Tucson Realty Review July 2015 – Mid Year Update
Tucson Housing Mid Year Results and Trends – Tucson Realty Review July 2015
The Tucson Realty Review July 2015 shows the Tucson housing market continues to improve during the first half of 2015. Albeit, slowly. From the low point in September 2011, the average home selling price has increased about 45% as of June 2015. That is 1% per month for the last 45 months.
Although job creation is still far behind what is needed to further accelerate the real estate recovery, Tucson housing market appears to be headed for a very good year.
Tucson Realty Review July 2015 – Sales
At the peak of the Tucson real estate market, there were about 15,700 homes sold. Through the first 6 months of 2015, 7,300 homes have sold. It is estimated over 13,000 homes will be sold by the end of 2015. 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 2015, DOM stood at 70 days. June had a DOM of 60 days – a 14% drop. Time to sell is down while average price has increased by 12.6% during that same period. Median price, considered a better indicate of the market, is up 8.1%. That is still pretty good.
Should the job market gain some strength, one would expect the housing market to gain further momentum for the remainder of 2015 and into 2016.
Tucson Realty Review July 2015 – Interest Rates
The Fed continues to hint they will raise interest rates by .25% later this year. In light of the situation in Europe, the timing is yet to be determined. Should a rate increase be in the cards, mortgage rates could go to 4.35% to 4.65%. Lets say 4.75%. That is still a very good situation for buyers.
Should prices continue their climb, even slowly, say 5% or 6% per year, there is rational to believe home values will again become a “investment” opportunity.
Tucson Realty Review July 2015 – Baby Boomers
Tucson is and is likely to continue to be a place for snowbirds and retirees to buy homes. That fact should sustain the Tucson real estate market. There are a lot of future retirees that will be looking to Arizona and specifically Tucson.
Tucson Realty Review July 2015 – 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 half of 2015 has been strong for the Tucson housing market. It is likely, but not certain, the momentum will continue. Past issues of the Tucson Realty Review can be found in our archives.
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