These latest reports - courtesy of Long Realty - graphically illustrate the state of the housing market for the Greater Tucson metro area. They compare Active Listings, New Listings, Unit Sales and Days of Inventory for 2007 with prior years. And see the notes below each report which highlight and clarify the key issues in a no nonsense manner.
**Click on the charts for a slightly larger and more legible version**
Also from Long Realty, here's some additional analysis and explanation for each of the charts listed above.
Active Listings Report
We have never had a market like this, with such high numbers of unsold houses. We can expect longer market times and continued aggressive bargaining by buyers. Even the low interest rates and strong employment that exist in Tucson will not rapidly reduce inventories.
Unit Sales Report
There are no indicators that the market is about to pick up, although there appears to be a good supply of ready, willing and able buyers. Prices are under continued pressure. This is a buyer’s market.
Sellers are continuing to reduce prices. As properties are selling at less speculative prices, new comparable sales establish new levels of pricing, and there will continue to be downward pressure on prices all year.
New Listings Report
There is continued interest in buying and selling in Tucson. Rates are creeping up, but are still historically low. Listings continue to come on the market at a heady pace, and this very high inventory level will put a lid on price increases. This is a buyer’s market.
Days of Inventory Report
Inventories are not being taken down, even by good sales and price reduction activity. Motivated parties are completing transactions. Buyers are passing over unmotivated sellers and ignoring properties in poor condition. In coming months, inventories may drop as some unsuitable properties leave the market. However, there are some early indicators that foreclosures will increase as rates rise and adjustable rate mortgages are re-set.
