The year end wrap - 2009

It's 12/27/2009. Twenty-Ten is just hours away. I'm well into my thinking and planning for next year, but I am still reflecting on the year almost past. 
All of us in the real estate business were faced with new and challenging opportunities this year. It wasn't so much that we didn't know it was coming, but most of us are optimists and accepting the reality of fewer buyers in the market - and many fewer they were in the Mountain Empire - was really uncharted territory. We hunkered down and readjusted all our marketing and promotional efforts to bring in buyers to our overabundant inventory. It was a real buying opportunity!

Well a couple of things happened: Active home listings climbed from 79 to 95 and total transactions (homes and land) were almost identical to 2008 and half of 2007. So our inventory is still way out of balance and actually moving in the wrong direction. Tucson, on the other hand, is now virtually in balance with about a six months supply of homes versus our three year supply!

In order to see this market return to normal, we need the target markets from whence our buyers come to come back in balance like Tucson so they can sell their current homes. Even though interest rates are still historically low, lenders are not lending without reasonable down payments and very good credit. Cash is king!

I believe our market is poised to begin a sustained rebound by mid-year, if not sooner. We have traditionally lagged Tucson by six months or so and that market "normalized" in the third quarter. I am excited to have so many opportunities for my buyer clients and I believe my sellers will be happy as well!