Tucson Will Home Prices Go Down in the Near Future
October 9, 2007
Post Tags: Tucson-Average-Sale-Prices-2007 , Tucson-Real-Estate-Prices-2007
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
I keep getting questions from friends and relatives about the Tucson 2007 Housing Market asking “Is it as bad as the papers make it out to be? The market’s really down isn’t it?”
I have to keep saying the same thing over and over, but no one seems to be listening. TUCSON HOME SALE PRICES ARE NOT DOWN THEY ARE UP.
What is down is the number of homes being sold. But the average price for those homes has increased since last year at this time.
Usually we think of a buyer’s market as one of High Inventory, Falling Prices. The issue with Falling Prices comes back to which Price, Asking Price or Sale Price? The sale prices have remained steady through out 2007.
This leads me to say the Market is the Market, but I would not call this a Buyer’s Market. Sale Prices have remained strong though out 2007.
It doesn’t fit a Seller’s Market description which is reducing inventory and rapidly increasing sale prices.
Buyers that are staying out of the market thinking they will see prices fall had better quit listening to the media and start looking at the hard data for Tucson Average Sale Prices from last year and this year.
[TABLE=5]
Granted the Number of Sales has decreased over the course of the year. Don’t be surprised to see the September sales drop. The August Mortgage Crisis barely had an effect on the August Closings, most of those transactions were already far enough along they closed. September is a whole different ballgame. We are finding new restrictions and more paperwork required by lenders almost every day. This will certainly have an effect on the length of time the closing process takes until the Mortgage side of real estate becomes stable.
So here is the deal in a nutshell. The number of homes being sold is down. There aren’t as many homes being sold. But the Sale Price of the fewer homes being sold is not dropping, it is actually increasing. Meaning, if you are waiting for sale prices to drop you better rethink that approach, at least here in Tucson.
