Tucson resale homes down $35,000 during past year

Pima County Foreclosure Information

Tucson-area housing foreclosures are dragging down the price of resale homes and new construction, according to a report released Tuesday.

The median price of resale homes in the Tucson market in November fell to $170,000, more than $35,000 less than a year ago, according to the Southern Arizona Housing Market Newsletter published by John Strobeck. Median new home prices dropped also, but not as drastically, to $201,035.

Strobeck said foreclosure homes accounted for about 31 percent of closed sales in November. Without foreclosure prices figured in, the median resale price would have been more than $10,000 higher.

At a median sales price of $147,750, foreclosed homes are reverberating throughout the market.

"Appraisals are coming in low due to foreclosure sales, making refinancing more and more difficult, even with a reasonable amount of equity," Strobeck said in the report.

Also in the report:

• Housing permits dropped in November to 110, the lowest amount since 1990. Pulte Homes led builders with 20, and Sahuarita led communities with 32.

• The inventory of resale homes has stagnated at about 8,000.

• A total of 676 resale homes were sold, and new home closings fell to 248 for November, nearly half of what they were in November a year ago.

• Median and average prices of sale and resale homes hit a 23-month low.

• The economic contribution of the homebuilding industry to the Tucson metro area has decreased by $1.3 billion in two years.

It may be at least two years before the market is able to get back to normal, said Strobeck, who is owner of Bright Future Business Consultants.