I have seen a measurable increase in inquiries, not clicks, coming through the internet in the past couple of weeks. It could be seasonal, but it could also mean that buyers are really thinking about buying. What a novel idea! Our market is long overdue for some serious people to show up and write contracts. I hope you all are seeing the same thing.

There is a posting today by a Keller Williams agent in Portland, OR about how she declined to take a land listing from an unrealistic seller. She should be congratulated many times over!

There is a business model being followed by many agents in my community, and elsewhere I assume, that says take any listing you can as by so doing you will control the inventory when the market turns around. It sounds like a good plan on the surface, but I could not buy into it. I feel you have to be honest with people, just like the above agent. Also, as these listings "age" and the calls keep coming in from your sellers asking what has been the activity on my listing and why haven't I received any offers, what are you going to be saying over and over? "You need to reduce your price." Eventually, those listings will leave you and your reputation will be effected in the negative. Your time, I believe, is better spent by listing properties at prices that will sell, even in tough markets. You may have fewer listings, but you will have more time and energy to put into them and thus they will sell! Also, you will gain a reputation as someone who sells real estate rather than just takes listings. And, many of the folks whose listings you did not take will ultimately list with you bec ause they want their property to sell. Sounds like a better plan to me!

No matter how you look at the two main indicators of our market, unit sales or dollar volume, this is a better year than last for sure. During the first quarter of 2009, 4 homes changed hands with a dollar value of $1,008,900. This year 10 homes changed hands at a combined value of $2,412,400. (All statistics from the Tucson Multiple Listing Service.) Land transactions, however, were a different story: In 2009 there were 6 sales with a total value of $920,726 versus 3 sales with a value of $370,000 this year.

When you consider the total dollar value of transactions in 2010 against 2009 being up 44% ($2,782,400 and $1,929,627), it seems a bit more impressive than it is. Yes, we are happy with the trend, but this time of the year we should see something in the neighborhood of $10MM or so in total sales. Thus, we have a ways to go to get back to a healthy market in the mountain Empire.

Looking ahead, and considering both the national news and the Tucson market, we believe we are now poised to begin to see more buyers. I think it may be the third quarter by the time that happens, but I think us real estate sales people and our seller clients should be smiling more at that time. Stay tuned. I hope to bring even more optimistic news after the end of this quarter!

The following link takes you to an article that appeared in the Wall Street Journal about global warming. It is yet another explanation, but perhaps more plausible. http://ow.ly/12gus

The national real estate markets, save for commercial, are generally looking very positive. Financing is still an issue and selling one home to buy another is still not the easiest task to complete. Nevertheless, the overall trend seems strong and sustainable.

The Mountain Empire market is still undergoing some adjustment as there have not been nearly enough purchases of homes to offset the replacement inventory. Last year there were about 70 homes in our area listed in the Tucson MLS. The other day the total was 102! The normal level should be in the 60's, or about 1 1/2 years. (Normal for urban markets is about 6 months which is about where Tucson is.) So, we have a great buyer's market with many choices in all price ranges. The way we are absorbing inventory (not!) leads me to think it will be a year to two years before we are close to normal levels. -- As for land, it is still hardly selling at this point. This fact is the result of too many homes on the market and too few buyers in general.
In summary: If you are a seller, you must be patient and you must make sure your home or lot is priced right. If you are a buyer, you won't see a better time than now in our market.If you have spare cash to invest, think about land. If you are thinking of relocating here, aggressively price your current home so you can take advantage of the excellent inventory we now have.

Have a wonderful week!