Tucson Market Statistics - February 2010
| Feb 09 | Feb 10 | % change | |
| Home Sales Volume | $153,702,306 | $145,233,131 |  5.51% |
| Home Sales Units | 695 | 741 |  6.62% |
| Average Sales Price | $221,154 | $195,996 | 11.38% |
| Median Sales Price | $177,500 | $150,000 | 15.49% |
| Average List Price | $236,267 | $206,843 | 12.45% |
| Pending Contracts* | 1020 | 1417 | 38.92 |
| Active Listings | 7532 | 6739 | 10.53% |
| New Listings | 1799 | 2104 | 16.95% |
*Has not yet closed escrow. | |||
| Information provided by Tucson Association of Realtors Multiple Listing Service | |||
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Additional information and a complete run down of the Tucson real estate market is available HERE. This MLS report is sent to all Realtors in Tucson, and is complete with color graphs and charts to help potential clients get a better understanding of the underlying real estate market conditions. Michael assists potential clients in this manner with NO COST to them! | |||
| ARCHIVED STATISTICS | |||
Market Recap: By Michael Oliver
The Tucson market, like many other markets, has improved a lot over last year's outlook. Buyers seem to be willing to buy at current prices. The government incentives available to first-time buyers are also pushing the market forward. As the stats indicate, prices are still falling over 11% year over year, but I would say I have seen prices recently start to firm up as prices have gotten to a point of ultra affordability with buyers. I don't have hard facts to go on for this, but I would not be surprised to see prices hold steady at these levels for the next couple of months as low-priced inventory and even high-priced inventory is moving. If a home is priced close to market and marketed correctly, it sells today. Early last year, and for the two years before, this just wasn't the case. Homes needed to be priced below the market to find a buyer quickly.
Foreclosures and short sales are still a large percentage of the overall market, but in tracking the numbers and watching the inventory numbers closely, I think this segment of the market is starting to recede. It may be another two or three years before we don't see a 20%+ share of the Tucson real estate market being distress sales, but I think we will be coming down off of the roughly 50% levels Tucson has seen for the past year relatively soon.
The new segment I think is on its way back is new homes. ALL of the big builders have started opening new sites (with the exception of KB). These sites are opening because builders feel the Tucson market has stabilized (which I agree with) and they can predict the price points their homes will sell for. They can actually build for a profit again as construction costs and land costs have plummeted! One thing worth mentioning is that land prices are increasing fast as builders and some speculators have re-entered the market. The larger builders are repositioning themselves and most bought tracks of land over the last six months at ultra low prices. Builders have scaled back incentives recently as the market is just simply better for them. Gone are the days of "$50,000 off" and other large discounts. Today the builders are building to hit a low price point and offering good financing incentives.
Right now, no one is doing a better job of getting the right price and incentives on their homes than Richmond American. Their incentives are amazing and the values they are offering are better than any other builder out there right now. If you are looking for a new home, Richmond is what I would start with. In fact, not only are they offering up front the best deals in the new home market, they are still willing to deal. On a recent Richmond American spec home I represented a client on, Richmond conceded almost an additional $10,000 in incentives over what was already the best deal in the area. So it goes to show they are willing to do what it takes to make a deal happen.
The way I see it is foreclosures will slowly lose steam and their market share should steadily decrease, while new homes are going to stay cheap and start (already are) to take market share from the foreclosures and give buyers the best deals in the market.
Right now, if you're a typical seller, you're going to need a good price and product, along with an aggressive, savvy Realtor to get it sold. The market is very competitive, to say the least, for most sellers. Regardless of where you live in Tucson as a seller, you will either have foreclosure homes to compete with, or new homes, or possibly both and that makes it a tough sell as those two entities can offer many incentives and specials that you and your Realtor are going to have to overcome to get buyers to buy your home.
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