Now that 2017 is underway, I wanted to bring you a quick update on the Tucson real estate market.
As it turned out, 2016 was actually a great rebuilding year. Our average list price is up about 4% and our average unit sales are up about 3% from last year. Things are looking pretty positive, and we are still in a recovering economy, which means the market is recovering as well.
On the other hand, we have seen a large decrease in inventory. The active listings in the MLS are down to about 4,000, which is a 20% decrease from last year. As supply goes down, prices go up, which means we should see continued upward movement in prices in 2017. This is great news for sellers, but buyers need to be prepared to move fairly quickly to purchase a property.
Last year, our average days on market was 60, and today it’s 47. Homes that are in the right areas and priced right are selling very quickly. In fact, 68% of our sales happen in the first 60 days. If you are looking to buy, make sure you have met with your lender and are ready to jump on a property.
2017 is going to be a great year for real estate based on a few things that are happening here in Tucson. Raytheon, one of our largest employers, just got a $2 billion government contract and will be hiring somewhere close to 2,000 people over the next couple of years. Caterpillar, from Peoria, Illinois, is moving some of their management level people here. The University of Arizona will be opening a graduate veterinary school in Oro Valley which will bring in 500 students initially, then grow to 800. Roche Medical is also continuing to expand. All of these factors will be great for our market growth.
If you are looking to buy or sell a home or if you have any questions, please feel free to give me a call or send me an email. I look forward to hearing from you!