Future Forecast: The Real Estate Market’s Next Big Shift
Amid the constantly shifting sands of the national real estate scene, Tucson’s market in September 2023 has shown its own unique dynamics. With national sales touching a 7-month low, a myriad of factors — from mounting borrowing costs to limited listings — are influencing market behavior. Let’s delve deep into the Tucson real estate landscape and how it fits into the larger national picture.
New Listings:
Tucson saw a marked dip in fresh listings. Single-family listings contracted by 13.1%, while Townhouse/Condo listings slid by 24.4%.
Inventory:
The Single Family segment experienced a significant 23.8% fall in inventory. The reduction was even starker for Townhouse/Condo properties at 34.0%.
Median Home Prices:
Prices remain on an upward trajectory. Single Family homes saw a 2.3% rise to settle at a median of $385,500. Townhouse/Condo properties registered a 2.6% increase, with the median price pegged at $255,500.
Days on Market:
While Single Family listings lingered 20.7% longer on the market, Townhouse/Condo properties moved 4.0% faster.
Even with nationwide sales softening, property prices haven’t budged. The lean inventory is seeing potential buyers in intense competition, leading to bidding wars and sale prices exceeding the asking rates.
By September’s end, the market had a scant 1.1 million units available, 0.9% less than the previous month and a considerable 14.1% lower than September 2022. This inventory squeeze caused the U.S. median existing-home sales price to soar by 3.9% year-on-year, landing at $407,100. This September marked the third consecutive month the median price breached the $400,000 benchmark.
Furthermore, the national median existing-home price for all housing categories in September was reported at $394,300, a 2.8% increase from September 2022 ($383,500). Dr. Yun noted, “For the third straight month, home prices are up from a year ago, confirming the pressing need for more housing supply.”
Dr. Yun noted, “For the third straight month, home prices are up from a year ago, confirming the pressing need for more housing supply.”
Dr. Lawrence Yun, Chief Economist for National Association of Realtors
In Conclusion:
Tucson’s real estate market, paralleling national trends, is navigating a maze of challenges. Despite the indicators pointing towards a seller’s market, the limited inventory can pose hurdles for both parties. For those contemplating a foray into this market, staying abreast of these shifts and seeking guidance from real estate experts can pave the way for well-informed decisions.
