December 27th, 2016 by Michael Oliver
The Tucson real estate had a very good and balanced market for most of 2016. Early in the year until November, the market had incredibly low mortgage rates offering borrowers the ability to buy much higher priced homes then they would be able to qualify for just a few years prior. This in turn, allowed many sellers to increase the asking price of their homes and buyers went along with this on average the price of a home in Tucson increased 3.8%. Many parts of Tucson are seeing heavy demand for homes currently (and have been for the last year) those areas would be;
Inner NW Tucson; 85741, 85742, 85737, and 85704 any updated and reasonably priced home within these zip codes on the NW side should see a lot of activity. All of our listings we took this year in these zip codes sold quickly.
Downtown Tucson (including U of A district); Downtown Tucson living is now a real and sustainable thing. 10 years ago to say you wanted to live downtown in Tucson would be crazy but today I get the call from would-be buyers more and more. Since the district has been shunned for at least 50 years not many nice homes/ neighborhoods actually exist yet creating very limited supply. New condos and developments are coming but a smart buyer should buy now as I see this district only getting more demanded.
Central Tucson; Many homes that are not even specifically in central Tucson but just offer closeness to shopping, employment, quality schools etc are being demanded heavily right now. I think the reason is Tucson has finally grown far enough out that a 40-minute drive to and from home is just too far for most buyers to accept. Now buyers want to be closer to everyday amenities and are willing to move into older (as long as they are updated) neighborhoods and homes.
Brand new homes; The brand new home/ builder market is finally back to life in Tucson after several years when it looked like the segment would never be viable again. New home builders are cranking up development all over Tucson and homes offering modern features, floorplans, and finishes. Across Tucson, many options exist for a buyer to get a brand new home in all areas of town. One downside to new homes is they basically don’t exist under the $200,000 price point. Due to land prices and construction costs; all builders are starting their homes in the very high $100k’s and realistically those buyers will be in the $200k+ price points once they get their lot and options selected.
What is not selling well/ Where to find the best deals in Tucson; Older homes in need of repair or updates. These homes, in my opinion, are almost selling at a discount to the marketplace. A good example of this is I was personally looking for a new home in Oro Valley and got an incredible deal simply because the house I purchased was on the market for a long time and required about $40,000 worth of updating and repairs. In my opinion, the home sold for almost $100,000 less than it should have sold for simply because today’s buyers are unwilling or unable to make their own updates. In theory, if you are looking for the best values in the market find the homes that need repaired in the higher end areas of Tucson and buy them/ repair them as the deals being offered there are very reasonable all things considered.
If you have questions about the Tucson real estate market and/or would like help figuring it out, contact us today. We have a wealth of knowledge and over a decade of experience to help you get the best results in the marketplace.