By Gabriela Rico | Tucson.com
As the difference between new home and existing home prices narrow, more homebuyers are turning to new construction and creating a spike in demand.
New home permits for the first three quarters of the year are up 25% in the Tucson market, compared to the same timeframe in 2023 and more than 2,700 new homes have sold so far this year versus about 2,500 last year at this time.
Meanwhile, the number of resale homes on the market continues to fall.
This dynamic means that there is no expectation of housing prices cooling in the Tucson market soon, if ever.
“The likelihood of continued price increases for new housing is a sold bet,” said local housing analyst Jim Daniel, with R.L. Brown Reports.
In September alone, four homebuilders bought 440 lots with recorded prices of $29 million and the price difference between new and existing home sales is now a little more than $55,000.
