TUCSON, Ariz. (KGUN 9) — Interest rates and low inventory are the driving forces in our housing market, with many buyers wanting to know if there is some relief in sight.
"I want to buy, I would love to get into real estate but with how the housing market is and just being able to afford rent by itself,"Qwen Hart said. "I really don't see it in my future anytime soon. Like it's just not affordable and livable currently."
In Southern Arizona, the Housing Affordability Index has increased a little as the local market looks possibly more affordable than the rest of nation.
"Housing affordability has increased a little bit through the first half of the year," University of Arizona Economist George Hammond said. "You know, we're now up to 38.6. So just slightly better here in Tucson."
For those looking to move, many face the rising interest rate awaiting them if they get another loan.
"You know, certainly the Federal Reserve recently raised short term interest rates, and they may well do so again at least once before the end of the year," Hammond said. "So, at least from that perspective, we're not going to get much relief on on mortgage interest rates, we'll have to see what happens with the other drivers."
Housing permits have started to bounce back since the declines at the end of 2022. Hammond says the interest rates might not come back down for several more years.
"In the in the longer run, well there's at least a good chance that we'll see interest rates come down a little bit," Hammond said. "You know, as we as we get through 2024, maybe even 2025."
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Denelle Veselik is an anchor and investigative reporter for KGUN 9. It's been her dream to tell your stories for the past decade. She is extremely curious and wants to continue to use her storytelling for the greater good. Share your story ideas and important issues with Denelle by emailing denelle.veselik@kgun9.com or by connecting on Facebook, Instagram and X/Twitter.
