Market Activity; Is this the Light at the End of the Tunnel?
In the past 3 or 4 weeks I’ve been hearing many Realtor’s talk about how busy they have become. This is mostly agents who represent Buyers and Sellers of Single Family Homes. And I’ve been hearing it about the lower end market (below $300,000) as well as the upper end (above $800,000). Part of this probably can be traced to the soon to end Homeowner’s Tax Credit Program and the inching up of interest rates but it may go beyond that. In my own business, I too have been busy representing many Investor/Buyers who have been taking advantage of the many land foreclosures currently available . However, I’ve noticed something else. I’ve spoken to 2 Builder’s in the last couple of weeks who have contracted to begin new Custom Home Projects for clients. These are the first new custom home starts I’ve heard about in quite awhile. Matter of fact many of my Custom Builder friends have taken different positions, some real estate related and some not, to pay bills during this downturn. On top of that, this past week, I was contacted by another Builder with a request for a lot in the Foothills in a particular elementary school district to build a home for a client he had. We found a lot and are currently negotiating a contract on it; at a price I would characterize as “retail”. The clients had recently put their current home on the market, it had sold quickly and wanted to begin a new home project immediately. Additionally, a small new Subdivision of finished lots came on the market this week. I haven’t seen any new finished lot inventory for perhaps 3 years.
My sense is that this increased activity may be the very beginning of a real estate turnaround. Believe me, I’m not yet jumping for joy and I fully expect the balance of 2010 to be a shaky, fits and starts type of market. But something positive is happening in Tucson. Let’s see if it continues.
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