Tucson Absorption Rates for May 2009
June 9, 2009
Post Tags: Tucson Absorption Rates May 2009
Tucson Absorption Rate for May 2009 6.59
We inch closer to the magic number of “Normal” 6 months inventory. We are well past that mark for some of the areas of town. We are almost there for all of it despite the fact we have a few outlying areas which serve as anchors to pull the overall absorption rate higher than it should be for Tucson.
Nearing Normal
We are closer. Much closer than we started the year. Third quarter started 9 days ago. We could easily reach the 6 month absorption rate for overall this quarter. I’ll be having lunch with Chris one way or another. But it is looking better for me right now. : )
There are a number of areas already at just over 4 months inventory. Those are below normal levels. I imagine the only think keeping sales prices down in those areas is the overall outlook of the economy.
A fact slipped into a foreclose, short sale class yesterday. Only 17% of the active listings (6,506) are foreclosures or short sales. This is good news. There are also a number of indicators there are groups of investors buying up homes, remodeling them and flipping them back on the market. This is healthy market activity. No neighborhood needs empty foreclosures sitting on the market.
Finally, 30 year fixed interest rates have gone back above the 5% level due to fears of inflation. Re-financing is down and the cost of buing has gone up due to this increase. Will it drop back down below 5%? Don’t expect it. As a matter of fact it looks like it is headed above 6% in the next few months, if not weeks.
June 9th, 2009 at 8:02 pm
While I am up here………
http://www.portofpa.com/marinas/john-wayne-marina.html
………for the summer when not cruising, I do read your blog most days. I will be happy if you win our bet, but either way lunch when I return in October. I will be happy because RE will be doing well in TUS.
We both agree interest rates are going up as the government will soon be “crowding out” the rest of the markets with their “HUGE” borrowing needs. TWT, but this is why I may still win the bet.
Have a great summer,
Chris
June 9th, 2009 at 8:12 pm
The bottom line on why I think interest rates are going up and will cause another round of trouble for the housing market.
http://www.usdebtclock.org/
June 12th, 2009 at 10:07 am
Chris,
I would love toe be there, summer there must be tough on a desert rat. Miss the sand and heat?