Southern Arizona….IS COOL?
June 1, 2021
Laura Kelly Mance
CRB, REALTOR® / President
A few nights ago we had visiting family from So Cal over for dinner. When the topic turned to real estate everyone was clamoring to know “what’s happening in the Arizona, specifically Tucson, market?” No surprise, really. The surprise came when a cousin said, “Tucson is all anyone is talking about these days.” Huh? Sleepy, dusty little Tucson? No fires or floods or hurricanes Tucson? Well, it’s about time…I think.
I knew that a lot of California equity was having an impact on our market but “all anyone is talking about?” I resisted the temptation to say “do they know we have packrats and scorpions?”
I know this is a state-wide publication but I’m the writer from Southern Arizona so that’s the market I’m going to write about today. For a suddenly cool place the market is extremely HOT and shows no signs of slowing down this year.
Like most of the state, our inventory is low. Down 72% in Tucson, 71% in Green Valley and 43% in Sierra Vista. That doesn’t mean less properties have come on the market. It simply means they’re selling faster. Tucson closings are up 9% compared to 2020. Green Valley is up 23% and Sierra Vista is up 21%. Most of you see it from a different perspective altogether. You are the agent with 1 of 10 offers on a new listing or unforgiving Buyers who blame you for their lack of success procuring their dream home. You’re the one searching for financing that can compete with cash or a Seller who just “likes your people best.” Today in Tucson we have 605 listings and 6,000 REALTORS. This “hot” market is not making life easier for anyone.
Some of the strategies we’re seeing include waiving inspections and appraisals. I wonder what those transactions will turn into 6 months down the road. You’re going to be busy Rick Mack. You too, ADRE. Time to get out that Market Conditions Advisory form again. Increasing Buyer’s risk is probably not the best strategy. Another approach might be the “reduce the Seller’s pain” strategy. Offer them an extended closing or a lease back so they have time to find another home. There are properties coming on the market. They’re just selling fast. If a Seller is waiting in their already sold property they’ll be able to move quickly. Offer to pay some of the Sellers closing costs if the lender will allow it. Try calling the listing agent before you write and ask what’s important to the Seller. Novel idea.
Will the market cool eventually? Of course, tastes change and popularity can be fleeting. Will it crash? I doubt that. People have too much equity in their properties now and they’re not going to walk away from that easily. If you’re waiting for the perfect market, just remember Goldilocks. Nothing is “just right.” Jump in and make this market work for you, and then the next one, and the one after that, and the one after that…
Laura Kelly Mance, CRB
President, Long Realty Company