Tucson’s Housing Market Pulse – October 2023
Ben & Kim Boldt – Tucson’s Top Realty Team
The October 2023 Tucson Housing Market Pulse shows year over year sales prices for Single Family Homes continue upward. The median sales price for a single family home increased 5.2% and the average sales price gained 8.9% from October 2022.
Active Listings of Single Family Homes are DOWN 19.8% from October 2022 with 2,166 single family homes on the market at the end of October. Month over month, October Active Listing were up 11.1% from September. At the current burn rate for closed transactions that translates to a 2.5 months supply.
Condos and Townhouses prices moved up as well. The year over year Median sales price moved UP 4.0% and Average sales price UP 6.0%. With 228 Active Listings of Condo/Townhouses on the market. That’s a 1.5 months 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 98.9% and Condo/Townhouse at 99.3% for October.
Now for the details……
The Tucson Housing Market October 2023 – Single Family Homes
The Tucson Housing Market October 2023 – Condos & Townhouses
The Take Away
Mortgage rates continue to inch up to two decade highs. The average 30-year fixed-rate mortgage moved to 7.75% at the end of October.
What can you say? Demand is chasing low home inventories and pushing prices up.
The Sale to List Price ratio for October was 98.9% for Single Family Homes and 99.3% for Condos/Townhouses. These ratios are down slightly from October 2022.
> Inventory Of Homes For Sale
New listings for Single Family Homes are UP 0.7% from October of 2022. The first year over year up tick in 12 months. Condos/Townhouses DECREASED 3.2% from October 2022. The smallest decrease in the last 8 months.
Pending Sales are up 22.3% percent for Single Family and 18.3% for Townhouse/Condo.
Higher interest rates are also a negative influence on would be sellers. Many move-up sellers have low rate mortgages and don’t want to sell because they would move to a higher priced home and a higher priced mortgage. It a conundrum and big factor keeping inventory low.
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 8.9% and Condo/Townhome is up 6.0%.
> The Bottom Line
Mortgage rates moved up, demand is steady and resale inventory low. It appears that demand and low inventory are offsetting higher interest rates and pushing prices up. Year to Date, the Average Median purchase price of a home is up 6.0%.
No change in the near term outlook! Prices continue to rise in spite of higher mortgage rates. But as economists would say, on the other hand higher mortgage rates may dampen buyers interests….at some time in the future.
Given the situation, it should be no surprise new home builders are going strong 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
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.
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Why? We want you to know what to expect. And what to plan for.
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When submitting an offer
Given current inventory levels, low ball offers aren’t getting traction.
So, if you “really” want the home, make a realistic offer within your budget and timing constraints.
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.
Not much changing on a month to month basis in the October 2023 Tucson Housing Market Pulse.
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By the way, if you missed last months issue of the Tucson Housing Market Pulse its right here – September 2023 Tucson Housing Market Pulse.