“Being deeply loved by someone gives you strength, while loving someone deeply gives you courage.” - Lao Tzu
GreenTucson June, 2018
There are so many things to do in our fair city:
3rd Annual The Tucson 23: Mexican Food Festival JW Marriott Starr Pass Resort & Spa
June 16, 2018 6:00 PM
University of Arizona Baseball Hi Corbett Field Dates Vary; Times Vary
Nature Play Day – Mud Day! Reid Park Zoo June 30, 2018 8:30 -11:30 AM
Eller College at the U of A reported Tucson Can Expect Solid Gains in Jobs, Population and Income Next Year. Our very own George W. Hammond, Ph.D., Director and Research professor at UA Eller’s Economic and Business Research Center stated, “Tucson’s job growth during 2016 and 2017 was solid. That contrasts with the minimal gains posted during the 2013-2015 period, when Tucson was hit hard by reductions in federal procurement spending …In the first quarter of 2018, Tucson added 3,500 jobs over the year, for 0.9 percent growth. Most of those gains were concentrated in construction, education and health services, government, and manufacturing,” he said. It was noted that, according to data from the Federal Housing Finance Agency, Tucson single-family house prices rose 7.9% year over year in the first quarter. Hammond added, “That was faster than the national rate of 6.6 percent.” “Tucson is forecast to add 5,500 jobs this year and 6,000 in 2019, which translates into job growth of 1.5 % and 1.6%, respectively…Job growth also supports solid wage and income gains, with personal income forecast to increase by 4.1 % this year and 4.8 % next year,” he said. “Also supporting income growth are legislated increases to the state minimum wage and increased funding for education.”
Kiplinger reports, “Gross domestic product is growing at least 3% in the second quarter, up from the first quarter’s 2.2%...Because of strengthening GDP, look for the Federal Reserve to hike interest rates twice more this year, in June and either September or December.” Local interest rates for a 30-year mortgage have been 4.65%. I go back to a time in real estate with rates in double-digits. I believe that a moderate rise will mostly impact buyers with limited down payments or with earnings such that even small rate increases take them out of the market. At least for now, I do not think that sales in the higher price ranges will be stifled by interest rate increases. On the contrary, many buyers will try to ‘jump into’ the market sooner rather than later to avoid the risk of even higher rates.
For the Tucson North area, the active inventory was down 17%, and the number of Closed Sales of 182 represented a 12% increase from May 2017. Months of Inventory was 2.3, down from 3.1 in May 2017. The Median price of sold homes was $351,000 for the month of May 2018, up 13% from May 2017.
The Central area saw inventory decrease 11%, and a Median Sales Price down 11% from May 2017. Months of Inventory was 1.5, down from 1.9 in May 2017.
Of course, I am your resource for the specifics for your area of town; I love talking Tucson real estate!