Tucson – New home construction in the Tucson region is now 30 percent ahead of last year’s pace and has held onto steady monthly increases. In the Tucson region, nearly one thousand residential construction permits have been approved. That is 221 more than the 732 permits issued in the first half of 2011.
Several of the region’s geographic submarkets have gained impressively including near Benson Arizona. A prognosis of Tucson Arizona Lot sales projects by the end of 2012, new home permits will total about 1,500. New data from the Tucson Association of Realtors Multiple Listing Service shows the reduction in inventory is the reason sales prices are headed up. Average and median home prices have been trending upward since September 2011. Supply and demand are in play as the inventory of homes has been shrinking since October.
For June, the median home sales price was up 19 percent from September. Over the same period, the average sales price has climbed 16 percent.
“I think we are seeing a rush for buyers who want to get lots in place and build a new home before the prices increase “ said Tricia Friedrich, a Tucson real estate agent with Western Land investments. Friedrich manages one of the places offering the best deals on new home lots in Tucson just outside the metro at Red Hawk at J-6 Ranch. The acreage offers Arizona custom home lots and land available in the foothills of the Whetstone Mountains, Cochise County. Lots range from 2.5-5 acres and now you can get your own lot at a low price for just $59,900.
Since October, the number of active listings has been slowly declining, falling some thirty percent from fall of last year.
Of particular interest is the $200,000 to $399,999 segment which makes made up 31 percent of the inventory. Those ratios are expected to change places as consumers continue to absorb more of the lower-priced inventory at a faster pace, the MLS Realtors report noted.
For those seeking a lot to build a new home, the utilities are already in place at Red Hawk at J6. Water, sewer, and paved streets reduce the number of headaches that new homebuilders usually face. Figure in the cost of how the lot will improve in value if these utilities are secured and in place for years to come. Cochise County, just a half hour drive from downtown Tucson via freeway, is the best available option for building lots near Tucson.
The inventory near Tucson is shrinking indicating building a new home outside of Tucson is right now your best choice. Foreclosure and mortgage-delinquency rates among Tucson-area homeowners were lower in May than among Arizonans and among Americans. It is a positive sign about the months ahead for the Tucson market where local home prices are projected to increase an average of 3.4 percent by the end of the year.
After years of decline, the new forecast puts Tucson into the nation’s top 20 metropolitan areas for highest price increases. The new analysis is from Clear Capital’s June Home Data Index Market Report. California-based Clear Capital analyzes data to identify real estate market trends for financial organizations. The report indicated evidence that housing has turned the corner, with the momentum of the recovery picking up speed.”
Tucson’s housing market has stabilized somewhat. Through June 2012, the region struggled to cling to a year-over-year average price gain of just 0.3 percent. Yet from the 2012 first quarter to the second quarter, the increase was a solid 2.7 percent. As of June, there was a 39% decrease in inventory from a year ago. “Months of Inventory” was 2.8, down from 4.4 in June 2011.
Red Hawk at J6 Ranch has already attracted attention.
This successful development shows buyers know what value they have in this location near Tucson Arizona when choosing building lots.
Call 1-800-797-0054 to arrange a private tour or talk to Tricia Friedrich about your options.