Tucson Real Estate Market - July 2007 Analysis

The Tucson Association of Realtors, (TAR), has not officially released has released the Tucson housing sales report for July 2007 (should come out in a couple of days) and here are the numbers for last month:

Sales Analysis

Average and Median Sales Price Decreases
Average and median sales price both decreased in July 2007. Average sales price fell slightly to $269,227- down 1.7% from July 2006 and down almost 10% from last month. Median sales price also decreased $11,200 from June 2007.

Active Listings Continue Declining
Active listings have been falling slowly since April 2007, reversing the increases we saw between January and April of this year. The number of active listings fell 3.1% from June 2007, to 8,614 active listings in July.

Pending Contracts Up Over July 2006
Pending contracts in July 2007, totaling 1,777, rose 63.18% when compared to last July’s total of 1,089. While down from last month, July still had the second largest amount of pending contracts for the year - which we should see translate into sales units next month.

Days on Market Holds Steady
Average time on market holds steady, with 64 days being the average time for July 2007, same as June 2007.

Compared to the Tucson housing statistics from June 2007, July figures are very similar. The Days on Market (DOM) remained steady at 64 days. Median sales price fell to $218,750 from $229,00 in June. The number of active listings hovered around the same level, down slightly from 8,665 in June to 8,614 in July.

As I wrote in my previous post (Tucson June 2007 Housing Report), median prices finally saw a noticeable dip in July, down $11,200 from June. I believe this can be attributed to a couple of things:

• a slower summer selling season (alliteration is fun!)
• buyer’s having more leverage in the market
• seller’s pricing their homes more realistically

More likely than not we will see a few more months (at least) of declining median prices as the Tucson real estate market slowly corrects itself to a more normal level. With the recent mortgage industry fiascoes the repercussions are already being felt in the market; just last week Coldwell Banker (company I work for) stopped offering their 100% piggyback loans to consumers because of all the recent defaults and foreclosures. Buyers with a down payment and decent credit aren’t really affected but the buyers who are trying to sidle into a home with little to no money down and with less than stellar credit will start finding it more difficult to secure financing as the rest of the year wears on.

So there you have it, Tucson real estate news for July 2007. If you have any questions or are in the market for a home in Tucson please feel free to contact me on my Tucson Real Estate website!

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