Tucson is a spectacular place to live in Arizona for anyone who’s searching for beautiful weather, thriving shopping and entertainment options, and the ability to spend time outdoors and among nature with ease. Tucson is a highly varied city that offers a large number of affordable luxury Tucson homes for you to consider.
These homes come in a myriad of different architectural styles and designs, which ensures that you can select a home that matches your desires and specifications. As a city, Tucson also has room to grow, which is displayed within its booming housing market and rapidly growing culture. When you live in Tucson, you’ll also live in close proximity to sister city Phoenix, which means that you get the benefits of both major Arizona cities.
When you’re considering a move to Tucson, understanding the trends and patterns within the housing market will give you a leg up on other buyers when searching for the home that you love. This is a comprehensive guide and look back at the Tucson housing market of 2018.
Median Listing Price
When you’re attempting to learn more about any housing market, an important piece of information that you should look towards is the median listing price, which refers to the average price that the homes in Tucson are listed at. For the 2018 housing market in Tucson, the median listing price started at just under $240,000 in January and saw some increases before settling in at the same price for the months of June through August. March and April saw the largest increases at around $245,000 for the median listing price. While the median listing price for Tucson topped out at $245,000 so far in 2018, the health of the housing market is made clearer when taking new homes into account. The median listing price for new homes in Tucson reached slightly more than $300,000 in July of this year, which is the first time that the median listing price of new homes has eclipsed $300,000.
These highly consistent median home prices are good news for buyers as well as sellers. Although the market as a whole is considered to be more advantageous for sellers at the moment, the market for most of this year has been a balanced one where sellers and buyers can get what they want without much issue. Since the median listing price has remained consistent in 2018 with only incremental increases, sellers benefit by knowing that their home won’t suddenly drop in value by thousands upon thousands of dollars in the span of a month.
This consistent listing price is also beneficial for buyers who are looking at the market for the best time to buy a home. Volatile listing prices that change dramatically from month to month indicate a problematic housing market and local economy.
When you’re in the market for a luxury home, there are plenty to choose from in Tucson. There are currently more than 5,500 homes on the market in Tucson, many of which are luxury Tucson properties that range in price from $1.5-$12 million. The vast majority of these homes range from $2-$4 million in price. The median listing price for luxury homes has increased at a similar rate as the rest of the market. Keep in mind that the sale price of a home in Tucson is usually around 10-20 percent lower than the listing price, which is something that you’ll want to consider when negotiating on the price for a home you’re interested in.
Median Days on the Market
When looking back on the Tucson housing market in 2018, the median days on the market is an important aspect of determining the health of the housing market. These statistics can also assist you in identifying whether now is a good time to buy or sell. In January 2018, homes were staying on the market for an average of 71 days before being sold, which marks the highest amount of days during the year. Between March and August of this year, the average amount of days that homes spent on the market ranged from 57-60, which is a remarkably consistent metric that indicates that now is a better time for sellers than the beginning of the year.
However, the low of 57 days that was reached in July isn’t necessarily bad for buyers. This period of time isn’t too short to the point where you need to worry about numerous competing bids being placed on the home that you’re interested in.
If you want to heighten your chances of being able to buy the home of your dreams without much competition, it’s recommended that you buy during the winter months, which have historically been the most advantageous times of the year for buyers. However, the timing of the school year as well as the poor weather that winter oftentimes brings means that not as many homes are listed during the winter. Overall, the median days on market trend shows that this metric has remained flat when compared to the previous year.
When you’re thinking of purchasing a luxury property, the higher prices of luxury homes usually mean that these homes will be on the market for a lengthier period of time than the median days statistic indicates. While you should be wary of lower priced homes that have remained on the market for more than 100 days, luxury estates and similar homes regularly sit on the market for a long time without being bought.
Median Listing Price/Sq. Ft.
While the median listing price is a highly important metric to consider when you’re thinking of buying or selling a home, it doesn’t always paint the whole picture. It’s possible for the median listing price to stay the same while the median listing price per square foot can change substantially. This discrepancy can occur because of how homes are listed on the market. Different home sizes will be placed on the market all throughout the year, which is why the median listing price isn’t enough when looking at the entire housing market.
The median listing price per square foot provides you with a more accurate number that can help you determine what the home you’re considering should be priced at. For the Tucson housing market in 2018, the median listing price per square foot is around $136, which is based on the information from 5,600 different homes that are currently on the market. This number is up by around $10 from the same time last year, which is a normal increase in a growing city like Tucson.
While the median listing price per square foot is important when you’re considering all homes, it’s somewhat less important for luxury properties. Each luxury home usually comes with its own set of distinct amenities and features that makes it unique from the others, which is why the median listing price per square foot metric won’t always be the only statistic to account for. In fact, luxury homes in Tucson have a median listing price per square foot that’s almost double the $136 average found with all types of Tucson homes.
The goal of looking back on the Tucson housing market is to identify trends and patterns that could help you determine where the housing market is going to be in 2019, which is important if you’re going to be buying or selling a home in the area. The home values for properties in Tucson have risen by around 6.5 percent since August 2017, which is a very normal increase that points towards a strong market. The 1-year forecast that stretches into the latter portions of 2019 places the increase of home values at 0.9 percent, which is obviously much lower than the increase seen throughout most of 2018.
Since this is only a forecast, it’s not certain that the increase will remain as predicted. This could be fantastic news for buyers who are interested in purchasing a home in the city. Housing markets that increase and decrease substantially throughout the year are typically unhealthy and can cause large problems down the road if you’re buying a home. The property you’ve purchased for $500,000 could plummet to a value of $400,000 or less in a volatile market. The benefit of a mild housing climate for buyers is that you likely won’t need to spend much more money for the same house next year as you would this year, which may be important to you if you’ve had to put off the purchase of a new home for one reason or another.
Since the Tucson housing market has been largely consistent and steady over the past five years, you can be confident about the future of the market even if the 0.9 percent increase in home values doesn’t occur exactly like it’s forecast to. Even increases of 5-8 percent of home values are normal over the course of a year and shouldn’t deter you from buying the home of your dreams.
You should also keep in mind that these forecasts can change because of national events. For instance, any increase in interest rates by the Federal Reserve during the year can play a substantial role in how much or how little the home values in Tucson change. While all of this information about the 2018 Tucson housing market should give you a good idea of what to expect when you’re shopping for a home, you should consider conducting additional research if necessary.
Conclusion: A Strong Tucson Home Market Looking to Grow
What all of this information tells us is that the housing market in Tucson is a strong market that’s looking to grow and should continue doing so for quite some time. The increase in new home prices means that the location of Tucson is a booming one that’s growing in popularity with each passing day. Whether you’re a buyer or seller, the process of purchasing a home or placing one on the market should be a straightforward one.
The overall balance and consistency of the market along with the small increases in home values each year is a sign that both buyers and sellers can flourish in Tucson. When you combine the healthy and robust housing market of Tucson with its fantastic weather and abundance of things to do, you’re provided with a wonderful place to live. If you’d like to get started on the home buying or selling process, contact Grogan & Grogan Tucson Luxury Real Estate today and our seasoned team of real estate professionals will help guide you through every step of the process!
Housing market statistics: Realtor.com, Zillow.com