ARIZONA – Tucson, Arizona, is one of the hottest markets in the United States. The median single-family home price in the city is $385,000, up 17.9% from last year. According to the Tucson Association of Realtors, the Tucson real estate market continues to attract investors seeking to buy property outside major cities.
The Arizona housing market is expected to continue its upward trend through 2022 and 2023. After two years of record-breaking price increases, the state will continue to see high demand and limited inventory. This trend will likely continue through the next two decades due to a persistent housing shortage and the high demand for new homes. However, while the housing market in Arizona is expected to remain competitive in the years to come, several other factors could affect the state’s economy in the coming years.
Tucson is the second largest city in Arizona, with a population of 543,000. While Tucson is not the fastest-growing city, it is one of the most livable. The Tucson metropolitan area has grown 6.4% over the past decade, adding nearly 63,000 people to its population.
Home prices are expected to hit $385,00 in January 2023. Then, prices are predicted to increase to $401,000 in June 2023. Prices will drop throughout the rest of summer, but prices will rebound to $397,00 in August 2023. However, this trend isn’t sustainable. The housing market is overstretched and vulnerable to rising mortgage rates and affordability crushing. Therefore, home prices will slow down slightly in 2023 and 2024.