Tucson, Arizona “New Housing Summit for 2008″
Tucson, Arizona real estate market commentary about new home sales by Don Vallee of RE/MAX All Executives.
This article is in response to Tucson’s annual housing summit held at La Paloma February 8, 2008. Several speakers such as John Strobeck of Bright Furture Business Consultants and Marshall Vest – Director of Economic Business Research Center for the Eller School of Business for U of A commented on new construction statistics for the Tucson market. Read full article here.
Accordign to Don Vallee, "Their report has a very pessimistic slant. One must remember the new housing summit is reporting on new housing which is one segement of the residential market. Remember just as few short years ago when they were selling houses faster than they could build them housing prices were increasing 3-5 percent every few months. Does anybody really believe that appreciation would last forever?"
Currently with the cost of the land, development costs of the land, and the sharp increase in construction material costs make the re-sell market much more attractive than ever before. Although, the lender requirements have become much more restrictive we are still selling homes to qualified buyers that can actually afford the home they are pruchasing. Sellers need to be more realistic about pricing their homes! Price to sell based on SOLD comps and you will sell it!
In todays market we advise our clients that are considering a custom or semi-custom home to compare the re-sell price of buying land and building a comparable house it’s cost prohibitive to consider new construction.
I would have to assume the same logic applies to tract subdivision homes. Is this why the builders are currently offering strong incentives to sell their inventory?
The Tucson market has approximatley 9,000 re-sell home in inventory giving buyers plenty to pick from…
Email me if you would like a current market report for Tucson, Arizona residential housing.
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