March Residential Sales Statistics

Instead of taking their usual two to three weeks to leisurely compile the residential sales statistics, The Tucson Association of Realtors published the March stats on April 3. I think providing these sale data is the most important function of TAR, so I'm glad they finally agree with me.

After a 6.8% increase in average sale price from January to February, we saw an 8.1% decrease from February to March. Number of listings continues to decline, down to 7,415 in March. Happily, the number of sales was up 35.36% from February to March, with 892 homes sold last month. 7,415 listings divided by 892 sales equals an 8.3 month supply of listings. This is a huge improvement over the 13 month supply we had a few months ago. When we get back to a six month supply, the market will be considered balanced, with no advantage to the buyer or the seller.

The low prices combined with unbelievably low interest rates (4.5% owner occupied! 5.5% investor!) are the primary movers of houses right now. Savvy buyers see this as a once in a lifetime opportunity.

The luxury market remains weak, with only 15 sales over $750,000. Eighty-six percent of the sales were of properties under $300,000.

In my own business, I am seeing several first time home buyers who are excited about the $8,000 tax credit. This is free money that no qualified buyer should pass up.