Tucson MLS Statistics, Tucson Real Estate

Tucson Real Estate Analysis – March 2009 Statistics – An Encouraging Month

The Tucson Association of Realtors released their March 2009 MLS Statistics report recently and, just like the report from last month,  it paints an encouraging (if bland) analysis of MLS activity during March.

Here are the main highlights from the report:

.. For the third month in a row we see a leveling off from nearly every perspective.. If this trend (less listings/more sales) continues, we’ll start to absorb some of that excess inventory.

The median sales price is down 10% year over year and only moved fractionally from February to March. This is in direct contract to national reports that show a continued downward spiral in values.  Our market usually out performs other parts of the country during this season and this year is no exception.

There is a definite lack of equilibrium in the housing market despite historically low interest rates and increased affordability.  Buyers at all price points are hesitant to move forward. Are we close to the tipping point? It’s very possible.

The bottom line is the market is still flat here in the Old Pueblo, which is still being hailed as a good thing by nearly everyone. I think once the first few fence sitting buyers make a move the floodgates will eventually open to return the market to a proper activity level.

March 2009 Absorption Rate

Current Absorption Rate for the Tucson market stands at 9 months.

“Absorption Rates” means the average number of homes sold per month over a particular period of time. It is a solid indication of market conditions and predicting how long a property may be on the market before being sold.

At 9 months the absorption rate for March 2009 is a definite  improvement over the 12.4 month absorption rate we saw in February.

What constitutes a Buyers Market, a Sellers Market and a Neutral Market?

The amount of inventory determines market sway. A “Neutral Market” is 6 months of inventory. Anything less than that is a “Sellers Market”, and conversely, an inventory of more than 6 months is a “Buyers Market.”

Even with a relatively uneventful month Tucson appears to be on the path to recovery. As I wrote in my February 2009 MLS Statistics post last month I think the Tucson market will continue to remain relatively anemic until mid-summer when things will being to actually pick up.

There it is folks, Tucson MLS Statistics for March 2009. To view the full report click here.

Stay tuned for next month’s April 2009 Statistics report!

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