Tucson Real Estate Then and Now

As Tucson celebrated it's 232nd birthday on Monday I began to think about how much growth the city has experienced in past years. In 1997 the population of Tucson was about 600,000; now it's over 1 million. The city has spread itself out in every direction, looking for new places to build and develop. The Tucson real estate market has followed that growth, and prices have changed drastically in the last several years. This is why I thought it might be interesting to research the real estate numbers from years past and see how they stack up against today's market. I decided that a ten year span of time might offer some interesting results, so I'm comparing data from the Tucson Real Estate market of 1997 to the first quarter of 2007. Many of the 1997 statistics are an average for the entire year, so the comparison won't be totally accurate as I only have 2007 stats up to July, but it's still exciting to see the progress and growth that the Tucson real estate market has seen in the last ten years.

Below is a comparison of the 1997 and 2007 Average Sale Price for a Single Family Residence, divided by area, in Tucson -

It's amazing to see how prices have changed in the last 10 years. When I think of 1997 I feel like it was just a few years ago. That must be my middle age mind failing me! In 1997 the Tucson average sales price of a single family home was $185,335. The 2007 first quarter average sales price for a Tucson home was $270,460. That's a 46% increase over the last ten years. As you can see in the chart above, several areas in Tucson saw a price increase of over 100%, with only two outlying areas showing lower prices gains. Darn them for bringing down the average! The areas with significant price increases have seen major growth in the last ten years, and new construction has played a big role in these areas. However, Central Tucson always sees a steady price increase as it consists a lot of housing that's close to the University of Arizona. These neighborhoods are a favorite for students who will pay a pretty penny to be close to campus.

Now to look at the national average of home sale prices for the same time period. The 1997 national average sales price for a single family home was $156,000, compared to the first quarter 2007 national average sales price of $260,300. That's a 67% increase in the national average sales price over 10 years. Though the average sales price for a Tucson home is currently higher then the national average, we haven't seen an increase over the last ten years that matches the national average.

Average Days On Market

Although right now it feels like homes are "sitting" forever, the average Days On Market is currently about 65 in Tucson, but homes are still selling quicker then in 1997! The average market time of a single family residence in 1997 was 77 days. Maybe those crazy interest rates of 1997 were scaring consumers away; as the rate for a 30 year fixed conventional loan was a little over 7% (Ouch!). Yet today some are frustrated over the current 6.23% average interest rate for the same loan.

If you are familiar with my blog you'll see that I include a comparison for 2005,2006 and 2007 in my monthly Tucson real estate sales statistics. In the future I'll occasionally include a comparison of past Tucson real estate sales from the prior decade just to see where we are headed. I'm keeping it light hearted and fun as there are already too many "no so fun" real estate statistics out there right now.