Life Events vs. Market Conditions

Despite the ongoing challenges of low affordability and attainability, many homeowners in Tucson are still choosing to market their homes for sale. The reason? Life events often play a larger role in the decision to move than economics alone. Major moments such as job changes, growing families, or downsizing often prompt homeowners to list their properties, regardless of market conditions.

Tucson's housing market is experiencing a significant shift. Active listings have surged by 75% year-over-year, nearly double the national average increase of 36%. Yet, despite this influx of inventory, the number of homes sold has dropped by 13% year-over-year. This trend highlights a key issue: the affordability crisis.

Several factors contribute to this slowdown in sales. The "interest rate lock-in effect" has made it less appealing for current homeowners to move, as they’re often locked into lower mortgage rates from previous years. Additionally, wage growth hasn’t kept pace with rising home prices, further straining affordability.

Despite these challenges, there is still a massive pent-up demand for housing in Tucson. However, today’s buyers are navigating a tougher environment, where purchasing power is largely determined by how much they can borrow and manage in a higher interest rate climate.

While the market is shifting, the demand for housing continues to grow, and the need for attainable solutions remains as urgent as ever.