After an exhausting and thrilling past couple of years, the market is starting to become more “normal”. Mortgage rates are up, fewer homes are going under contract, and you don’t actually have to offer up a kidney to get your offer accepted.
These changes are a huge relief to buyers who have been struggling in this seller’s market. While higher rates reduce buying power, you may be able to avoid paying over appraised value and coming in with a substantial amount of cash.
This past month, the average price for single family homes in our MLS was $418,275. This is about $4,196 higher than the previous month. Low inventory and high buyer demand continues to push prices up. We have also seen interest rates climb in the past couple of months, and while that has begun to slow buyer demand a little, it is still a very strong market.
The average number of days a home is on the market is 20. This has not changed in several months. Keep in mind that the average days on market includes multi million dollar homes and those hard to sell homes that can sit on the market for a long time. The median days on market is still only 6 days! For comparison, in February of 2020, the average days on market was 67 and the median was 19.
Another statistic I look at monthly is the months supply of inventory. This means that if no additional buyers entered the market and no more homes went up for sale, it would take X months for all the homes to sell. Right now in Tucson, we have 1.2 months of inventory available. Ideally it would be a little higher, around 4-6 months of inventory, for the market to feel balanced.
There were 1,824 single family homes for sale this last month. This equates to 80 more homes for sale than in May. There still just isn’t a lot for sale. But, the number is trending in a positive way. I would guess that in the next few months there will be more options when you’re ready to go look at homes! Something to look forward to!
For now, the market is still tricky, and that’s why it’s so important to call your fave Realtor (me, duh!) when you’re ready to think about buying or selling!