Tucson Home Buyer Confidence Rises Along with Sale Prices

Consumer Confidence Rises so do interest rates

Does the title seem counter intuitive?   It is a true statement.   It might seem paradoxical, but it isn’t.   While prices were falling buyers were skiddish, some were worried if they bought they would be paying too much.   They were afraid their investment would loose value.   Many home buyers today still have the mindset that came into real estate this decade.   You don’t buy a house as a home, you buy it as an investment.   The difference in attitude is huge.

The idea of this being a place to make a home for   your family is rare these days.   With a highly mobile society we don’t think long term.   Reality often means we might have to move in the next 5 years.   Gone are the days of staying with a company 30 years, get your watch, your pension, your health care, and retire.

This change in employment patterns has a profound effect on home buying.

Now prices are increasing, consumer confidence is returning, first time home buyer tax credits are working to help get many their first home at an affordable interest rate and purchase price.   Buyers will be paying more to purchase a home and they will be paying more each month because interest rates are higher.   But they will feel good about paying more.   That is the price of confidence.