Tucson Housing Market Report - November 2023

Low inventory, elevated sales prices, and decades-high interest rates continue to weigh on the housing market, causing sales of existing homes to fall to their slowest pace since August 2010. According to the National Association of REALTORS® (NAR), U.S. existing-home sales declined 4.1% month-over-month and 14.6% year-over-year as of last measure, as prospective buyers, faced with rising homeownership costs, wait for mortgage rates, and home prices, to drop.

New Listings increased 7.6 percent for Single Family but decreased 9.8 percent for Townhouse/Condo. Pending Sales increased 13.2 percent for Single Family but decreased 2.5 percent for Townhouse/Condo. Inventory
decreased 15.9 percent for Single Family and 27.1 percent for Townhouse/Condo.

Median Sales Price increased 4.0 percent to $389,995 for Single Family and 21.7 percent to $292,075 for Townhouse/Condo. Days on Market decreased 7.7 percent for Single Family and 15.6 percent for Townhouse/Condo. Months Supply of Inventory remained flat for Single Family but decreased 10.5 percent for Townhouse/Condo properties.

Inventory remains at historically low levels nationwide, with only 1.15 million homes for sale heading into November, a 5.7% decline compared to the same time last year, for a 3.6 months’ supply at the current sales pace. The shortage of available properties for sale has kept pressure on home prices, which have continued to climb despite the slowdown in sales. According to NAR, the U.S. median existing-home sales price increased 3.4% from a year ago to $391,800, an all-time high for the month, with annual price gains reported in all four regions of the country.