KEYS TO THE DREAM: Rising prices, strong demand and limited housing supply show no signs of easing anytime soon
TUCSON, Ariz. (KOLD News 13) - Buyers, sellers and agents are all adjusting to where the Tucson housing market is headed.
Rising prices, strong demand and limited housing supply show no signs of easing anytime soon.
“So the Mercado is a brand new neighborhood. It’s very convenient to downtown” said Tucson realtor Damion Alexander with Long Realty. “Just a year ago, we were at three times the inventory we are at today.”
And just like our weather, Damion doesn’t expect the housing market to cool down anytime soon.
“Even if inventory doubled or even tripled, we probably would still be in a seller’s market,” Alexander said.
Alexander said Tucson is hovering around 1,000 listings a day.
“We should probably be at 4,000 to 5,000. That would be a healthy number, a more balanced market,” Alexander said.
John Carroll with the Land Advisors Organization said the lack of supply is driving prices up.
“I think we have anywhere between and eight and 14 days of supply on the resale market at any given time,” Carroll said.
Carroll said low-interest rates are also a factor.
In 2018, interest rates were about 5%, so a $1,600 a month payment would get you a $295,000 home.
In early 2021, interest rates are less than 3%.
“A $1,600 a month payment would get you a $376,000 home. So, when we look at what is happening to the median home price in the Tucson metro area, there is a significant increase in buying power of about $81,000,” Carroll said.
Alexander said he’s seeing homes sell for 10% to 15% above the asking price.
“If you have taken the time to get your home ready for sale, you are getting a premium, unlike anything anyone has ever had at any time in our market before,” Alexander said.
Until Tucson sees more supply, Alexander said he doesn’t expect this trend to change.
Copyright 2021 KOLD News 13. All rights reserved.