2022 Homebuyer Market Trends
Home values in 2021 appreciated at approximately 12% in 2021! Low mortgage rates, the freedom to work from home during the pandemic and low housing inventory made the market super competitive, leading to bidding wars and homes selling above asking price. According to research from Freddie Mac, home prices are predicted to increase at 5.3 percent in 2022. Interest rates are projected to rise to 3.7 to 4 percent by the end of 2022 and are still very low by historic standards.
People are spending more time at home and making investments to create a special home environment. During the pandemic, sales at Home Depot rose by 25 percent. Common renovations include upgrading to a gourmet kitchen, creating a more open floor plan and updating interior finishes. Experts are projecting some growth in inventory as owners sell to capture appreciation and the value of completed improvements. Others are renovating by selling and enjoying the customization opportunities that come with purchasing a new home.
Millennials are entering the housing market in greater numbers.
In 2021, millennials (anyone born between 1981 and 1996) dominated the “starter home” market and the trend is expected to continue. That’s not surprising in Tucson, where the median age is 33.7 years. Nationwide, millennials account for 37 percent of the overall housing market and 82 percent are first-time homebuyers.
Like their parents, millennials are seeking homes with great locations that are increasingly away from cities and urban areas. They also are seeking smart home technology, greater energy efficiency and locations that connect more readily to nature.
Will Southern Arizona remain a hot housing market? Yes.
The Tucson housing market will likely continue as one of the hottest markets in the nation. The current typical value of middle-price-tier homes in Tucson is $283,297 compared to the national average of $374,900 during the second quarter of 2021. And if you compare the average price of a home in Tucson to comparable homes in Los Angeles or San Diego, prices are often 60 percent lower!
Affordability aside, nearly one-third of Americans say the pandemic has made them re-evaluate where they live. In 2021, Tucson experienced a population growth of 1.12 percent attributed not only to its cost of living, but to its robust job market and quality of life. In fact, in 2021 Tucson was ranked as one of the “Best Places to Live” by U.S. News & World Report. And Redfin, ranked Marana as one of the “Hottest Neighborhoods in Arizona,” second only to Scottsdale.
Experts predict a similar rate of growth in 2022 for all these reasons and because of our region’s incredible natural surroundings, cultural diversity, amazing food scene, and climate that accommodates a year-round active lifestyle.
The Dove Mountain community grew by 400 residents in 2021 and we’re expecting continued robust sales of our golf course properties, Ritz-Carlton Residences, Canyon Pass homes built on 1-10 acre lots, and sales of existing homes in all of our popular neighborhoods. Dove Mountain’s popularity and associated growth is due to its close proximity to downtown Tucson, its world-class golf courses, its astounding Sonoran Desert surroundings and mountain views, its 50+ miles of Tortolita Mountain Trails, and the luxury amenities available at The Ritz-Carlton, Dove Mountain Resort & Spa.