Tucson Housing Market Report - July 2023

Affordability constraints have continued to limit homebuying activity this summer, with existing-home sales falling 3.3% month-over-month nationwide as of the last measure, according to the National Association of REALTORS® (NAR). Mortgage rates have approached 7% in recent months, leading many prospective buyers to put their home purchase plans temporarily on hold. But higher rates have also kept many existing homeowners from listing their homes for fear of giving up the low-rate mortgages they locked in a few years ago, when rates were significantly lower.

New Listings decreased 27.8 percent for Single Family and 39.5 percent for Townhouse/Condo. Pending Sales increased 2.9 percent for Single Family but decreased 12.3 percent for Townhouse/Condo. Inventory decreased 24.9 percent for Single Family and 41.7 percent for Townhouse/Condo.

Median Sales Price increased 3.2 percent to $397,255 for Single Family and 14.8 percent to $287,000 for Townhouse/Condo. Days on Market increased 105.6 percent for Single Family and 100.0 percent for Townhouse/Condo. Months Supply of Inventory remained flat for Single Family but decreased 23.1 percent for Townhouse/Condo properties.

Despite a drop in existing-home sales, home prices have remained near record highs, with a national median sales price of $410,200 as of last measure, 0.9% below the all-time high of $413,800 recorded in June 2022, according to NAR. With only 3.1 months’ supply heading into July, the lack of inventory has boosted competition among buyers and put upward pressure on sales prices, especially in more affordable markets, where competition for homes remains particularly strong.