With the year almost over it's time to take stock and see what's been selling and what's been sitting on the shelf gathering dust.
Today there are 555 single family homes for sale in the Tucson Foothills priced from $185,000 to $6,450,000. And during the past 3 months 107 homes have sold, leaving us with about 15.5 months of inventory as we close out the year. (555 รท 107 = 5.18 X 3 = 15.5 months of inventory) 6 months is considered normal inventory.
But looking at inventory and sold's by price range tells a different and somewhat uglier story.
$0 - $500,000
174 for sale/57 sold = 9 months inventory
$500,001 - $1,000,000
238 for sale/45 sold = 16 months inventory
$1,000,001 - $1,500,000
70 for sale/2 sold = 105 months inventory
$1,500,001 - $2,000,000
37 for sale/2 sold = 56 months inventory
$2,000,001 & Up
36 for sale/1 sold = 108 months inventory
Though still moving slowly, the lower half of the market is at least moving, and looks positively vibrant compared to the upper half, and with interest rates for conforming loans at all-time lows, the lower half is poised to perk-up more yet.
But with the financial markets and the entire luxury goods industry -from cars to jewelry to private jets, to you name it - in a tail-spin, who is going to buy all these expensive homes in the Tucson Foothills - where a large percentage of the high-end market is made up of discretionary buyers - second home, third home and retirement home buyers, none of whom need to buy.
And while I think many home sellers are holding out for a miracle to happen during our winter selling season that starts in a couple of weeks, if sales don't pick up noticeably, I think the showdown may be over, and many sellers will be at the point where they either just need to, or have just had it, and will be looking to pack up and move on.
see my web site thefoothillsToday.com
to search for and learn more about Tucson Foothills Homes
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