Bargains Are Few in the Rebounding Housing Market in Tucson

May 04, 2012 / Russell Legato, Residential Property Analyst

The real estate housing market is improving in many of the states in the United States. Many buyers are looking for low priced bargains but they are not finding them easily. Inventory is lower now in the bracket below $250,000. The outlook is not good for those looking for a more affordable property.

Bargains Are Few in the Rebounding Housing Market in Tucson

In Arizona, for one example, the median price of a house went up by 20 percent during the past year. Tucson is designated as the optimal place for investors to buy property. One firefighter bought a brick house as an investment that was dirty and unkempt. He cleared everything out and is employing workers to do necessary repairs. He claims all property priced below $100,000 is grabbed up quickly by investors purchasing fixer-uppers to renovate for profit.

The cost of these homes in disrepair is going up, in fact doubling in price. The practice known as “flipping houses” is not as lucrative as it once was, at least not in Tucson and other parts of Arizona.

One expert researcher at Arizona State University, reports that prices have risen proportionately with inventory decreasing. One good fact is that there are not as many foreclosures. In fact, they are 60 percent lower than in the previous year. The worst of the foreclosure flood is over.

The investor is often able to pay cash and waive the appraisal contingency. They are welcomed by the seller since the deal goes through without waiting for a bank to approve financing. Investors are not reluctant to buy because of the strong rental market assuring their being able to find tenants after rehabilitating the house.

An unoccupied house is not advantageous for any neighborhood. Although Arizona’s housing market is growing stronger, that is not true of all locations. Some of the most depressed are Chicago in the Midwest, Las Vegas in the West and the Southern peach city, Atlanta in the South.

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