As the Tucson housing market continued to improve in July, full recovery still has a way to go.
Homes are not losing value; they are simply going up in price more slowly in a more sustainable way. Inventory continues to tighten, but likely will increase as more “underwater” homeowners regain equity and decide to sell. Foreclosures are flattening, but are still about another year away from stabilizing.
And while it is routine for home sales to slow this time of year, the metrics indicate that the region’s housing market is moving closer to normal conditions. The large percentage swings in prices have ended and Millennial and “boomerang” buyers are slowly entering the market.
All these factors help stabilize the housing industry that in turn, has a positive impact on the regional economy.
In July, 1,470 homes sold, just 11 fewer than in June, according to the Tucson Association of REALTORS® Multiple Listing Service (TAR/MLS). At the mid-year point, 2015 sales are 10% higher than at mid-year 2014, increasing from 7,935 to 8,737 closings.
From June to July, the Median Sales Price increased $2,000 to $175,000. That is only a modest 2.9% year-over-year price gain. Although the Average Sales Price dipped $8,800 in July, it is still about $5,300 higher (2.6%) than a year ago.
Year over Year Highlights
| CATEGORY | Jul-15 | Jul-14 | Change |
| Unit Sales | 1,470 | 1,176 | 25% |
| Total Sales Volume | $309.5M | $241.4M | 28.20% |
| Median Sales Price | $175,000 | $170,000 | 2.90% |
| Average Sales Price | $210,570 | $205,259 | 2.60% |
| Active Listings | 4,798 | 5,149 | -6.80% |
| Pending Contracts | 1,979 | 1,830 | 8.10% |
| YTD Unit Sales | 8,737 | 7,935 | 10.10% |
Month Over Month Highlights
| CATEGORY | July | June | Change |
| Unit Sales | 1,470 | 1,481 | -0.7% |
| Total Sales Volume | $309.5M | $324.9M | -4.7% |
| Median Sales Price | $175,000 | $173,000 | 1.2% |
| Average Sales Price | $210,570 | $219,370 | -4% |
| Active Listings | 4,798 | 4,992 | -3.9% |
| Pending Contracts | 1,979 | 2,114 | -6.4& |
© Tucson Association of REALTORS® Multiple Listing Service
The Tucson Association of REALTORS® (TAR) represents 4,800 professionals in Southern Arizona as the voice of the real estate industry. The REALTOR® trademark is for use only by members of the National Association of REALTORS®. Details: www.tucsonrealtors.org.