Home Sales Down in the Tucson Luxury Market?
January 15, 2009 | By Kelley Koehler | Filed Under Market Discussion
Question from the audience – rephrased: How are sales doing in the higher end price ranges? Specifically in the $700k range?
Answer: Not so hot. The chart below explains. That’s the number of sales over 2007 and 2008, in the $600k-$700k range, and the $700k-$800k range.
Generally, sales are down in those price ranges, year over year. I was running my stats for December last night, and sales are up over last month, months of inventory are down in several areas – but not really in the upscale parts of town. The North and the Northeast both – typically the highest priced areas – are suffering. The luxury market is over-saturated. Combine that with decreased sales, and you’ve got a problem: high months of inventory, rapidly decreasing average sale prices.
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Oh, Tucson luxury market – please do drop. I’m ready to move now and buy in Tanque Verde, but I won’t pay $1,000,000 for a $500,000 house that has been vacant since it was built. I’ll maybe pay $750,000, albeit with a pained grimace.
I theorize that it is developing into a battle of wills between speculator sellers with very deep pockets, and snowbird buyers like me who are facing 20%-30% losses when selling their current homes, and who want to see evidence of the same drop at the Tucson end before we come into town to buy.
How deep are those pockets, anyway? So far they seem bottomless.