Tucson Housing Market Report - March 2023

Nationally, existing home sales jumped 14.5% month-over-month as of last measure, the first monthly gain in 12 months, and representing the largest monthly increase since July 2020, according to the National Association of
REALTORS® (NAR). The sudden uptick in sales activity stems from contracts signed toward the beginning of the year, when mortgage rates dipped to the low 6% range, causing a surge in homebuyer activity. Pending sales have continued to improve heading into spring , increasing for the third consecutive month, according to NAR.

New Listings decreased 18.7 percent for Single Family and 19.0 percent for Townhouse/Condo. Pending Sales decreased 9.0 percent for Single Family and 2.6 percent for Townhouse/Condo. Inventory increased 56.2 percent for Single Family and 74.9 percent for Townhouse/Condo.

Median Sales Price increased 2.8 percent to $365,000 for Single Family and 2.9 percent to $250,000 for Townhouse/Condo. Days on Market increased 117.4 percent for Single Family and 171.4 percent for Townhouse/Condo. Months Supply of Inventory increased 100.0 percent for Single Family and 100.0 percent for Townhouse/Condo.

Monthly sales might have been even higher if not for limited inventory nationwide. At the current sales pace, there were just 2.6 months’ supply of existing homes at the beginning of March, far below the 4 – 6 months’ supply of a balanced market. Inventory remains suppressed in part because of mortgage interest rates, which nearly hit 7% before falling again in recent weeks. Higher rates have continued to put downward pressure on sales prices, and for the first time in more than a decade, national home prices were lower year-over-year, according to NAR, breaking a 131-month streak of annual price increases.