Q4 Market Report

Asia and I track numerous data points that are great indicators of what’s happening in the Tucson market.  This enables us to stay in front of local trends and guide our clients through what can be turbulent waters. We also connect with several industry experts who provide unique analysis of the broader national housing market as it is important to understand where Tucson fits into the overall landscape.

~ Doug Deck, REALTOR- ABR, MRP, SRES

Recap of 2021:

* Median Sales Price rose 21% to $310,000

* Current Listings decreased by 30%

* Days on Market decreased by 40%

  • * Data through December 2021. All data is for Single Family Homes in the Tucson Area only, all price ranges

Southern Arizona experienced a strong seller’s market over the year. Inventory was consistently low as were interest rates, and cash coming in from out-of-state buyers made it very competitive for the buyer. First-time homebuyers had to stretch their financials to get into a home, often resorting to creative incentives, and folks looking to sell their homes and move up were hesitant to make the jump as there were just not as many homes to consider. Sales activity still ramped a little faster than usual, likely due to pent up demand following a choppy COVID year in 2020. The peak in the summer and leveling off through the holidays is fairly normal.

Looking ahead to 2022:

The National Association of Realtors called Tucson one of the top 10 housing market “hidden gems” for 2022 during its recent real estate forecast summit.  No surprise to most Tucsonans! The fact is, Tucson has always lagged behind Phoenix and the rest of the country in pricing and home value. That attracts investors, both local flippers and out-of-state people looking for rentals property or a second home. This will keep the pressure on inventory, but we should still expect some improvement in 2022.

Industry Experts expect prices to continue to rise, although not at the intense rate as last year. The inventory situation should improve, but it may take years to fully recover. Mortgage rates WILL rise. New builds will continue to struggle with rising material prices and low worker availability.

the Quick Facts:

  • Home prices increased a whopping 21% over the year, while the number of Single Family Homes decreased by 30%. The number of Days on Market decreased 40%
  • the 30 Thousand foot picture:

    Median Sales Price still on a steep incline

    While available homes remains flat

    And homes are still selling fast

    • * Data through December 2021. All data is for Single Family Homes in the Tucson Area only, all price ranges