Tucson is slow to improve

December 2010, here we are at the end of the year and values still remain deflated, sales are difficult, and financing is hard to get. Nothing has really improved this year, we can only hope next year will improve.

The chances of price increases, value appreciation, or positive housing growth is going to be slow and difficult next year. It’s the economy!!

Over and over again I have to state this because people still won’t believe it, now believe it! Between high unemployment, slow consumer spending and general fear people are NOT buying or willing to part with money.

The US economy will remain sluggish and probably should grow by about 2.6% in 2011, that’s not enough to feel an improvement. According to the National Association for Business Economics the jobless rate will remain above 9% next year, at least the relapse of the recession is getting weaker. We will have another year of flat-lining in housing before any real growth to improve housing values. Still too many foreclosures are flooding the market.

Hang on, it may be tough again next year. At least the banks are now taking a longer time to release new foreclosures onto the market. This allows housing sales to occur that can lift the comparable sales by adding in stronger values. This pricing situation takes time to remove the weaker sales and will eventually solidify normal market pricing. The market has tightened and sales are occuring. The Tucson listing numbers have dropped dramatically. Tucson is slower to recover than other metropolitan areas, but at least its a great place to work and live, that is, if you have a job!