The Tucson market has shown a level of stability over the past few months that we have not seen for quite awhile; most of the past few years has been a story of gradual but continual decline.

It appears that the market is beginning to right itself from the foundation up as evidenced by the data below. The bulk of sales in the Tucson market resides with homes under the $250,000 level (as it always has) and just as this segment of the market was the first to fall out in the sudden decline 4 years ago it also is the first to recover and appears to indicate a coming upswing in the market.

Market Comparison Snapshot

The data above paints an interesting picture, that of the “luxury market” (homes priced at least twice the market average) still feeling the effects of the economic slowdown while the foundation of the market is already in recovery mode. I wonder if this lag time is indicative of natural progression of a recession where the lower classes are affected immediately while the upper class feels the pinch later as the economy contracts?

Also, the average sales price of homes from $250k-$500k dropped nearly 25% from 2006 to 2010 but that makes sense as the bulk of foreclosures and short sales originate in this same section of the market.

At the very least the data above is encouraging in that it shows a stable market is beginning to emerge and I expect the trend to continue. With mortgage rates at historic lows and with Obama pushing for a small-business friendly bill that will loosen community bank purse strings, lending money should become available for consumers to help aid the recovery of the housing market.