Tucson Real Estate Market Update | Defying Expectations

Welcome to our real estate market update for Tucson, Arizona! In this blog post, we will delve into the current state of the single-family homes market in Pima County, highlighting how it continues to surprise skeptics and defy prevailing trends. Despite interest rates doubling over the past year, many prospective buyers have postponed their home purchases or decided against selling due to concerns about losing favorable interest rates. However, let's explore what has unfolded in the past year and gain insights into the market's performance.

Closed Sales:

Examining the number of closed sales, we observe interesting trends. Last month, there were 1,020 homes under contract, while in January 2023, the figure stood at 683 homes. Comparatively, in April 2022, 1,267 homes were sold. This data reveals a 49% increase in home sales since January and a nearly 20% decrease compared to the previous year. Although the overall number of homes sold in Pima County has declined, there has been a significant improvement since the beginning of this year.

Dollar Volume:

To further understand the market's performance, let's assess the dollar volume of homes sold, which reflects the cumulative price of every home sold. Last month, the dollar volume reached $456 million, whereas, in January 2023, it was $301 million. Looking back to the previous year, the volume stood at $611 million. Consequently, there has been a 25% decrease in volume compared to the previous year, but an impressive 52% increase since January 2023. While overall volume remains lower, there is a noticeable upward trend.

Home Values:

Now, let's address the original concern regarding a market correction and declining home values. The median home price in Tucson currently stands at $376,000, marking an $11,000 increase from the previous month and a $7,000 increase from the prior year. Surprisingly, home prices are holding strong without any significant correction. This stability can be attributed to the persistent issue of supply and demand. The supply of homes for sale in the market is insufficient to meet the high demand from potential buyers, thereby preventing any substantial correction in prices.

The Tucson, Arizona real estate market for single-family homes in Pima County has defied expectations. Despite the doubling of interest rates, the number of homes sold has increased since January, while the volume of sales has shown improvement. Additionally, home prices have remained steady, supported by a shortage of available homes and high buyer demand. If you have any questions or require specific information about your neighborhood, please don't hesitate to reach out. Thank you for joining us for this real estate market update, and don't forget to subscribe for future updates. We look forward to keeping you informed about the vibrant Tucson real estate scene.

Watch our video on the Tucson AZ Housing Report | May 2023 and see the best of what this amazing city has to offer.