Time to buy a New Home in Tucson

  

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This week the Wall Street Journal published an article titled “Why it's Time to Buy” which discussed the multitude of reasons to buy a new home.  Let me focus on just a few of these that impact Tucson specifically.

We are on the Bottom

Last year the government used tax credits and other tools to artificially prop up the housing market.  This did indeed make things feel better…until they stopped doing it.  What occurred was a drop in home sales, a drop in home prices and a drop in home building.  So now there is nothing artificial propping up today’s market.   What you see is the bottom with nothing but the blue skies above us.

Distressed Sales are Slowing

The houses bought during the boom with no money down and shaky credit have mostly been foreclosed and resold.  Of course we still have distressed sales because this recession has been extremely tough on everyone but the bubble of foreclosures is behind us.  In Tucson we now have less than nine months of distressed sale inventory. 

Prices are about to go Up

The other impact of distressed sales is they hold pricing down.  In Tucson we have recently had 50% of our home sales being distressed.  As this percentage of distressed sales is reduced and more sales are market rate, the pricing of homes will naturally increase.  In fact Case-Shiller is predicting that Tucson prices will rise by 7.2% next year.  Why?  Less distressed sales.

New Homes in Tucson Will Never be more Economical

New homebuilders have figured out how to compete with distressed sales by providing maximum value, ten year warranties and competitive pricing.  Add that to the fact that mortgage interest rates are at 4.55%, which is near a 50 year low.  This adds up to a scenario where the best possible new home deals will be in the next six months.

Simply stated, time to buy a new home in Tucson.