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Good news and Bad news in the Local Real Estate Market
No Photo Saturday
I know you like pictures but this is a quick post
as we head to Phoenix for Island Fries and Burgers
Check out the link for a picture of a really good burger
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This might have been a good article title but it is a very twisted way of looking at the Tucson real estate market.
We heard the media becrying how unrealistic the Tucson housing market was during 2005 – 2007. Something had to be done to bring prices down to earth and make housing more affordable in Tucson.
There were no regulations on who could get a loan short of my favorite saying “Fog a spoon, get a loan”.
Now the market reflects only those who can repay their loan getting loans and a return to a “normal” market (this too is a misnomer, there is no such thing as a normal market) and this is called a bad market.
Does anyone think returning to the numbers of 2007 and the methods necessary to get to those numbers is a “GOOD” thing?
- I think the Good news is that we are closing over 1000 transactions each month for the last three months
- I think the Good news is the falling inventory of homes each month
- I think the Good news is our ability in the Tucson housing market to maintain a pretty stable market after the huge run ups in valuations over the past 3 years.
Now is not the time to call a decline in sales over 2007 bad news. This is Good news and some more Good News.
Until the investors and out of state retirees leave Arizona, and until the housing prices become aligned with Arizona Salaries, and most recently until the banks start lending money, the housing mess will not resolve. The Greedy investors started this mess causing the prices to escalate then the lenders added to the mess developing funky loans for people afraid the costs were going up so rapidly they would never get a home.
AzLady1,
I posted this back in July, things have changed dramatically since. I don’t call those investors I refer to them as gambling speculators. We don’t ever need them back in our real estate market.
As to retirees, that’s not going to happen. They will keep coming no way to stop them. The weather is too attractive.
The banks actually started this, well not the banks, banks as we know them, the investment banks which funded no docs loans, without this source of funding the speculators would never have entered the market. They are the ground zero for the mess.
Arizona Salaries . . .