Tucson Real Estate Market update for August 2009

From our recent press release:

"Tucson is still experiencing a significant increase in buyer activity, as we head into the Fall/Winter Season.
The amount of active Tucson Home listings on the market was 6,095. This is a decrease of 25% from the same time last year in August 2008.
There were also a total of 957 closings in August 2009,
When compared to the same time last year, the sales figured are up by 6%.
Tucson home inventory on the market is also showing a decrease which appears to be reinforcing the latest trend for Tucson.
In August this figure was 6.4, a significant decrease from 9.0 in August 2008.
However, the median price of sold homes was $162,500 for the month of August 2009, which has reduced 12% from August 2008.
It is therefore a great time to purchase a home as Tucson prices are very affordable, inventory is coming down and home prices appear to be stabilising.
New home builders are offering great incentives for you to buy before the first time home buyers tax credit runs out on November 30th 2009.
New property sales are up 52% from the same time last year in August of 2008.
The inventory of homes has reduced in the Foothills. 85718 now has around 8 months of inventory compared to a few months ago when the inventory was over 12 months.
85750 still has 11 months of inventory, but this has also reduced from 13 months several months ago. the most significant drop in inventory is in the 85749 Zip Code where three months ago there was over 24 months of inventory. This has now reduced to 10 months, which although still high, is showing signs of improvement.
Many Zip Codes now have a less than six month inventory, a good sign for an improving market.
However many lenders still see the whole of Arizona in a depreciating market, and Tucson often gets evaluated with the Phoenix market as one area. Our statistics are quite different.
Interest rates are still very low for FHA and Conventional Loans and this week were hovering around 5%. There are still strict qualifications for Jumbo Loans, but they are out there and at great rates. Fixed Rates can be obtained for 5.5% for less than $500,000 and then 5.75% over $500,000.
The Tucson Real Estate Market is experiencing a significant increase in Buyer activity, something that we will be watching into the usually busier Fall/Winter Season.
Remember Tucson homes must be closed before the cut off date of November 30th 2009 to get the tax credit."