October Residential Sales Statistics

The Tucson Association of Realtors has released the Residential Sales Statistics for October.

We are seeing a return to a normal market. Although average sale price has increased 9.43% in the past year to $192,433, prices are stabilizing. Typically in Tucson, number of sales and sale prices decline from November through January. The hectic spring buying season will resume in February.

Number of active listings has increased 9.67% from September to 5,173 in October. Surprisingly, the number of sales increased 7.52% from September to 1,130 in October. Dividing 5,173 listings by 1,130 sales, we have a 4.58 month inventory of listings. This higher than last spring, but still an indication of a strong seller's market.

I'm glad to see the number of distressed sales is now way below 50% of the total sales. A few years ago, short sales and foreclosures were over 60% of the sales. It's also encouraging that only 8% of the sales in October were short sales, and 17% of the sales were properties that had been foreclosed. As prices rise, fewer sellers are underwater, so the need for short sales is decreasing.

Sunset on the Tucson Mountains. And the Catalinas and Rincons, Too.

David Fitzsimmons is right, as usual. Any survey of the best sunsets that doesn't have Tucson at the top of the list is not a valid survey.

More than half the time, the sunset in Tucson is most stunning to the North or even to the East. Can you do that, Florida?

The ultimate sunset is a combination of pastel-colored air, fanciful clouds, light-reflecting mountains and gorgeous landscape. Not, as Monty Python would have it, "some farcical aquatic ceremony."

Inaccurate Listing Information

When I meet with new buyers, I tell them to avoid using third party real estate advertising sites like Trulia and Zillow in their house hunt. These sites obtain their information through a listing distribution system. The sites have plenty of misinformation, which is frustrating to the buyers and can even cost the seller a sale opportunity.

For example, a large percentage of the listings shown on these sites are already under contract or have already sold. Some of the houses are not for sale and never will be. The sites will list properties for which a notice of foreclosure sale has been recorded. The house may eventually auctioned for cash, as is, on the court house steps, but it may not. A buyer who needs a mortgage and wants to see the house before buying it will not be able to buy it.

Because anyone can post to these sites, scammers will steal the photos from a legitimate listing, post it for sale or for rent at a price that's too good to be true, and get prospective buyers or renters to send personal information and deposits to the scammers.

These third party sites are unconcerned with the inaccuracy of their listings. I have a listing with one full bath and two three-quarter baths, which is a bathroom with a shower, no tub. Harmon Homes has it listed as having a full bath and two half baths, which is a powder room with no bathing facilities. I wrote to Harmon Homes and told them to correct this. Their response was that this has been a problem from the beginning, and most people don't know what a three-quarter bath is anyway.

These sites get our listing information for free, and then try to sell it back to us. Next to my listings on these sites, you will see the photos and contact information for three Tucson agents who aren't me. Buyers are encouraged to call those agents for information on my listing. If I want buyers to call me for information on my listing, I have to pay each of these websites hundreds of dollars each to have my contact information next to my listing.

The Austin Association of Realtors has decided end their cooperation in this misinformation scheme.

Lovely La Madera Home

Gorgeous home in terrific neighborhood.

Close to La Madera Park, Catalina Terrace swimming pool, Rillito River bike path, Tucson Racquet Club, St Phillips farmers' market, Trader Joe's and U of A. Four bedrooms and 1.75 baths in main house.

Updated kitchen and baths. Dual pane windows. Tile floors in traffic areas.

Glorious back porch with brick floor expands your living space to the great outdoors. Mature landscaping on drip irrigation.

Storage shed has adjacent covered hobby space.

Sweet guest house has Saltillo tile in living room, bedroom, kitchen, and 3/4 bath.

Month-to-month tenant pays $495 which includes water.

Guest house has its own laundry room, heat pump/air conditioner installed in 2010, separate electricity meter and a unique shaded patio with artsy privacy fence.

See interactive floor plan here. This fabulous property sold for $237,000 on January 17, 2014.

Living in a World with Limited Water

My fabulous client and birding pal, Alison Jones, connects the dots between water shortages and meat production with her guest commentary in the Arizona Daily Star. I added a few remarks, knowing that some carnivores will be offended by the idea that their diet is harmful to themselves,  the animals they consume, and the lovely planet we are destroying.

Keeping Cool

Steve and I have been escaping the heat and revealing in the glorious conifer forest at the top of Mount Lemmon, only an hour from Tucson. The 26 mile road up the mountain climbs 6,800 feet. You'll see changes in vegetation similar to what you'd see in a drive from Mexico to Canada. It never ceases to amaze and delight me, especially when the temperature is 30 to 40 degrees cooler than it is in Tucson.

We encountered a lightning storm on the Marshall Gulch Trail, and got a little rain. Imagine our shock as we drove down the mountain and saw what appeared to be snow. It was two inches of hail in August. Do we live in a magical place or what?

 

Back in the desert, the wildlife in my backyard have their own ways of keeping cool.

This Mourning Dove isn't injured. After airing both of his wing pits, he flew away.

This Harris Antelope Squirrel also looks injured. He reminded me of a Rocky the Flying Squirrel. He is on my patio, engaging in heat dumping. He is actually able to transfer excess heat from his body to the patio.

 



Another variation on the heat dumping concept.

August Residential Sales Statistics

The Tucson Association of Realtors has released the Residential Sales Statistics for August.

Average sale price was $191,283 in August, a 27% increase since we hit bottom at $150,699 in September 2011. In Tucson, sale prices and number of sales typically peak in the summer, and decline in the fall. August's average sale price was 3% lower than July's, so that may indicate we will experience the usual autumn slowing of market activity. There were 1,205 sales last month, and we can probably expect fewer sales each month from now through February, when buyers recover from their holiday distractions.

We had 4,249 active listings last month, an 8% increase from July, and a 19% increase since August last year. If the number of active listings continues to increase, it might result in a reduction of sale prices. However, most of the action is in the $120,000 to $250,000 range. With 1,695 active listings divided by 590 listings sold, we have a 2.87 month supply of listings in that range. Anything below a six month inventory is a seller's market, so we have a strong seller's market for that price range. In the $50,000 to $100,000 range, we have a 465 listings divided by 194 sales for a 2.4 month inventory. For the most part, the houses under $100,000 need quite a bit of repair.

Overall, we have a 4,249 listing divided by 1,205 sales for a 3.53 month supply of listings. So the increased inventory may continue to put downward pressure on houses priced above $300,000, but in the entry level and investor market, the competition is still strong for well-maintained houses. 

Except for slight dips in the past two winters, median sale price has steadily increased from $117,500 in September 2011 to $160,500 last month. Half the properties sell for less than the median price, and half sell for more.