With most of the action happening on the lower end of the market in Tucson - the luxury market is still in a slump.
This fact leads to opportunities for buyers looking to take advantage of their strong position and pick up the home of their dreams or make an investment in resort property.
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Luxury homes make up about 25% of the active listings in the Tucson MLS today - but only 5% of the sales this summer. Foreclosures are part of the resort home market, too. Smart real estate buyers are looking at the power they have in the marketplace to buy luxury homes while the prices and interest rates are low. They are getting the home they always wanted at a huge discount. Not every foreclosure is a bargain, nor is every bargain a foreclosed home - but one of these is discounted a cool $1 million from its original price. A big key to making a wise decision when purchasing a golf course home, resort property or investment at any level is strong, thorough analysis of the market conditions. That is my strength. Your heart will tell you the rest. Joseph Kennedy once said: "when I heard my shoeshine boy giving stock tips, I knew it was time to get out of the market." Whether you like the man or not - he knew markets. Hear any real estate tips from the convenience store clerk lately? |
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It was the best of times. It was the worst of times.
(apologies to Dickensian scholars worldwide)
It is a buyer’s market. It is a seller’s market.
Both statements are true—it all depends on what part of the market you’re looking at. There are some very interesting dynamics at play in the Tucson real estate market this summer—we’ve got 2 markets going at the same time in one city.
On one end of the spectrum, multiple offers and bidding wars are reminding people of the “boom days” of 2005-06, when offers would start pouring in on properties before the “For Sale” sign was in the ground.
At the opposite end of the market, homes are languishing for months and months without much activity while prospective buyers are demanding (and getting) price reductions, repairs, upgrades and other concessions from sellers.
Overall, there are just over 4,000 single family homes on the market today in the immediate Metro Tucson area. Since June 1—just over 2,000 have sold (about 6 weeks). That means that there is roughly 3 months of inventory on the market today, which is a drastic improvement from the year’s supply we had last year.
Here’s where it gets interesting: out of those 4,000 homes on today’s market...950 are priced at $500,000 or more. Only 730 are priced under $150,000. Guess which market segment sold the most homes the past 6 weeks?
Ready? Drum roll please...
Comfortable & Affordable? OR Luxury ?
Out of 2047 homes sold since June first, 762 were under $150,000. Only 114 in the half-million and up range have sold since the beginning of summer. Not too hard to figure out where the action is.
Purchasing a home in Tucson right now is an exercise in different disciplines: in the lower end of the market, things are fast, furious and ultra-competitive while the luxury market is begging buyers to “Pick Me! Pick ME!!!!”
The best part of it all? Bargains are in all areas of the market—you just need to work with someone who understands market dynamics and is adept at identifying the contenders in a sea of pretenders—someone like me.
Well folks...I've been neglecting my friends & my blog on ActiveRain - and it isn't a smart thing. Neither in the realm of friendship nor business-wise.
It is easy to get caught up in the excuses: "...but I've been doing this! ...had to do that instead! ...my dog ate my computer!" ...you get the picture.
Sure, it has been easy to do some "drive-by" blogging and read a few other posts without commenting or taking some time to really digest what is going on lately - and my business has suffered a little for it. It is true. No excuses, it is the reality.
Just so you folks won't think I've been doing nothing all summer - here's a screenshot of my new baby:
Its my new hyper-local website! TheTrolleyBell.com
Inspired by ActiveRainer Nick Bastian's RailLife website - I saw the opportunity to do something similar in Tucson - with the changes coming by uniting the University of Arizona's Main Gate Square, Fourth Avenue, Downtown Tucson and the Mercado District together with a new Modern Streetcar. This transportation oriented development project is going to have a major effect in Tucson's downtown revitalization.
Check out the site - Bookmark It - and as we grow, you'll be sure to know What's Going on in Tucson's Downtown Core. Follow @TrolleyBell on Twitter, too!
I'll do my best not to neglect the 'Rain...just know I'm not putzing around! ...by the way, during my absence, I've also come up with a way for nightclubs & concert halls to go completely paperless with their event ticketing. If you know of a venue that might be interested, lets talk!
Below, you can see TucsonKent's Top 10 foreclosures for sale under $300,000 in the Tucson real estate market. As noted in the previous post, the foreclosure market is the hottest segment in Tucson real estate right now. With the $8000 tax credit, good interest rates and low prices, first-time homebuyers are seeing great opportunity to achieve the dream of owning a home. Many times, foreclosure homes are a good buy...if they are in decent shape (always, always, ALWAYS have your homes inspected by licensed, experienced professionals).
Top 10 Foreclosures In Tucson Under $300,000
There are quite a few Tucson foreclosures in the $300k and below segment - these are my picks for the Top 10 this week, according to ability to finance, not requiring a lot of obvious repair & to reflect a variety of locations around the Tucson Metro area.
In this segment of the Tucson real estate market, the competition isn't quite as fierce as in the market for foreclosed homes under $150,000...but the smart investors are seeing the opportunities to take advantage of undervalued homes in a down market. We're not seeing quite as many of the foreclosures in the $300k and under price point go through bidding wars, but there are some - especially if the home is in good shape, and priced below comps.
These are TucsonKent's Top 10 foreclosure homes priced under $200,000 in the Tucson, Arizona real estate market. These homes are not fix-ups, they may need a little TLC, cosmetics or an appliance or two, but they are either move-in ready or close to it.
What's the hottest market segment in Tucson real estate right now? Foreclosure homes under $150,000! I mean to tell you, these are the homes that are seeing multiple offers & bidding wars. Because most of the foreclosures under $200,000 in Tucson are already at bargain prices, it isn't unusual for properties to sell for more than the listing price - actually, it is becoming a regularity.
JULY 31, 2009
For example: just this week, a client of mine found a foreclosure home that had all of the features he wanted, and it had only been on the market for 3 days. Hooray! I zoomed across town to take extra photos & video of it for him, and saw that 16 other agents had already viewed this property...in 3 days!
Since he already had his lending in place, we put an offer together for $10,000 over the asking price, but didn't get it. Back to the drawing board. An agent in my office has been working with another buyer looking at foreclosures in Tucson and Marana. They've put in a dozen offers in the past 2 weeks, but without results. This is the hottest market segment in Tucson real estate - bar none.
The moral of the story is this: the reality is that Tucson's foreclosed homes market is ultra-competitive right now in the lower-end price range. When the property is priced under value, and is in decent shape, the smart money is zooming in to capture the bargain. This isn't a market segment where negotiation is happening...it is a flat-out auction, and the highest bidder with the most realistic chance of closing soon gets the home.
Cash is king, but if you are using a loan for your purchase, don't lose faith...just don't fall in love with one home, and be ready to offer more than the bank is aking for it. Period.
Most of these homes will probably be under contract sometime next week, if not all.
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Buyer's agents, seller's agents. Tucson homes, condos, townhomes, golf homes, university property, land & investment. First time homebuyers, luxury home, Catalina Foothills, Sabino Canyon, commercial
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