Tucson Housing Market Report - April 2022

The average 30-year fixed-rate mortgage exceeded 5% in April, the highest level since 2011, according to Freddie Mac. The recent surge in mortgage rates has reduced the pool of eligible buyers and has caused mortgage applications to decline, with a significant impact on refinance applications, which are down more than 70% compared to this time last year. As the rising costs of homeownership force many Americans to adjust their budgets, an increasing number of buyers are hoping to help offset the costs by moving from bigger, more expensive cities to smaller areas that offer a more affordable cost of living.

New Listings decreased 4.4 percent for Single Family and 0.4 percent for Townhouse/Condo. Pending Sales increased 9.3 percent for Single Family but decreased 2.4 percent for Townhouse/Condo. Inventory decreased 4.4 percent for Single Family and 14.1 percent for Townhouse/Condo.

Median Sales Price increased 17.1 percent to $375,000 for Single Family and 23.2 percent to $252,000 for Townhouse/Condo. Days on Market increased 6.3 percent for Single Family but decreased 25.0 percent for Townhouse/Condo. Months Supply of Inventory remained flat for Single Family but decreased 14.3 percent for Townhouse/Condo properties.

Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be cooling somewhat. Nationally, existing home sales are down 2.7% as of last measure, while pending sales dropped 1.2%, marking 5 straight months of under contract declines, according to the National Association of REALTORS®. Inventory remains low, with only 2 months supply at present, and home prices continue to rise, with the median existing home at $373,500, a 15% increase from this time last year. Homes are still selling quickly, however, and multiple offers are common in many markets.