Tucson Absorption Rates April 2009
May 6, 2009
Post Tags: Tucson Absorption Rates April 2009 , Tucson Real Estate , Tucson Real Estate Market
Last month I said:
The Absorption Rate in March Improved in almost all areas of Tucson. It shows us that a lot of inventory is being absorbed. Closed Transactions are raising, inventories are dropping and the end result is a better absorption rate.
I could say the same this month only change the word March to April. We dropped a month in the overall absorption rate going from 8.18 month to 7.18 months.
Absorption Rate Comparison for March 09 – April 09
The market is drying out. Each month we reduce inventories, the overall absorption rate is now down to just over 7 months of inventory. Six months is considered a “Normal” market. Some areas of Tucson are already under 6 months of inventory. East dropped from 6.18 to 5.18 and South from 5.12 to 4.38.
Tucson April Absorption Rate 7.18 months of inventory
Only the Extreme West, Extreme Northwest and North saw increases in the absorption rate. Even with these increases the overall decrease was a whole month reflecting very good gains in some areas.
If this trend continues over the rest of the second quarter we will see a “Normal” market before the end of the year. Possible as soon as the end of the second quarter, but I’m not putting any money on it. Time will tell.
Pending contracts are way up. Buyers are definitely back in the market and interest rates have held very well. Fixed 30 year rates are hovering around the 5% mark.
There is talk once again of the $15,o00 home buyer credit being resurrected, we shall see if there is more to it than just talk in the coming weeks.
May 7th, 2009 at 10:14 pm
Our absorption rates have fallen in many parts of Phoenix too. However, we are seeing a wave of new trustee sales and pre-foreclosures coming in that may shift things again. Are you seeing this in Tucson too?