Tucson Market Statistics - August 2007
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| Average Sale Price: | ||||||
| Existing Homes | $257,040 |  2.1% from July | ||||
| New Homes | $282,272 | 8.4% from July | ||||
| Median Sale Price: | ||||||
| Existing Homes | $214,000 | .004% | ||||
| New Homes | $234,750 | 5.3% from July | ||||
| Total Sales: | ||||||
| Existing Homes | 1,191 | 4.1% from July | ||||
| New Homes | 477 |  20% from July | ||||
| Active Listings | 8,954 | 3% from July | ||||
| New Listings | 2,337 | 18% from July | ||||
| Under Contract | 1,024 | 42% from July | ||||
| Ave. Days on Market | Unavailable | |||||
| *Information provided by Tucson Association of Realtors Multiple Listing Service and The Arizona Daily Star | ||||||
If you would like more detailed statistics, a comprehensive PDF document produced by the Tucson Association of Realtors/MLS is available for viewing HERE. | ||||||
| ARCHIVED STATISTICS | ||||||
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Market Recap: By Michael Oliver
The Tucson real estate market, as most people related to real estate in Tucson already know, is still in its downward trend. The good news is that the Fed dropping their rates will transfer through to mortgage rates, making homes already much more affordable than years prior — even less expensive on a monthly basis. Price reductions are still very common, suggesting sellers should price homes at or below market prices to sell them quickly. Homes that are priced at or just under market and marketed properly by the real estate agent/company in charge are still selling very quickly. To me, it feels like sellers are finally making the tough decision to sell now at current prices or rent the property, or just stay put for when the market makes its rebound. This, in my opinion, is the last round which will help the market improve sooner rather than later. Fewer sellers are asking outrageous prices and more are willing to take the price decreases, pay higher commissions for additional marketing exposure, and get the home in perfect condition to get it sold fast. The sellers who are not willing to do these things are just renting or staying put, which will eventually adjust the inventory downward. To put it in perspective, if you're thinking about selling, price the home very competitively and hire a real estate agent who is very aggressive and will market your property extensively to get it sold. In my experience, a top notch internet presence is the most effective tool in the business.
I have also noticed that builders are starting to come around to the idea that they need to cater to buyers' wishes and price the homes less expensively to move their standing inventory. (Hence the reason new home prices are down 8.4% month over month.) They are trying to move as many homes as they can, and get rid of as many lots as possible to get their businesses in better shape. Just about all the homebuilders in the Tucson, Arizona (AZ) area that have purchased land in the past 3 years have lost extensive amounts on just the land vs. the current market prices which makes it even harder to break even much less turn a profit. While not true of all homebuilders, many are really starting to price their homes cheaply to sell them quickly. Richmond American, Pulte, Meritage, and DR Horton, in my experience, have been slashing prices to help keep inventory down.
Buying Opportunities: Rancho Sahuarita is a favorite of mine and seems especially affordable. Brand new homes can be bought for the 150's, and to anyone that has been down there, it's hard to find a better mid-priced community. Ranch Sahuarita offers a lake, a full-sized fitness center, several pools, playgrounds, and a bark park (for dogs). A "Marketplace at Rancho Sahuarita" is under construction and will be finished soon, offering upscale services the area did not enjoy previously. In addition, with all the builders competing for your business, the new homes are incredibly cheap, for what the community has to offer. Also, knowing the master developer, Bob Sharp, look for additions to Rancho Sahuarita as it continues to become one of the best master planned communities in America. In the Northwest part of town, Marana and Oro Valley have new homes priced well.
Short sales can be another opportunity for patient buyers who do not have to be in their next home right away. Deals can be negotiated with the banks on these short sales that can be extremely good if you have the right agent who knows how to negotiate with the banks.
Investment Opportunities: For investment, I would suggest REO properties, short sale properties, and in general rental properties that are intended to be owned for 3-5 years. Rents in Tucson are rising rapidly as the mortgage mess keeps many from buying due to new lending standards and higher credit scores to qualify for zero down loans, limiting the number of buyers who qualify for them. For long-term rental homes, I like the before mentioned and also builder's spec homes because most of the prices are very fair and the builder will offer a warranty to help keep maintance costs down in the first few years of ownership.
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