The housing market in Tucson seems to remain strong with a slight slowdown during the holidays however buyers are back and willing to pay some of the highest prices Tucson has seen in some time.
Average sale prices in are up 9.48% from a year ago in January of 2018. Currently the average Tucson area home is selling for $253,801 We at Oliver Realty contribute this directly due to low inventory levels and limited options for buyers to buy. Low interest rates are also fueling buyer’s ability to buy at higher prices.
Inventory as mentioned remains very constrained with only 3.04 months of inventory available. 4905 total homes currently for sale down 13.9% from last January! Oliver Realty expects this number to slowly rise as sellers realize prices are good for selling.
One cause of concern with the market is sales are starting to decline from last year's numbers with the number of homes sold in January 2019 down 10.3% from 2018. I think higher prices and higher interest rates are slowing the market down combined with not a lot of options for buyers to pick from. If this continues sellers will see their pricing power that has been pushing the market up impacted significantly.
Interest rates in October of 2018 where over 5% however in the last 6-8 weeks we have seen mortgage rates down appx ½ % back to an average 4.5% rate for a 30 year fixed. I think these rates are very favorable for buyers and one they should take advantage of.
Areas that are hot this winter.
Saddlebrooke Ranch remains very hot with lots of buyer demand Heather Oliver and I recently listed a home in the ranch and sold it full price in a matter of hours…. See Homes For Sale In SaddleBrooke Ranch
Smaller single story homes with updates are also selling extremely well as snowbirds are buying them up this winter. Heather and I listed an up to date single story home on the NE side of Tucson and had a full price offer in less than 24 hours. Search Homes Perfect For Winter Residents.
If you have questions about the Tucson area real estate market contact us and we will be happy to go over more of what we think is going on. -Michael