What can we expect now?

We are clearing out some of the back log in housing inventory, however things still look bleak. The July statistics are dismal at best. Only one positive sign is appearing, Tucson is beginning to move in the right direction! Pending contract increased by 47%, however new listings also increased by 23.65%. People must be getting tired of waiting to list their property, it still isn’t time to sell if you have been waiting, prices are still declining. High foreclosures, credit availability, high job losses, and track over building is pushing the prices down, but perhaps a base is beginning to form.

The average sales price for July 2010 is now $192,072. Tucson has returned to a 2004 price value. The last 3 years the prices in pockets of the city, have fluctuated up and down , but the downward pricing trend has been widespread.

Zip codes with stronger sales have been 85706, 85718, 85745, 85757, at least 30 units have sold in these areas over the past year. Tucson still has a large number of listings 6,668, coming off its highs of 10,387 in April of 2007. Home sales volume from July 2009 to July 2010 is down 39%, unit sales (the number of) is down 33% too.

I know these statistics look overwhelming depressed, however the number of houses on the market has slowly gone down, and that will eventually help to stabilize our market.

Tucson’s market is generally slower to recover than other metropolitan areas, accompanied by slow job growth, a slower pattern of growth, and harder regulations on credit. This takes times to improve these areas too, in fact several years. We are probably looking at 2012 until stabilization occurs in Tucson ‘s real estate markets across the city.

This winter with newcomers, visitors and hopefully a stronger national economy our local economy may continue to improve, but all signs lead to a very, very slow recovery and a difficult time ahead for real estate in Tucson!

Remember to call Jeffrey Patch 520 326-6066, Tucson Real Estate Appraisal Inc. The ONLY Tucson Real Estate appraisal team that has worked in this market for 40 continuous years.

He is an MAI., SRA, licensed real estate appraiser in the state of Arizona for 30 years. Call him today with your questions or to order a report.