As the year comes to a close, we thought we would share a recap of what we saw in Tucson real estate over the last year.
This last year was a fantastic one for real estate in Tucson and the surrounding areas. The average sales price jumped 7.8% since 2013, which makes it three consecutive years of strong appreciation. Currently, our average sales price is $207,000, while the total units sold are slightly off last years pace.
The average days on market is as low as it has been all year at 58 days. This is up from the 51 days it typically took to sell a home in 2013. Currently, our inventory in the MLS has 5,800 units, and we’re selling anywhere from 1,200 to 1,300 a month, which means we have less than six months of supply. This means most areas of town have a fairly balanced at this time.
Where is the market and where is it going?An interesting data point in our market has to do with how quickly homes are selling. Two-thirds of our sales every month are houses that have been on the market for less than 60 days. Essentially, if homes are priced right, in good condition, and in a good location, they are turning in 60 days.
As you can see, we saw a very active and robust market in 2014. But what can we expect in 2015? We’re expecting prices to continue appreciating, although softening slightly compared to the rates we’ve seen in the past few years. Across the city, you can probably expect a 3% to 5% price increase across the city. As far as interest rates go, we’re expecting upward pressure on interest rates in the coming year.
If you’re a buyer, it would probably be smart to buy sooner than later. If you’re getting a mortgage, the cost of money and the price of the house are going to rise. If you’re a seller, there are very specific areas of town that are experiencing favorable conditions, while there are other areas that aren’t. It’s best to speak with a real estate expert if you’re thinking about selling, as they will be able to tell you what’s best given your specific circumstances.
Have questions about conditions in your area? Give us a call! We would love to sit down, provide you with relevant information, and discuss your options.
Thanks, and Happy New Year!