Is The Tucson Real Estate Market Slowing?
What’s on the horizon for the Tucson Real Estate Market? is it showing signs of slowing? What’s happening with both the retail and wholesale market in Tucson Real Estate? We are a little past half way through the year so now is a good time to take a closer look.
Let’s start with the statistics: (Please note these numbers reflect a large portion of Southern Arizona, but the largest volume is in the Tucson market).
Median Sales Price of Tucson Real Estate. It’s important to understand that he median sales price is different from the ‘average‘ sales price. The average is determined by adding all the sales and dividing by the number of total sales. The ‘median sales price’ of Tucson Real Estate is the middle price. If you look at the highest price of a home sold in Tucson and the lowest price, the number in the exact middle is considered the ‘median sales price’. While these numbers are generally close to each other, they are different.
In January of 2020 the Median price was $225,000.00 as compared to January of 2021 which was $265,000.00. As of June 2021 we are at $300,000.00 just slightly above the May number of $297,603.00. Overall growth since January 2020 has been relatively steady overall.
Average Days on Market (DOM). How many days, on average, does it take to sell a home in Tucson? This number has dropped quickly since the average DOM in January 2020 of 21. In January of 2021 the number was 9 and as of June 2021 we were at 4 DOM and that number has been consistent since April. This number is mostly driven by the lack of inventory in the Tucson Real Estate market.
Closed Sales. How many properties have actually sold and closed? Tucson has been in a very strong Seller’s market for a number of years now. The total homes sold can be a little deceiving since it is also tied very closely to the inventory on hand. In January of 2020 the number of sales was at 1,342 and slightly higher in January 2021 at 1,498. As of June 2021 the closed sales were at 2,128.
Months of Supply. This number approximates how many months of supply we have based on the current inventory and rate of sales. It is important to understand that traditionally, a healthy Real Estate market in Tucson is roughly four to six months. It’s been a long time since we have been there. In January of 2020 we were at 2.1 months of supply. That number dropped sharply in January of 2021 to only 1 month supply. As of June 2021 we were at .9 months.
The numbers indicate that there is no reason to expect the Tucson Real Estate market to slow anytime soon. There is still a strain on inventory levels as well as a deep pool of buyers on the sidelines. Even with increasing prices the Tucson market offers many opportunities for investors moving forward.
And if you are a seller, even if your home is in less than perfect condition, your home is likely worth more than than it ever has been. Contact me anytime with any questions you may have.