If you were to watch the news and trust that they are right you would think that the Tucson real estate market is prime for the picking for buyers. Touting that there are so many foreclosures and short sales on the market that there are super great deals to be had. There are good deals out there. The lower end of the market is drying up though. Buyers are faced with a similar dilemma they faced in 2004 through 2006 before the bottom fell out.
The absorption rate has dropped to as close to normal as has been seen in months. Which means that the tide is headed out for a Buyer's market. There are fewer low end homes today than there were a year ago. What I am seeing consistently is multiple offers on any decent property. Buyers are faced with paying more than what they originally hoped to pay. No more low ball offers. Either Buyers have to compete at the asking price or above. Instead of looking at a $150,000 home and offering $140,000 Buyers have to offer closer to the asking price. So now for that $140,000 buy they must look at the fewer available homes at or near the $140,000 asking price.
As they lower end home market dries up the ripple effect will work it's way up the price ranges. Without good restraint we could see a repeat of 2004 through 2006. Of course the banks have mor restrictions today to prevent a repeat. However, if investor greed gets hold things could change again. I heating big investors advertising to tge radio o get rich on the Tucson real estate market. Indicting with incomes of $10,000 a month. Buyer beware, the market is changing. There are strong indications that the Tucson real estate market surpassed the bottom and is well on the road to recovery. Let's pray it's slow, methodical and controlled.
In summary, if you are a buyer sitting on the fence post in the Tucson real estate market the better deals are quickly passing you buy. Gotta run now to submit another contract and preview another home.
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