Uncertainty in the Southern Arizona Housing Market
A recent report by the National Association of REALTORS reveals a decline in home sales in Tucson. In July 2023, 516 homes were sold, compared to 683 homes in July 2022. Experts attribute this decrease to high mortgage rates and a scarcity of available houses.
According to Bridgett Baldwin, Associate Real Estate Broker of Tucson Agent’s Real Estate Team, low inventory and high-interest rates contribute to rising rental prices. She suggests that owning a property becomes a viable option when rent surpasses the cost of a mortgage, making it an attractive investment opportunity.
Despite record-high mortgage rates, Baldwin encourages potential buyers and sellers not to be discouraged. She emphasizes that loan rates can vary based on individual credit scores and debt-to-income ratios.
On average, homes in Tucson sell after 42 days on the market, with the Tucson area remaining in demand, particularly during the winter months. Baldwin highlights the region’s appeal, mentioning the absence of extreme weather conditions and the low maintenance required for properties, such as not having to tend to lawns or remove snow.
Regarding the future of the housing market, Baldwin stresses the unpredictable nature of forecasts and emphasizes making decisions based on individual needs and budgetary constraints.
Tucson is a distinct and close-knit community that remains resilient and holds onto its values, even during recessions and challenging periods,” she expressed.
If the interest rate decreases in the future, it is possible to refinance a mortgage loan to obtain a lower rate. Baldwin emphasizes the significance of conducting thorough research and establishing connections with local realtors and lenders who possess deep knowledge of the market to discover your ideal permanent residence.