By Real Estate Daily News
The question on the minds of buyers these days is, “Will we ever see affordable housing again in Tucson”? The housing price gains we’ve seen since the start of the pandemic in early-2020 seem prices detached from the long-run trend.
But there are several reasons for this unprecedented pricing increase.
Here’s a snapshot of the current housing market:
- Prices are about as unaffordable as ever from a monthly payment perspective.
- Housing supply remains constrained because few people want to move out of their 3% mortgage to buy into a new 7% mortgage.
- Because supply is so constrained, and so many millennials want to buy a house, demand exceeds supply.
- So, prices should be falling more, but the demographics of household formation are essentially putting a floor under prices.
