After years of downturn, Tucson is beginning to come out of the morass which was the real estate market. 2015 is projected to be a year when the market should appreciate at a normal rate. Most of the foreclosures and short sales will have been sold or auctioned off.
But, we still are influenced by those buyers from other parts of the country who live in judicial foreclosure states. They are about three years behind Arizona and distressed inventory is weighing down their markets.
Potential buyers from those states who are considering a move to Tucson may be hemmed in by lower prices just as we were three years ago and therefore be unable to purchase now.
The average price of a home in Tucson went from $202,342 in December 2013 to $210,454 in October this year.
The median price rose a bit more than 4% from $159,900 to $166,500. Sales statistics are a lagging indicator since they are one month in arrears. The numbers for December 2013 reflect what transpired in November since closing takes approximately 30 days. Seasonal adjustments must also be considered, the normal drop off in sales during the winter holidays when people are celebrating and not thinking about selling their home.
Banks are talking about raising rates and if that happens, buyers may come out of the woodwork to take advantage of their ability to buy more home for the same amount of money. Housing prices have not escalated considerably and the market generally has been quiet.
If you are thinking about purchasing a new home, this is the time. Builders have inventory on hand and especially with spec homes, buyers can take advantage of incentives which include lower interest rates for the loan life. Call me and we can discuss what is out there and where it is located in proximity to your lifestyle. And take advantage of 2014 fiscal year tax deductions.