Home Inventory Is Lean

Buyer’s today may be thinking they’re still in the driver’s seat when making a purchase, but the reality today is a shift has occurred and the “screaming deals” of the last few years are gone. Now, this isn’t to say there aren’t any good values to be had or that sellers hold all the cards, but buyers need to be keenly aware of the market in which they’re shopping. What is becoming more rare are purchases made well under the list price. Sellers, from banks to private individuals, are more accurately pricing homes from the outset near market values. Inventory levels across Tucson are at 3.3 month supply, which is a very small supply.

Price point makes a tremendous difference in how quickly homes are moving and how much of a discount can be had though. The most competitive price points, typically those under $200,000 around the Tucson-area, have the least amount of inventory and the most demand. This has caused an increase in average and median prices by roughly 20% over the last 18-19 months. Homes in very good to excellent condition that are priced well are selling quickly at or very near list prices. It’s definitely not uncommon to find multiple offer situations again, although bidding wars are not as common as during the market’s peak. Buyers remain more pragmatic still about their purchase and many come to realize acting quickly after finding the right property is highly important.

Luxury market buyers are the ones still most apt to receive a more substantial discount compared to list price. However, the inventory levels here have dropped recently. Last year at this time there was a 43-month supply of homes over $800,000 and now that number is only 19.9 months. This still represents a surplus of homes though, so buyers have a wide selection to choose from and pricing remains relatively stable. However, many luxury market sellers simply don’t NEED to sell their properties and are less apt to “give the home away”. If you can find a motivated seller and a property that you like though, very good deals can be found. Much has been written about how new construction has returned in the broad market, and this is also becoming somewhat the case with luxury homes as well. Spec homes priced in the $800,000 – $1,300,000 are seeing increased sales as well.

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.

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