Market Shifts, Adjusting Strategey

We can see the market shifting very rapidly in the Tucson area. Interest rates at the beginning of the year were hovering around 3% and as of this writing Interest rates in Tucson are about 6%. This rapid increase in interest rates combined with the price appreciation we’ve see over the last 2 years has put a strain on affordability in the Tucson Housing Market. Some of the trends we are seeing in Tucson are:

1. An increase in the days on market. Up 120% August 2022 compared to August 2021
2. An increase in the absorption rate of 20% from 1.88 months of supply to 2.26 months of supply
3. Affordability is down 5.4% from a year ago.

These are just a few of the indicators we see of a slowing market in Tucson. Other trends we see in the Tucson Housing Market are an increase in price reductions on houses on the market as well as an increase in expired listings, or homes that do not sell.

While these statistics do not look good there are still some positive aspects to the housing market in Tucson. At 2.26 months of housing supply Inventory is still tight. Four months would be the supply in a normal market. Builders are offering price reductions and incentives on their new home inventory, so buyers are able to get a good deal on a new home.

The Federal Reserve will be meeting this month and it is anticipated they will raise interest rates another 75 basis points. This will translate into higher mortgage interest rates as well. If you’re a buyer it would pay to lock in your rate now to avoid these increases. Please give us a call at Help-U-Sell for a free, no obligation consultation on either buying or selling your next home in Tucson. Contact us at 520-405-9095 or jpowell @helpusell.com