The Southern Arizona Housing Market letter released Tuesday indicates the slowdown in Tucson's residential real-estate market might be slower and deeper than previously expected reports The Arizona Daily Star article. If the glut of unsold homes remains high, and sales continue at their current pace, the slowdown will last until 2010.

New home closings dropped to 457 in September, down more than 20 percent from the same month last year, according to market letter. The number of resale home sales fell to 808 for the month, down nearly 18 percent from September 2006.

The volume of new home permits in September dropped to 286, the lowest monthly number since January 1993, according to the market letter.

The Tucson Association of Realtors monthly sales report also showed a decline. The number of sales fell more than 36 percent in September compared to the same month last year. The median, or middle price, rose about 2.4 percent to $215,000, according to the report.

According to the Tucson Association of Realtors Multiple Listing Service, pending sales were up more than 32 percent from the same month last year. "That's an indicator that our closings in six weeks to two months will also be ahead of the closings of the same month a year ago," according to the Association President. "To me, that shows the market is no longer in decline."

Pending contracts have been up for the past four months, according to the Realtor's report. However, the number of sales has still been lower than in the same months in 2006.

Source: http://www.azstarnet.com/allheadlines/206787