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Tucson Housing Market Report - January 2023

MAJOR SLOW DOWN IN CLOSED HOME SALES IN TUCSON!

What is the state of the Tucson housing market doing for January 2023?

In January 2023, the median home sales price was $359,900 up 2.9% year-over-year. While the average days on market was 49 days and home inventory is up 67.4% year-over-year.

Meanwhile, closed home sales in Tucson have dropped 40.3% year-over-year.

Single Family Home Sellers Getting 97.60% Of Their List Price in January 2023

The US housing market began the year in a state of rebalance, with many buyers and sellers remaining cautious while they wait to see where the market is headed. Nationally, pending sales rose 2.5% month-to-month, marking the first increase since May, while sales of existing homes fell 1.5% as of last measure, according to the National Association of Realtors®
(NAR). Demand for housing persists, but higher mortgage interest rates have cut into housing affordability, with total home sales down 17.8% last year compared to 2021.

New Listings decreased 13.4 percent for Single Family and 3.0 percent for Townhouse/Condo. Pending Sales decreased 23.3 percent for Single Family and 13.6 percent for Townhouse/Condo. Inventory increased 67.1 percent for Single Family and 95.5 percent for Townhouse/Condo.

Median Sales Price increased 2.9 percent to $359,900 for Single Family and 14.7 percent to $252,250 for Townhouse/Condo. Days on Market increased 104.2 percent for Single Family and 71.4 percent for Townhouse/Condo. Months Supply of Inventory increased 120.0 percent for Single Family and 150.0 percent for Townhouse/Condo.

As sales slow, time on market is increasing, with the average home spending 26 days on market as of last measure, according to NAR. Seller concessions have made a comeback, giving buyers more time and negotiating power when shopping for a home. Although home prices remain high, mortgage rates declined steadily throughout January, falling to their lowest level since September, sparking a recent surge in mortgage demand. Lower rates should aid in affordability and may soon lead to an uptick in market activity ahead of the spring selling season.

Transitioning from a Sellers Market to a Balanced Market

Check out what home prices are doing in Tucson, AZ for January 2023.

Average days on market for single family homes... 49 Days!

Tucson Market Report Year-over-Year Highlights For January 2023:

New Listings decreased 13.4 percent for Single Family and 3.0 percent for Townhouse/Condo.
Pending Sales decreased 23.3 percent for Single Family and 13.6 percent for Townhouse/Condo.
Inventory increased 67.1 percent for Single Family and 95.5 percent for Townhouse/Condo.
Median Sales Price increased 2.9 percent to $359,900 for Single Family and 14.7 percent to $252,250 for Townhouse/Condo.
Days on Market increased 104.2 percent for Single Family and 71.4 percent for Townhouse/Condo.
Months Supply of Inventory increased 120.0 percent for Single Family and 150.0 percent for Townhouse/Condo.

Mortgage Interest Rate Update

These numbers can be positive or negative depending on which side of the fence you are on… Buyer or Seller?

Below are some important charts of data to give you a visual of how the Tucson housing market is trending for January 2022.

CLICK ON THE CHARTS BELOW TO SEE THEM BIGGER.

Closed Home Sales

Total real estate sales in Tucson for the month of January 2023 were 610 single-family homes sold and 114 townhouses/condos sold.

Which was -40.3% year-over-year change for single-family homes and -34.1% year-over-year change for townhouses/condos from the previous year as shown in the chart above.

Average Home Sales Price

In January 2023, the average sales price in Tucson of a single-family home was $452,850 and $276,604 for townhouses/condos.

Which was a +7.1% year-over-year change for single-family homes and a +15.8% year-over-year change for townhouses/condos from the previous year shown in the chart above.

Median Home Sales Price

In January 2023, the median sales price in Tucson of a single-family home was $359,900 and $252,250 for townhouses/condos.

Which was a +2.9% year-over-year change for single-family homes and a +14.7% year-over-year change for townhouses/condos as shown in the chart above.

Days On Market Until Sale

In January 2023, the average days it took a single-family home to sell was 49 days and 36 days for townhouses/condos as shown in the chart above.

This was a year-over-year change of +104.2% for a single-family home and +71.4% for a townhouse/condo.

Active Home Listings - Inventory of Tucson Homes For Sale

In January 2023, the number of active listings in Tucson, Arizona for single-family homes was 2,085 and 258 for townhouses/condos.

This was a +67.1% year-over-year change for single-family homes and a +95.5% change year-over-year change for townhouse/condos as shown in the chart above.

Active listings and home inventory numbers are a key indicator to keep an eye on.

If this downward or even slight increase in inventory continues, look for the Tucson housing market to continue to be strong and home prices to move up creating a sellers’ market in Tucson, Arizona.

HOME BUYERS

As home inventory levels begin to decrease there is less to chose from. So when you see a home that you like that is properly priced moving quickly is key to getting your offer accepted.

HOME SELLERS

As the number of listings decreases, sellers are poised to sell their home faster and for more money. Marketing and making your home look great are the keys to selling your home FAST and for MORE MONEY.

As a seller, your home is one of three listings:

A home that sells!
One that gets showings but sells the house down the road.
Or the home that gets no showings and does not sell.

Which type of listing do you want to be?

SOLUTION

Having a skilled real estate team is the key to saving thousands of dollars when buying or selling a home with the least amount of hassles. Put the Tyler Ford Real Estate Team powered by eXp Realty in Tucson to work for you. We would love to earn your business!

Will well sell your home in 90 Days Guaranteed or it’s FREE!

There are tons of good reasons now is a good time to buy a home in Tucson, AZ. Give us a call about home ownership today.

See All The Tucson Housing Market Reports