The Tucson Association of Realtors released their January 2009 MLS report and I have to say, I am pleased with the current state of the market. It is apparent that short sales and foreclosures dominated the Tucson market at the end of 2008 and during January of 2009 as evidenced by the median sales price dropping to $163,250 from $203,000 one year ago (a nearly 20% decline).
January 2009 Statistics
January 2009 MLS Statistics
January 2009 Absorption Rate
Current Absorption Rate for the Tucson market stands at 13 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.
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.”
Consequently, it is apparent that Tucson is still in a Buyer’s market and will continue to be as lender-owned and short sales pervade our market. I believe that by the middle of the year we will see these troubled properties receding and market activity and statistics responding accordingly.
There it is folks, Tucson MLS Statistics for January 2009. To view the full report click here.
Michael Krotchie
