Is the Tucson Housing Market Cooling?
We have been in a sellers market since 2012, this “hot market” has driven home prices upward. Many investors bought up homes at rock bottom prices. The historic low interest rates fueled home buyers to take advantage of the real estate market. The Tucson real estate market has recovered from the housing marten downturn that occurred in 2006. Many homeowners are no longer underwater and now have equity in their home. It is a great time to sell! It is a great time to buy!
Home price appreciation across the nation has increased to an average of 6%. In Tucson, median home price appreciation increased to 7%.
WONDER WHERE THE MARKET IS HEADED?
According to Ralph McLaughlin, Deputy Chief Economist at CoreLogic, recently stated in an interview,
“There’s no reason to panic right now, even if we may be headed for a recession. We’re seeing a cooling of the housing market, but nothing that indicates a crash. The real elephant in the room here is housing supply.”
Ralph McLaughlin went on to explain,
“If there are a lot of homes on the market and suddenly no one wants to buy them, you’ll get into a downward spiral of price competition. Right now, however, we’re in the opposite situation, there isn’t an over-abundance of homes on the market.”
A NORMAL MARKET NOW
Don’t panic with the market shift. We are headed for a ‘normal’ market with inventory building there will be fewer buyers bidding on the same home. Therefore, we will see that home prices will slow with less upward pressure.
Homesellers need to be realistic about pricing their home. Homebuyers will have more choices and still have low interest rates working in their favor.