Thursday, October 18, 2007

September Sales Stats

The September Residential Sales Statistics from the Tucson Association of Realtors are finally available. The good news is that the median sale price is $220,000. As many properties sold for more than $220,000 as sold for less than $220,000 in September. The median sale price has been dancing around that number since the sales volume peaked in June 2005.

Other encouraging news is the average sale price is $279,025, which is down from the all-time high of $298,477 in June 2007, but still above the average price of $253,781 posted in September 2006.

So the oft-discussed housing bubble still hasn't burst.

The number of listings on the market was 9,190, which is up from this year's low of 8,665 in June. Listing volume reached a record high in April 2007 at 10,387. So it is good to see that there are fewer sellers in the market now than there were in the spring.

The most stunning news is that only 683 properties sold in September 2007. This is way down from the craziness of June 2005, when 1,858 properties sold.

I think the dramatic decrease in buyers is due in part to the changes that occured in the mortgage industry in August. Borrowers with marginal credit or no savings can no longer buy houses. Buyers who are financially qualified to buy feel no rush to make a commitment, and are a little overwhelmed by the number of properties from which to choose.

My experience is that attractive, well priced houses in good locations are still selling quickly, and sometimes with multiple offers. Sellers who still insist on overpricing their houses or who will not make repairs, improvements and concessions are experiencing few to no showings, and no offers.

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