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, the months of Inventory was 3.7, up from 3.2 in January 2017. The median price of sold homes was $200,000 for the month of January 2018, up 9% from January 2017.
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.
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.
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.