Home price median here below $200K

Drop beneath mark may motivate Tucsonans to buy, analysts say

By Christie Smythe

The Tucson real estate market hit a milestone in February: The median price dipped below $200,000 for the first time in almost three years.

The median price dropped to $199,900, down about 9 percent from $219,500 in the same month last year, said a report issued Tuesday by the Tucson Association of Realtors Multiple Listing Service.

Industry observers said the dip below the $200,000 mark might help motivate buyers and give sellers a long-overdue reality check.

On the buyers' side, "$199,900 sounds better than $200,000," said Chip Rock, owner of Re/Max Majestic Realty. "Perception is reality."

The message that prices are moving downward may finally start to sink in for many sellers, said Marshall Vest, director of the Economic and Business Research Center at the University of Arizona 's Eller College of Management.

"There's a lot of sellers who have kept hanging on with the idea of, 'Well, if I wait long enough, I'll get my price,' " Vest said.

The median price, or midpoint price of all homes sold, hit a peak of $226,465 in November 2005 after a steep run-up. In 2006 and 2007, the median price ranged from about $210,000 to around $226,000.

Full story at: http://www.azstarnet.com/dailystar/229247