Tucson Realty Review 2016 – First Quarter
Tucson Housing Results and Trends – Tucson Realty Review 2016 First Quarter
The Tucson Realty Review 2016 see mixed signals in the Tucson housing market during the first quarter of 2016.
While the Average Sales price for March 2016 was 42.8% higher from the market low point in September 2011, the average sales prices is down 1.6% year to date.
On the other hand unit sales are up over 50% during for that same period and Days On Market has dropped by 9 days. From 66 to 57.
Tucson and Pima County job creation continues to lag the numbers need to accelerate the real estate recovery. Lets look at the details.
Tucson Realty Review 2016 – Sales
At the peak of the Tucson real estate market, there were just over 18,000 homes sold in 2006. The first 3 months of 2016 had 3,500. That is 16% more than the 1st quarter of 2015. If that trend continues, 2016 could see unit sales approaching 16,800. Not quite back to the highest levels, but getting very close.
Another indicator that is signaling improvement is the number of days to sell a home. In January 2016, DOM stood at 66 days. March saw DOM at 57 days – a 14% drop. Time to sell is down along with the average sales price for the quarter.
Year over year the numbers are better. The average sales price for the 1st quarter 2016 compared to 1st quarter 2015 is up 3.7%. Not bad at all.
Should the job market gain some strength, one would expect the housing market to gain further momentum for the 2106 calendar year.
Tucson Realty Review 2016 – Interest Rates
In spite of the Fed’s continued talk about raising interest rates, it hasn’t happened. Mortgage rate, on the other hand, have declined. A 30 year conventional mortgage is carrying a 3.5% to 3.85% interest rate. Hmm, paying 3.5% interest on home where the value is increasing 5+% year over year. It isn’t the “good old days” but it is a lot better than money market returns.
Tucson Realty Review 2016 – Baby Boomers
Tucson is and is likely to continue to be a place where snowbirds and retirees to buy homes. That should provide stimulus to the Tucson real estate market. There are a lot of future retirees that will be looking to Arizona and specifically Tucson as the place to retire.
Tucson Realty Review 2016 – Cost of Living
Another key factor having a positive effect on Tucson real estate is the cost of living in Tucson. A recent study by the major cities in Arizona, shows Tucson has the second lowest cost of living in Arizona. When looking at housing, Tucson has the lowest cost of living of the cities participating in the study.
The first quarter of 2016 is in the books and showing signs of potential for the Tucson housing market. It is likely, but not certain, the momentum will continue. Will 2016 be the next high point in Tucson real estate sales. Will sales prices reach 2007 levels. We will just have to wait and see. Past issues of the Tucson Realty Review can be found in our archives.
For a quick look at popular Tucson community markets – HERE!
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