| Â | March | April | May |
|---|---|---|---|
| Average Sales Price |
$282,439
|
$277,076
|
$269,217
|
| Median Sales Price |
$218,000
|
$219,250
|
$221,250
|
| Total Units Sold |
1501
|
1466
|
1526
|
| Active Listings |
7577
|
8131
|
8423
|
| Days On Market |
45
|
45
|
50
|
I was two months late on reaching 50 days on market but I expect this to continue to climb over the next six months. What does this mean?
Right now more days on the market means more homes to select from for the buyer. For the seller it means more competition. The buyer thinks we are coming down in prices. Yes, but only to the spot where the list price makes sense. If sellers continue to overprice their homes it will sit on the market longer and it looks like prices are coming down. Look at the statistics I gave you and you will see what I am saying is true. We have a sufficient number of buyers to keep a good real estate market. Will I get a bargain? Maybe if the seller has to move right away but don’t hold your breath on this.
Sellers listen to your Realtor and price to sell. Listing high with periodic price reductions will only take your valuable time until the home is finally priced right. The days of selling overpriced homes are gone for now. Maybe in five years we will see another spike, but I hope not like 2005. A very warm market is best for buyers and sellers. Have you ever thought about all those people we priced out of the market? How will they ever be able to afford a home in Tucson?
I just saw something in my email about a loan called a “3 Tier Fixed Mortgageâ€. It sounds like a buy down with costs but I don’t really know that. I will see if it is available in Tucson and do an update soon. Example: 7% fixed interest. Year one you pay and qualify on 5% interest and year two you pay 6% interest. From year three to thirty it is 7%. Sounds good but what are the costs? Stay away from interest only loans unless you really understand what is going to happen. Be careful of Adjustable Rate Mortgages (ARM) too.
I hope I have given you some thoughts and please price and buy right. Call me if I can help you!