Tuscon: New Home Prices Drop
According to the Southern Arizona Housing Market Letter released by consultant John Strobeck, new-home prices fell in March, while resale home prices showed little increase from the same month in 2006.
In March, the median price of a new home dropped to $241,213 from $253,235 recorded in March 2006. The median price of a home on the resale market was $215,000, up only $5,000 from a year ago.
Strobeck was not surprised by the numbers given that many lenders have begun to tighten their belts and have begun to deny many who may have previously qualified as subprime borrowers. He does however believe that the market will begin to improve later in the year into next.