Will Homes Appreciate in 2012?

Jan 19th, 2012 | By | Category: Lead Article

Tucson inventory homes | Sahuarita Homes inventory | Tucsno Asscoiation of Realtors |The Sahuarita ConnectionIf the inventory remains as low as it’s been over the last few months, it is likely that we will start to see some improvement in market values. The buyers are out there looking for new listings, but the availability of homes has been remarkably slim. As you can see on the chart above, the months of inventory has dropped dramatically. When the inventory was high, buyers were shying away from short sales. Now even short sales are going under contract quickly, since they are often times the only option for buyers. Barring another influx of foreclosures, this imbalance of supply and demand could begin to tip the direction of prices. It is too soon to tell for sure, and there is some speculation that the dreaded    “shadow    inventory”    of    unprocessed foreclosures is going to be a factor in our market this year. Either way, the demand has been high, so any additional listings will likely be scooped up quickly. The demand for quality rental properties has never been higher, so investors are jumping on the bandwagon, too. The    bottom line is that we can be cautiously optimis- tic as we enter 2012, while being keenly aware of the fact that it took years to get to this point, so it may take years to climb back up.

Mary Benavides
Associate Broker, The Home Team