Tucson Real Estate Nov 20 Sneak Peak
November 21, 2009
Post Tags: Tucson Luxury Market Stagnant , Tucson RE Market Update
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Two Thirds of November 2009 down One Third To Go
A sharp curve indeed
We seem to have turned a corner. Maybe, No I’m kidding we have turned a corner. But, this road to recovery is more like a Mountain road than one that is stretched out in the desert.
Not a long gradual incline, no, instead it twist and turns, sometimes it dips before it climbs again.
But right now it is climbing at a pretty steep pace while declining at an equally steep pace. How is this possible?
Because it is a road going on two different directions at the same time.
The Number of Transactions UP
Last November we were in full economic meltdown. Not only was the economy in meltdown but wallets were in lock down. Everyone was afraid to spend what little they had left in perceived savings.
While the unemployment rate is over 10% Wall street is back above 10,000 point on the DOW. Investors and those who have saved for this type of economy are now in the market. November of 2008 we had 654 closed residential transactions for the month. Through Nov. 20 this year (with 10 more days to go) we have 628 already recorded. There is little doubt we will see way more than last Nov. We could see over 1000 closed transactions for the month.
The Average and Median Sale Price DOWN
The numbers are up but with 36% of the transactions being Short Sales and REO there is downward pressure on the sales prices. We are seeing the lowest Average and Median Sales prices we have seen in some time.
The 100K and Under Market is Drying UP
A couple of months ago you could find quite a few properties in the sub 100K level that weren’t Short Sales or REO properties. Not any more. Now the Sub 100K marketplace has pretty empty shelves. There are a few Short Sales or REO’s with no appliances, holes in the walls and lots of physical damage available close to the 100K price point. But a buyer could easily put another 50K into one of these homes to make them “livable”.
The Luxury Market is Stagnant
As of this writing the Average Sale Price is $184,825 and the Median is $160,500. We saw a Median in the $157,000 range earlier this year. But the Average Sale Price hasn’t been this low since December 2003. What does this mean? The high end market is becalmed. “Dead” is another way of putting it. Tucson currently has 8.27 YEARS of inventory above the 1 million dollar price point. For October 2009 there were 298 homes above 1 million dollars, 3 sold in October and 2 are pending for November.
That’s our snapshot. In a couple of weeks we will have the November numbers and be headed into the final week of 2009. Stay Tuned.
November 22nd, 2009 at 2:53 pm
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December 14th, 2009 at 3:28 am
There’s no way in denying, this article is so saddening. So what?.. Everybody experiences it from time to time, maybe now is just Tucson’s hard times.. It’s pretty natural in living, a period of adjustment.. again and again. What matters is how to live with the strife we have right now… the courage to fight and go on living,and in no time, tomorrow will be a brand new sunny day for each one of us. Bottomline is.. never lose that intrepidity within you. Long live TUCSON!!
December 15th, 2009 at 6:58 am
Lou,
Long live TUCSON indeed. It has been around for awhile now. I think it will be for a while more. Times are hard right now, but we are fortunate compared to many cities in the country. I’ll take a Tucson heating bill over just about any other location in the nation.
Dave