Tucson, AZ real estate market report

The Tucson market is showing signs of a decline in inventory. Currently there is an active listing inventory of 5.6 months, market wide. This means that at the current rate homes are selling, it will take less than 6 months (assuming no new homes come on the market) to clear out the existing inventory. As a rule of thumb, inventory levels under six months are a seller’s market, and inventory levels over 6 months are a buyer’s market. Although prices have declined 14% in the past year, the fact that there are far fewer properties offered for sale is a good sign that the market is on it’s way to stabilization, and a more balanced market.

Interest rates remain at 40 year lows. There has never been a better time for first time home buyers to enter the market. Foreclosures and short sales continue to be a drag on prices, and Fannie Mae and Freddie Mac have a back log of foreclosed properties that may take over 10 years to clear the system. Here in Tucson, we are close to the end of this cycle, as we have already been through the worst part of the cycle. The question will remain as to how the banks will be able to help delinquent mortgagees refinance so they can stay in their homes, and lessen the burden that more foreclosures would have on the market.

To review the current market stats, click here.