MARKET OVERVIEW
The April statistics from the Tucson MLS are encouraging, especially if we concentrate on where we are going in stead of where we came from. Realistically there is an obvious difference from a year ago but if we look at the changes since the first quarter of 2008, it suggests the worst may be behind us. The current stats show us that the cost/volume of all homes closed in April is up almost 6% from March. The number of homes sold increased 8% since March, The median sales price was nearly the same for both months and the number of pending contracts increased 9.7% over March while the inventory is starting to decrease, a factor that is good news for sellers. This indicates that while we are still in a Buyer's market, Sellers can be hopeful that they will be able to sell their home.
There is a need for buyers and sellers to be realistic when taking advantage of this more stabilized market. Naturally sellers want to take advantage of the increased value of their homes and have rushed to put their homes on the market “before the price drops.” We still have many homes available on the market so buyers have their pick of homes. But that does not mean that they will be able to get a steal. Occasionally there will be a desperate seller who will be willing to take less than their home is worth due to their personal circumstances but the majority of sellers can wait for the right buyer to come along. Sellers need to price their homes realistically at market value and to be prepared for a longer wait before their home sells. They must prepare their home for showing with more care to compete with the many other homes the buyer is seeing.
New construction has played an important role in influencing the housing market. During the housing boom of 2005, builders could not keep up with the demand for homes. Then the market slowed down rapidly and they were caught with a large inventory of new homes. They slowed down the start of new construction while selling off the inventory with the use of many incentives that were often too good to refuse. This drew buyers away from the resale market allowing the inventory of resale homes to increase dramatically. Now that their inventory has decreased considerably, the incentives are not likely to be as great. Most will be incentives that tie in with using their lender. For more info, read Builder Bargain Update for examples of current new construction available.
If you are a buyer, this is a great time to be buying as interest rates have fluctuated some but continue to be relatively low. Begin by talking with a mortgage counselor to find out what you can afford to buy. You will be in a better position to negotiate the price if you are pre-approved when you make your offer to buy. Concentrate on looking at homes in the area where you want to live that are in your price range. You probably do not have to look at every house that comes on the market before finding the right one. Accept that most houses will not be perfect if they have been lived in, just natural wear and tear. If you want to negotiate the price lower, I recommend going easy on the demands. As a Realtor, I check the listing history of a house to help determine if there is much wiggle room in the listing price.
If you are thinking of selling, now is a good time to start preparing your house for the market. Go around to look at your competition to see how your house measures up. Go to model homes to get some good decorating ideas. The houses that sell the most quickly generally have what I like to call the ‘WOW’ factor, you know, the kind that when you open the front door you look around and say Wow! It starts with the appearance of the house from the street and continues throughout the house and landscaping of the back yard. It conveys the feeling of cleanliness and caring as well as hominess. It includes sparkling clean windows, bathrooms and kitchen, appliances and floors, some fresh paint on the walls, some tastefully arranged guest towels and soaps, attractive plants or artificial flowers, fragrant candles…you get the idea. This is a good time to pack away most of your knickknacks and family pictures. Time to sort through the items you don’t want to take with you. Time to have a garage sale! Pack away things you are not using as it will make your home look more spacious and buyers will be able to envision their own belongings in the house. Store things you are not using in a rented storage shed rather than the garage. It shows off the garage to better advantage.
The local market is healthy and we anticipate considerable growth in the Tucson area over the next few years…so don’t be afraid to buy or sell.
