Tucson sales statistics by area

Just wanted to post the Tucson real estate sales stats by area before everyone heads out for the holiday weekend. Sales prices were mixed over the city, with some areas seeing declines and some seeing increases from September's numbers.

Comparing the average sales prices by area, Extended Southwest Tucson saw the biggest decrease, down 19% from September to October. East Tucson wasn't far behind with a sales price decrease of almost 16%.

The extended portion of NW Tucson saw the biggest increase in average sales price; up 40% to an average price of $221,689. This increase is a little misleading; when you look at the sales stats for this area you'll see that only five homes sold in XNW Tucson in October, the highest priced being $385K. In September the were 8 homes in XNW Tucson that sold, most priced below $200K.

Central Tucson also saw a sizable increase, up 16% from September's average sales price of $187,751 to $233,689 for October. This number is a little misleading as well; one home in Central Tucson sold for $1.1 million while about half of the rest of the homes sold for less then $210K.

Northwest Tucson saw a 2% decrease in average sales price for October; not too bad considering this area has the largest number of active listings at 2460.

Tucson Average Sales Price by Area for October

Although Tucson's overall Average Days on Market for October decreased to 70 from 73, parts of the city did see significant increases for the month.

Tucson Average Days on Market by Area

Once again NW Tucson had the highest number of Active listings at 2460, while Central fell into second place with 1159.

Tucson Active Listings by Area for October

I don't have much to comment about (my mind is occupied as I'm thinking about turkey and sweet potato pie). We'll just take it one day at a time and see what the future holds for Tucson real estate.

Read more!

Tucson real estate; it's a buyers market!

Tucson's real estate market slowdown made front page news this morning in the Arizona Daily Star. The article discussed Tucson's current housing market , the advantages that home buyers have and the disadvantages that home sellers face as a result of our market slowdown. Tucson's real estate boom in 2004 and 2005 brought increased home sales to areas NW, SE , SW and South of the city, but these communities (Gladden Farms, Vail, Sahaurita) are now saturated with homes that just aren't selling due to availability of more properties closer to the city. On top of that the resale market is struggling to compete with new home builders that have excessive inventory and rock bottom prices.

The increased amount of home inventory had led to a steady increase for Tucson homes' Days on Market. Below is a map courtesy of the Arizona Daily Star, that shows the average days on market for a Tucson home per area.

Average DOM per area in Tucson

It's a frustrating time for Tucson home sellers that hope to sell quickly and take advantage of the market slowdown. The average days on market for a Tucson home is 73 days, with areas like NW Tucson seeing an average of 84 days because of the high number of homes currently listed. As of September Northwest Tucson had over 2400 homes listed for sale, twice the number of homes listed in Central Tucson, and more then three times the number of other areas.

The article in the Daily Star includes some great maps that provide Tucson real estate statistics by area; make sure you check them out. Find out more about Tucson's current real estate market Now may be the best time to buy a house

Read more!

Number of new NW Tucson listings appears strong

Just snooping early yesterday in the Tucson MLS and noticed that NW Tucson had the largest number of new listings to start off the month. Northwest Tucson, including Oro Valley and Marana, had 59 total new listings on October 1st, with North Tucson following in second with only 19. I say total because I'm including SFR, SFNC, Condo/TH, MSFR and MH's. Considering there were only 158 new listings on Monday, and NW Tucson made up 37% of that total, it seems that homeowners in NW Tucson may not be too concerned about the so called "housing slump". Still it's too early to tell, we'll have to see where we end up for the week. The number of new listings have been slowly declining, as Northwest Tucson had 132 new listings for the first week of September, down 10% from the number of new NW Tucson listings for the first week of August. Tucson MLS will release the September real estate sales stats early next week so we'll have a better view of market activity then.

Read more!

Tucson Homes Sales Down for September

Tucson homes sales are down significantly this month, and the story made national headlines in USA Today. The article, "Housing likely to continue to flail" reported that existing home sales nationwide fell to the lowest point in five years during August. The National Association of Realtors reported that sales for September are expected to fall even lower due in large part to the "mortgage meltdown".

A study done by Re/Max International analyzed home sales in five major cities, with Tucson being one of them. The results found that Tucson home sales for the first three weeks of September are down about 44%.

Investigating on my own, I researched home sales from Sept. 1 through Sept. 29 for 2007 and 2006. When comparing current numbers to those of last September I found that Single Family homes sales in NW Tucson are down 21%. Central Tucson shows a decrease of 59% from homes sales during the same period last year. Only North Tucson saw an increase, 16%, in home sales over this period last year. With only a few days left in September, we should see a large number of homes sales posting. The Tucson Association of Realtors will soon be releasing local sales statistic for September, and I'll be posting results once I get them.

Read more!

Tucson Sales and Home Prices by Area

Looking at August sales statistics for the various areas in Tucson, the numbers show that people are still buying homes, but some areas in Tucson are selling better then others. Home sales increased at a steady rate and sales prices increased slightly during the month of August. All areas of Tucson saw an increase of listings sold compared to July's numbers. Once again Northwest Tucson saw the largest number of listings sold in August with 2,367, a 13.7% increase over July's number of 2,081. Central Tucson came in second with 1,581 listings sold, about a 15% increase over July's number of 1,377. In my experience I've found these two areas to be very popular so sales tend to remain consistent. Central Tucson is close to the University of Arizona, so student housing is always in need there. Northwest Tucson has had an incredible amount of growth and development in the past several years, and it beautiful mountain scenery attracts at lot of home buyers.

Home sales prices increased in most areas of Tucson, with Northeast and Extended SW Tucson seeing the biggest gains. The Extended SW area of Tucson includes Green Valley, a destination retirement community about 20 minutes south of Tucson off I-19, and Sahuarita , a master planned family community about 15 minutes South of Tucson, which I've found to be a popular choice for my home buyers working at Raytheon. The Extended NW area of Tucson saw a significant decrease in the average sales price, about 16% less then July's sales prices of $177,433. This area of Tucson includes a master planned community with a lot of new home construction taking place in Gladden Farms . The community exploded when it first began development several years ago, but due to lack of services and amenities in close proximity, I've found few home buyers are currently choosing to live in this area when there are so many options closer to town.

Average Sales Price by Area August 2007

The Average days a home was on the market increased again to 69 days for August, a 6% increase over July's DOM number of 65. The NW, SW Tucson and the Extended SW Tucson areas saw the biggest increases of DOM, while the Extended South, West and Extended West areas saw fewer days on market. I always take these numbers with a grain of salt. The DOM numbers that are reported can't always be counted on to accurate as the number of days a home shows it's been on the market can be manipulated.

Tucson Average Days on Market

Overall the Tucson real estate market remains good. Sales prices are beginning to increase, but not drastically, so sellers are feeling more comfortable with the sales prices their homes get and buyers still feel like the market is in their favor. As we make our way into the Tucson "busy season" prices will most likely continue to rise steadily as days on market goes down.

Read more!

Fed's Cut Rates, But What's it Mean?

The Fed's cut the federal funds rate by a half point today in the hopes of turning around what many say is the worst housing slump our nation has seen in 16 years. The key rate, which was lowered to 4.75%, has caused a frenzy on Wall Street. Since I don't really follow the financial and economic markets as much as I should, the information has become a little overwhelming. So I decided all I really need to ask is what does this mean for me and the typical consumer? I wanted to find out what it all means in the grand scheme of things, and I did find some interesting information.

Two rates were cut by the Federal Reserve. The Federal Funds Rate, which is considered by many as the "most important" rate to consumers, is a short term interest rate that affects consumer loans. By lowering this rate it becomes less expensive for consumers to borrow money. Credit cards, auto loans and mortgages, will see slight dips in interest rates, which may encourage consumers to spend more. If homeowners have ARM's, their current interest rates could reset to the new lower rate.

The Fed's also cut the Discount Rate by half a percent to 5.75% on Friday. This is the rate that banks and lending institutions are charged by Federal Reserve Banks when they borrow money on a short term basis. When the discount rate changes, it affects the costs that consumers pay to borrow money. This rate cut will decrease the banks costs, in turn decreasing the borrowers costs.

There are several reasons that the Fed's made these significant cuts ( I say significant because these cuts were higher then the quarter cut that most expected). Basically, there's a fear that a recession is lurking out there in our future, and this is the Fed's attempt to prevent it. The housing slump, mortgage meltdown and weakening job market have stressed out consumers, making them reluctant to spend. This rate key is the Fed's attempt to keep consumers spending, which stimulates the economy.

Unfortunately these rate cuts will not be seen immediately. It could take months before consumers see the impact of these cuts that everyone is so excited about.

Now the big question is "How will this effect the housing market? Are more people going to feel encouraged to buy a home? I know that this rate cut is meant to spark consumer interest, but is this the "save all"? I personally think we need a larger rate cut to really get the ball moving and motivate the economy. That's the only way to affect mortgage interest rates. The housing market has taken months to fall, so a quick adjustment of the interest rate is not likely to save it immediately. Sales prices for homes in Tucson have increased in the last month, but foreclosures are also on the rise. And there are still a lot of problems within the mortgage market. However I do think Tucson is going to see it's real estate market begin to inch up this Fall as it usually does. Tucson has a faithful following; it's a beautiful city with much to offer, and it attracts home buyers from all over. Tucson Real Estate Sales Stats for the next two months will be telling in regards to the impact the rate cut is having on consumers locally.

Read more!

Tucson's August 2007 Real Estate Statistics

The Tucson Association of Realtors released the August 2007 Tucson Real Estate statistics on Friday and the numbers look surprisingly promising in some areas compared to previous months. The good news is that the average sales price increased as did the number of pending contracts, but on the downside the average Days on Market increased and the number of units sold decreased significantly. It appears that maybe the recent frenzy within the mortgage industry has made some consumers weary to buy, but the increase in Pending contracts shows that there still is some confidence in Tucson's Real Estate market.

Tucson Home Sales Units - The number of homes sale's units decreased by 26.2% from 1,381 in August 2006 to 1,019 in August 2007. Tucson saw a 7.2% decrease in home sales units from July to August 2007.

Tucson Average Sale's Price - Tucson Real Estate saw a 2% increase in the Average Sale's Price from $268,408 in August 2006 to $273,932 in August 2007. Also reflected is a 1.9% increase in the Average Sale's Price from July to August 2007. This is great news for home sellers that have grown frustrated with recently declining prices.

Tucson Home Average Sale's Price August 2007

Tucson Pending Sales Contracts - While Sales Contracts Pending in Tucson increased by 14.7% from 893 in August 2006 to 1,024 to August 2007, there was a sharp decline in Pending contracts from July to August of this year. The number of Pending contracts in August 2007 (1,024) dropped by 42% from those pending in July 2007 (1,777). The decline comes in the aftermath of a nation wide "Mortgage Meltdown" that's been front page news for several months. Though the low August numbers for Pending contracts is typical in the Tucson market, the recent widespread media attention regarding mortgage problems might be playing a stronger role in consumers decisions to buy real estate.

Tucson Active Listings - Slowing home sales might be affecting homeowners decision to sell, as Tucson saw fewer active listings in August 2007. The number of Tucson Active Listings decreased by 4.75% from 9,401 in August 2006 to 8,954 in August 2007. Still the number of Active Listings in August did increase 3% over July's Active Listings. This corresponds to the increase in Tucson's Days on Market.

Tucson Average Days on Market - The Average Days on Market in Tucson also increased to 69 in August 2007, up 30% from the August 2006 average of 53 days. August's average days on market also represented a 6% increase over July's average day's on market, which was 65.

Tucson Average Days on Market August 2007

Tucson's real estate market is seeing some signs of improvement as sales prices seem to be slowly inching upwards and more homes are receiving offers. Still, as the days on market continues to increase and the mortgage fallout intimidates buyers, home sellers are realizing that they must be patient and price accordingly up front to be successful in Tucson's current real estate market. As Tucson moves into its "busy season" for real estate, it will be interesting to see future real estate stats. If future sales continue to follow past trends, Tucson can expect to see a small increase in home sales prices and a slight increase in days on market. Only time will tell!

Read more!

Pinal County Grows as Does Inventory of Available Homes

Though Pinal County was recently recognized by the US Census Bureau as one of the nation's fastest growing counties, the slow down of the real estate market has left a large inventory of homes in this area. The statistics provided by the Census Bureau measured the number of new homes or apartments that were built between 2005-2006, right at the tail end of the housing boom in Arizona. The sudden surge in buyers during 2004-2005 encouraged the construction of new homes by builders hoping to ride the wave. Very little land was available for new home developments within Pima County, which encompasses most of Tucson, so builders were forced to begin construction farther north into Pinal County. Between 2005-2006 the number of new housing units in Pinal County increased by 17%, compared to the 3% increase in Pima County. During the market surge buyers were eager to find affordable housing, even if the homes were slightly farther from services and amenities. New home construction was strong in these areas, which included Gladden Farms, Black Horse and Eagle Crest. As the market has slowed and the housing inventory has increased, these same developments are suffering from lack of interest. All three developments have had a large amount of inventory available since the beginning of 2007, and now that more homes are on the market throughout Tucson, buyers have a choice and they choose to live closer to city, even if they pay a little more. Homeowners in these areas are in a bind and willing to negotiate to sell, so it's great for the buyer that plans on holding on to the home for several years. As more hospitals, shopping and other services become available in these areas, interest and prices will begin to rise.

For more information regarding these stats you can read the full article on AZStarnet

Read more!

Retirement Communities Keep Tucson Home Sales Strong

Just saw an interesting real estate related story on the evening news on KOLD . The newscaster noted the real estate slump that's being felt across the nation is not as evident here in Tucson, and the explanation behind this is the large number of retirees that purchase homes in the Tucson area. Most real estate professionals in Tucson already know this as we have all introduced at least a few home buyers to some of our area's beautiful Active Adult communities. Approximately 35% of home sales are attributed to retirees purchasing in the area. This news is not at all surprising as Tucson and Phoenix both have a large number of age restricted communities with numerous amenities that attract residents from near and far. Sun City and Saddlebrooke are two of Tucson's top retirement communities, and are located in Northwest Tucson. Active Adult communities are extremely popular as they have EVERYTHING available within the community; there's no need to leave unless you need food! Both Sun City and Saddlebrooke have beautiful golf courses, community pools, tennis courts, exercise facilities, arts and crafts centers, numerous club houses; there's just too much to list! And is there a more practical mode of transportation within these communities then the golf cart? I think not. As you drive you'll see golf cart crossing signs everywhere, so be careful and look both ways before you turn!

Though sales in the Tucson real estate market do appear to be a bit slower then in the past two years, home sales in Sun City and Saddlebrooke seem to be right on track with previous years. Most home buyers that are considering these communities don't have many obstacles holding them back. A large percentage of retirees pay cash for their homes, so getting a loan is not a problem. Often it's a matter of making the move away from where they've spent much of their lives. The Arizona climate is a big draw as the warm, dry weather seems to be a cure all for many ailments. And the weather in Tucson is just a lot nicer then the weather you'll find in other parts of the country. No cold winds or icy driveways to slip on; just green golf courses and gorgeous sunsets!

Read more!

July 2007 Tucson Real Estate Sales Statistics at a Glance

Here's the breakdown for the Tucson Residential Sales Statistics for July 2007. As you'll see on the chart, sales prices have decreased slightly after a steady increase over past months. The average home sales prices decreased by 1.73% from $273,717 in July 2006 to $268,983 in July 2007.

Tucson Average Residential Sales Price - July 2007

Active listings dropped to 8,692, down 2.94% compared to July 2006's number of 8,955.

New listings dropped to 2,766, down 3.52% compared to July 2006 number's of 2,867.

Pending contracts were up 63.18% to 1,777 , compared to 1,089 pending contracts in July 2006.

Average Days on Market have increased to 65, up one day over June's DOM of 64. This number if never truly reflective of the actual days a listing is on the market but it can still be used as a gauge of what the market is like. Tucson's summer heat also tends to slow buyers down as they are reluctant to venture out.

Tucson Average Days on Market - July 2007

While all areas in Tucson saw a decrease in the number of homes sold, Northwest Tucson again saw a higher number of homes sold then the rest of the city.

Number of Listings Sold by Area - July 2007

Northwest Tucson, including Oro Valley and Marana, sold 2,081 listings and saw a 3.59% decrease in homes sales compared to July 2006. Northwest Tucson also saw the highest number of active listings, with 2,539, a 8.36% increase over the number of listings in NW Tucson for June 2007. The average DOM for homes in NW Tucson was 72, down 1 day from June 2007.

Central Tucson saw the second highest number of homes sold with 1,377, down 8.69% from July 2006. Central Tucson also has the second highest number of active listings, with 1,085, down 5.2% from June 2007.

The increase in Pending Contracts from July 2007 to July 2006 shows that buyers are actively in the Tucson real estate market to purchase homes. Although issues regarding the ability for some to obtain loans continues to wreak havoc on the real estate market across the country, those that are financially ready are taking advantage of lower homes prices and the sellers willingness to negotiate.

Read more!

Tucson Real Estate Sales Strongest in NW

As the Tucson Real Estate market continues to stabilize after the volatile conditions of 2004-2005, Northwest Tucson appears to be drawing the most real estate activity. According to Tucson Associations of Realtors June 2007 statistics, Northwest Tucson had nearly a quarter of all listings sold , about 1,779 listings. Of the 7,417 active home listings for June, approximately 27% were located in Northwest Tucson, with an average price of $347,165. Also high is Northwest Tucson's number of Days on Market at 73, which was 9 days above the city's average of 64 days.

What's contributing to Northwest Tucson's high numbers? Northwest Tucson, including the towns of Oro Valley and Marana, continues to be one of the top "hot spots". These areas experienced rapid growth from 2003 thru 2005, and many of the homeowners that purchased during this time are now selling with the hope of benefiting from the vast appreciation that occurred. As Oro Valley and Marana continue to grow, new home builders continue to offer unbeatable incentives to draw tempted buyers into the area. And, many of Tucson's prime Retirement Communities are located in Northwest Tucson, contributing to the large influx of new residents each year.

There are still plenty of homes for sale and plenty of deals to be had in Northwest Tucson. As the area continues to add more restaurants, shopping and other amenities, more people will consider choosing Northwest Tucson as their new home.

Read more!