TUCSON, ARIZONA -- The Tucson Multiple Listing Service is reporting a normal spring with increases in sales activity, coupled with relaxing COVID-19 policies, created a very busy March real estate market as buyer demand continued largely unabated in the face of rising home prices and mortgage rates. Existing home seller and new construction activity continue to remain below levels necessary to bring the market back into balance, pointing to a busy and competitive buyer market in the coming months.
New Listings decreased 6.6 percent for Single Family but increased 7.9 percent for Townhouse/Condo. Pending Sales increased 37.5 percent for Single Family and 52.1 percent for Townhouse/Condo. Inventory decreased 71.1 percent for Single Family and 64.0 percent for Townhouse/Condo.
Median Sales Price increased 25.5 percent to $320,000 for Single Family and 13.1 percent to $195,693 for Townhouse/Condo. Days on Market decreased 45.9 percent for Single Family and 40.7 percent for Townhouse/Condo. Months Supply of Inventory decreased 75.0 percent for Single Family and 72.2 percent for Townhouse/Condo.
While many home builders are working to increase their activity, the cost of lumber and other materials and a backlogged supply chain continue to limit new home construction and have increased costs substantially. New methods of construction, including 3d printed homes, could speed construction and reduce costs in the future, but realistically are several years away from making a measurable impact in the market.
See full report here.