Tucson Housing Market Report - May 2023

Existing-home sales slid for the second consecutive month, falling 3.4% nationwide as of last measure, according to the National Association of REALTORS® (NAR), as higher interest rates continue to impact buyer affordability. Sales are down 23% compared to the same period a year ago, while contract signings dropped 20.3% year-over-year. With sales cooling,
buyers in some parts of the country have found relief in the form of declining sales prices, which are down 1.7% year-over-year nationally, although more affordable markets continue to see price gains. 

New Listings decreased 21.1 percent for Single Family and 26.4 percent for Townhouse/Condo. Pending Sales decreased 7.7 percent for Single Family and 12.2 percent for Townhouse/Condo. Inventory increased 10.7 percent
for Single Family but decreased 4.1 percent for Townhouse/Condo. Median Sales Price increased 3.8 percent to $400,000 for Single Family and 3.1 percent to $267,000 for Townhouse/Condo. Days on Market increased 135.3 percent for Single Family and 150.0 percent for Townhouse/Condo. Months Supply of Inventory increased 54.5 percent for Single Family and 25.0 percent for Townhouse/Condo. 

While fluctuating interest rates have pushed some buyers to the sidelines, a shortage of inventory is also to blame for lower-than-average home sales this time of year, as current homeowners, many of whom locked in mortgage rates several percentage points below today’s current rates, are delaying the decision to sell until market conditions improve. With only 2.9 months’ supply heading into May, available homes are moving fast, with the typical home spending just over three weeks on the market, according to NAR.