Tucson Association of Realtors December report is finally out. Residential home sales did decrease below that of November with 682 officially reported sales for December; the official number was 759 sales for November. The real number for December sales is higher at 762. So much for Realtors reporting on time.
Buyer confidence is still a major factor affecting sales. Interest rates in January dropped below 6%, yet there is no significant increase in buying. As I said last month, sales for the winter are traditionally lower. January generally sees a slight decrease from the lack of activity during December. Most potential home buyers are out shopping to give Christmas gifts and not homes in December. So, look for an even lower number for January. Traditionally 20% less sales. In this case January 2008 residential home sales should net between 546 to 610 sales. Lets see how close we will be to that number.
Pending sales waiting to close for the month December were 799. A drop from November’s 910. Again, competing with Christmas shopping. If we look at the 30 day lag for closing, the December number should have been lower with 728 pending sales. So, 799 a positive outlook for January sales. We’ll have a better answer in February.