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

July 2009 Tucson MLS Statistics

July’s Tucson real estate statistics reveal a continued uptick in the market with with unit sales up, 3.9% over last month, 23.46% increase over July 2008 and 90.05% over January 2009 numbers.    Although average sales prices are down 17.3% over last year, it remains consistent with the average list price being down by 17.44% and the average median price being down by 16.04% over July 2008.

Pending contracts are down 14.32% over last month but, up over July 2008 counts by 27.81%.We continue to see a decrease in inventory with total active listings (6,075) being down 21.04% since January 2009, and at the lowest since December 2005 (5,457 units) and January 2006 (6,499 units).

The northwest continues to have the largest inventory with over 1500 active listings compared to the second largest central area with 738.  Average days on market are still at 80 with the north area’s highest at 102.  You can study the full report here.

I’m seeing increased inquiries from buyers and sellers alike.  I’ve received two calls in the past week from buyers wanting to find a good deal in Tucson Country Club.  Move up buyers especially need to realize the advantages in today’s real estate market.  Although you may not realize the returns of the past on the sale of your current residence, if you are moving up in price range, your net savings will be worth it!

The time to buy real estate in Tucson is definitely now.

 Denise McCreary

 

 

 

 

 

 

Housing Up!

Media sources report today that new home sales rose an historic 11%–the largest increase in 8 years.  Buyers took advantage of  low interest rates, bargain prices, and the first time homebuyer tax credits.  Some economists are saying that the worst of the recession is behind us.  Is it possible that these two bits of good news could cause the public to finally rally the housing market?  Although shares of big builders soared with the news, continued falling prices may prevent big profits to these companies in the near future. 

Reporting on the existing home market, the National Association of Realtors reports that sales are up again 3.6% in June.  Lawrence Yun, NAR chief economist is hopeful about the gain.  This trend mirrors ours here in the Tucson Real Estate Market, with inventories dropping and prices declining less sharply.  Read my post here for the full market report.

What does this mean for Tucsonans?  Buyers, you are on top!  In the Luxury market, I’ve found many great deals to be found in the Foothills areas.  I conducted a search for Short Sales in the Foothills and found more than a dozen good listings between $500,000 and $700,000.  If  you are in a position to move up there has NEVER been a better time to purchase your dream home than right now. 

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

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

Tucson MLS Stats for February 09

Steady is the word to describe the current Tucson Real Estate Market, meaning we aren’t seeing any remarkable changes either positively or negatively.

February pending sales and closings exceeded January’s, with pendings up 8.4% and closings up 12%.  Comparing this year to 08, we see only moderate declines.  January pending sales were down 22% from 08, but February was down only 12% from last year.  Closed sales comparitively were very much the same, with 659 this year to 664 in February 08.

It appears as if we are leveling off .  And the median sales price is currently $178,000,  11% lower than last year, but within sight of the ‘05 median sales price of $186,500.

Listing inventories have come down as well;  last February we saw a staggering 9,168.  As of last month we now have 7,532.  Kimberly Clifton, MLS President asserts that with the “mere .75 drop in sales you can see that we’re gaining ground.” This improved inventory vs. sales ration is encouraging.  You can view the full statistical report here.

Denise McCreary

First Magnus and RESPA: If it looks like a duck and acts like a duck…

The Department of Housing and Urban Delvelopment reported on July 14 that now bankrupt First Magnus violated the Real Estate Settlement Procedures Act by providing incentives to lenders for making certain FHA insured loans.  HUD reports that First Magnus paid $58,571 in incentives from 2003 to 2006 to seven brokers for 169 FHA insured loans totaling 24 million.  The report recommended that HUD pursue administrative actions against the owners and management of First Magnus, in addition to other sanctions. 

The law, known as RESPA, is designed to protect consumers from paying undisclosed costs in real estate transactions.  Under RESPA, it is  illegal for a mortgage lender to give or accept any fee, kickback, or anything of value, to anyone–real estate agents, mortgage brokers, escrow companies–involved in a real estate settlement.  This can be very serious; HUD has the right to pursue fines, cease and desist order, and there can even be criminal charges levied. 

First Magnus, a mortgage company with a national presence, suddenly collapsed last August, and left 5,500 employees without paychecks and numerous other creditors unpaid.  Inspite of this,  former First Magnus chief operating officer Karl F.W. Young is reopening another mortgage company, StoneWater Mortgage, at the same location on Wilmot Road previously occupied by First Magnus.  He stated that “First Magnus did not believe the program to be a violation of RESPA.”  Interesting…

At the time of the First Magnus collapse, I can recall feeling sorry for the company’s demise.  Then the stories began circulating in the real estate community about the employees being stiffed by the owners.  It sounded too similar to reports of other big corporations such as Enron going belly up and leaving their own people holding the bag.  Now we learn that these deadbeats are opening up under a different name.  I would hope that Mr. Young will make good with the past before he creates another mess for our community.  Unless this happens, I won’t be sending any of my clients his way.

Denise