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.

Forbes recently posted a story about job growth improving across the country and even more exciting was the result that Tucson tied for 3rd with an expected net employment outlook of 22%. This result is based off of a survey completed by ManpowerGroup, an employment services firm, which surveyed more than 18,000 employers in 100 metropolitan areas to find out who’s hiring, who’s firing and who plans to maintain their current staff levels in the second quarter of 2013. Their data is also supported with statistics coming from the Bureau of Labor Statistics which showed unempolyment for February at 7.7%, which is the lowest since December 2008.  Tucson continues to receive acclaim not only for its economic recovery & outlook, but also for its quality of life.  We couldn’t agree more!

Here’s the specific information from the article, written by Jacquelyn Smith, about Tucson:

“The Tucson Metro Chamber works very hard to promote a strong local economy, so we are not surprised that our work has had positive results,” says Michael Varney, president and chief executive of the Tucson Metro Chamber. “At the same time, recognition of this nature is always a pleasant surprise.”

Which industries are doing particularly well in Tucson? Healthcare, technology and service sectors seem to be out in front, Varney says. “We have a number of excellent healthcare facilities in our region. Renewed in-migration seems to have picked up. With that influx of new residents will be a component of retired individuals who typically need higher levels of healthcare services. There has been a concerted effort to develop the technology and bio-tech sectors of our economy, which I think is starting to bear fruit. Our wonderful University of Arizona has made some very powerful strides to commercialize their research and to help tech companies get up and running. Certain service sectors are also doing well perhaps largely because employment has picked up and there is more demand for services.”

The University of Arizona is one of the city’s largest employers. Others include Raytheon Missile Systems; Davis–Monthan Air Force Base; University of Arizona Health Network; and various mining companies.

“We frequently hear from employers that they have jobs they need to fill,” he says. “The range includes very highly skilled to technical and vocational to manual labor. Tucson’s unemployment level is below the national average, so it is possible to infer that organic growth of our economy is at the root of this demand for employees.”

With 320 days of sunshine each year, and bright blue skies, Varney says Tucson is a wonderful place to live and work. “The climate and natural beauty in Southern Arizona is very unique. Although we are a metro area of one million, there is still a little small town nature to the culture in terms of friendliness and neighbors helping neighbors.”