Tucson Real Estate Blog

Median sales price dropped from $220,800 in 12/2005 to $215,875 in 01/2006. The funny thing is that the average sales price went from $266,731 in 12/2005 to $273,690 in 01/2006. Both of these statistics are for SFR (Single Family Residence), TH/C (Townhouse/Condo) and MH (Manufactured Home). The fact that the average was much higher is because a large number of expensive homes sold for over $500,000 with 17 homes selling for $1,000,000 or more. These expensive homes push the average price up while the median price of $215,875 shows the middle of the range of sold properties, which is a much more accurate statistic.

Total listings under contract on 01/2006 was 1672 as compared to 12/2005 which was 1236. Compare this to the number of active listings in 01/2006 of 6499 and 12/2005 of 5457 listings – This may be a “holiday adjustment”… stay tuned!

Average days on market for 12/2005 was 39 days and now 01/2006 it has increased to 44 days. New listings in 12/2005 was 1638 compared to 3209 in 01/2006.

More homes on the market with a smaller pool of buyers is going to lead to higher number of day on the market, which is already happening.

I still see prices stabilizing but beware of some price softening over the next couple of months. Price your homes properly and it will sell in the range of 30 days. Buyers, be sure your Realtor does a market analysis so you can make an educated offer.

Interest rates are still low. Remember not that long ago there were days of 8% and higher… much higher! I do not see it going down again so buy now while you still have an excellent rate!

Thanks for taking the time to read my articles and please check back soon!

Do these go together? I think the answer is a definite YES! According to the local news, approximately 3500 apartment units are in the process of being converted to condominiums. What will happen to those tenants? I know of a couple of new apartments recently completed, but my guess is they will not replace all of those units. My guess is the new units are much more expensive. Soooo we should see close to full occupancy for the existing units and for sure an increase in rents. 

When the apartment units are full, I expect it to flow over into the single family residence (SFR) rental market and we are sure to see an increase in rents there as well.

Are there more investors for single family residences? Right now it does not make financial sense. Will some of the investors exit the SFR market in Tucson to look for greener pastures? I think it can happen but I hope not in large quantities.

If you are a renter it is not too late to purchase. Why not check with a lender to see what you can afford. Call me if you need help finding a good lender. There is never any charge or obligation to talk!

The MLS statistics for January 2006 will be out soon. Stay tuned for my next update…