Tucson, AZ Housing Market Report

The Tucson housing market is currently undergoing a notable transition toward a buyer-friendly environment as of December 2025. With active inventory surging by 11.54 percent year-over-year to 4,522 units, buyers now have significantly more options than they did twelve months ago. This increase in supply is reflected in the extended time homes are spending on the market, which has climbed to 78 days. While the sale-to-list ratio remains high at 0.99, suggesting that sellers are still receiving close to their asking prices, the overall momentum has shifted away from the rapid-fire bidding wars seen in previous years.

Price trends in the Old Pueblo have shown a consistent downward trajectory over the latter half of 2025. Starting from a peak of $322,710 in July, the median home value has declined every month to its current level of $318,643, representing a 3.07 percent annual decrease. This cooling is likely driven by the combination of increased inventory and broader macroeconomic factors that have tempered demand. Even the rental market is seeing a slight correction, with median rents dipping to $1,401, a 0.75 percent decrease from the previous year, indicating a general stabilization across the local housing sector.

Looking ahead, the Tucson market offers a strategic window for prospective homeowners who were previously priced out. For buyers, the increase in days on market provides more leverage for negotiations and more time for due diligence. Sellers, on the other hand, must be prepared for a more competitive landscape; pricing a home accurately from the start is now critical, as the trend of monthly price depreciation suggests that overpricing could lead to a stale listing. As inventory continues to grow, the market is expected to remain in a period of price discovery through the early months of 2026.