I participate in a monthly housing survey conducted by Credit Suisse. The following are the results of the July survey which covers the entire Tucson metro market, not just the Catalina Foothills. Nevertheless, the results indicate that the overall market is on the mend, with strong demand and slowly rising prices. Which is very much inline with what’s happening in the Catalina Foothills.
Survey Methodology
Source: Credit Suisse
We survey real estate agents, as we believe agents provide an accurate assessment of local housing market trends in both the new and existing home markets. We view an understanding of the existing home market as crucial to homebuilders as it represents over 90% of total sales, and trends in the existing home market often dictate trends in the new home market.
Each month, we survey agents about trends in buyer traffic levels, home prices, incentives, inventory levels, and the length of time needed to sell a home. In July, we received responses from 650 real estate agents across the country. We review responses and calculate a diffusion index for each of the questions with levels above 50 indicating positive trends, levels below 50 indicating worsening trends, and a level of 50 indicating a neutral trend.
Now you probably think, well of course real estate agents say the market’s on the upswing, what else would you expect. For what it’s worth, I’ve participated in this monthly survey for 6 or 7 years now, and by and large I’ve found that the results and comments by real estate agents have in fact accurately reflected the ups, downs, good, bad and changing mood of the market over the years.
Tucson, AZ – Trends Picking Up as Confidence Improves and Gradual Rising Prices Drive Motivation
Our Take:
• Strong demand trends continued through July, as our Traffic Index accelerated to 72 from 64 in June. Agents noted the improved confidence from buyers. Gradual increases were seen motivating both buyers and sellers, helping to drive activity. However, agents continue to discuss the limited selection of quality inventory. • Home prices increased again in July, with our Price Index landing at 72 in July from 73 in June.• Inventory contracted, as the time needed to sell decreased in July.
Comments from Real Estate Agents:
• “Prices are starting to creep up a bit which is stimulating
both buyers and sellers.”
• “Good property is hard to come by.”
• “Buyers are more confident and upbeat now than they have
been in years.”
• “Traffic has definitely picked up. Lots of activity on listings.”
There are charts in the survey which support the findings but, unfortunately, I’m not able to copy and paste them to this post.
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On the other side of the fence Housing Wire reports on a survey by Fannie Mae showing that
Consumers don’t think it’s the right time to buy
Fannie Mae survey hits an all-time low
Brena Swanson August 7, 2015
The percentage of consumers who believe it is a good time to buy dropped to 61%, an all-time survey low, right as summer is about to come to a close.
According to the July Housing Survey from Fannie Mae, consumer attitudes toward the home-buying environment stumbled last month despite positive home-price change expectations.
And the share of consumers who believe now is a good time to sell a home didn’t fare too much better, dropping 7 percentage points to 45%.
Continue reading;Consumers don’t think it’s the right time to buy
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That may be true on a national level, but as far as the Tucson market is concerned, and as I was quoted in the Credit Suisse survey (under Comments from Real Estate Agents); “Buyers are more confident and upbeat now than they have been in years.” And I’m sticking to it.
see TheFoothillsToday.com
to find your very own Catalina Foothills Home
