September 2009 Tucson MLS Statistics

Active listings continue to go down, a trend we’ve been experiencing all year.  We anticipate this trend to continue into October and November as first time home buyers take advantage of the tax credit.

Here are the highlights from the 3^rd Quarter Summary:

• Total unit sales up 39.48% over 1^st Qtr
• Average median sales price down 1.71% over 1^st Qtr
• Average sales price down 3.80% over 1^st Qtr
• Average active listings down 19.99$% over 1^st Qtr
• Average days on market slightly down with YTD average 80 days
• Pending contracts up 4.63% over last month
• Pending contracts increased 9/08 to 9/08 59.45%

Click here for the full report, including comprehensive charts and graphs.  If you are considering selling your home at this time, I’d suggest looking at the Active/Sold by Zip Code chart at the bottom of page 2.  This is telling, in that you can calculate months of inventory by dividing #Active by #Sold.  For example, in the 85712 zip code there were 158 active listings and only 19 sold in September.  19 into 158 equals a little over 8 months of inventory.  19 divided by 158 equals 12 (%) of the inventory sold in a month.  If you want your home to sell quickly, you will need to price, market and stage it so that it will beat the competition.  How can you position your home to be in the small percentage of homes sold versus the larger group of unsold properties?

Denise McCreary

June 2009 Tucson MLS Statistics

June closed out the first half of 2009 breaking records for the year!  Home sales volume was up over May by 14.63%, average sales price was up by 3.06%, pending contracts were up by 9.98%, and home sale units were up by 11.23%.

 With the first 6 months of 2009 behind us we can now take a realistic view of the absorption of inventory which has moved in a positive direction with June pushing that number up to 22.9%. Even though we have a long way to go, these numbers show a positive sign.

 Activity by zip codes shows us that 85718 continues to have the highest number of active listings at 415 with 85750 taking second at 323.  There are many good deals to be had in these areas.

 All in all, we’re looking forward to the second half of 2009 with high hopes of the continued trend of recovery in Tucson’s Real Estate Market.

 First time home buyers have an unprecedented opportunity for three reasons:

• The $8,000 Federal Tax Credit for First Time Home Buyers (including those who have not owned a home for 3 years)
• Historically low interest rates
• An abundance of relatively low priced listings (the Tucson Real Estate Market currently has over 2,700 active listings priced under $200,000!)

There are opportunities for Luxury Home buyers as well in that there are over 1,000 active listings priced at $500,000 and above.

You can read the full report here.  Make the decision to participate in the American Dream and enjoy the benefits of home ownership.

Denise McCreary

May 2009 Tucson MLS Statistics

The Tucson real estate market seems to show continued improvement with inventories dropping once more to around 6,500—down 23% from the staggering 8,500 active listings of May 2008.  The median sale price increased 3.72% from April.  The average days on market is still around 85, a number we’d like to see come down.  Lastly, a quick look at a new statistical chart which compares the new listings to net pending sales is encouraging—since January, the former has been coming down while the latter is going up.  According to MLS president Kimberly Clifton, there are economists who say that 6 months  equals a trend.  For the entire MLS report, click here.

 Real estate is an attractive antidote to the venom of our present economic downturn.  Buyers should be encouraged to believe that if they are managing their present housing needs but want to make a move, they should not hesitate to do so.  Even if sellers are unable to realize the wonderful proceeds of yesteryear sales, there are compensating bargains in the market.  (No gain, maybe, but no pain either—and no real loss!)  Move up buyers have everything to gain in this market.  Although you may take a hit on your existing home, the savings you’ll gain in the purchase of a more expensive home is well worth it!  There are unbelievable bargains out there.

 And if you’re a first time homebuyer with good credit (which, by the way, is one who’s never owned a home OR someone who has not owned a home in the past 3 years) the best investment for you right now is real estate.  Take advantage of the $8,000 tax credit currently being offered by the Federal Government.  Watch this video for more information.  Pairing this opportunity with historically low interest rates makes right now an incredibly good (possibly the best!) time to invest in real estate.

I would be happy to help you or anyone you know to enjoy the benefits of home ownership.  I can help your friends buy and sell real estate in any state of the United States.  Call me today at 520-256-6731,  or visit my website.

Denise McCreary

Denise’s Home Buying Tip #2

The Mortgage process-What NOT to do:

Mortgage rates are at an all time low.  With interest rates in t he low to mid 4%, you’d think buyers would be flooding the market.  Although the real estate market in Tucson does seem to be leveling off, buyers who are in the process of buying a home need to avoid doing anything that could jeopordize the loan approval process.  Gary Keller, in his book, “Shift” makes the following recommendations:

1. Don’t change your employment status

2. Don’t make any major purchases (cars, furniture, home  theater, vacations, etc.)

3. Don’t increase your credit card debt or miss any payments.

4. Don’t change bank accounts or make undisclosed large deposits.

5.Don’t apply for a credit card, co-sign a loan or make a credit inquiry.

6. Don’t spend money you have set aside for closing –not any, not ever.

7. Don’t delay in providing all paperwork asked for by the mortgage company.

I realize many potential homebuyers are concerned about how the economy can affect their ability to buy a home.  Just remember that homeownership is a long term investment in your future, and one of the most important ones you can make. There is a “Buyer Strength” phenomenon occurring right now which is driven by historically low interest rates and a large inventory of affordably priced homes on the market.

These days, many families who aspire to become homeowners are taking a “wait-and-see” approach, trying to buy at the “bottom” of the market. The problem with trying to time the market is that you can’t time the market. Again, conditions in our Tucson Real Estate Market, Luxury or otherwise, today are very favorable for home buyers; housing affordability has improved, and mortgage rates are, again, near historic lows.

It’s time for Tucson Homebuyers to get off the fence and take advantage of the fantastic real estate opportunities available today.

Denise McCreary

First Time Homebuyer Tax Credit Co-Starring Jester

Enjoy my very first video: Real Estate Buzz #1, co-starring my old guy pug friend, Jester.

Did I mention that this is a great time to buy real estate in Tucson?

My view from my back patio–Loving life in Tucson, Arizona!

Denise McCreary

Denise’s Home Selling Tip #2

What NOT to do…

I have been in contact with an acquaintance who had acquired the job of acting as trustee in the sale of a friend’s home.  The friend had passed on and was survived by 2 adult children, one of whom was living in the home.  The home is in a decent central foothills neighborhood.  There are luxury neighborhoods within the vicinity.  It was adapted for the handicapped and has a pool.  The home has a mortgage, and the surviving children can’t afford to make the payments, so selling it is a necessity.  My friend had contacted me and asked me provide some comps, so naturally I began to assume that I would be hired as the agent to sell the home.  I provided the information and followed up.

The trustee decided, because it was necessary to net the most from the sale of the home, to list it with a discount brokerage and price it nearly $30,000 above market.  The firm it’s listed with is merely a website and MLS listing service.  It has a contractor’s lockbox instead of an MLS lockbox for entry, requiring any agent to show it to call the trustee for the code.   

As if this scenario weren’t bad enough, recent statistic reveal there are currently 33 months of inventory in the home’s zip code area.

This home has been on the market (so far) for 90 days

Denise

Denise McCreary’s Home Buying Tip #1

Before you start your house hunting in earnest, the real estate professional with whom you are working likely will prequalify you to determine a price range you can afford.  From my point of view, as an Accredited Buyer’s Representative (ABR), prequalification is a necessary part of the home buying process that helps save you time and money.

Don’t be shy or withhold information about your income or credit status.  Real estate professionals are not trying to pry.  Rather, he or she must know all details related to your ability to obtain a mortgage.

By candidly discussing your financial situation, you’ll give your agent the information necessary to show you homes you can afford.  If you don’t open up, you are placing the real estate professional in the role of a tour guide, not someone who can help you find a home within your budget.  You’ll wind up wasting your time and that of the seller.

Once you have signed a contract to purchase a home, you must choose a lending institution or mortgage company from which to obtain your home loan.  Your loan application will request financial data including your place of employment, assets, and liabilities (including recurring debts such as credit card bills and car payments).

Here are two important tips on loan qualification:

1. Do not borrow the down payment without disclosing the loan, submit fake letters-of-credit or gift letters, or make secret financial arrangements.
2. Accurately list your income and assets, all debts, and the approximate amounts you owe.

You’ll most likely be charged a credit report fee by the lender, which will cover the cost of having your credit history examined.  Credit reporting agencies compile credit reports on consumers, including bill payment history, as well as whether you have been sued or filed for bankruptcy among other information.

Federal credit reporting laws do not give you the right to inspect the actual credit report at the reporting agency or to receive an exact duplicate of the report.  But, you are entitled to a summary containing the sources of the report’s information.

If your ability to obtain a mortgage is adversely affected by the credit report, you have the right to challenge its accuracy and seek corrections.

The credit report is part of the information the lender uses to determine if you qualify for a loan.  It is not a mechanism to prevent you from buying.  Remember, lenders want to make loans, not turn them down.

Let me assist you in putting it all together.  Remember, now is the time to buy a home in Tucson, Arizona!   So whether you are in the market for your first home or your fifth, a modest dwelling, or a luxury home, let me help you take advantage of this very special time.

Denise McCreary

Denise McCreary’s Home Selling Tips #1

In today’s sluggish real estate market sellers must rise above average to attract buyers.  Here are a few ideas to help prepare your home for the market.

1. Declutter! Go through every room in the house with a large trash can at your side.  Separate what will be donated from what gets discarded.  This process is especially needed in bathrooms and kitchens.  Clear kitchen countertops of cookbooks, papers, knickknacks, leaving only a few necessary (like a spoon rest) items in sight.  If you can’t completely clear bathroom countertops, organize and place whatever is to be left on a tray.  You will appreciate this process when it comes time to move.

2. Have your home inspected before it goes up for sale.  Hire an ASHI (American Society of Home Inspectors) certified inspector.  Click here to find one in your area.  Be proactive and address needed repairs and recommendations.  This will prove to be an effective marketing tool, well worth the cost of the inspection.  It will also help to speed up the closing date, saving you money in the long run.

3. Do the obvious. If the carpet in your home is dated and worn, replace it!  If there are drywall or stucco cracks in need of repair, do it!  These things will only be distractions to a buyer, possibly turning them away from making an offer.  Remember competition is stiff.

4. Remove personal items.  Try to make your home show like a model.  Put away family photos and try to take a minimalist approach to decorating.  Invest in low cost designer touches like pillows and throws, vases and artificial floral arrangements.

5. Pastels are out-Nuetrals are in.   Use paint color to promote warmth and freshness to update and make your home more appealing.

6. What’s your curb appeal?  Clean up the outside of your home by trimming trees and shrubs, removing weeds, and washing windows.

Taking these steps will help to set your home apart and reward you with a shorter market time, a hassle-free inspection period, and most importantly, higher net proceeds on the sale.  If your property is in the luxury home category, I suggest hiring a staging company enhance your home’s market presence. 

Denise McCreary

Tucson’s Commercial Real Estate Market

Christie Smythe of the Arizona Daily Star reports that the economy is showing an impact on the comercial real estate market.  However, the office market, according to Tucson Realty and Trust Co., is improving.  The office-vacancy rate for Tucson is on the way down after a rise in recent months.  Currently, it’s at about 13%, but incentives like a free month’s rent are starting to disappear. Does this mean the office market has bottomed out and is recovering?  This change in status contrasts with the markets for industrial space, retail space, apartment buildings, and commercial and residential land, Tucson Realty and Trust representatives said.  Vacancy rates for retail and industrial properties are rising, at least partly as a result of more space being built in both those categories.    Although retail vacancy is around 8.5% with greatly varying rents, about 1.7 milllion square feet of retail space is to be built in Tucson this year.  But some of that building may be delayed because of a slower economy and tighter standards for borrowing.  George “Hank” Amos III, president and chairman of TRT thinks that conditions in those markets may start to improve by the middle of next year, depending on whether the housing market picks up in the spring.  The National Association of Realtor (NAR) forcasts a market recovering in the latter half of this year.  Currently in Tucson, sellers and landlords are willing to negotiate.  Whatever market you may be interested in, according to our local statistics, now is the time to buy or lease. 

Denise

Settlement Offers Free Service On Credit Files

In todays AZSTARNET Business section read about a class action settlement that could significantly help homebuyers.  Under the terms of a national class action settlement you could qualify for six or nine months of free credit monitoring plus unrestricted access to your credit file and score.  At a time when lenders are requiring higher credit scores for the best mortgage rates and flat out rejecting borrowers with low scores, this offer will benefit hundreds of thousands of applicants.  To be eligible you need only to have had an open credit account–credit card, student loan, mortgage–at any time between January 1st, 1987, and this past May 28th.  In the months immediately preceding a mortgage application it’s vitally important to keep a close watch on your credit file, and to remove any glitch or negative information and provide missing positive information.

Under the terms of TransUnion, one of the three main repositories of credit information, you can visit a special website (www.listclassaction.com) or call toll free 1-866-416-3470 to register a claim.  Buyers need to take advantage of this free service while available.

Denise