Tucson Housing Market 2022: Prices, Trends & Forecast
The Tucson housing market made the news decades ago when housing prices hit historic highs. Then, they were cut in half and experienced a slow but steady recovery. However, now that the housing market is in high demand. Check out the Tucson housing market prices, trends, and forecasts to determine if you should buy or sell.
Tucson Housing Market Prices
Year over year has seen prices increase throughout the Tucson, Arizona, housing market. The median sale price has risen by 8.3% for a total median price of $325,000. Other articles place this price much higher at $385,000.
Single-family homes saw a price increase of 9.2% year over year, for a median price of $344,000.
Townhouses are significantly cheaper than single-family homes, with a median price of $275,000. However, that is an increase in the price of 25%.
The category of condos and co-ops also saw a price increase. The median sale price in this category was $192,000, which was an increase of 28%.
The drastic price increases are primarily due to a low housing supply. The housing supply has grown slightly over the past year, but it’s not enough to bring housing costs down. Last year, there was a housing supply of .8 months. This year the housing supply is sitting at about 1 month. For a housing market to be healthy, there needs to be a housing supply of at least six months.
Tucson Housing Market Trends
In August, 816 houses were sold on the Tucson housing market, according to Redfin. This was a decrease of almost 22% year over year. On average, houses spend a median number of 39 days, an increase of 1 day compared to last year.
Most of the homes sold in the area were single-family homes. About 637 homes that were sold were single-family homes, but that was a decrease of 23.7% year over year. Single-family homes spend a median number of 39 days on the market, which is up 2 days year over year.
About 90 of the houses sold on the Tucson housing market were townhouses. That is a decrease of 15.1% year over year. On average, townhouses spend an average of 42 days on the market, for an increase of four days year over year.
Condos and co-ops were the only housing category that saw an increase in sales year over year. The number of homes in this category that sold was 71, which was an increase of 12.7%. They spend about 38 days on the market, which only increased by 2 days compared to last year.
However, Tucson is also rated one of the hottest housing markets in 2022, according to this article. Tucson is the second most popular city in Arizona, with just over 1 million residents calling the Tucson area home.
Although population growth is not as rapid as in other housing markets, such as Orlando, it is steady. In the past 10 years, there has been a population growth of 6.4%. This slow but steady growth is significantly better than rapid population growth. It means that residents are carefully choosing to live in Tucson, meaning they are more likely to stick around.
Employment in the area looks promising for the future. Industries like aerospace, defense, and renewable energy are growing rapidly in the area, which signals that the population will continue to grow.
Although the population and employment growth is steady, it seems that many people are choosing to rent instead of buy now. This is likely due to the higher-than-average prices in the area. Renters occupy almost 50% of homes in the area.
Tucson Housing Market Forecast
The Tucson housing market will remain one of the hottest housing markets for the remainder of the year. Although fewer people are buying houses, enough people have not dropped out of the market to create a healthy housing market.
Out of state investors will continue to capitalize on the Tucson housing market by buying more properties. More people with higher incomes are moving into the area thanks to remote work opportunities, allowing people to move anywhere in the country.
These trends will see the housing supply continue to be low for months to come, resulting in more price increases. However, the price increases will be steady. Lower mortgage rates than in other areas continue to entice people to buy houses.
The housing supply is increasing, according to Rocket Homes. This trend will also continue, eventually helping the market balance itself.
This makes it an excellent time for sellers to capitalize on their properties. Those that are selling houses will continue to see gains for the rest of the year.
However, the continuous price increases have left houses sitting on the market longer than in previous years. Unfortunately, this trend will also continue. Need to sell your house fast? We buy houses in the Tucson area! Contact us today for a quote.
Buyers will slowly start to step away from the market. This trend will continue slowly until the Tucson housing market corrects itself.
The Tucson housing market will continue to be a seller’s market. It’s a great time to make a profit off of your property. However, houses are spending longer on the market now, so it’s essential to keep that in mind. Finding a cash buyer in the area can help you sell your home faster. Check out cash buyers in Tucson here!
Buyers eager to purchase a home may want to do so now before prices increase. It will be long before the Tucson market becomes a buyer’s market.