Prospective homebuyers hoping for relief from soaring home prices in the 蜜柚直播 area are likely in for a long wait.
In almost every area of town, home prices increased more than 15%, and nearly 30% in one area, from January 2021 to January 2022.
And the majority of sellers got 100% of the asking price for their home 鈥 often substantially more.
Days on the market for a home dropped in half since January 2021 from 42 to 21 in January 2022.
鈥淭his is not sustainable,鈥 said Randy Rogers, president of the 蜜柚直播 Association of Realtors. 鈥淲e鈥檙e a major metro area of over 1 million people and we have about 1,000 homes for sale.鈥
According to data from the Home Mortgage Disclosure Act, 91.1% of 蜜柚直播 homebuyers had a home loan approved for about $215,000 in 2020, the latest figures available.
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HMDA is a federal act that requires financial institutions to maintain, report and publicly disclose loan-level information about mortgages.
But $215,000 in 2020, much less in today鈥檚 market, doesn鈥檛 go very far.
Average sales prices for all homes 鈥 new and existing 鈥 was $303,356 in January 2020 and rose to $422,407 in January 2022.
Rogers said homes in the $250,000 to $300,000 range are getting an average of 27 offers.
鈥淚t鈥檚 a little unusual to see that,鈥 he said. 鈥淎nd, it鈥檚 not just institutional investors but some buyers who sold a home on the West Coast for $2.1 million.鈥
While increasing mortgage rates might cool some heels, initially the threat of a war between Russia and Ukraine, which is now reality, has Wall Street nervous and investors looking to pull out money for other investments.
鈥淲ith everything going on in the world, my stock might be in question,鈥 Rogers said. 鈥淣ow I鈥檓 going to look at something more stable, maybe a second home or maybe a larger home.鈥
Alleviating the housing crunch
The west side of 蜜柚直播 had the smallest percentage increase in average home prices from January 2021 to January 2022 鈥 a 2.1% rise from $372,335 to $380,248. The boundaries are roughly Interstate 10, west to the 蜜柚直播 Mountains, north to Avra Valley Road and South to Ajo Way.
The largest percent increase was in the south region, encompassing South 蜜柚直播, south of 22nd Street to Pima Mine Road and east of Interstate 19 to Wilmot Road. There, the average home price rose from $194,358 in January 2021 to $251,868 in January 2022 鈥 a 29.6% increase.
In the Oro Valley area, the average home sale was $460,453, a nearly 12% hike in 12 months. And central 蜜柚直播, which includes downtown and the University of 蜜柚直播, saw average home prices of $351,956 in January 2022 versus $266,739 a year earlier 鈥 a 19.6% increase.
鈥淲e haven鈥檛 seen this kind of increase across the board before,鈥 Rogers said. 鈥淏ut, it鈥檚 not just us. It鈥檚 across the country.鈥
He said the solution to the rising housing costs is to build more but pushback from some neighbors when an infill project is proposed creates a challenge for developers.
鈥淲e can鈥檛 put up a wall around us and say, 鈥楧on鈥檛 come here,鈥欌 Rogers said. 鈥淭here鈥檚 a lot of frustration because those who want to help with the housing crunch get turned away or have to go back to the drawing board.
鈥淯ntil we see a change in that ... we鈥檙e going to be in this for a while.鈥
Former student housing complex on 蜜柚直播's west side sold for $61M
