A Behind The Scenes Look At The Tucson Real Estate Market – 2016
2016 Tucson Real Estate Market – Mid Year Update
Jobs appear to be helping the Tucson real estate market in 2016. The more jobs created the more confidence people have in any housing market.
The Tucson real estate market saw a 2.8 percent growth in jobs during the first quarter of 2016. the second quarter continues to see similar growth. Tucson is ahead of the nation employment growth in 2016. So far that is.
Bright spots for jobs are in health services, financial services and education. Manufacturing, leisure and hospitality along with government are still looking for traction.
Two significant company announcements came from Caterpillar and Comcast. Caterpillar is moving its mining company headquarter to Tucson, AZ. The move will take place between 2017 and 2018.
Caterpillar will bring 600 technical and management jobs to Tucson. Perhaps the largest influx on well paying jobs in over a decade.
Tucson Real Estate Market – June 2016
Tucson has suffered through a long realty market recovery since the high point in 2007. From the bottom in November 2011 to today the Tucson real estate market has improved. Not as fast as some California markets, but improvement continues.
The June 2016 average home selling price was at 80% to the 2007 peak. The June 2016 Average Home Sales price stood at $234,752. The Median Tucson home sales price was $190,000.
The average list price of a Tucson home was $240,584. That price was up over 10% from the prior month.
Tucson Real Estate Market – Mid Year
Unit sales year to date have grown from 954 in January to 1,638 in June. Average selling prices have increased from $216,510 to $234,752. While “choppy” on a month to month look, prices are up 8.4% during the first 6 months for 2016
During this same period, active listings have declined from 5,095 to 4,175. A decrease of over 18%.
The current pace for job growth would create 10,000 jobs in 2106. Job growth and low home inventory means only one thing. Increasing prices.
New Home Communities
New home builders are stepping in to meet the demand. Active adult or 55+ communities are experience strong demand. Robson and Del Webb are seeing strong sales.
Even the luxury market is experiencing increased sales and new home construction.
The first half of 2016 Tucson real estate market has been strong. A declining inventory of homes for sale appears to be forcing sale prices up. New home builders are building – fast.
Credit Suisse publishes a monthly report on the top 40 real estate markets in the U. S.. Tucson is the 62nd largest market. Data comes from Tucson Real Estate Agents.
Their July 2016 report suggests the second half of 2016 will continue the current trends. Comments made –
- July buyer traffic index increased to 69 from 43 in Jun
- Home prices continue to push higher
- Home listings declined
- Time to sell a home declined
Will the 2016 Tucson real estate market continue the recovery? We will have to wait and see. Will the Presidential election create a bump in the road. Too early to tell.
Mortgage rates remain under 4.0%. And falling U. S. productivity suggests a FED rate increase may not happen. That should keep mortgage rates low.
Even without the answers to these questions, the Tucson real estate market may be “right” for you.
Questions about the Tucson Real Estate Market or Tucson Homes for Sale?
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