/ Modified jun 3, 2022 1:39 p.m.

Tucson housing market starts to cool off

Home prices are still on the rise, but not as dramatically.

door housing More than one-third of households in Tucson are considered housing cost burdened.

The median home price in Tucson is still rising, but experts say it is starting to slow down.

That could make it easier to buy a home, but it could also stall construction.

Jim Tofel is a managing member of Tofel Dent Construction, and he said because houses have become unaffordable to many, there is less demand for them. That could calm the market down altogether.

"Things have cooled a little bit. But there's still a lot of activity out there. And I think this has been a good correction so far. If it keeps going, though, it could become very damaging," Tofel said.

If demand slows down too much, and if interest rates and the cost of building materials keeps climbing, things could go in the opposite direction.

Tucson Association of Realtors Interim CEO Judy Lowe said she is seeing fewer investment buyers bidding on Tucson homes.

"When you have an affordable marketplace already, it's going to attract those investors," Lowe said.

She said the pace of new sales in Tucson is at its lowest point in ten years.

"Part of that is because there aren't enough homes to show the buyers, there aren't enough homes to make the sales to keep pace with where we were," Lowe said.

But there’s reason to be hopeful. She says new sales prices have stabilized, though they’re still rising.

"I think that our sellers will get back to reality. We won't always see the escalation happening. We won't see offers coming in for over asking price," Lowe said.

She also said her goal is to convince more homeowners that it’s a safe time to sell and find a new home.

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