The trends in the real estate market in Tucson, Arizona for the month of May 2013 point towards it being a sellers’ market. This is not the ideal time to buy a home in Tucson, particularly if you are a first-time buyer. But, if you are looking to sell, you are in luck. The prices are going up but homes are being sold quicker. Yet, an in-depth look into whether the current trends will sustain for a period of time is required to get a better idea of the market.
Increase in Home Inventory
During May, home inventory in Tucson fell by 2% from last month. The number of homes for sale on the market at present is 3,111, down from 3,170 in the previous. Yet, the decrease of 59 is negligible when looking at the bigger picture, since the home inventory in Tucson has been increasing for the past year. At the same time last year, the home inventory was at 2,985. This means that there are 4% more homes for sale in Tucson. The percentage is not significant but buyers in Tucson have a wider variety of homes to select from.
Increase in Home Prices
As has been the trend over the last year, the median list price for homes in Tucson continued to increase during May as well. A month ago, the average price of a home on the market was $190,000 but it has gone up by nearly $10,000 and is currently at $199,900. The increase in median list price over the past month is 5%. As mentioned above, prices have been rising steadily for a year now. Last year, the average price was $179,000 which means a 12% increase has occurred over a period of one year. The last time home prices fell in Tucson was in the period between December 2012 and January 2013. Since then, home prices have been on an upward trajectory.
The price per square foot for homes in Tucson continued to increase, reaching its current level of $114. A month ago, the price was $110, representing a 4% increase. This trend has been going on for a year now, when the price per square foot was $102 and has gone up by 12% since. By all means, the Tucson real estate market is a sellers’ market right now.
Homes Being Sold Quickly
As with home prices, the trend also continued with respect to the number of days a house remains on the market on average. Currently, the average days-on-market for a house in Tucson is 61, down 3% from the previous month when it was 63. A year ago, a house took 75 days on average to sell. This means the days-on-market has decreased by 19% over the past year, which means homes are being sold more quickly than they were before.
Mortgage Rates in Tucson
Fortunately for buyers, mortgage rates in Tucson have entered a decreasing trend over the past couple of months. At the end of March, the mortgage rate was close to 3.50% but over the course of the month, came down to around 3.34%. A year ago, mortgage rates were hovering near 3.70% which means they have fallen by around 10% over the course of the year. Currently, the mortgage rate is a few points above the position where it was at the end of May.
The mortgage rates available to home buyers in Tucson may be low but they have to bear higher home prices. The number of homes on the market is increasing but they sell quickly. The median list price has also been rising over the past year. So, it is quite clear that Tucson, Arizona is a sellers’ market as far as real estate is concerned.
