In yesterday's post more on best of the best, in the Tucson Foothills
I noted that there are currently 12 homes under contract priced at $1,000,000 +, and 4 that have sold at $1,000,000+ in the last 30 days. That's 16 homes priced at $1,000,000+ that are either gone or going in just the last 30 days or so. And while it's not a gold-rush,
it is quite a bit of high-end activity for this time of year.
It's summer, and fewer $1,000,000 + homes sell when it's 102 in the shade. And with the turmoil in financial & stock markets, it's even more surprising. So why is this happening right now.
I don't know and can't say what's motivating all of the $1,000,000+ home buyers that are in the market right now.
But for those that I've consulted with recently, and based on conversations I've had with other agents representing high-end buyers, there's a feeling amongst these buyers that this may be the time to jump into the high-end market, because there appear to be some good opportunities that won't come this way again soon.
Here's why this segment of the market has the most opportunity right now. This is the segment that has had the most speculative building, virtually the only speculative building in the Tucson Foothills. And also has had the slowest sales and the highest inventory relative to sales. Months of inventory is very high at the high-end - 25 months of inventory at $1,000,000 & UP, 35 months of inventory at $1,250,000 & UP, and 30 months at $1,500,000 & UP, etc. And many of these homes have been on the market for a long time, and during that time have had multiple price reductions. And this situation has been exacerbated further by the higher cost and more rigorous qualifications required for jumbo loans, a key ingredient for the sale of high-end homes.
Currently there are 146 homes for sale in the Tucson Foothills priced at $1,000,000 & UP. That's down from about 170 a couple of months ago - 13 have sold and 12 are under contract.
But not all the homes for sale in this price range are going to offer an opportunity for a terrific deal, because not all of these owners are super motivated to sell. Some are, others aren't.
I'd start with the most obvious category.
$1,000,000 + homes that have been built since 2006 and are vacant. New spec homes - there are 30 of them currently for sale in the Foothills. Planning and construction of these homes began three or four years ago when everything was selling. Now they're not, and many of them have been on the market for 6 months, a year, and more.
It's no surprise, but it's worth noting, that high-end home construction has come to a halt in the Tucson Foothills, and between the iffy market conditions and the lack of build-able land, I don't expect to see much, if any, new spec construction here for a long time. So as these homes sell, the choices will dwindle.
There are other homes for sale beyond the new spec homes that may offer an opportunity for a terrific deal, but they don't fall into any broad or easily identifiable category. You've got to hunt and peck for them amongst the remaining 116 homes for sale at $1,000,000+.
And I can't publish a list of houses that I have reason to believe are vulnerable to deep discounts, because that's not right, and, I'd get sued too, or some other ugly thing would happen. But if you're in that market, now may be the time. Call me and I'll help you identify where the deals are.
see my web site thefoothillsToday.com
to search for and learn more about Tucson Foothills Homes
