Another month has passed and now we can take a look at what happened over the month of August in Tucson real estate!
Last month, the average home price for single family homes was $444,484, down from $473,822 in July. It is still higher than August of 2023 when homes were an average of $442,361.
Houses sat on the market slightly longer last month, an average of 49 days, just one more day than the month before. This is, however, quite a bit longer than the 38 day average from last August.
1,035 homes sold last month. This is just less than the 1,076 that sold in July. It's not much less than the 1,110 that sold in August of 2023 either. Unfortunately inventory is not great and it isn't getting any better.
One promising piece of news is that interest rates have already started to creep down. This is in anticipation of the Federal Reserve opting to lower interest rates at their upcoming meeting this month. Many mortgage lenders are predicting a .25 percent rate drop and mortgage rates have been coming down in expectation of that. There's a chance that the fed could choose to drop rates by half a percent, which would lower mortgage rates even further.
My prediction is that in the next couple of months, we will see prices come up and days on market come down. This will be due to more buyers coming back to the market to take advantage of lower rates. This may have the effect of multiple offer situations or just people opting to make offers on homes before the sellers are having to lower the price. However, another thing that could happen is that people will want to wait out the election and see what happens before making any big financial moves. Election years always bring uncertainty and could therefore have that effect. Whether we see the market pick up by the end of September or mid November, I think a 'better' market is just on the horizon!
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