Market Conditions for Tucson, Arizona Reported by The Murray Group: Barbara and Jack, REALTOR, MA, ABR, E-Pro, GRI Updated November 29, 2008.

Current Market Rating: 1 1 2 3 4 5 Buyer's Seller's

Current Price Trend: 2 1 2 3 4 5 Falling Rising

The fact that Tucson continues to increase by about 18,000 people annually (down from as much as 28,000 before decline in the national economy) has kept our economy growing, albeit at a slower pace than in the past two years. Job growth had been 3.7% through April 2007. Job growth for 2008 looks to be closer to 1-2%. New home construction has been hit the hardest with builders offering lavish and unprecedented incentives to move not only "inventory" homes, but also to complete existing subdivisions. Without a crystal ball, we do see that the market has been "bouncing along the bottom" during the summer months. We look to see positive moves in real estate and new construction in the first half of 2009, depending upon decisions in Washington! We note that our market picked up substantially through the spring of 2008. Part of this reflects the expanded credit options with FHA providing loans up to $316,25- and conventional loans up to $417,000. Activity on homes over $500,000 has definitely slowed recently because of the world credit crunch. We do work with lenders in Tucson, however, who do offer good options for financing Jumbo loans to credit worthy buyers.

There are approximately 7900 listings in Tucson's MLS as of September 30, 2008, down considerably from the 9000 and 10,000 listings of the past two years.

A closer look shows a much higher percentage of price reductions in the northwest, where competition from builders' inventory homes is a fierce, as well as in the south, southeast, and southwest areas again where builders are offering incredible deals in competition with resale homes.

The market in Central Tucson has stabilized after resales have corrected some 14% over October 1, 2007. Likewise the East side is stable and neutral relative to buyers and sellers, with the median price there having dropped almost 16% in the past 12 months. There are some great buys! Prices in the northwest and northeast have likewise come down with median prices dropping 13 - 16% over October 1, 2007.

Luxury homes, priced over a million, have ceased their marked price appreciation of the past two years. However, we are seeing slowing sales in luxury properties. Length of time on market has increased in many areas from a year ago. Area-wide there is a 28 month supply of $1 million plus homes, up now to 25 months in the Foothills, 27 months in the northwest and a 35 month supply in the northeast! At the same time the Tucson MLS recorded its highest sale price in May: $4.9 million, so luxury buyers have discovered what a delightful place Tucson is to live and to invest. Custom builders can entice you with some beautiful new view properties where they're also tightening their prices.

Buyers now have excellent choices; sellers must position their homes in mint condition and price their homes below recent sale prices to attract buyers. If you would like current statistics for any area, please e-mail or call 520-400-0505 for your full up-to-date market report.


Approximate Location Boundaries: Metropolitan Tucson

Location Characteristics: Attention Buyers!!!! Our team has lenders with the abaility to lend money and fund loans, whether it is an FHA or a Juombo Loan! Call us today to find out more! 520-404-5533

Tucson's real estate market is very diverse geographically, as it extends north/northwest into Pinal County and Saddlebrooke, west to Dove Mountain and Continental Ranch/Reserve, and northwest along I-10 where new subdivisions are mushrooming. Southeast growth is strong also with new subdivisions planned extending east to Benson. To the South Sahuarita is growing quickly.

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