Tucson homes selling at record prices, What’s driving it?

Median home price hits a record $360,000 four months in a row
Published: Sep. 13, 2023 at 10:16 PM MST
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TUCSON, Ariz. (13 News) - High mortgage rates and tight inventory have slowed home sales nationwide. But in Tucson, the lack of available homes is keeping prices up.

As home prices stabilize elsewhere in Arizona, the latest data shows Tucson is still breaking records.

“We’re actually at peak right now. Until the next peak,” said Kevin Kaplan, chief operating officer with Long Realty in Tucson. “If you’re thinking of selling, the pricing is really strong.”

Kaplan says the median sales price has been $360,000 or higher for four months.

Even though rising interest rates are making homeowners reluctant to sell and making it difficult for homebuyers to get into the market, demand is still driving home prices up.

“Everybody thinks when rates increase, they’ll be less buyers and prices will go down. That’s not what’s happened here,” said Kaplan.

In fact, Kaplan says homes are selling within 36 days on average, and for 97% of the original asking price.

Tucsonans have mixed opinions.

“I think it’s inflated. I don’t think the housing market is worth what people are willing to pay for right now. Interest rates are sky high and ridiculous,” said a Tucson resident named Sean.

Could you afford to buy a house right now?

“We just did, three weeks ago,” said new Tucson resident Dan Morse.

How was the experience?

“Well, we had a home paid for in southern California. So, we sold it and bought one here and paid cash,” said Morse.

Kaplan says the continuing influx of new residents is contributing to Tucson’s rising home prices. Homes below $400,000 are impacted the most.

He says right now, in that price range, there are 30% fewer for sale than last year.

“The sales are down, but it’s not because people aren’t interested, it’s because it’s harder to find homes,” said Kaplan.

For buyers, Kaplan says having a real estate agent is key. They can help you find financing you might not know about and create a strategy to find what you’re looking for.

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