August Market Stats
August is a transitional month here in Tucson. While much of the country is busy with summer travel and sun tanning, Tucson's kids are heading back to school! Even for those of us who don't have school aged kids, I think it's safe to say that we all allow our hearts and minds to start thinking of fall: pumpkin spice lattes, cooler weather, and our fall boots! (Just me?)
This August, Tucson saw a slightly lower average home price of $446,671. This is down from July's $457,020. It's not unusual for the prices to come down slightly as we move away from the peak sales months of May/June.
Days on market came down quite a bit in August, from 42 days to 36 days. This number has been consistently coming down since a high of 53 in February. It just goes to show that even with today's interest rates, there are motivated buyers out there!
We know that there are plenty of buyers looking at homes, but what about sellers? There is currently a 2.1 month supply of inventory, which is not considered to be a balanced market. There are also only 2,253 homes for sale. Both these numbers point to less inventory available and a market that's skewed towards the seller.
We may be looking at a lower inventory market for the long haul. Currently, 82.4% of homeowners have an interest rate below 5%. 62% have a rate below 4% and 23.5% of homeowners have a mortgage interest rate below 3%. Can you imagine trading in your 3.5% rate for a 7.5% rate right now? That's the position that many homeowners now find themselves in, which is why there are fewer listings that we need for a balanced market.
It's possible that if rates come back down close to 4 or 5%, homeowners may take advantage of the significant equity they have in their home and begin to search for a bigger home. So we may see more inventory. However, it's likely that a lot more buyers will flock to the market as well! In any case, when interest rates do come down, it will be interesting to watch!