Today I’m discussing the post-election market in Tucson and what things look like going forward for buyers and sellers. As many of you are aware, interest rates were slightly over 3% in the last quarter of 2016. Since then, they have shot up to as high as 4.5%. That swing is certainly affecting buyers because it’s making homes more expensive and forcing buyers to come down from their previous purchase prices a little bit.
There are a few factors that you need to consider if you’re buying or selling in Tucson. One of these is the abundance of new construction in town. We’ve had virtually no new construction here since 2007, so there’s pent-up demand for new homes.
If you’re a seller, you need to be cognizant of new construction in your area because of how it could affect your home sale. If you’re selling under $300,000 however, you shouldn’t have to worry about it too much. Home sales are up 12% over a year ago and inventory is down 28%. This puts you in a strong seller’s market. Homes in this range are selling quickly and very close to, if not over, list price. Some homes are even getting multiple offers.
If you’re buying in this market, you need to be prepared to move and move quickly on a desirable property. However, it might take losing a few properties to get the right one, so be cognizant of that as well.
If you have any questions for me or if you’re thinking about buying or selling in Tucson, give me a call or send me an email. I look forward to hearing from you.