A Lack of Inventory Continues to Impact the Housing Market in Tucson.
The housing crisis is finally in the rear-view mirror as the real estate market moves down the road to a complete recovery. Home values are up and distressed sales (foreclosures and short sales) have fallen to their lowest point in years. The market will continue to strengthen in 2019.
However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. Buyer demand naturally increases during the summer months, but supply has not kept up.
Below are some highlights from the April Residential Sales Statistics In Tucson:
• Total Sales Volume of $400,498,076 is up from $369,814,660 in March, a 8.30% increase and up 6.65% from April 2018.
• The Average Sales Price of $260,571 is a decrease of .23% from $261,168 last month.
• Average List Price of $266,033 is a decrease of 0.17% from $266,479 in March.
• Total Under Contract of 2,140 increased 1.28% since March’s number of 2,113.
• Total Unit Sales of 1,537 is an increase of 8.55% since last month’s number of 1,416 and is an increase of 5.85% since April 2018.
• The Median Sales Price of $218,500 decreased 0.23% from $219,000 in March.
• New Listings of 2,066 have increased 9.43% from 1,888 in March.
• Total Active Listings of 2,900 is a decrease of 3.49% from March.
• Average Days on Market decreased to 41 this month from 43 last month.
• Conventional loan sales of 47% exceeded Cash Sales of 25.4%.
Here are the thoughts of a few industry experts on the subject:
“Further increases in inventory are highly desirable to keep home prices in check, the sustained steady gains in home sales can occur when home price appreciation grows at roughly the same pace as wage growth.”
“There’s a supply-demand mismatch… More inventory is needed at the lower end and a price reduction may be needed at the upper end.”
“Heading into spring, U.S. prices are expected to continue to rise and inventory is expected to continue to increase, but at a slower pace than we’ve seen the last few months as fewer sellers want to contend with this year’s more challenging conditions… A buyer’s experience will vary notably depending on the market and price point they’re targeting.”
If you are thinking of selling, now may be the time! Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price!