Tucson Market Update April 2021
In lieu of Tucson lowering COVID-19 vaccine registration to those 16 and older, people are preparing to relocate at higher rates to the Tucson area.
The Tucson Multiple Listing Service expects a normal spring real estate market but with increases in sales activity as the season progresses. March 2021 saw a very busy buyer demand amongst new COVID-19 policies, and this is expected to continue despite the rise of home prices and mortgage rates. Existing home sellers and new construction activity remain below levels necessary to bring the market back into balance, pointing to a busy and competitive buyer market in the coming months.
New home listings decreased 6.6 percent for Single Family homes but increased 7.9 percent for Townhouses/Condos. While those Pending Sales increased 37.5 percent for Single Family homes and 52.1 percent for Townhouses/Condos. Inventory decreased 71.1 percent for Single Family and 64.0 percent for Townhouses/Condos.
Median Sales Price increased 25.5 percent to $320,000 for Single Family homes and 13.1 percent to $195,693 for Townhouses/Condos. The number of days a home has been on the market decreased 45.9 percent for Single Family and 40.7 percent for Townhouses/Condos. Months Supply of Inventory decreased 75.0 percent for Single Family and 72.2 percent for Townhouses/Condos.
Homebuilders are working to increase their activity. However, new home construction remains limited with a substantial increase in costs due to the price increase on lumber and other materials. The accumulation of issues has backlogged the supply chain.
Meanwhile, a new method of construction, 3D printing, is being introduced this year. As the first 3D-printed house just listed for sale only mere weeks ago, we may see an increased speed in the construction of homes and reduced costs in the future. Although this development is new and exciting, realistically, a complete change in the market won’t be seen for years to come.
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