During the month of January, lots was going on around the country! An atmospheric river raged on the west coast (aka the best coast!), we welcomed tens of thousands of visitors to Tucson for the Gem Show, and my husband celebrated his birthday! In addition to all that, some things happened in the Tucson real estate market, so let's talk about that.
In January, the average price of a single family home was $432,336. That was up slightly from December's price of $430,325. Although home prices are down slightly from May, 2022's all time high of $458,531, prices are still significantly higher than any other time in history. For reference, March, 2020's average home price was $307,161. So, if you bought your home during the madness of the pandemic, you've earned yourself a nice whopping paycheck of $125,175. That's just the average amount, your equity may be higher! It also could be tax free if it's your primary residence and you've lived there for two years! Time to cash out and move up? Hmmm. Maybe!
The average days a home sits on the market before going under contract (days on market) is one area where we see the effects of higher interest rates. January's average days on market was 49, which has been climbing steadily each month. December's average was 46 and November's was 38. If you've been house hunting for a while, this is a very welcome change. Buying a house is a huge decision and I think it's important to have the time to make an informed decision and think about it. This market gives buyers a little room to breathe!
This past month there were 2.4 months of available inventory in our MLS. This means that if only the current buyers shopped for only the current listings, it would take 2.4 months for them to be gone. Ideally, that number would be higher to have a more balanced market. December's months of inventory was a little higher at 2.5 and November's was even higher at 2.7. This makes sense because there were only 2,739 homes on the market in January as opposed to December's 3,003 and November's 3,278. I am hopeful that as we move into snowbird season we will see an increase in inventory and some more activity in the market!
What do I predict for this spring's market? I think as rates settle into a more comfortable range and we see an influx of seasonal visitors, the market will pick up slightly. Spring in Tucson is always a busy market and many sellers wait until then to put their homes on the market. I think there will be some amazing homes up for grabs and lots of buyers ready to make Tucson their home (even if only for part of the year!). So if you're considering buying or selling but aren't sure how to navigate this quickly changing market, just let me know!