The usual housing cycle is for things to pick up in the spring, peak until middle of summer, and begin pulling back until the holidays when not much happens. This year began with so-so interest rates that kept some buyers from taking the leap. So the ramp up has been slower to start this year compared to last year. Add in uncertainty caused by all of the global political/economic things going on, and it’s easy to understand why some people are not feeling like making a move.
Available inventory continues to increase, but not dramatically. Every week, 13% of all listings will have a price reduction. The homes that sell are closing for an average of 5% less than asking. The median price of homes that are selling is just under $360k. Homes that sell fastest are updated, upgraded and move-in ready. But most importantly, they are priced aggressively.
What’s it all Mean?
– Buyers are active, but more cautious
– Good listings still move
– Overpriced or poorly positioned listings feel the slowdown quickly
– Mortgage rates are a swing factor
– Labor market is reasonably stable
– Supply has improved
For Buyers: You have more leverage than a year ago. There’s more inventory, but sellers are not desperate. Mortgage rates are good and not showing signs of changing dramatically or quickly. If you find the home you love and if you can afford it, buy it!
For Sellers: It is more important than ever to get pricing right. The concept of “start high and negotiate later” is risky and tends to not only take longer to sell, but also end up selling for less. Trust your Realtor!
Asia and I track numerous data points that are great indicators of what’s happening in the Tucson market. This enables us to stay in front of local trends and guide our clients through what can be turbulent waters. We also connect with several industry experts who provide unique analysis of the broader national housing market as it is important to understand where Tucson fits into the overall landscape.
~ Doug Deck, REALTOR- ABR, MRP, SRES