Tucson Real Estate Market!
Chances are, if you have lived in Tucson for a few years, you are seeing massive changes in the Tucson Real Estate Market! Drive anywhere in Tucson AZ and you are likely to see homes for sale, sold signs, new construction, and more! It seems as though our entire city is abuzz with activity!
As a Realtor who Invests in Tucson, I’m frequently asked by the clients I represent as well as those whose homes I’ve purchased about the state of the Tucson Real Estate Market. While it is true, that each subdivision within Tucson has it’s own market specifics, there are some generalities that can be made.
Typically, when people who are looking to sell their home have questions, they typically want to know a few things..
- How many homes are currently for sale in Tucson?
- What’s the median sale price for a home in Tucson?
- How long does it take to sell a home in Tucson?
- How much do people “Negotiate” on price?
- What is the median “price per square foot” for a home in Tucson?
To help answer these common questions about the Tucson Real Estate market, I have created this helpful post for you! Each of the charts below are updated daily from the Multiple Listing service on a rolling three month interval.
The data itself is reflective of all types of properties within the Tucson MLS. All homes, condominiums, price ranges, areas and types are represented. Obviously, as I have mentioned, individual areas, types of properties and price ranges can, and often do change from the cross section of major properties. However, for the purpose of tracking the Tucson real estate market, it is helpful to look at the market from a “birds-eye” perspective.
For perspective, I have included data for the past 5 years. As you can see, the Tucson MLS and the Tucson real estate market has experienced massive changes. As such, the opportunities to sell an unwanted home are better than ever!
How Many Homes Are For Sale In Tucson?
Anytime you are trying to determine the value of anything in life.. you must first determine how many other items are currently for sale. For our example.. it is important to know just how many homes are currently for sale in Tucson. Therefore, if we see that there are comparatively fewer homes on the market, then that shows that our area is in high demand, we know prices will most likely be higher as well.
From the chart to the right, we can see that at the time of this writing, the amount of homes currently for sale in Tucson is very low… (under 3200 homes for sale.) Compared to 2014 (shortly after the real estate recession) you can see there are half the homes available for sale as there was then.
Thus, we know that in the absence of significant new home construction, home demand is high in Tucson regardless of type, size, or price range. When compared to Tucson’s real estate market of 2018, it is even hotter.
Tucson’s Median Home Price
When it comes to the median sale price, over the last five years, Tucson’s real estate market has fully recovered. Updated daily, this chart shows the median home price of properties here in Tucson AZ. As you can see, homes in Tucson have steadily risen in price every year for the past 5 years.
What impact does this have for Tucson? Only time will tell. Without significant real estate development or rehabilitation, the prices are only going to continue to rise.
What is causing this rise in the median sale price? My belief is there are several factors that are affecting this.
One issue is an influx from California residents who are fleeing taxation in California, Oregon or Washington State. I have met several homebuyers who have come from those states who have sold their homes with the intent of purchasing homes here simply because of the economic factors and lower taxes that Arizona provides.
Another reason is the increase of the technology sector in the area. Amazon, Davis Monthan AFB, and Raytheon are all large contributors to our area. Relocating employees to and from the Tucson metropolitan area all increase the local real estate values.
How Long Does It Take To Sell A Home In Tucson?
One of the biggest questions I get asked as a Realtor/Investor in the Tucson area, is “How long does it take to sell a home in Tucson Arizona?” At the time of this writing, the Tucson real estate market is extraordinarily fast. The chart below shows just how quickly the Tucson market has sped up over the past 5 years.
As you can see, five years ago, the market was much faster. The real estate market in Tucson took on average 55 days to receive a contract. Since that time, in the real estate market in Tucson in 2109, it is currently taking 16 days.
This is critically important for a family who has a home to sell in the Tucson area. On the one hand, if you put your home on the market, you are concerned it might sell too fast. If you need a secure, safe transaction and a predictable sales date.. call me at (520) 403-6227 and let’s talk!
How Much “Negotiation” on Sale Price is there?
Another common question that I get asked is about the amount of “wiggle room” or “negotiation room” there really is on a real estate sale. While many people believe that negotiations between a Buyer and a Seller tend to wildly swing in the tens of thousands of dollars.. the truth is actually far more sublime.
As you can see from the 5 year chart below, you can clearly see that even 5 years ago, when there were twice as many homes for sale, and the market was considered fairly stable.. there was little negotiation room. Negotiation is not in terms of tens of thousands of dollars. In fact, sellers who offer their homes for sale on the Tucson MLS get on average 99.25% of the asking price.
This clearly defies the common logic that there are massive amounts of negotiation that are done in the negotiation of a typical real estate deal. One of the biggest problems that people have when trying to sell their home to a Realtor/Investor like myself is overpricing their home thinking that they are leaving room for negotiation. All this does is indicate that you aren’t serious about selling your home. If you are serious about selling your home.. price it realistically to get the next viable buyer!
Tucson Median Sale Price Per Square Foot
One of the final questions that I get asked frequently is about the issue of price per square foot. Unfortunately, price per square foot isn’t a good method to determine a good sale price. Many people want to know what the average or median price per square foot for their zip code or neighborhood is, however that isn’t always a good measurement for an accurate value.
One value of keeping an eye on the median price per square foot of homes for sale and sold in Tucson Arizona is to be able to quantify rising (or falling) home values. As you can see, the values in Tucson per square foot has risen dramatically in the past 5 years. To me, this demonstrates that as a whole, the Tucson real estate market is healthy, thriving, and best of all, growing!
Do You Have An Unwanted Tucson Home?
If you are researching the values in Tucson because you have an unwanted home in the Tucson area, then hopefully this has helped you! If you are looking to sell your unwanted home that you have through an inheritance, estate sale, divorce, an unwanted rental home, or any other situation, feel free to call or text me at (520) 403-6227 and I will get you a fast, fair offer!