Tucson Market Update

The Tucson Market continues to have very tight inventory with new listings down 21% in 2023 YTD compared to 2022. When comparing June of 2022 to June of 2023 Tucson is down 33%. This tight inventory is maintaining our home values because despite high interest rates hovering around 7% demand is still strong. As a result of the combination of high interest rates and lack of inventory closed sales are down 25% YTD when compared to 2022. Tucson home sellers are waiting on the sidelines, reluctant to sell a home with a 3% mortgage rate and buy a home at a 7% mortgage rate. Meanwhile since values are holding at record high levels, Tucson first time home buyers are now priced out of the market due to prices combined with high interest rates.

Tucson’s  new home builders seem to be the beneficiaries of these market conditions. The new home builders in Tucson have been sitting on a lot of inventory from when Tucson’s home market was super heated in 2021 and the first half of 2022. Many of the contracts that builders had on homes under construction fell through because the buyers could no longer qualify for the home due to the rising interest rates. Buyers may have signed a contract for a new home at a 3% interest rate and by the time the home was completed rates had risen to 5.5% to 6.5% effectively knocking the buyers out of the market.

As interest rates in Tucson begin to decline in the third or fourth quarter of 2023 we should see inventory increasing and sales increasing along with the inventory. This will also tend to put upward pressure on prices. If you are thinking of a home purchase this could be a good time. Buy today as the inflation in home prices has stalled and refinance to a lower interest rate as the rates drop.

For a complementary consultation on buying or selling in this market feel free to contact us at Help-U-Sell The Powell Group. We have been serving Tucson home buyers and home sellers in the Tucson Market since 1989. Help-U-Sell The Powell Group Saves Sellers Thousands with our full service flat fee business model, and we can save buyers as well on all the hidden parts of the contract.

Help-U-Sell The Powell Group

520-405-9095

helpuselltucson.com

jpowell@helpusell.com