Tucson Market Statistics - April 2007
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| Average Sale Price: | |||||
| Existing Homes | $257,368 |  2.1% from Mar | |||
| New Homes | $289,820 |  2.6% from Mar | |||
| Median Sale Price: | |||||
| Existing Homes | $210,000 | 2.3% from Mar | |||
| New Homes | $241,020 | .001% from Mar | |||
| Total Sales: | |||||
| Existing Homes | 1,527 | 32 from Mar | |||
| New Homes | 533 | 127 from Mar | |||
| Active Listings | 10,387 | Record High!! | |||
| New Listings | 3,085 | ||||
| Under Contract | 1,217 | 25 from Mar | |||
| Average Days on Market | 65 | 2 from Mar | |||
| *Information provided by Tucson Association of Realtors Multiple Listing Service and The Arizona Daily Star | |||||
| ARCHIVED STATISTICS | |||||
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Market Recap: By Michael Oliver
The Tucson AZ (Arizona) real estate marketplace is still experiencing a record high amount of active listings. With the extremely high amount of active listings in the Tucson AZ marketplace — currently over 10,000 homes — this amount of homes will put downward pressure on home prices throughout the year. For buyers that are currently in the marketplace or thinking of purchasing a home in the near future they will be able to not only get a choice pick but also should be able to have an advantage in negotiations since most sellers know they are competing with several other sellers in their marketplace. Over the past 10 years a rough average of active listings has hovered somewhere between 4000-5000 listings and as already noted we are experiencing current levels of 10,000+. This should make it obvious that the Tucson Market is in an extreme buyers market state.
Buying Opportunities
For buyers, there is more to choose from then ever before. This opens the door for them to find homes that they really want vs. settling for the only home they can get (as in prior years due to bidding wars). Once a buyer does find the home they would like to purchase, most sellers are very willing to work with them. For buying opportunities, almost every New Construction Home Builder is offering extreme incentives to sell their homes. In outlying areas, such as Sahuarita and Gladden Farms in Marana, especially, homes can be purchased for almost the builders' cost. (These are extreme examples and it also depends a lot upon the builder and their individual situation. A real estate professional should be consulted to help you find the best deals when looking to buy any home, especially new construction.)
Investment Opportunities
If you are looking to find investment opportunities in the Tucson AZ marketplace, one should look at purchasing pre-foreclosures, and foreclosures alike at auction. This is most likely — if you do your homework — where the real deals in our marketplace will be found. The collapse of the sub-prime refinance/purchase market has left many homeowners with decent equity who cannot afford the payments due on the loans they took out and cannot refinance because the loans are no longer available to them. As a third condition, many times the home owners cannot sell either due to the competition of the marketplace and the fact that many homeowners wait until the last possible second before they decide to sell. This can leave a potential profit for an investor that can help out the homeowner to alleviate their problem and let the investor make a profit as well.
The other opportunity that many investors are taking is the purchase of New Construction homes that can be bought incredibly cheap in many situations. Some builders have inventory (Spec) homes priced at cost. Most sophisticated investors realize that the current market conditions Tucson is experiencing will not last for more than 18-36 months, and they could stand to make a nice profit when the market goes back to a more balanced market. Tucson still attracts roughly 28,000 new residents a year and also has a unemployment rate that is currently very low compared to the rest of the nation. To even drive the point further, Arizona is the fastest growing state in the nation. All these factors should result in real estate prices start to go back to the historic average of 4-5% a year.
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