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Tucson is not a Seller’s Market either
This goes against the conventional thinking that any real estate market is either a buyers or sellers market. Maybe that was true at one time (but I doubt it). Now we have a time in history where the interest rate on a 30 year mortgage is historically low. Sale prices are as low has they have been in over a decade which would tend toward a buyer’s advantage. But one crucial piece of the puzzle is missing for a true buyer’s market; high inventory.
Tucson’s Low Residential Inventory
Have you even been in a store (Like Ross) the week after Christmas? The shelves look like they are 80% empty. Very little to choose from compared to the weeks leading up to Christmas. Tucson’s available housing market looks a lot like one of those stores.
Not much to pick from
Currently in Tucson we have a very low inventory of available properties. Even with the high number of foreclosures we don’t see that many properties on the market. There are 5,587 active residential listings in the Tucson MLS system right now on Jan. 2, 2012. Considering this includes properties in Vail, Oro Valley, Marana, Saharita, Green Valley and scatterings around Southwestern Arizona and a few in Mexico, that’s not a lot of inventory to choose from.
False Perceptions Can Lead to Poor Decisions
The general perception among many seems to be it is a buyer’s market in Tucson. Make an offer that’s within 20 or 30 thousand of asking price then meet the seller somewhere in the middle and you can walk away with the property. The reality: many are taking so much time deciding, they find their first, second, and third choices are going under contract while they “think about it”.
Think about it
Who’s swooping in and buying these properties while they “think about it”? Buyer’s that have been in the market who have had their perception altered by the reality they have lost two or three homes which were their first choices. Now realizing when they see something they like they better make an offer, not a low ball offer, a fair and reasonable offer.
I have been telling people the same story for the past 3-4 months! Those who want to take advantage of great interest rates and low home prices had better get out and buy now! Thanks Dave.
Great article Dave. We need to get the word out on what a good time it is to buy here in Tucson. Low interest rates, great pricing and Tucson is the best place to live. Thanks for sharing. Brigitte