Tucson Real Estate Update – August 2022
Market Update From Ben & Kim Boldt – Premier Tucson Homes
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Our Tucson Housing Market August 2022 Update shows real estate adjusting to higher interest rates and increasing home inventory. BUT, it is still a sellers market at this time in most price ranges.
Both the Average and Median Sales Prices for single family homes had year over year double digit gains – 11.6% and 12.6% respectively. Looking at the Year To Date changes for 2022 vs 2021 the increased are 13.3% and 16.3% respectively.
Active Listings increased to 2,120 at the end of August. That is up 45.8% from August 2021, BUT ONLY 4.6% from July 2022. At the current rate of sales that translates into a 1.8 months supply. Increasing, but still below historical levels and suggesting Sellers are still holding the cards.
Following single family homes, the Average and Median Sales price for Condos and Townhouses moved up as well. The year over year Condo/Townhouse Average sales price jumped up 21.3% and Median was up 25.2%. There are 240 units on the market and that is up 42.0% over August 2021. A big gain year over year, but an increase of only 18 units from July 2022.
As existing home sales continue to soften nationwide and Tucson is following the trend. The August 2022 Average Price of a Single Family Home decreased 2.4% from from July 2022.
Now for the details……
The Tucson Housing Market August 2022 – Single Family Homes
Double digit price gains and continued low – but increasing – Inventory.
The Tucson Housing Market August 2022 – Condos & Townhouses
Strong price gains with marginal month over month inventory increases.
Inventory of Condos and Townhouses stands at 240 units on the market. Up 42.0% from August 2021, but only 18 units or 8.1% month to month.
Average Sales Prices – Single Family Home Increased 11.6% Year Over Year & Condo/Townhouses gained 21.3%
Median Sales Prices – Single Family Home Increased 12.6% Year Over Year & Condo/Townhouses gained 25.2%
Active Listings – Single Family Homes Increased 45.8% From August 2021…..To 2120 & Condo/Townhouses Increased 42.0% to 240 Units
Average Days On Market (DOM) – 21 Days For Single Family Homes and 18 days for Condo/Townhouses At the End Of August
Percentage Of List Price Paid By Buyer – Both Single Family Homes and Condo/Townhouses Sold At 99.0% Of List Price
SELLERS continue to control of the market due to the low number of homes for sale, but the Sale/List price has dropped below 100%.
The big questions for the market are – What will mortgage rates do? Will inventory continue to increase? Is inflation getting under control?
The demand for retirement or seasonal homes in Tucson remains strong and there is more inventory is available. One would expect the Sold/List price ratio to fall further.
The Drivers – Demand remains strong, mortgage rates from 5/35% to 6.25%, but inflation is up to the highest levels in 2+ decades.
Supply of homes for sale is growing and demand remains strong enough to move year over year prices up. How will those factors and lower mortgage interest rates effect buyers? Our August report should provide better insights.
Demand for new construction remains strong, but some builders are “managing” the number of homes they are committing to build due to raising material costs.
There are new homes are being built across Tucson, but in most cases a new construction home will cost more than a resale. Last but not least, new home buyers are waiting 8 to 12++ months to get in the their home.
Keep in mind when buying new construction, landscaping, decorating and window treatments are not included in the price. Want a pool, plan on $70,000++ for a standard no frills pool.
And while home prices continue to rise, Tucson is still a good value compared to many areas in the U.S
If a “fixer upper” has even a small appeal, check out a 203K FHA loan. Its a good option to have in your pocket when buying a home in Tucson, AZ.
August 2022 Mortgage Update
Mortgage rates have eased into a range from 4.675 % to 6.60% for a 30-year conventional loan depending on the lender. Inflation has increased the cost of home ownership, but Tucson remains one of the lower cost of living cities in Arizona and the U.S.
The greater Tucson area continues as a top pick for cities to live in across the United States.
Considering A Home Tucson?
Are you thinking of buying a home in the greater Tucson area? Finding the right home can be a challenging process. But we can make the process much less stressful for you.
We have been Tucson Realtors since 2002. We know Tucson and the Tucson Real Estate market. As a top Realtor team, we invest the time to understand your home buying interests and desires.
At our first meeting, we will review the current real estate market with you. Show you the market data and then walk you through the Arizona home buying process.
Why? We want you to know what to expect. And what to plan for.
Interested in new construction?
We’ll brief you on buying a new construction home. And what’s unique about the process.
For us, you are not another real estate transaction. You are a client and, future friend. We strive to create a relationship that continues long after you move into your home.
Review our profiles. Check out our backgrounds, education, and certifications.
We are here to help you “know what you need to know” to buy a home in Tucson, AZ. We provide you information on Tucson events, places to shop and restaurants. Our resources include contractors, electricians, and home services.
We will also help you get deals on tile and paint to make the home you buy yours. Our professional service backgrounds mean we put you first!
When submitting an offer
Given current inventory levels, low ball offers aren’t getting traction. So, if you “really” want the home, make a “reasonable” offer. But with homes selling at 101.4% of list price you have to ask yourself, “Will I feel bad if I don’t get this house?”
If the answer is no, then put in an offer you feel is a steal and see what happens. But your chances of a “great deal” aren’t good.
If you think the home is right for you and your family, put in an offer you and your Realtor think is reasonable.That is likely to be at list or higher!
We will work with you to understand your objectives and analyze the market to determine – as best we can – a price range for the home you want to buy or sell.
Longer term Tucson housing market trends can be found for Tucson Real Estate Trends 2006 to 2012 annual along with summaries of 2013 and 2014 annual data.
Go to the Tucson housing report archives for a look at recent housing reports and trends. Our outlook for 2015 is available in our latest issue of Tucson Realty Review.
Conclusion
Tucson Housing Market August 2022 continues to show strong year over year price increases. But higher prices and mortgage rates approaching 6% have cooled demand. Both home sales and mortgage applications have fallen from last years levels.
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