Insights From The May 2023 Tucson Housing Market
Ben & Kim Boldt – Premier Tucson Homes
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Tucson Housing Market For May 2023 shows year over year sales prices for single family homes. The median sales price increased 3.8% and the average sales price gained 5.2% from May 2022.
Active Listings are up 10.7% from May 2022 with 1,525 single family homes on the market at the end of May. At the current burn rate for closed transactions that translates in to 1.7 months of inventory.
Condos and Townhouses prices moved up as well. The year over year Median sales price jumped up 3.1% and Average sales price 5.2%. With 162 Active Listings of Condo/Townhouses on the market there is only a 1.0 months supply.
One more thing, the ratio of sales price to list price is slightly under 100%. Single Family and Condo/Townhouse at 98.5% year to date.
Now for the details……
The Tucson Housing Market May 2023 – Single Family Homes
The Tucson Housing Market May 2023 – Condos & Townhouses
The Take Aways
> Mortgage Rates
Rates hit their highs during late 2022 when they were in the 6.95% to 7.35% range.
Throughout the first half of 2023, the average 30-year fixed mortgage rate has been fluctuating in the range of 6% to 7%. Since May, rates appear to have found stability in the mid-6% range. This has more borrowers ( AKA Home Buyers ) reentering the market in time for the summer home buying season.
Following the Federal Reserve’s decision to increase the benchmark rate by 25 basis points on May 3, Chairman Powell conveyed the committee’s belief that they are drawing closer to reaching their goal. Although the final outcome remains uncertain, his message potentially hints at a prospective pause in rate hikes later this year.
In the Tucson market, rates appear to be following this pattern holding in the range of 6.50% to 7.25% with Good to Very Good Credit.
> Demand
The 2020 Census count for Arizona was 7,151,502, an 11.9 percent increase over the 2010. This ranked Arizona among the 10 fastest-growing states. Four states with the most people moving to Arizona are, California, Washington. Texas and Colorado. The list of reasons for this inflow of people to Arizona are varied. Everything from cost of living, work related, politics to retirement.
But it is clear, Arizona is a popular destination for many reasons. Weather, cost of living and lifestyle are but a few.
The University of Arizona outlook on population of the greater Tucson area projects 227,000 more residents over the next 25 years. So, unless there is an event that stops these migrations and growth, the demand for home in the greater Tucson area will remain strong.
> Inventory Of Homes For Sale
May inventory of 1,525 single family homes is up 10.7% from May 2022. Over the past 12 months the highest number of homes on the market was 2,698 in October 2022. Over the 7 months since then, the inventory of homes for sale has DROPPED 43.5%.
The number of sellers is down…..down…..down. Why? The move up buyer can’t move up. Yes, they can get a lot for their home, but what can they buy? Buy at a higher mortgage rate as well.
> Prices
May’s average sales price for a single family home was up 5.2% from May 2022. Not insignificant. But what has occurred during the last 12 months. In June 2022, the average price for a single family home was $471,066. Eight months later, February 2023, the average price was $433,923. For May 2023, the average price was $499,655. That’s a 15.1% increase in 3 months and the highest average sales price in the last 12 months.
> The Bottom Line
Mortgage rates appear to be stable, demand continues to be high and inventory low. It is likely these factors will continue going forward. That means prices will continue to rise. Will home appreciation be greater than the borrowing rate? Hmmmmm? It is likely it will
Considering A Home Tucson – Give Us A Call
Are you thinking of buying a home in the greater Tucson area? Finding the right home can be a challenging process. But we can make the process much less stressful for you.
We have been Tucson Realtors since 2002. We know Tucson and the Tucson Real Estate market. As a top Realtor team, we invest the time to understand your home buying interests and desires.
At our first meeting, we will review the current real estate market with you. Show you the market data and then walk you through the Arizona home buying process.
Why? We want you to know what to expect. And what to plan for.
Interested in new construction?
We’ll brief you on buying a new construction home and what’s unique about the process.
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Review our profiles. Check out our backgrounds, education, and certifications.
We are here to help you “know what you need to know” to buy a home in Tucson, AZ. We provide you information on Tucson events, places to shop and restaurants. Our resources include contractors, electricians, and home services.
Best of all, our professional service backgrounds mean we put you first!
When submitting an offer
Given current inventory levels, low ball offers aren’t getting traction.
So, if you “really” want the home, make a realistic offer within your budget and timing constraints.
We will work with you to understand your objectives and analyze the market to determine – as best we can – a price range for the home you want to buy ………or sell.
Conclusion
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Historical Tucson housing market trends can be found for Tucson Real Estate Trends 2006 to 2012 annual along with summaries of 2013 and 2014 annual data.
Go to the Tucson housing report archives for a look at recent housing reports and trends. Our outlook for 2015 is available in our latest issue of Tucson Realty Review.
By the way, if you missed last months update its right here – April 2023 Tucson Housing Market Update.