Tucson's Changing Real Estate Market

We are seeing a definite and fairly swift shift in the Tucson Real Estate Market. We no longer see 8-12 offers on each listing and bidding wars going on where the home might sell for 10% over asking price. The super heated real estate market was driven by record low interest rates, a high demand for homes and very low inventory. This drove Tucson prices up almost 20% in just the last year. In January of this year interest rates were around 3%. In spite of steep appreciation, these record low interest rates made Tucson homes affordable. Currently Interest rates are hovering around 6% which has put the brakes on the frenzied Tucson housing market.

Some Key performance indicators to watch in the next few weeks are, days on market, I believe we’ll see an increase, inventory increasing, and appreciation leveling off or at least slowing down. The good news for sellers is that inventory is still very low with only 1.8 months of inventory on the market. Normal inventory is 5 – 6 months. With the high demand we have with buyers wanting to buy a home, any downturn should be mild compared to the crash of 2007 -2008. Tucson sellers will need to understand the new market conditions and take that in to consideration when pricing their homes

At Help-U-Sell SE Rita Ranch Realty we will continue to update you on Tucson Real Estate Market conditions as we see them change. If you’d like a personal evaluation of your properties value give us a call at 520-574-8900 or email me at jpowell@helpusell.com

Thank you