Like other markets across the country, we here in Tucson are experiencing a large inventory, creating a great opportunity for buyers and investors. However, for the economic health of our community, it is better to have a "normal" market rather than a buyer's or seller's market.
The Tucson Association of REALTORS recently provided their sales statistics for the month of September, 2007. Remember that these stats include only homes that are listed throught the Tucson MLS. It does not include unrepresented sellers, commercial transactions or the majority of "new build" sales.
However, comparing to the same month in 2006 there are some very positive changes that may signal a stabilization in the near future.
New Listings Decreased
This is welcome news to homeowners who are facing the possibility of adding their home to the current marketplace. Compared to September 2006, the number of new listings has decreased 14.1%.
Pending Contracts Are UP
Pending contracts are those which are in escrow, but have not yet closed. They are up 32.4% in September, 2007 as opposed to September, 2006. This will clear the way for our inventory to be reduced and our market to stabilize in the months ahead.
Average Sales Price has Increased
Despite the difficult market we have faced this year, our average sales price increased by 9.95%. While there are certainly other factors that can affect this, such as higher priced homes having sold, it is still a positive that overall, we are seeing growth in the values of Tucson homes.
Homes Sales Volume Decreased
This is obviously not a positive, but I want to give you an accurate picture of our market. The home sales volume decreased by 30.27% over last year's sales volume. While this is a concern, the fact that pending contracts are up indicates that this situation could right itself in the months to come. We'll have to keep an eye on the market and see how it progresses.