How's the Market?

Where do you get your real estate information? With so many opinions and voices, it can be pretty difficult to form your own idea of the current real estate market in Southern Arizona. Here are some thoughts and analysis of what we’ve read, seen, and heard in the past 3 months:

The population of Arizona will continue to grow and Tucson will continue to attract new home buyers, businesses, and investors. Job growth will also continue a pace of steady growth, contributing to the widespread demand for more housing. Despite worries about the market, Tucson’s housing market is strong and steady. Homes that are overpriced and the significant number of homes for sale will likely decline as the market softens through the remainder of 2007.

Buyers and sellers are well aware that the market is not the same as it was 2 years ago. In addition to changing market conditions, interest rates will also affect the number of qualified buyers who will be hesitant to consider non-traditional financing options. So what does all the research and market analysis mean? The simple answer is that housing conditions are returning to normal after an intense period of growth. Buyers are no longer willing to justify the purchase of a home that is overpriced and sellers are realizing that they cannot expect as high of a return on the sale of their home as they could have a couple years ago.

The high inventory of close to 9,000 homes on the market in Tucson indicates that sellers have expected high levels of return and that buyers are unwilling to pay these prices, instead many buyers are waiting for the inevitable—a return to a market where homes are fairly priced. So the rest of 2007 will likely see conditions where sellers will lower prices in order to sell or will take their homes off the market until a later date when supply is not so high. The competition with new home sales will also contribute to the pressure for sellers to lower prices, as new home builders attempt to profit from current market conditions.

As home prices accurately reflect their value, buyers will start making more and more offers. Growth will continue at a steady pace and there should be no worries, despite what the media says.

Via Realty prides itself on knowing the market and in properly assessing the value of your home so that it will sell and so that you will obtain the most value for your home. Our goal is to share our information and experience with you, so that you are confident in the sale of your home. We are also happy to meet with buyers to equip them with the proper knowledge of the market and to aid them as the select a home.