Real Estate Breakdown

Despite the expectation for Tucson to have one of the top 10 home appreciation rates in the nation, most real estate experts believe that still won’t be enough to prove a successful recovery of the Tucson real estate market, given the high foreclosure rates that continue to plague Tucson, Arizona.  Although the extension of the federal government’s home buyer’s tax credit helped to encourage some prospective home buyers to invest in real estate in Tucson, the number is still insignificant and won’t be enough to reduce the large and still increasing inventory of foreclosed homes.  Furthermore, experts say that despite consumer’s enthusiasm in the Tucson real estate, people still aren’t willing to pay big bucks for a new house, making it difficult for median home prices to increase to previous years’ levels.

According to AzBiz.com, real estate experts worry that the continuing increase in high foreclosure rates and recent declines in home permits suggests that the Tucson real estate market will not be showing any signs of consistent or significant recovery in the near future.  Some experts project that given the current struggles the market is experiencing, the real estate in Tucson could take about three more years to fully recover.  In October of 2009, Tucson posted that 30.6 of all house and condo sales as of the beginning of this year were sales made on previously foreclosed homes.  Tucson real estate sources also reported that about 40 percent of home buyer’s stated that the new home buyer’s federal tax credit enticed them to make a home purchase, but experts are quick to admit that those numbers still aren’t enough to help the real estate make a rebound.  The average sales price in Tucson is $188,670.

However, the Phoenix Business Journal reported a slightly more optimistic view of the real estate in Tucson, stating that real estate experts throughout the nation predict Tucson to have one of the top ten markets for home appreciation during the next 12 months.  Nevertheless, Tucson real estate experts still say that the Tucson real estate market will most likely not see any full recovery until 2011 or even 2012.