Posts Tagged ‘Tucson Real Estate Sales’

Tell Me About Your Agent…

Monday, December 8th, 2014

Ask anyone to describe their image of a real estate agent and what do you hear?  I laugh when I hear big hair – the 1980’s; Cadillac, Realtor® car, Country Club lunches…because of course, the Realtor® belongs to a country club!  Oh and money… overflowing the pockets!

Real estate agents are not Realtors® but Realtors® are real estate agents.  Realtors® subscribe to the Code of Ethics of the National Association of Realtors® (NAR Code of Ethics http://www.realtor.org/policy/code-of-ethics-and-professional-standards ) and real estate agents do not.  There is a higher standard of care for clients when using a Realtor®.  Make sure your agent subscribes to a local Board of Realtors® because it offers you, the consumer, a higher standard of care.

When buying or selling what is probably your greatest asset, be sure you are dealing with a reputable person.  Generally that person will be a Realtor®.  He/she can guide you through the morass of paperwork and explain all that you are signing and why.  If that person shoves paper at you and doesn’t explain what you are signing, then you should not sign!  Ask to see the Code of Ethics.

Advanced designations are one way to cull Realtors®.  Beyond the normal continuing education units your agent must attend, that person understands the importance of knowledge which he/she can impart to the client and use to represent the client in a more professional manner.

Usually these designations are classes the agent must pay for out of his/her own pocket, take time to attend, and usually pass a test at the completion.   If your agent has a group of alphabets after his name, those are the designations.  Some are more prestigious than others.  Ask what these letters mean.

As the market begins to heat up, more and more people will go into real estate.  There is a perception that real estate is an easy career and the agent can make a huge income and just look at houses all day with people.  This is a myth!  Ask any successful Realtor®, the reality is far different!

So ask too, how long have you been in the market?  Remember, you are the employer and the Realtor is your employee.®

Tucson Real Estate Market Ripe for Purchasing

Monday, November 24th, 2014

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.

TUCSON REAL ESTATE MARKET TRANSACTIONS UP, PRICE DOWN

Tuesday, April 19th, 2011

Tucson real estate March sales picked up smartly from February and increase nearly 20% in sales volume although the average sales price decreased more than 10% from the February price of $182,388.  The average list price of properties in Tucson is $173,590, and the average sales price is $163,590. The last time the average sales price hovered near $163,590 was September 2002 ($163,591).

Nearly 33% more homes were sold in March than in February, jumping from 879 to 1,169.

Out of 1,169 properties sold, 37.4% were purchased with cash (437) and another 29% (329) purchased with a conventional loan.  This may indicate investors are swarming Tucson looking for the best buys.

A total of 56.9% of the homes sold (665) were priced at $139,999 or lower, and the median price of all homes sold was $125,000.  (The median price in October 2001 was $125,000). These homes are located in the northwest  (280 units), the central area (122) and the southeast (129).  The average sales price to list price was 94.46% of the last listing price.

Tucson has a high end market with a total of 210 properties $1,000,000 or more for sale, 180 properties between $750,000 and $999,999, and 482 homes in the $500,000 to $749,999 price bracket.  Many of these properties sold for considerably more during the mid 2000’s.

At the end of March, 2,152 homes were under contract and this number should be reflective in higher numbers for April closings.

Looking at the zip codes, the story of foreclosures and short sales rings through the numbers since the greater percentage of homes  sold during March are in areas such as Sahuarita, Green Valley, Midvale, Rita Ranch, Starr Valley and Rancho Del Lago.

These are areas which experienced rapid growth during the first decade of the 21st century and where builders offered come on pricing of zero down with a fixed and adjustable rate mortgage.   These second mortgages are coming due and the real estate market is seeing these homes selling for far less than what is owed.

Resources:

For a detailed report:  http://www.tucsonrealtors.org/tar-v2/statsMar2011.pdf

Why Continuing Education Beyond That Mandated By The State?…

Tuesday, March 15th, 2011

Why should you, the buyer or seller, care about the level of continuing education your Realtor® has, and whether he/she continues to take classes beyond the mandatory continuing education requirements for license renewal?

The real estate industry is constantly changing.  Short sales and foreclosures on the market brought new designations: SFR, the National Association of Realtors® designation for Short Sales, Foreclosure Real Estate, and the CDPE which stands for Certified Distressed Property Expert, and now the new classes designed for Investors in Distressed Properties.

Working with distressed buyers demands an entirely new set of skills and requires considerable paperwork which the lender, (or sometimes lenders), need to make a decision whether a short sale is granted.

Essentially this paperwork is a prerequisite for the bank to ascertain whether mortgage fraud may be involved.  Mortgage fraud, if litigated and proven, carries prison terms as well as fines for all participants.

No agent wants to subject himself/herself to possible prison terms nor do they want to subject their seller to such conditions.  Sometimes a seller genuinely does not understand that hiding assets is not protocol!

Financing is another area where the Realtor® who has additional education can make a transaction work where a Realtor® who does not understand the nuances of financing will let the potential transaction go by the boards…only because he/she doesn’t know how to structure the transaction.

With the changes which have occurred in obtaining a mortgage, many people cannot now qualify because of credit issues.

A Realtor® who has information about credit repair can pass the name of a good credit repair person on to his/her client.  Often credit can be repaired in a short time which will put the buyer in the driver’s seat to purchase a home within six months.

A knowledgeable Realtor® has knowledge far beyond the types and prices of homes on the market.  He/she spends time and money on continuing education in order to serve clients best.

Look for a Realtor® who has continuing education beyond what is required by the state.  Check the state database of the Real Estate Commission to see what types of classes your agent has taken and when.  Look for advanced designations such as GRI, CCIM, CRS, SRES, ABR, the most rigorous of which is the CRS or CCIM, the latter of which is for commercial properties.

Tucson Real Estate Market Shows Upbeat Signs…

Friday, September 24th, 2010

An 11.36% increase in Tucson, Arizona homes sold during August statistically illustrates positive movement in the real estate market, and coupled with a decline in inventory of 21.82% and an increase of 39.19% of total listings under contract, the figures demonstrate the numbers of homes on the market in Tucson is decreasing.

This is good for the real estate market. In July 990 homes went under contract and in August 1,378 had contracts. A total of 792 homes were sold in July and 882 or 11.36% more homes sold in August. The median sales price inched up $750.00 from $150,000 to $150,750. and the number of new listings decreased from 1861 in July to the August total of 1,455. However, the total of active listings rose to 7,180 from 6,668 or 7.53% reflecting spillover inventory.

Looking at the percentage of homes sold in each zip code, the areas with more than 20% of homes sold include the downtown area with 23.33% where 7 out of 30 active properties sold; 85746, the southwest area which includes Midvale Park, where 24.86% of the properties sold or 45 out of 181 properties, and 85738, Catalina, where 100% of the properties sold or 1 out of 1 listing.

The Northwest area of town has the most properties on the market with 1,826 homes for sale. During August, 219 homes sold. That is followed by the central area of town which includes the University area, with 921 homes on the market and 102 sold in August. Rounding out the top three is the North section of town which includes the Catalina Foothills with 676 properties on the market and only 69 sold during August.

Price wise, the properties between $120,000 and $250,000 had the most sold and also accounted for the most inventory. Less than 10% of the properties priced above $250,000 were sold in August.

Types of financing were nearly evenly split between FHA loans which 242 buyers selected, conventional loans for which 275 buyers opted, and 245 buyers elected to pay cash. The remaining financing was split between VA loans, owner carry backs, cash to loan and other types of financing.

The average sales price decreased 2.9% from $192,072 in July to $186,562 in August while the median sales price increased about one half of one percent to $150,750.
The average number of days in the market increased by four days to 91 from 87. West side homes took the longest to sell on average at 114 days, while the extreme northeast only took an average of 59 days.

When looking to purchase or sell property, studying the statistical data can give you insight as to how long it may take to sell property and where the price points are located for people looking to purchase property. It also shows up/down movement in the market. Make sure you have the latest Multiple Listing Monthly Statistics to help you make a good decision and ask your Realtor® to help you interpret the data for your specific need.

Resources:
Tucson Association of Realtors August 2010 Monthly Statistical Report:
http://tucsonrealtors.org/tar-v2/aug10.pdf

Six Months of Real Estate Statistics…Part 3

Wednesday, July 15th, 2009

   When people don’t know what is about to transpire, they do nothing.  The total Tucson real estate sales volume between January 2009 and June 2009 definitely reflects that sentiment with an 88% increase in  June over January.  In February, the stimulus bill passed and people felt relieved that they now knew what Congress was doing.  The sales numbers reflect people coming out of hibernation to purchase property.

January February March April May June
           
 126,459,654  153,410,306  187,802,298  178,509,827  206,198,371  237,996,501

The median sales price crept up slightly from $163,500 to $165,000 or about 1 1/2%.

January February March April May June
           
 $162,500  $     177,500  $     165,000  $     163,900  $     169,900  $     165,000

Two years ago in June, the median sales price was $225,000.  That is a drop of more than 26%.  However, the average sales price tops $200,000 and is within a little more than one percentage point in June over January.

January February March April May June
           
 $206,282  $     221,371  $     203,464  $     192,315  $     202,747  $     208,952

Tucson has 14 Multiple Listing Service areas and once again, the average sales price in the North- the Catalina Foothills area is the highest at $387,629, followed closely by the extreme Northeast which is the Redding Pass area at $375,000.  The Northeast area follows with an average sales price of $342,160; this is the Sabino Canyon area.

Dropping to an average sales price of $263,894 is the Northwest area which encompasses Dove Mountain, Oro Valley, and Continental Ranch.  From that price point, decreasing in value is the extreme south at $201,082–the Green Valley Sahuarita area.   From there, the extreme southeast or the Vail area is at $191,743.

The west side average price is $182,821, followed by the central area which includes the University of Arizona area at $180,320.  The east side of town includes areas around Davis Monthan Air Force Base and is next in line at an average sales price of $161,749.

The extreme northwest or west of the Tucson Mountains in the Arva Valley area has an average price of $136,050, followed by the extreme southwest where STar Valley master planned subdivision is located and Diamond Bell Ranch, at $125,449.   The southwest encompasses Midvale Park at $107,664 and finally the south area of Tucson at $97,291.

Price points follow the value of land and in the north, few building lots are available, whereas in the southwest, building lots are readily available.  However, one should remember 82% of all the land in Arizona is held by some type of governmental entity.  Only 18% of the land mass is available for development.

Zip codes also tell a story of what areas are selling, compared to the numbers of properties active on the market.

Zip Code # Listings # Sold  % Sold   Zip Code # Listings # Sold  % Sold
                 
85601 11 0 0.00%   85718 422 13 3.08%
                 
85614/22 408 19 4.66%   85719 198 12 6.06%
                 
85619 17 0 0.00%   85730 180 19 10.56%
                 
85629 214 22 10.28%   85735 94 9 9.57%
                 
85641 350 20 5.71%   85736 48 3 6.25%
                 
85653 179 12 6.70%   85737 288 20 6.94%
                 
85658 228 9 3.95%   85739 272 13 4.78%
                 
85701 36 1 2.78%   85741 140 30 21.43%
                 
85704 253 12 4.74%   85742 275 16 5.82%
                 
85705 175 13 7.43%   85743 332 29 8.73%
                 
85706/56 369 46 12.47%   85745 258 17 6.59%
                 
85710 301 32 10.63%   85746 276 31 11.23%
                 
85711 186 36 19.35%   85747 209 25 11.96%
                 
85712 167 7 4.19%   85748 131 10 7.63%
                 
85713 274 38 13.87%   85749 231 9 3.90%
                 
85714 54 3 5.56%   85750 340 17 5.00%
                 
85715 176 11 6.25%   85755 325 14 4.31%
                 
85716 171 13 7.60%   85757 100 17 17.00%
                 

Click the following link for a map of Tucson and Zip Codes.

http://www.tucsonaz.gov/planning/maps/city/wardzip.pdf

Resources:

http://www.tucsonrealtors.org/tar-v2/MLS_Stats_June.pdf

Once again, thank you Scott Weidamoyer of the Tucson Association of Realtors who compiles the statistics which I use on these blogs.

Six Months of Real Estate Statistics – Part 2

Tuesday, July 14th, 2009

   Don’t  believe what people say.  Look at the empirical evidence.  The stimulus package was signed into law by President Obama on February 13 of this year.  Human nature attests when people do not know or understand  what is transpiring , they often do nothing.  This certainly has been true of the real estate market since the August presidential conventions.  Once the stimulus bill passed, the Tucson market began to emerge from hibernation—not because of the stimulus bill, but because people understood government action.

The chart below shows the total unit sales for each month between January 2009 and June 2009.  There is an 85% increase in total unit sales from the January numbers to the June numbers.  Putting the numbers further into perspective, this represents more units sold in a month since July 2007 when 1182 homes closed escrow.  Althought on one hand, this is good news, we will see tomorrow,  prices have declined dramatically.  The monthly inventory in June is 18.5%  + less than January.  Each month, inventory  has been steadily decreasing.  Decreasing inventory bodes well for a stable market.

Total new listings also decreased almost 20% since January.  Pending contracts have risen by 52% from 941 in January to 1432 in June.  These numbers further indicate the housing inventory is gradually decreasing.

This is all good news for the Tucson real estate market.

                          

 

             
  January February March April May June 
             
Total Unit Sales 613 693 923 931 1024 1139
             
             
Total Units on Market 7694 7532 7415 6890 6506 6261
             
             
Total New Listings 2361 1799 1989 1703 1704 1892
             
             
Pending Contracts 941 1020 1208 1345 1302 1432
             
             

 

According to the Tucson Multiple Listing Service, the monthly comparision of the types of properties which sold, is as follows:                 

 

             
Type of Property Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
Single Family /New Construction 518 577 771 774 851 968
             
Town House/New Construction 44 53 74 80 80 84
             
Condo/ New Construction 16 34 30 30 45 54
             
Manufacture Single Family 28 24 39 29 33 28
             
Mobile Homes 7 5 9 7 15 5

 

Once again we see an increase in the sale of single family homes, townhomes, and condominiums.  Manufactured homes and mobile homes are a much smaller part of the housing inventory.  Sales remain steady at the January levels during the subsequent six months.

Tomorrow:  Pricing

Resources:

Tucson Association of Realtors – June 2009 Residential Sales Statistics

 http://www.tucsonrealtors.org/tar-v2/MLS_Stats_June.pdf

Statistics come from the June housing report produced by the Tucson Association of Realtors prepared by Scott Weidamoyer.