Tucson real estate : The housing market, which had suffered from an over-supply of homes for sale has a new problem: a lack of attractive inventory. Compared to last year, inventory in the Foothills is down 21%, inventory in Oro Valley is down 15% & luxury housing inventory is down 31%. Nationally the supply of homes for sale is also down 20% compared to the same time last year.
While falling supply usually drives up prices, that is not the case right now because demand is weak. Many buyers are still waiting on the sidelines because they can not find their “dream home”, due to the limited inventory, and are concerned about prices falling further.
Today’s limited inventory may hamper the housing market’s recovery in the future. Sellers report they are pulling their homes off the market to avoid selling at today’s discount prices. Also, banks have slowed the foreclosure process temporarily reducing the supply of foreclosure properties. This “pent-up supply” will likely flood the market in the future, and present a barrier to future price gains.
Realtor Lisa Bayless specializes in Tucson Catalina Foothills, Oro Valley & Marana real estate. Contact Lisa for all your Tucson real estate needs.