With all of the stories (both media & truth) about market struggles throughout most of the country, black clouds and gloom seem to be constant threats. A lot of people have lost a lot of value in the past few years, a lot of people hurt by the downturn in market conditions...but there is a silver lining.
Do you know what the average Joe knows? Statistics show it, market activity proves it. My business is rocking because of it. What is IT?
During the height of "The Boom" Average Joe & Jane got shut out of the market. Prices had risen beyond the affordability range. In Tucson, January of 2005 saw over 70% of all single family homes sold were under $250,000, and 24% were under $150,000. By January of 2007, those figures had dropped to 50.8% under $250k and a miniscule 7% under $150k. Who could afford to buy a home? Not Average Joe!
In the first month of 2009, Joe & Jane are making their move - low prices (thanks to the downturn) have made it possible to buy a home. 75% of all homes sold in the Tucson real estate market in 2009 so far are under $250k...and a whopping 39% are priced under $150k!
Do you know what "Average Joe" knows about real estate? Affordability is the foundation of the market, and that is where properties are moving...in fact, the market is Red-Hot in this segment. What does Joe know? He knows what he can afford and waits until the market understands that truth.
After all - home ownership is the American Dream, not the "American Scheme" of quick & easy money.
Specializing in Buyer & Seller Representation in the Tucson, Arizona real estate market.
All original material written by Kent Simpson unless attributed to source.©2011, 2010, 2009,2008,2007
"Never forget - Real Estate Is About People"
Great that you know your market and your helping buyers take advantage of their opening into real estate! Open those buyers eyes with those stats to get yourself more business!
Tucson Kent,
It was good to talk with you just now. Much success!
Mike in Tucson
Lyn - didn't Shakespeare write: "know thy market or forever be mired in maybe"? LOL - thanks for being the first to comment.
Mike - always good chatting with you--good luck in your new venture!
I was looking at a market report that grades many areas of the market... one of the few receiving a A grade was "housing affordability."
Chuck - That sounds like a report that would be interesting to see - do they have one for the Tucson area? I'm sure that the Phoenix market has become quite affordable lately, just as ours has.
This is inded good news, Kent. HOWEVER, some storm clouds are still on the horizon. FHA minimum FICOs are rising to 600 and 620 depending on the originator (although some are still available at 580) and rates have now climbed 8 out of the last 10 days.
I'll take a storm that's got definition over swirling & constantly changing from one day to another anytime, Ron!