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Tucson Home Values

Many opinions appeared this last week on predicting the future, immediate and long term, of home values. If you look at broad statistics and forecasts only, be aware!…each municipality has a fairly unique economic climate and set of circumstances that greatly affect the housing markets in each area. To further break it down, each subdivision and area of Tucson has it’s own identity as far as home values. Sure, the hot economic markets like Dallas, Denver, Houston, San Francisco, Honolulu, Nashville, Raleigh, Salt Lake City, Portland, Seattle, Boston and Charlotte are all seeing values close to or at their peak values of 2006. In markets like Tucson, the ability to buy is not as strong and the inventory for first time home buyers is low. This weak entry level market makes it harder for all phases of Tucson real estate.

Nationally, the economy is growing at a rate of 2% while the home prices grew around 4% in 2014. The housing recovery is estimated to continue at a languid pace (one million starts) until around 2017. Then, all bets are off. GDP, currency devaluation, Jobs…all have affects on our local economy. We must advocate for lenient development regulation that makes good sense for employers and our resident population alike.
As far as builders in Tucson, the big ones such as Richmond American and DR Horton are very much in the game because they can get funding easily on Wallstreet. The smaller regional and local builders have a serious working capital problem because local and smaller lenders are restricted by the Dodd Frank act. The dodd frank act applies too many restrictions so the smaller builders are stuck wondering what to do. Perhaps an appeal of this legislation to smaller builders would help, but the fact remains….WE NEED JOBS!

Posted by: c21firstamerican on April 30, 2015
Posted in: Uncategorized