While the national media still reports very bad news for the real estate market, our local Tucson market continues to stabilize slowly but surely.  It is still a fantastic time for buyers because our inventory is still so high.  However, I predict that within the next 12 months we will see that inventory dwindle and buyers and sellers will be on more equal footing.

The most recently released statistics compare sales in November 2007 with sales in November 2006.  There are both good and bad components, naturally.  Let's take a look.

The Good News

Comparing to November 2006, we have a slight increase in pending contracts.  These are contracts that are simply waiting to close as all contingencies have been removed.  Additionally, we have a 7.65% decrease in new listings coming on the market.  So with more under contract and fewer coming on, we should start to see more stabilization in our market, providing that these trends continue.

Loan rates, which have already been very good, have been lowered again over the past week.  Buyers putting 20% down and getting a 30-year fixed rate are looking at getting a rate less than 6%.  There are also a lot of programs being utilized to assist those who may not have as much to put down, but can still afford a monthly payment.  The FHA is rolling out some new programs that will be very beneficial to buyers ...  more on that later this week.

The Bad News

While we see signs of inventory slowly decreasing, the actual sales volume has decreased 22.1% compared to November 2006.  For right now, fewer homes are selling.  This should turn around over the next few months as more buyers come out now that the mortgage crisis is somewhat under control.  For now, however, sellers are still feeling the sting as homes are typically staying on the market for longer.

In my Personal Experience

I am starting to work with buyers who are more serious about buying and who understand that today's market may be a good opportunity for them to make an investment in Tucson's real estate market.  I am seeing less trepidation and more realism from buyers, who seem to understand that although there have been some problems in the lending arena, now is still a great time to buy with an eye on building equity over the next few years.

As this continues into the spring, I expect that our market will continue to improve unless we get a flood of new listings on the market now that the holidays are over.  We shall see...