Tucson’s Housing Market Pulse – December 2023
Ben & Kim Boldt – Tucson’s Top Realty Team
The December 2023 Tucson Housing Market Pulse shows year over year sales prices for Single Family Homes continued upward. The median sales price for a single-family home increased 2.7% and the average sales price gained 6.9% from December 2022.
Active Listings of Single-Family Homes are DOWN 13.4% from December 2022 with 2,111 single family homes on the market at the end of December. At the current burn rate for closed transactions that translates to a 2.4-month supply.
Condos and Townhouses prices fell slightly. The year over year Median sales price Dropped 0.4% and Average sales price Fell 0.2%. There were 268 Active Listings of Condo/Townhouses on the market at the end of December. That’s a 1.9-month supply.
One more thing, the ratio of sales price to list price is slightly under 100%. Under, but not by much! Single Family are at 98.7% and Condo/Townhouse at 98.8% for December.
Now for the details……
The Tucson Housing Market Pulse December 2023 – Single Family Homes
The Tucson Housing Market Pulse December 2023 – Condos & Townhouses
Mortgage rates pulled back as of mid-December with a 30-year fixed-rate mortgage at 7.25%.
Nothing new on this front! Demand is chasing low home inventories and pushing prices up.
The Sale to List Price ratio for December was 98.7% for Single Family Homes and 98.8% for Condos/Townhouses.
> Inventory Of Homes for Sale
New listings for Single Family Homes were basically flat at 734 and Condos/Townhouses Increased 3.1% from December 2022.
Pending Sales are up 3.4% percent at 663 for Single Family and down 18.0% for Townhouse/Condo.
Higher interest rates continue to be a drag on move up sellers. Many are sitting on a low-rate mortgages and don’t want to sell to buy higher priced home and carry a higher rate mortgage. This conundrum continues and is big factor keeping inventory low with no change is sight.
Median and Average prices were up for both Single Family Homes and Condo/Townhouses. Over the last 12 months, the Average Price of a Single-Family Home is up 3.8% and Condo/Townhome is up 5.3%.
> The Bottom Line
Mortgage rates have increased so far in early January 2024. The “pundits” suggest rates will decline throughout 2024 ending around 6.0% by end of year. It appears that demand and low inventory continue to offset interest rates and pushing prices up.
No change in the near-term outlook! Prices continue to rise in spite of higher mortgage rates. However, closed sales have continued to decline since May 2023. Only 652 SFR and 85 Condo/Townhomes closed in December.
Given the situation, it should be no surprise that new home builders are smiling and steadily raising prices in response to demand. Many new home builders have captive finance units and able to give rate incentives or closing cost offsets.
Considering A Home Tucson – Give Us A Call
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Not much changing on a month to month basis in the December 2023 Tucson Housing Market Pulse.
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By the way, if you missed last month’s issue of the Tucson Housing Market Pulse its right here – November 2023 Tucson Housing Market Pulse.