Tucson’s Housing Inventory Is Going Up — What Does That Mean for Buyers and Sellers?

Each month the MLS of Southern Arizona shares its market data from the previous month, which is accessible to the public. Data on its own isn’t particularly meaningful, but how we interpret it to understand what’s happening is. We can then use those “data stories” to ask and answer big questions, be critical of our current systems, and consider how to respond to such circumstances.

So what’s new in Tucson’s housing market?

Inventory has sat at historic lows for quite some time now, with Arizona being particularly impacted (AZ is 270,000 houses short of demand). The concept of “supply and demand” is the driver of housing costs. If inventory is low and demand is high, prices will go up as eager buyers are competing with one another to become homeowners. If the opposite is the case, prices will steady or decrease. In 2024 vs. 2023, we’ve seen inventory increase and demand decrease slightly, a sign that’s particularly noteworthy for first time buyers.

According to data shared by Fortune Magazine, the current average interest rate for a 30-year fixed-rate conventional mortgage in the U.S. is 6.751%, which is much lower than the high 7’s we were seeing for a while. While 6.7% is still a hard pill to swallow for many first time buyers who were used to hearing about 3% rates, the truth is that this is the new norm and it isn’t likely to drop significantly any time soon.

More inventory and less demand is an ideal trend for buyers. This means there are more homes to choose from, properties are sitting on the market longer, and you aren’t as likely to need to outbid other offers — though this is still happening with some homes! Regardless of the market there will always be some outliers. I strongly believe (and have seen) that in-demand properties that are well priced are usually going to have some competition, no matter what’s going on in the market.

Understanding how buyers are behaving is key for sellers. Even though rates and prices appear to be stabilizing, I think that many buyers have been burnt out from searching or priced out for the time being. Many will hop back in, but in the meantime it’s essential for sellers to be realistic and find an agent who can properly market their property (if you’re in Tucson, that’s me 😉). Staging, great photos, and excellent marketing matter again, and shouldn’t be overlooked by potential sellers.

Fun Indoor Places to Explore in Tucson

Although school is almost back in session so it might feel like summer is coming to an end, the truth is we’re still in the thick of it ☀️ Desert living requires protecting yourself from the heat and the sun, which means more time spent indoors June through August. Below are a few ideas of indoor places to have fun year round, but particularly now:

• Ignite Sign Art Museum: If you’re a neon fan like me, you’ll love seeing the vast array of neon and historic signs on display. This museum is also like a mini-time machine, taking you through the Tucson of yesteryear and beyond, full of reminders bygone businesses and a time when colorful, unique signage was the norm.

• American Eat Co: Tucson’s first local food court! Two of my favorite restaurants inside are Samurai Sombrero Sushi and Fatboy Sandos — both unique and delicious!

• Skate Country: This place hasn’t changed at all since I was a kid and I love it that way. Roller skate and enjoy all of the nostalgic feels.

• The Loft Cinema: The Loft is a non-profit, independent movie theater that’s been a Tucson staple since 1972. From new movies, to cult classics, and everything in between, there’s something for everyone playing at the Loft each week. This beloved theater is expanding, but remains open during construction.

• Rocks and Ropes: If you’re into rock climbing/bouldering, or want to learn how, this is the place to do it! At your first visit, an instructor will show you the ropes 😉

• Tucson Museum of Art: Grab brunch at Cafe a la C’art and then walk it off at the Tucson Museum of Art! TMA features a broad range of styles — including contemporary, Indigenous art, the decorative arts, and more — so if one collection isn’t quite for you, just keep wandering and you’ll find something you love.

• Round1 Bowling and Arcade: This is the only chain included on the list, but I added it because I was really impressed with this space when I checked it out. It’s kid friendly, but not just for the kiddos.

• Midtown Mercantile Merchants: If you enjoy thrifting or antiquing, you’ll love MMM. Now located in what used to be the central Bookmans location, Midtown Mercantile Merchants is a massive space filled with re-sale booths where vendors sell furniture, art, decor, clothing, and more.

• El Jefe Cat Cafe: El Jefe is an adorable space where adoptable cats roam freely so potential adopters can get to know them. Don’t expect to come here and not want to adopt a furry friend. I’m allergic to cats and I still wanted to bring a few home with me!

• Bookmans: Bookmans sells used books, video games, board games, music, movies, and more. It’s an excellent place to find a gift for someone, or just explore and see what you can’t live without.

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5 Home Staging Mistakes to Avoid

Great home staging can make all the difference when it comes to how much your home sells for, and how quickly. As a seller, your goal should be to make your home enticing for as many people as possible, so try and put yourself into the shoes of a perspective buyer. What items are too personal or don’t contribute to the overall appeal of the space? If you go into the staging process with your mindset focused on buyers, your home will likely sell faster than it would if you made no changes at all.

Avoid these 5 mistakes to make sure that your home is showing its best once it goes live on the market…

What is a HELOC?

If you’re a homeowner who’s looking to leverage your home’s equity, a Home Equity Line of Credit or “HELOC” could be a game-changer for you.

A HELOC is a flexible financial tool that allows homeowners to borrow against the equity they have built up in their property. Equity is the difference between the current market price of the home and the remaining balance on the mortgage; basically the value you hold in the property. With a HELOC, homeowners can access a revolving line of credit during their “draw” period, much like a credit card, using their home as collateral. These are just a few of the benefits of having a HELOC…

6 Day Trips from Tucson

While Tucson is within driving distance to major getaways like San Diego, Los Angeles, and Las Vegas, there are also plenty of closer destinations just a short journey away. Here are six fun places that are an hour or two from town, but different enough to keep things exciting.

Tour This Classic Tucson Home

They just don’t make houses like this anymore!

3 bd | 2 ba | 1,862 sq. ft. | $599,000

Listed by Tierra Antigua Realty