Tucson New Home Prices Soar to Record Levels
The 2017 median price for a new home in Tucson came in at $298,779, soaring over the highs of the previous peak of $267,725, reached back in 2006. The market has been so successful in 2017 that multiple new communities will be sprouting up all around the region in 2018.
Why the successful year? It all boils down to high demand and lack of inventory. Amy McReynolds, president of KB Home Tucson division, told the Star that Tucson’s housing market will “remain on a steady path this year and into the future,” thanks to insufficient levels of inventory and high demand. Housing analyst Ginger Kneup, owner of Bright Future Real Estate Research, added that “tightening of the resale market has also supported increased demand for new homes.”
Builders have a busy year ahead, though many may face difficulties after failing to invest in property or having sold housing in existing communities much faster than anticipated. All of this leaves them to scramble for available “shovel-ready land.” New builds will also bring more risk with them as 80 percent of land for future construction will require entitlements and infrastructure investment.
The good news for homebuyers is that 50 percent of new home builds are still occurring below the median price point. That means builders have more opportunity to build at a competitive price within the current market.
Currently, KB Home has 11 new communities in the Tucson area including Gladden Farms in Marana. They also have plans for two new communities in 2018, including La Cholla Station in Casas Adobes. Richmond American Homes also has a community coming to market in 2018 in Sahuarita while Mattamy Homes has prepared for demand by purchasing 173 acres of land for the Saguaro Trails community in Southeast Tucson.