Dove Mountain Luxury Real Estate Market Update 2017
Looking back on the fall and winter numbers, the greater Tucson area is officially turning to a seller’s market because of low inventory, which is partially driven by the still-low interest rates that are allowing buyers to grab their dream homes as soon as they become available.
Sales Figures & Informational Data
Overall, the Northwest region enjoyed a median sales price hike that was up 4% from November of 2015, landing a $230,000 median price.
Dove Mountain’s median price rose substantially, pulling in a 26% gain from the prior year. As of November 2016, the median sales price in Dove Mountain was $287,500. This increase can be largely attributed to the beautiful luxury homes available in the area.
A Seller’s Market
With the inventory of homes being so low at present, the Dove Mountain area is turning toward a seller’s market. People who are considering selling their homes should think about doing so as quickly as possible, as buyers who are visiting Tucson as a means of getting away from winter cold elsewhere may very well be ready to buy if the home and price is right.
Additionally, some reports indicate that inventory rises dramatically in the first five months of the year. As such, people who are considering selling are best to do so before the market gets competitive and oversaturated with available homes.
Prices & Interest Rates
The Fed has already begun to raise interest rates. Although the hikes have been modest so far, the historic lows that buyers have seen in recent years are likely soon to be a thing of the past. In the final weeks of 2016, the Fed finally raised rates for only the second time in a decade, the first being December 2015.
As the economy has finally begun to awaken from its slumber, consumer confidence is up, which means interest rates will continue to rise, too. Buyers who are hoping to purchase a luxury home at a modest price are best to do so quickly, as interest rates can change at a moment’s notice, and they could begin to climb rapidly. Of course, no one truly knows what the Fed has in store in terms of rate hikes until the deed has been done.
Projections in the greater Tucson area put home prices at an increase of around 3% annually for the next few years. This, coupled with increasing rates, could put some buyers out of the luxury home-buying market. Thus, it’s best to act quickly to avoid rate and price hike repercussions.
In a report recently released by realtor.com, Tucson took #9 as a top real estate market to watch in 2017. Coming in within the Top Ten, this means Dove Mountain, Marana, and the areas surrounding Tucson are poised for growth in the coming calendar year.
Luxury real estate is alive and well in northwest Tucson. At the Residences at Dove Mountain, you can build a grand, customizable home and enjoy all of the upscale amenities our community has to offer. Ready to learn more? Request more information about The Ritz-Carlton Residences, Dove Mountain today!