At third from the top of hottest housing markets in 2020, Tucson, Arizona, is making a name for itself in the US national housing market. While the overall trend in the US housing market is generally cooling, Tucson and nine other cities are seeing strong growth in sales and prices.
Realtor.com created a list to highlight the 10 best-performing housing markets in 2020 and Tucson was on that list. According to Realtor.com, the hottest housing markets are listed below:
- Boise, Idaho
- McAllen-Edinburg-Mission, Texas
- Tucson, Arizona
- Chattanooga, Tennessee
- Columbia, South Carolina
- Rochester, New York
- Colorado Springs, Colorado
- Winston-Salem, North Carolina
- Charleston-North Charleston, South Carolina
- Memphis, Tennessee
Based on data, these 10 markets are trending towards an increase of 2.4% in the number of sales with home prices also rising an average of 3.1% in the next year. In contrast, national home sales are trending toward a decline. These numbers come from an analysis of 100 of the largest metros in the United States.
Economists are seeing a shift in how people look for homes. Both baby boomers and millennials are seeking homes in states and cities with a lower cost of living. This means that medium-sized cities are becoming ideal, due to affordability, economic growth, and job markets.
Another factor that places many of these cities on the list is that they are often located near more expensive or coastal cities. For example, Chattanooga and Memphis are more affordable options for people who are looking for Nashville alternatives. These “sister cities” are close enough to the larger cities to retain the benefits while being more affordable.
For Tucson, Arizona, the real estate market is clearly a seller’s market and the prices reflect that. Predictions for 2020 include that home value will increase by 3%. At the moment, the average selling price is $217,000, which is a 4.2% increase since last year.
In recent years, Tucson has reinvented itself after the recession by prioritizing a business-friendly climate, which has attracted new companies including Caterpillar. Coupled with the weather and affordability, Tucson is a go-to option for out-of-state buyers and buyers from nearby Phoenix. Downtown Tucson is also navigable, offers farm-to-table restaurants, and streetcar options.
