Tucson By Choice!

Out Of Stocks and Into Real Estate?

History of the DJIAThis is an observation.  It's not financial advice.

I received a loan application from my website (www.mikeintucson.com) yesterday afternoon, and when I called the woman who applied for the purchase loan, she said this:  "I'm getting out of the market, and I'm buying a rental property in the University [U of A] district."

That's the first blip on my radar of a turn in buyer psychology.

I began to comb the internet for data to see what factors push people out of the stock market, and where they go with their money when they leave.

The most frequent answer is that money leaving the stock market flows into bonds or commodities like gold.  My investor seems to believe that those traditional safe havens are overbought, and that real estate is oversold. 

Bookmark this for your "Encouraging News" folder.

I'm Mike in Tucson, your preferred Tucson, Arizona mortgage lender.
Mike Jones (Tucson Mortgage Company, LLC): Loan Officer in Tucson, Pima County, Arizona
Think of me as your Tucson expert.

photo courtesy Fox Business

17 comments • Mike Jones • October 07 2008 08:11AM

There's a Floor Under the Tucson Real Estate Market. How's By You?

Two UP arrows.  Five DOWN arrows.  That's the Tucson Association of Realtors Multiple Listing Service sales snapshot for the month of November, 2007.

Quick glance?  "Boo!  Hiss!  See?  I told you the sky was falling!"  But that's not the real picture at all.

First:  Look at the UP arrows. 

The average sales price is up again. 

Pending contracts are up as well.

Second: Look at the good DOWN arrows.

The median sales price is down.  This is good for buyers coming into the market.  What's good for buyers is good for real estate agents and lenders.

Active listings are flat.  Existing inventory is beginning to shrink.  We're not to the level of scarcity by a long shot, but this is a good trend.

New listings are down by more than 7.5%.  This supports the flattening out and shrinkage of our overall inventory.  That's good.

Third:  Look at the real DOWN arrows. 

Home sales volume and home sales units are down
by more than 20%. 

The pie is only around 80% of what it used to be.  Don't whine.  Deal with it.  It's your chosen profession, whether you're an agent, a lender, a title officer or a home stager. 

When I'm shopping for something (real men DO shop) I want to deal with a salesperson who is competent, confident, knowledgable, and who will listen to me.  I want a professional salesperson.  That's a good term. 
Say it again out loud.  Professional salesperson!

You're a professional salesperson.  Act like one!  Look at that big pie.  Go get your fork and some whipped cream.  Let's celebrate 2008!  It's going to be great if you make it so!

And that's the real estate opinion of this Tucson, Arizona mortgage lender,

Mike in Tucson

Mike Jones (Tucson Mortgage Company, LLC): Loan Officer in Tucson, Pima County, Arizona

15 comments • Mike Jones • December 27 2007 10:36PM