Where are we going?

Posted by admin on January 24, 2006

Median sales price (the price at which half the homes were sold above and half below) from 12/2004 to 12/2005 increased from $169,000 to $220,000. This all sounds great but what happened from 11/2005 to 12/2005? The median sale price DROPPED from $226,000 to $220,000.Â Â Â Â

Total listings under contract reported in 12/2005 was 1236 as compared to 11/2005 which was 1528. Holiday adjustment?

Average days on market started up in 09/2005 with 30 days. 10/2005 was 31 day, 11/2005 was 34 days and 12/2005 was 39 days. Are we headed back to 50+ days? Only time will tellâ€¦

WHAT DOES ALL THIS MEAN? My feeling is we are headed back to our 2004 appreciation adjustments with some softening in current sales prices. This is not bad as the market will be much more stable without those large increase in prices. It is too late to help the first-time buyer that was just able to purchase at last years prices. How can we help them? Maybe another topic to discussâ€¦

To view the Tucson Association of REALTORS Residential Sales Statistics for December 2005 click here.

Stay tuned for my next topic on â€œRents and Investorsâ€.