Tucson Absorption Rates March 2009
April 7, 2009
Post Tags: Tucson Absorption Rates March 2009 , Tucson Real Estate
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.
Absorption Rate Comparison for February 09 – March 09
When we consider 6 months is “Normal Inventory” we have some areas of town already there, some with even less.
We saw the overall inventory level drop in February from 13 + months in January to 11.42 months. That number has now been shaved by more than 3 months. We are headed toward that 6 month level and we should reach it some time in the second or third quarter of 2009.
The absorption rate coupled with the pending contracts shows the market getting stronger each month. The $8000, first time home buyer tax credit is helping a lot of first time home buyers get a home. Lowest interest rates we have seen since keeping record, falling sale prices and a tax credit are all working together to soak up the excess inventory.
Now if Congress would extend that $8000 tax credit to all buyers, I think we could keep this ball rolling and get the economy moving once again. Time will tell.
April 7th, 2009 at 10:26 am
Good news! Thanks, Dave.
Even though this is the normal Tucson trend in the spring, it looks like most markets are getting out of the woods.
http://www.housingtracker.net/
April 7th, 2009 at 3:30 pm
“Now if Congress would extend that $8000 tax credit to all buyers, I think we could keep this ball rolling and get the economy moving once again.”
Is that a possibility? Has there been talk of the tax credit being extended? It would be great if it was.
April 7th, 2009 at 3:45 pm
Margie,
I received this comment on 3/27/09 concerning the possibility.
April 7th, 2009 at 8:06 pm
Want to bet lunch? It’s good to be
April 7th, 2009 at 8:14 pm
Want to bet lunch? It’s good to be an optomist but expecting six months inventory by the end of the year is a bit much. So I’ll treat you to lunch if that happens.
After looking for two years and finally buying a new home from Robson last month I am pleased the sellers have at last gotten the word we are in a serious recession & have come down in price which has gotten the market moving again. It got real wasteful of our time trying to buy at a reasonable price.
Still enjoy your site and hope to meet some time.
Chris
April 7th, 2009 at 9:06 pm
Chris,
Would love to meet you in person as well. While I tend to come down on your side on this one, I’ll take you up on the price of lunch. I only have 2.18 months of inventory to go to hit the 6 months before year’s end.
Either way I consider it a win/win. See you for lunch
Dave