Tucson 2023 September Housing Market Review
- Surging Costs: With mortgage rates consistently hovering over 7% since mid-August, borrowers are becoming more rate-sensitive, resulting in a 0.7% decline month-over-month and a 15.3% drop year-over-year in existing-home sales.
- Inventory Slump: Both single-family and townhouse/condo listings have seen reductions, with the former decreasing by 13.1% and the latter by a whopping 24.4%. This tight inventory is also reflected in a 23.8% decrease for single-family homes and a 34.0% reduction for townhouses and condos.
- Mixed Bag in Sales: Single-family home pending sales saw a slight uptick of 3.6%, while townhouse/condo sales took a hit, declining by 12.1%.
- Pricing Dynamics: The median sales price edged upwards, with single-family homes at $385,500 (a 2.3% rise) and townhouses/condos at $255,500 (a 2.6% increase).
- Market Timings: Homes in the single-family segment stayed longer on the market by 20.7%, whereas townhouse/condo units moved a tad quicker with a 4.0% decrease in days on market.
- Supply Concerns: While the month’s supply of inventory remained steady for single-family homes, townhouses/condos saw a 12.5% decline.
The crux of the situation? Despite softening home sales nationwide, rising prices persist, fueled by a glaring lack of inventory. This scarcity is leading to fierce competition among buyers, resulting in bidding wars and homes fetching amounts above the asking price in certain locales. As we closed September, only 1.1 million units were up for grabs – a 0.9% shrinkage from the previous month and a significant 14.1% dip from last year. Consequently, the U.S. median existing-home sales price climbed to $407,100, the third consecutive month it’s crossed the $400,000 threshold.
