For almost a year we’ve been warning of an impending housing inventory shortage. Well folks, it’s here and with a vengeance. Couple the, now obvious shortage of median priced homes (those within +/- 10% of the median home price of $202,748, in Oro Valley, with an increasing number of buyers who are now getting off the fence and into the buying mood, and we have a serious shift in the supply:demand environment in metro-Tucson. See what Barron’s is saying too.
The perfect storm is made even more volatile by the artificially low home mortgage loan interest rates that are still far below late 1990’s level of 9.5% or more. Today’s interest rates in comparison are at 3.875% (government insured loan) and 4.25% conventional. The bargain hunter, low-ball offer strategy of a year ago is no longer productive. Many buyers are finding that a property comes on the market and within 24 hours has ben seen b as many as 30 prospective buyers. And of course, the race is on to see who can produce the best offer. As of February 2012 active inventory was 406, a 19% decrease from February 2011. There were 60 closings in February 2012, 13% above February 2011. Months of Inventory was 6.8, down from 9.5 in February 2011. Median price of sold homes was $202,748 for the month of February 2012, down 23% from February 2011. Oro Valley had 92 new properties under contract in February 2012, up 61% from February 2011.
This is great news for people who are invested in their neighborhood and who have no intention of leaving in the near future. For a regular copy of the Oro Valley Housing Report that is generated monthly the FineHomesBrokers.com web site or just drop us an e-mail requesting that you be placed on the distribution list. This is a developing news story that is worth following.