Buying in Oro Valley
The Tucson real-estate market has held up better than other recreational areas in the USA in general and Phoenix in particular which has been hit harder. As of October 2008 the number of homes for sale in the Tucson area has actually dropped from year ago levels. In September, 2008 there were 8.6 months of inventory down 16% from September 2007. As a rule of thumb, a market is considered balanced when months of inventory is around 6. As well, different areas within Tucson show varying levels of inventory from over 12 months in the North-West to less than 5 months in other areas. If you’re thinking of buying, consult a local realtor who can provide you specific market information.
September median home price of $180k represents a 16% drop from a year earlier. In the last 2 or 3 months prices have dropped significantly impacted by short sales (a sale priced at the outstanding mortgage value) and foreclosures. Sales charts show a significant downward tred since July and could expect this trend to contiue for the foreseeable future. This may be a good time to buy but do your own research. And, if you’ve bought property in the Tucson area recently, tell us your story.
If you’ve read our take on the Oro Valley area of Tucson, Arizona, you’ll know I’ve picked this area for its many amenities including shopping, restaurants, hiking trails and golf courses. My objective was to find a condo or townhouse in the $150 – $180k range. Within this price range I found a host of condo – townhouses that feature 2 bedrooms, 2 baths with between 900 and 1000 square feet most in a one story configuration and a few townhouses in a two story set up. A few 1 and 3 bedroom units were available but the condo market is predominantly 2 bedroom.
Doing a bit of math with properties (in the condo – townhouse category) recently sold, the difference between selling and asking price varies from asking price to over 20% discount. It seems that properties with higher asking prices (in the $190,00 range) exhibit the highest discounts from asking price. Of 45 condo-townhouses sold within a 3 month period in Oro Valley and North Tucson, the average selling price was approximately $155,000 at the low end and 170,000. at the higher end of the scale. Also noted that homes in the more desireable neighborhoods (Catalina Foothills) did not discount as much as others. As well, prices will vary depending on property features and inclusions, the views and security in gated communities.
Other costs to get a handle on if you’re considering buying a property include condo fees and taxes. Haveing shopped around in Florida for the last two years, I’ve discovered that municipal taxes arehow Florida finances its services. Arizona seems to have a lower tax structure and condo fees also are somewhat less than Florida possibly due to the absence of hurricanes. Taxes look to average around $1700/annum and condo fees around $160./month but increasing for higher end properties.
If we can ignore the drop in the Canadian $, I conclude this to be the time to buy if you’re in a buying mood. Since 2006 the median house price has dropped almost 20% and will likely drop further. Do your own research and let us know what you come up with.
Tony A!