Thursday, October 9, 2008

Tucson real estate sales statistics for September

Tucson's real estate sales stats for September were just released and just when you thought it couldn't get any worse it did. The economy is hittin the real estate market hard right now and it's apparent in our current numbers. The average and median sales price in Tucson have both dropped significantly as well as pending sales and homes sales volume. Both active and new listings saw slight increases as well as number of units sold.

- Tucson saw a pretty significant dip in our average sale's price again in September; the average price dropped to $217,397, a 8.85% decrease from August's average of $238,504, and a 20.19% decrease from September 2007 ($272,396).

Tucson average sales price for September

- Tucson's median sales price for September '08 was $180,500, a 2.43% decrease from August's median price of $185,000, and a 16.05% decrease from September 2007's median price of $215,000.

- There were 836 Pending contracts in September 2008, a decrease of 4.78% from the number of Pending's in August (878). It's also a 15.47% decrease from the number of Pending contracts in Sept 2007 (989).

- The average days on market decreased by one putting us at 82 for September 2008, compared to 77 DOM in August and 72 DOM in Sept 2007.

Tucson average days on market for September

- Tucson had 7,858 Active listings in September, a 1.22% increase from 7,763 in August 2008, and a 14.49% decrease from Sept 2007 (9,190).

- Tucson saw 2,039 New listings in Sept 2008, a 4.46% increase from August 2008 (1,952), but a 18.34% decrease from Sept 2007 (2,497).

- The number of units sold in September 2008 (934) increased by 3.43% from August's number of 903. It's also a 20.67% increase from Sept 2007 (774).

As the economy continues to take a dive the Tucson real estate market is following. As usual it can be said that if you are looking to buy a property there's plenty of inventory, so that's a positive note. The big problem is that fewer people can qualify for a loan. I spoke with a few lender friends of mine and all said that those that have good credit and income and a nice down payment shouldn't have a problem getting a loan. Still that can change in an instant. It's going to be interesting to see how Tucson's market is impacted by the nosedive the stock market has taken. A large number of Tucson buyers are seniors investing in retirement homes or individuals investing in second homes. After the week we've had there's a good chance that many retirees and investors have lost a huge portion of their savings and aren't in a position to buy. As we move into our busy season we'll continue to keep an eye and sales activity and hope for some improvement.

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Friday, September 26, 2008

The mortgage meltdown simplified....

Courtesy of

So simple a five year old can understand....too bad some buyers and lenders didn't.

Just a lite example of how the country got into the big mess we're in now.....

Check out this entertaining slide show to see how simple it once was to get a home loan
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Thursday, September 18, 2008

Builder sales continue to drop nationwide

New construction housing starts were down again nationwide during the month of August, at their lowest point since 1991.

The Commerce Department reported that new home starts were down 6.2% from July, and down 33% from the previous year. New homes sales have slowed quite a bit in the Tucson area as well. When comparing local new homes sales to the previous year, inventory homes aren't selling like they have in the past. Within the last six months only 65 new construction "spec" homes have sold in NW Tucson, compared to 248 "spec" homes that sold during the same period last year. A friend of mine who works as a Pulte sales rep told me that she has not sold a home all summer. She's usually very upbeat and positive but I can tell she's really concerned about the market and where it's heading. The builder continues to lower their home prices, hoping to draw in more buyers. Unfortunately the buyers just aren't coming in. As we move into the busy season for Tucson real estate, everyone's hoping that the low prices and high inventory will get our housing market moving.
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Tuesday, September 16, 2008

Year of the grasshopper?

I've noticed a real increase in grasshopper sightings this year; not something we see too often in Arizona. If you step out at the right time of day you'll see them all over the sidewalks and streets. Although grasshoppers may be interesting to watch they seem to be causing real problems for some farming communities.

The Tucson Community Supported Agriculture reported that they are canceling their Fall session Thursday pick ups due to increased grasshopper damage. Crops were devastated from grasshoppers at "biblical proportions" according to one local farmer. So what's causing the increase in these herbivorous insects? Apparently it's a seven year cycle; grasshoppers multiply until the seven year crescendo and then start a new cycle. It looks like this year they're at their peak; after this season we probably won't see them again for awhile. Although local farmers will be relieved some of us will miss the entertainment!
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Friday, September 12, 2008

Tucson real estate sales statistics for August (Warning, you might want to grab your box of Kleenex now)

Ouch!!! The Tucson real estate sales statistics for August were just released and they don't look good! Looks like average sales price, median sales price, pending contracts and homes sale units were all down while number of new listings were up. Not a good mix....

- Tucson saw a pretty significant dip in our average sale's price in August; the average price dropped to $238,504, a 6.42% decrease from July's average of $254,854, and a 12.94% decrease from August 2007 ($273,815).

Tucson average sales price for August

- Tucson's median sales price for August '08 was $185,000, a .7.45% decrease from July's median price of $199,900, and a 16.25% decrease from August 2007's median price of $220,900.

- There were 878 Pending contracts in August 2008, a decrease of 8.54% from the number of Pending's in July (960). It's also a 14.26% decrease from the number of Pending contracts in August 2007 (1,024).

- The average days on market decreased by one putting us at 77 for August 2008, compared to 78 DOM in July and 68 DOM in August 2007.

Tucson average days on market for August

- Tucson had 7,763 Active listings in August, a 1.43% decrease from 7,876 in July 2008, and a 13.30% decrease from August 2007 (8,954).

- Tucson saw 1,952 New listings in August 2008, a 16.26% increase from July 2008 (1,679), but a 16.47% decrease from August 2007 (2,337).

- The number of units sold in August 2008 (903) decreased by 4.44% from July's number of 945. It's a 17.31% decrease from August 2007 (1,092).

Wow, what to say..... As I've said it's going to get worse before it gets better. There's a few other real estate professionals that agree with me when we're in private, but otherwise it's really kind of an unspoken subject. Don't want to appear too negative! Unfortunately we've got to be realistic. The economy is a mess, there's a lot of people that cannot obtain home financing, and I think to some degree the nation is at a standstill until this election is over. Home prices will not increase until we can rid our market of the foreclosures and excess resale inventory. Foreclosures will likely increase over the next few months so we can count on prices remaining low for some time. On the up side if you don't have a home to sell, you qualify for a loan and you have cash available for a down payment, there's some great inventory out here!

Tucson real etstate sales statistics for August

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Monday, September 8, 2008

Looking to rent? Tucson is the place for you!

Arizona home prices may be dragging but we have a great rental market!

Arizona and Florida both top a list of metro areas with the biggest rent drops. As housing prices continue to drop more homeowners are renting because they can't sell. More competition means desperation and lower prices. Until we see a decrease in inventory prices will continue to remain low.

The weak economy is also impacting rentals. As many Americans worry about what their future holds, renting might be a better option for those that don't want to be tied down financially.

Tucson has seen a annual rent drop of 2.4% and a vacancy rate of 7%.
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Wednesday, September 3, 2008

Arizona foreclosure filings for July

While the nation saw an average increase of eight percent in foreclosure filings for July, Arizona saw only a three percent increase, putting our state at number four in filings for the month. Florida actually bumped us out of the way to steal the number three position with an increase of fourteen percent.

Though Arizona appears to be slipping back on the list, we've seen a 127% increase in foreclosure filings over July 2007. One in every 195 properties received a foreclosure filing in July. When looking at foreclosures in metro areas, Phoenix ranked at number ten. According to Realtytrac, "bank repossessions are the fastest growing segment of foreclosure activity in July". Currently there are about 80 real estate owned properties on the market in Tucson.

I think we've got a ways to go before we see these numbers go down. There's still a large number of homeowners that have maxed our all that glorious equity they built up so quickly. As issues continue with the economy we should expect to see higher foreclosure numbers for the next few months. Once we eliminate more of the distressed properties from our inventory we'll see home prices creep back up along with unit sales.

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