Recently we have sadly seen the closure of several lending institutions. Many have interpreted this as the end of the real estate market, which is incorrect. Tucson’s real estate market is alive and well.
We are still seeing historically low interest rates, low unemployment rates and there are people who wish to buy and sell real estate.
The last quarter of 2004 through the first quarter of 2006, we experienced a fast growth in our local real estate market, causing a sellers market. Then we saw the market re-adjust, large numbers of inventory of homes, (between 9000-10000 properties), longer days on market, thus turning the market to the buyer’s advantage.
Currently we are seeing the market balance. Inventory is lowering (around 7000-8000), home pricing is finally reflecting the current trend and days on market are lessening.
Happily there is still money to be had to purchase homes. Buyers with good credit and money for a down payment will have no difficulty whatsoever in obtaining a home loan. Buyers with less than perfect credit will be a bit more challenging but not impossible. The subprime market is still there but will be had at a much higher interest rate and stricter guidelines.
I am sure you have been hearing words like; subprime, non-conforming, Alt-A, and A-paper on the news. To help you understand these terms, I have attached a sheet with definitions that will hopefully give you a better understanding into the current lending situation.
Please do not hesitate to share your questions or concerns with me. I am here to assist you with your real estate needs. I also hope that you will recommend my services to friends and family when they are in need of a Realtor.
For more information on Tucson Real Estate visit my website at www.tucsonhouses4you.com
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