Tucson Housing News September 2008
October 1, 2008
Post Tags: global economic crisis , mortgage meltdown , Tucson Housing News , Tucson Residential Sales Trends
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Tucson MLS Preliminary Closed Transactions
There wer two days remaining to enter the final figures but I’m getting a lot of search inquiries about the state of the Tucson Housing Market as we enter the Forth and final quarter of the year.
The Closed Transactions are strong in September. It looks like we will exceed the 903 entered for August 2008. The current count and breakout is as follows:
All Residential Sales
898 closed transactions
$216,378 average sale price
$182,000 median sale priceSFR
690 closed transactions
$229,001 average sale price
$188,000 median sale priceSeptember of 2007
546 closed transactions
$309,525 average sale price
$235,000 median sale price
September 2007 Mortgage Meltdown
Most remember it was August of last year when the first pebble fell in the economic pond when the Mortgage industry did it’s first wave of meltdowns. The wave has now grown into the sunami of a global economic crisis. At the heart of the crisis as the moment is an overwhelming sense of fear on the parts of many. The head of that many are the banks who are capitalized but afraid to lend to each other not knowing who is solvent and who isn’t.
The result in September was a lot of delayed closings for buyers and sellers who had to scramble to find other lending sources for the transactions.
We have seen a steady decrease in the value of homes in the Tucson Market through out the year. For many sellers there is still a gain if the home was purchased before 2006. Those of us that purchased after that date depending on when have seen a decrease in value of more than what we paid for the home. We still have our homes, we still owe what we did when we purchased less payments on principle made (of course). Unless we have to sell right now we will be fine.
For those who do have to sell in this market who purchased in the last two years there is still hope. If you are moving to a different part of the country where home prices didn’t rise as fast as here in Tucson or they have declined even further than here in Tucson you should end up on the plus side of the equation.
If you are moving inside the Tucson market look at it this way. You are getting less for your home but you are paying less for the new one you are purchasing.
Residental Sales Trends 2008
|
Month
|
Close Tran
|
Avg Sale Price |
Active List |
|---|---|---|---|
| Jan |
594
|
$266,450
|
9168
|
| Feb |
710
|
$262,155
|
9168
|
| Mar |
900
|
$259,120
|
9022
|
| Apr |
1008
|
$253,729
|
8808
|
| May |
748
|
$250,953
|
8708
|
June |
1053
|
$256,497
|
8140
|
| July |
945
|
$254,854
|
7876
|
| Aug |
903
|
$238,504
|
7763
|
Sept |
Increase Buyers Activity in The Tucson Market
There are some areas of Tucson which are seeing a rapid decrease in inventories which will begin to cause prices in those areas to increase with stability in the market overall. The Snowbirds are beginning to plan for their return to Tucson as well. We are seeing increase search traffic for retirement communities and searches related to winter visitors.
I know many are concerned about the passage of the Emergency Economic Stability Act. The economy stupid seems to be the overwhelming concern for the week. I found this an interesting read this morning and I pass it along “Experts: No Need to Fear a 2nd Great Depression”.
Finally, If you have 5 minutes to spare, ( I know it says 6 minutes but it is really 5 ) then take those 5 minutes and watch this short film. It might put things in a better prespective for you this week. Take Six Minutes
