It is Important To Consult With A Real Estate Professional To Understand the Micro Markets
Tucson home prices are continuing to rise, the shortage of listings has been a contributing factor to the 10 percent increase in the median price. The December 2017 median price of sold homes in Tucson was $203,000, up from $193,000 for all of 2017. The peak of the market was in November 2005 with a market peak at $226,465.
Tucson’s Absorption Rate
Let’s look at what the absorption rate is for the different price points. The percent of unit sales that are sold each month of the inventory. A higher percent means that inventory is moving at a faster rate, or considered a Seller’s market. Tucson has three-tier markets to consider when reviewing the absorption rate.
In the Tucson Main Market area, Â the months of Inventory was 3.7, up from 3.2 in January 2017. Â The median price of sold homes was $200,000 for the month of January 2018, up 9% from January 2017.
First Tier
Entry level price point under $350,000 has a shortage of homes on the market, therefore the buyer demand is extremely competitive. It is considered a seller’s market so buyers need to act quickly and make their offer strong and enticing.
Second Tier
The mid-range runs from $350,000 – $600,00 which is a balanced market. A neutral market or a balanced market the supply and demand have reached an equilibrium.
Third Tier
The third tier is considered the luxury home market in Tucson that runs above $800,000. There is an over supply of homes on the market so this is considered a buyers market. Home sellers in this price range need to price competitively to attract a very limited number of buyers.
The Tucson luxury median home price increased one percent over 2016. We re seeing a nice trend for the first quarter of 2018 with the number of contracts written up 13 percent over this same time as last year.
