Tucson Housing Market Report - September 2023

National sales of existing homes recently fell to a 7-month low, as surging borrowing costs, rising sales prices, and limited inventory continue to keep many would-be buyers out of the market. Borrowers have become increasingly sensitive to fluctuations in mortgage rates, which have remained above 7% since mid-August. With fewer buyers able to afford the costs of homeownership, existing-home sales declined 0.7% month-over-month and were down 15.3% year-over-year, according to the National Association of REALTORS®(NAR).

New Listings decreased 13.1 percent for Single Family and 24.4 percent for Townhouse/Condo. Pending Sales increased 3.6 percent for Single Family but decreased 12.1 percent for Townhouse/Condo. Inventory decreased 23.8 percent for Single Family and 34.0 percent for Townhouse/Condo. 

Median Sales Price increased 2.3 percent to $385,500 for Single Family and 2.6 percent to $255,500 for Townhouse/Condo. Days on Market increased 20.7 percent for Single Family but decreased 4.0 percent for Townhouse/Condo. Months Supply of Inventory remained flat for Single Family but decreased 12.5 percent for Townhouse/Condo properties.

Prices have continued to increase this fall despite softening home sales nationwide, as a lack of inventory has kept the market competitive for prospective buyers, sparking bidding wars and causing homes to sell for above asking price in some areas. Heading into September there were only 1.1 million units available for sale, 0.9% fewer than a month ago and 14.1%
fewer than the same period last year, according to NAR. As a result, the U.S. median existing-home sales price rose 3.9% year-over-year to $407,100, marking the third consecutive month that the median sales price topped $400,000.