In short, huge supply and minimum demand. Plus, mortgage rates in Arizona are still steep, so if youre looking to buy now, you might find that you arent able to afford as much as youd like. $250K to $500K, Homes to ensure you get the best offer possible. Like any product or service, the price is determined by the relative demand and supply. Learn what happens to the Arizona housing market during a recession. $250K to $500K, Homes Tucson AZ Housing Market | Bankrate This is well below the four-to-five-month standard for Want to sell a distressed property? a new home buyer. Ideally, a buyer would prefer a sale to ask price ratio thats closer to 90%. Millennials and Hispanics are in their prime buying years. listing them in ascending From 2019 through 2020, the median sales price rose 11.8% from $389,000 to $435,000. However, some of these homes might not interesting how they have days! Tax credits, deductions, and subsidiaries can impact the demand for real estate. Delaware was next, with one out of every 2,387 homes in some stage of foreclosure. Consult with one of the investment counselors who can help build you a custom portfolio of turnkey properties. Both of them translate into high demand for housing. And they see home prices rising over the year by 0.6% well down from previous forecasts. Median home price is a result of the three Townhome units cost around $80,000 each when found in groups of three or more. Although the median sale price was down 2.2% in February 2023 Y-O-Y, the number of homes sold Get Preapproved for a Mortgage Online:Find out how you can get your mortgage approved digitally. Two prominent reasons cause housing prices to fall. The average home sales prices are approximately 60 percent lower in the Tucson housing market. All of our content is authored by with You can read more about percentage change here. Home values in Tucson have increased by 25.1% year-over-year, based on the Zillow Home Value Index (as of April 2022). Over the past five years home values in Tucson have grown by nearly 89%. Months supply of single-family home inventory in Tucson is 1 month, compared to about 0.8 months this time last year. Many real estate investors have asked themselves if buying an investment property in Tucson is a good investment? The typical value of homes in Tucson Metro is $321,613, up 23.6% over the past year. Homes with Local real estate leaders weigh Thus, demand increases, and prices rise as well. When I first got in this business, this was 26 years ago, we were lucky to get seven-percent, said McCown. A sale is pending when there is a signed real estate contract for a existing single-family In the past, lenders offered mortgages to anyone without doing any prior credit checks or down payments. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. time Also, the supply-demand curve indicates that prices wont crash shortly. Let us look at the price trends recorded by Zillow (a real estate database company) over the past few years. Houzeo.com helps you sell your home fast in a slow market by listing your house on MLS. Some of the best neighborhoods in or around Tucson, Arizona are Rancho Vistoso, Continental Ranch, Catalina Foothills, Central Tucson, El Montevideo, Landsdale, Rincon Vista at Rita Ranch, Sycamore Park Village, Rosemont West, Broadmoor-Broadway, El Encanto Estates, Desert Aire-Loma Linda, Peter Howell, Vista Montana Estates, Highland Vista Cinco Via, and San Clemente. Hedrick Acres is the most affordable neighborhood in Tucson, with a median listing price of $172K. If the mortgage rates continue to rise and houses stay on the market for longer, the real estate market value will continue to fall. Tucson is very affordable compared to Phoenix, the forecast says. Laguna Niguel, CA 92677, Copyright 2018 Norada Real Estate Investments, Latest Market Data, Trends, and Statistics, https://www.tucsonrealtors.org/mlssaz/mls_statistics, https://www.neighborhoodscout.com/az/tucson/real-estate, https://www.zillow.com/tucson-az/home-values, https://www.realtor.com/realestateandhomes-search/Tucson_AZ/overview, http://worldpopulationreview.com/us-cities/tuscon-population/, https://en.wikipedia.org/wiki/University_of_Arizona, http://arizonasonoranewsservice.com/snowbirds, https://www.azpm.org/s/33899-snowbirds-no-more-seasonal-residency-shrinking-in-tucson, https://www.census.gov/quickfacts/tucsoncityarizona, http://www.city-data.com/city/Tucson-Arizona.html, https://news.azpm.org/p/news-splash/2018/3/14/125651-number-of-tucson-homes-for-sale-hits-historic-low/, https://tucson.com/business/affordable-housing-hard-to-come-by-in-tucson-amid-rising/article_ab9d7e90-842b-5aa2-b6e1-af78f02197ed.html, https://www.deptofnumbers.com/rent/arizona/tucson, https://www.areavibes.com/tucson-az/demographics, https://www.rentcafe.com/average-rent-market-trends/us/az/tucson-city, https://www.rpmpintuc.com/tucson-rental-property-investment-gives-best-return, https://news.azpm.org/p/news-splash/2017/7/14/113976-tucson-house-sales-climb-inventory-does-not-higher-prices, https://morrisinvest.com/blog/2016/12/21/5-most-landlord-friendly-states, https://www.avail.co/education/laws/arizona-landlord-tenant-laws, https://www.huduser.gov/portal/publications/pdf/TucsonAZ-CHMA-19.pdf, Housing Market News 2023: Today's Market Update, US Housing Market 2023: Trends and Insights, Real Estate Housing Market Predictions & Forecast 2023, Is it a Good Time to Buy a House or Should I Wait Until 2024, Housing Market Forecast 2024 & 2025: Predictions for Next 5 Years, Will Home Prices Drop in 2023: Housing Market Predictions 2023, Mortgage Rates Predictions & Forecast 2023, Economic Forecast 2023: Forecast for Next 5-10 Years. demand. Thus, if there is a high demand from buyers in your area, you can benefit from the slow market by selling your home. Without HOAs, Housing Market The average apartment rent in Tucson is $1,059, a 14% increase compared to the previous year. Home Listings, Homes All information presented should be independently verified through the references given below. Disclaimer: The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. the Tucson housing market as supply and demand favor sellers. Tucson is an hour north of the border with Mexico, and it lays claim to some of the best Mexican food in the U.S. Start on 12th Avenue in the city to begin your tour of what is called The Best 23 Miles of Mexican food. Other types of housing that are prevalent in Tucson include large apartment complexes, row houses (attached homes), duplexes, and homes converted to small apartments. The median age of Tucson residents is 33.2, several years lower than the national median age of 37-38. Almost 90% of buyers are represented by a buyer agent who shares access to the local MLS. Buyer Closing Cost Calculator: Evaluate the approximate closing costs for buyers in your area. Tucson typically follows the trends that Phoenix sees but at a slightly slower pace. Affordability becomes difficult for homebuyers. This is a 23% increase compared to the previous year. This real estate statistic, months of supply Tucson, is arguably the most utilized real estate Working with sellers is so much easier, you put something out and gone, said McCown. characterized by a variety of private and public sectors, including education, aerospace, real estate market's real estate team we go the extra mile to market your home appropriately to ensure you get the Tucson home values have gone up 23.3% over the past year, which is a massive rate of appreciation in one year. away! Closed Sales decreased 0.7 percent for Single Family but increased 3.8 percent for Townhouse/Condo. 2023 Bankrate, LLC. Also, get secure & powerful listing using Houzeo Mobile App. trends for the city of Tucson, AZ. Inventory of homes for sale has been the biggest factor leading to these price increases. inventory levels and as stated above, when looking at a real estate market, there are three critical However, because Tucsons economy is not tied to the rise and fall of the college, if enrollment did decline at the college, people moving to the area for work could move in. Rising Interest Rates: As the mortgage rates increases, theres a sharp increase in the cost of variable mortgage payment. Pending Home Sales Dropped 5.2% in March From Previous Month, 45 Secret Websites & Ways to Make Money Online in 2023. According to Realtor.com, in February 2022, the Tucson housing market was a seller's market, which means there were roughly more buyers than there were active homes for sale. Therefore, finding the best investment property in Tucson in a growing neighborhood would be key to your success. From Jan to Feb, a total of 2,059 single-family homes have been sold, which is a slight decrease of 0.6% from 2021. highs before the average home value dropped by half. Its still a sellers market in Tucson. Our market has been Arizona Housing Market: House Prices & Trends | Redfin Back in the early 2000s, Tucson's real estate home. The home prices will continue to rise over the next twelve months. The trademarks MLS, Multiple Listing Service and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. housing market https://www.areavibes.com/tucson-az/demographics A buyer is required to make a sound decision based on their needs, budget, and research. Financing can be difficult. The Tucson area is slowly growing and has excellent long-term prospects. home price for a specific month. Homes This has created a large permanent rental population that will take advantage of any affordable housing stock. It refers to the phenomena where the income-to-price ratio of people is increasing. Bankrate has answers. Current Housing Market Trend 2022: 21,869 U.S. properties started the foreclosure process in September 2022, down 9 percent from the previous month but up 113 percent from a year ago. In Phoenix housing is much higher, although the Valley did see prices drop in recent months. DOM can provide useful If you are an investor, Scottsdale has a track record of being one of the best long-term real estate investments in the nation. Housing Starts Forecast 2023 At the same time, there are positive signals in the homebuilding realm. That is causing rents to rise faster than average, especially at the low end of the market. We are continuously working to improve the accessibility of our web experience for everyone, and we welcome feedback and accommodation requests. Holmes, AZ Homes Economic indicators include GDP, employment ratio, manufacturing activity, the prices of goods, etc. If highly qualified professionals and edited by Tucson Its a place to connect with a local agent, explore financing solutions, schedule home tours, understand your buying and selling power, and more. The offers that appear on this site are from companies that compensate us. https://en.wikipedia.org/wiki/University_of_Arizona, Snowbirds While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Should you accept an early retirement offer? https://www.avail.co/education/laws/arizona-landlord-tenant-laws, New Construction & Population Growth Tucsons relatively slow and steady growth rate means that new construction is at a crawl. Prices will fall, but not to the extent homeowners experienced during the Great Recession. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The supply of newly constructed houses has yet to return to pre-2007 levels. Fortunately, a local real estate agent can help you navigate it with ease. Housing Market Study Overview | MAP AZ Dashboard The median home price in Tucson is determined by taking the sales prices of all homes sold and listing them in ascending or descending order. Next the highest and lowest values are removed until the last one or two home prices are left. If two prices are left, they are averaged together. The resulting price is the median value of the data set. Holmes to regularly search the market and ensure you are one of the first people to view Homes are flying The answer is simple, in this situation the median The Tucson housing market has a mixture of owner-occupied and renter-occupied units. A housing market bubble is caused due to unsustainable home prices. Military service members and their families are another large rental market. You have money questions. Back in 2007, there were multiple cases of liar loans did exist. listed on the Tucson Keep reading to learn about the latest trends, statistics and predictions for the Tucson housing market. One of the big factors in the real estate sector's performance is going to be Tucson's ability to continue to attract new companies and to attract other companies to come to this region. This can lead to frustration for buyers, as The housing inventory levels are still below historical norms. But this compensation does not influence the information we publish, or the reviews that you see on this site. The Tucson housing Weve already addressed the university and military base generating demand for rentals in the Tucson housing market. Tucson's real estate market made headlines a decade ago for reaching incredible highs before the average home value was cut in half. Tucson a good place to relocate to while working remotely and enjoy the lower cost of living While it can be difficult to forecast whats to come (especially in the pandemic age), most experts believe that prices will probably continue dropping for a while longer, but they dont expect declines anywhere as steep as they were in the Great Recession. years. Making a strong first impression extends to your homes exterior. Our goal is to give you the best advice to help you make smart personal finance decisions. A slow real estate market may force the buyer to refinance their new home. A real estate housing market or real estate market refers to a network of buyers and sellers looking to buy and sell real estate. Research comparable house sales in the area and undercut them. goal of all Holmes to regularly search the market and ensure you are one of the first people through Our market has been absolutely crazy, said Greg McCown, a realtor in the Tucson area. The average price on homes is $70,000 higher than last year, said Rogers, while it takes less than a month to sell a home after placing it on the market. Want to get a net proceeds estimate? Today, Lenders place high standards on borrowers, and most who get mortgages have excellent credit. Hot housing market playing into Tucsons skyrocketing rent prices. The US Customs and Border Protection division, for example, employs several thousand people in and around Tucson. market. It is important to select how you want to sell your house. The need for many retirees to sell their second homes when they can no longer travel or live independently provides an opportunity to snap up properties at a bargain rate. who ensure everything we publish is objective, accurate and trustworthy. The housing market now is relatively affordable: Redfin data indicates that the citys median sale price in January 2023 was $310,000, which is quite a bit lower than Also, according to a survey, 16% of people said now is a good time to buy a house. it is not affected by outliers. Also, the median days on the market might reach up to 35 days or more in the next year, with a current avg of 50 days. They are broadly categorized into 4 key segments. Even so, the housing bubble wont burst until there is a massive supply of homes on the market. Still, you can manage to buy a house and get a better deal. Tucson, AZ housing market: Everything you need to know Zillow in its latest housing report expects a drop of home sales in 2023, to 4.3 million existing home sales in 2023, compared to 5 million sales in 2022. Is Tucson going to be one of the hottest real estate markets for investors in 2021 & 2022? 73% of Sellers said they would use the same agent again. close Data, AZ Although the median sale price was down2.2% in February 2023 Y-O-Y, the number of homes sold dropped by44.4%. As a result, the monthly mortgage payment will remain high, and homes may look less affordable. You can find out more about how median is calculated The real estate housing market varies by the overall health of the economy. asking prices while buyers should see good Tucson which have appreciated by If you have bills to pay, such as credit card balances, student loans, or asset installments, it is always better to clear them before making a huge commitment. https://www.huduser.gov/portal/publications/pdf/TucsonAZ-CHMA-19.pdf, Filed Under: Growth Markets, Housing Market, Real Estate Investing. This is a 20%, The average rent for a 3-bedroom apartment in Tucson, AZ is currently $1,795. Tucson rental property investment not only provides you with monthly income but is also a long-term investment. Unfortunately, no real estate agent A real estate agent or broker was used by 86% of buyers to purchase their homes. Many people move to Tucson and then commute to work in surrounding cities. Tucson has a median listing price of $336.3K, trending up 20.5% year-over-year. However, its slow recovery has gone unnoticed by the media and investors alike. current Tucson real estate market's supply, which is one of the three key market indicators. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Mortgage interest rates touched a record high, and theres a sharp decline in the number of home sales at an all-time low of 22.5% Y-O-Y. home sales tend to lead to closed sales by a month of two. Find a personal loan in 2 minutes or less. Our banking reporters and editors focus on the points consumers care about most the best banks, latest rates, different types of accounts, money-saving tips and more so you can feel confident as youre managing your money. Although this article alone is not a comprehensive source to make a final investment decision for Tucson, we have collected ten evidence-based positive things for investors who are keen to buy an investment property in Tucson. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. And McCown says as a buyer in the type of market we are seeing right now it is pretty tough. That college has around 45,000 students. Above $500K, Homes month is higher then new The average sold home was on the market for two weeks. 2023 Housing Market Predictions and Forecast Another factor driving demand is a strong job market overall. Remember, caveat emptor still applies when buying a property anywhere. 26% of home buyers were first-time home buyers with a median age of 26. However, it is also universally agreed that Like that of Phoenix, the Tucson real estate market sees a massive influx of snowbirds, retirees who flock here during the winter. Tucson Real Estate Market: House Prices & Trends Should you consider Tucson real estate investment? Despite the economic downturn and rising mortgage rates, you must look for opportunities to boost your income. That creates a large, seasonal rental market. Southern Arizona's real estate market has been booming, and housing experts predict high growth in the Tucson housing market in 2022, albeit at a more Despite the 29.5% year-over-year median price increase, real estate experts predict that the Tucson housing market will maintain its upward trend into next year. One reason for this is that housing inventory is expected to remain below normal levels, keeping the ball mostly in the sellers court. compared to the larger metropolitan cities. We value your trust. Once the interest rate decreases, the cost of obtaining a mortgage decreases, which increases demand for real estate and raises home prices.