listing a property for sale let me know and I will be more then happy to take a look at what you would like to do.