2006 Tucson Market Review

2006 was a unique year for the real estate market in Southern Arizona. After a record-breaking 2005, we watched the '06 market settle down and return to normal. many interpreted this as a housing "crash" or a "bubble", however, even with stabilization in the market, our annual statistics support that 2006 was one of the best real estate years in Tucson history.

Homeowners witnessed record-breaking appreciation in the past few years, which is evidenced by the $4.3 billion in total sales volume we saw in 2006. This is the second highest volume ever in Tucson history, second only to 2005, when sales volume totaled $4.7 billion. This trend is also echoed on the national level. NAR reported in January that, nation wide, 2006 was the third highest sales year on record, with 6.48 million resale homes sold.

With stabilization of the market, we saw a decline in '06 total units sold to 16,058, which was 2,508 fewer units sold than in 2005 and 958 fewer units than in 2004. The 2006 units sold still rank as the third best year in Tucson's history.

The average sales price continued to climb-rising from $253,556 in '05 to $267,855 in '06, an increase of $14,299. When comparing the '06 average sales price to '04 there was an increase of $62,667.

Days on market, averaging 50 days in 2006, was not dramatically different from market time of years prior to 2005. In 2005 days on market totaled only 33 days.

The statistics on total sales volume and unit sales indicate that the real estate community was very busy in 2006, delivering unprecedented gains to sellers and assisting many buyers in finding their dream property. Southern Arizona is certainly positioned for a healthy real estate market in 2007.

If you or someone you know is in the market for Tucson Real Estate, give me a call or visit my website at http://www.tucsonhouses4you.com/