February Statistics Arrive & The News is Positive

The Tucson Association of REALTORS released the MLS statistics for the month of February and the signs are extremely encouraging. Among the highlights are:

• Active Listings decreased for the fourth consecutive month and ended at just 4,560 listings, down 5.79% from January.
• Total Unit Sales rose 11.37% from January to 1,019, which represents an increase of 15.93% from one year ago.
• The absorption rate sits at a mere 4.5 months, putting the Tucson region into a technical “Seller’s Market” by traditional definition.
• Average Sales Price rose 4.75% from January and ended at $164,513.
• Average Days on the Market decreased slightly from 80 days in January to 77 days in February.
• Under Contract increased a very large 9.17% from January.

Essentially all the major statistics showed improvement.  While most of these statistics aren’t proven over many months, it’s looking like we may have passed the “bottom” of the market.  Unfortunately for some buyers that means the best values and certainly the widest selection of homes may well have already passed.  There still remains more foreclosures and short sales in the pipeline which should continue to inhibit substantial price appreciation, but it’s very possible things will slowly trend upwards.  With many home values falling below replacement value of late, it’s very likely that new construction will become more popular as prices creep towards that replacement cost again.  The low inventory of homes will also contribute towards new construction gaining more traction.

Very low interest rates will continue to spur activity and when the feeling of a recovery hits the bulk of the population it’s also likely additional buyers will enter the market.  Additionally, some of the initial short sales from several years ago are now beginning to become eligible for loans again and those who strategically sold short may once try to enter the home buying market to capitalize on today’s lower prices.  Only time will tell but all signs are pointing towards the beginning of a sustained recovery.

Stephen Woodall

REALTOR, GRI @ Long Realty Company

Stephen has made real estate his full-time career and passion since 2008, primarily specializing in the Foothills & the Northwest Tucson areas of Oro Valley and Marana. He is a multi-million dollar producer, representing both sellers & buyers. Stephen has tremendous experience in new home sales, listing & selling primary residences, listing & selling vacant land, listing & selling luxury homes, investment properties, rentals, and real estate development parcels.