Arizona is a hot home market
The southwest US is a hot place to live- especially for retirees and families fleeing the urban jungle. Housing costs are well below the national average and new homes are sprouting faster than ever. Tucson, Arizona is becoming a desert oasis for luxury homes.
The avergae price of new homes has climbed 18 percent in the past year. Resale homes have climbed 13 percent, according to the recent Tucson Housing Market Letter. In May 2004, the average price of a new home in the Tucson area was $242,582, an increase of $36,746 from the same month in 2003. The median price of a new home was $200,603- the level where half the homes sold for more and half sold for less. This is a $25,463 increase from last year.
Prices for existing home also increased. The average price of a resale home was $189,999, an increase of $21,981 since May 2003. The median price of an existing home was $155,000, an increase of $17,500 from last year.
The median price for an existing home in Phoenix in 2003 was $152,500. The national figure is $234,200, according to the National Association of Realtors. That alone is bringing a record number of new residents.
The average price of a new-constructed home was $147,336 in July 1999, and increase of $1,800 from last year. The average price of a resale home is $135,841 about $2,500 more than last July. Luxury home sales, above $500,000 increased 37 percent over the first half of 1998 with 19 homes selling $1,000,000 or more. The north, northwest and northeast sides of the city, in the foothills, have the largest concentration of luxury homes. Another increasingly popular location is among the dozen golf communities around the valley. While this is an increasing trend, the price of homes are likely to rise soon with interest rate increases. The declining rates in the past fueled the increase in building permits.
But, new home closing continue at a record pace. In May 2004, there were 555 new home closings, 16 more than May 2003. July 1999 closings topped at 495, 11 ahead of 1998. The average over the past year has been about 500 units.