So here's the scoop...
We get asked every single day, NAY - multiple times a day. "Where is the market heading" or "Is the market slowing down." Its been the question on everyone's mind for what seems to be since the pandemic started. Up until very recently our short answer was "no" its not slowing down at all, in fact its getting harder and harder to buy a house in the Tucson market.
A little backstory
Tucson has long been a hidden gem of a city. Residents have always enjoyed a relaxed quality of life with higher than national average wages and lower than national average home prices. What a wining combination, right? That coupled with a colorful and diverse community, nationally recognized cuisine, stellar weather, the most beautiful desert in the world and a wealth of activities to entertain - finding a better deal is hard to come by. This is the case no longer.
We've been found!
Our little secret is out. With the pandemic affording most of the employed population a "work from home" lifestyle, coupled with disagreeable politics and increasing cost of living, people are coming in droves from California, New York, Chicago and Colorado to plant their roots and call Tucson their home. Obviously we welcome our new neighbors to our fair city but this has caused a rapid increase in home values, a rapid decrease in inventory and has unfortunately pushed out some of the long-time locals from buying homes. Competition is fierce and home values are high to say the least.
There's a light...we can see it
We follow the market reports like a hawk. In our opinion any change, no matter the size is important to note. And what were seeing is little dips...very little dips. Nothing to write home about but significant enough to write a blog about! Inventory is increasing [slightly] month over month along with days on market. Percentage of list to sales price is leveling and closed sales are decreasing slightly. What does this mean? Well, Q4 has a lot to do with it as the last quarter of every year tends to slow down a bit - you can thank Thanksgiving and Christmas for that. But more importantly I feel like the CA rush has subsided at least for now. Interest rates are trending up, buyers are taking pause. All in all, I think everyone was in need of a little break. Long time locals - now's your chance!!!
This wont last long. Spring will bring a lot more than just flowers...
- Jason Tadeo
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