Tucson July 2025 Housing Market Report: Prices Cool as Inventory Rises

Market Overview: Tucson Real Estate Shift

Tucson July 2025 Housing Market Report – Here’s what you need to know:
The Tucson July 2025 Housing Market Report reveals a local real estate landscape that is transitioning toward balance. Compared to the frenetic pace of previous years, the market is stabilizing. Prices have softened slightly, sales volume has moderated, and housing inventory levels are rising, giving buyers more leverage than they have had in years. Let’s break down the data from the Tucson MLS to understand what these trends mean for your real estate goals.

Median Home Prices & Valuation Trends

In July 2025, the median sale price for a home in Tucson settled at $354,000. This represents a 3% decrease from July 2024, when prices hovered around $365,000. Month-over-month, values dipped by approximately $6,000 compared to June 2025, suggesting a seasonal cooling or a reaction to broader economic factors like mortgage interest rates.

The average price per square foot dropped to $220, down from $227 in June. This metric confirms that the price adjustment is broad-based, affecting property valuations across the board rather than being skewed by a few low-end sales.

Sales Volume & Activity

A total of 1,341 homes sold in July 2025, which is 2.1% fewer than the same month last year. While this is not a drastic decline, it indicates that buyer demand is more measured. According to data trends monitored by the National Association of Realtors, similar cooling patterns are being observed nationally as buyers adjust to affordability challenges.

Days on Market (DOM) & Velocity

The median days on market increased to 39 days, an 11-day jump compared to last year. This slowdown in velocity means homes are lingering longer, allowing buyers to conduct thorough due diligence without the pressure of immediate bidding wars.

Market Size & Total Volume

The total dollar volume of homes sold in July 2025 was $570.8 million, a decrease of 3.1% from July 2024. This contraction aligns with the slight dip in both unit sales and median prices.

Most Popular Price Ranges

The most active price point in July 2025 was the $300,000–$399,999 range, accounting for roughly 34% of all sales. This bracket is particularly popular among first-time buyers and those looking for top 55+ active adult communities in Southern Arizona, where affordable luxury is a key priority. Conversely, homes priced under $200,000 have become scarce, making up just 8% of the market.

Housing Inventory & Absorption Rate

Inventory growth is the biggest story of the month. There were 5,243 homes available for sale in July. The absorption rate (months of supply) stood at 3.91 months. While a balanced market typically requires 5 to 6 months of supply, this figure is significantly higher than the extreme lows of the pandemic era, signaling a shift away from a pure seller’s market.

Notably, nearly half of all listings (49%) experienced a price drop before selling, with the average reduction hovering around 6%. This trend highlights the importance of accurate initial pricing.

For Buyers: Leverage & Opportunities

If you are entering the market, the Tucson July 2025 Housing Market Report brings good news. Conditions are becoming more favorable for purchasing.

• More Inventory: With over 5,000 homes available, you have better odds of finding a property that meets your specific criteria.
• Reduced Competition: Slower sales velocity means you are less likely to face multiple-offer scenarios.
• Negotiation Power: On average, homes sold for 2% below list price. Additionally, sellers are increasingly open to offering buyer concessions to close the deal.
• Special Financing: For military families, combining these market conditions with VA home buyer benefits can significantly reduce upfront costs.

For Sellers: Strategy is Key

Sellers can still achieve excellent results, but the “list it and they will come” approach is no longer effective. The days of automatic bidding wars have faded.

• Price Competitively: With 49% of listings seeing price cuts, starting with the right number is crucial to avoid stagnation.
• Prepare for Negotiations: Be ready for buyers to request repairs or closing cost assistance.
• Curb Appeal: In a market with more choices, presentation matters. Homes that are staged and move-in ready continue to sell faster than the average.

Historical Perspective

To provide context, five years ago in July 2020, the median home price in Tucson was approximately $245,000. Despite the recent 3% dip, current values remain significantly higher than pre-2021 levels. The market is not crashing; it is normalizing after a period of unsustainable growth.

Key Takeaways from the Tucson July 2025 Housing Market Report

• Median Price: $354,000 (down 3% year-over-year)
• Homes Sold: 1,341 (down 2.1% year-over-year)
• Days on Market: 39 days (slower pace)
• Inventory: 5,243 active listings (3.91 months of supply)
• Negotiations: Average sale closes at 2% below asking price

In short: The Tucson July 2025 Housing Market Report depicts a cooler, healthier market. Buyers have the luxury of time and choice, while sellers must rely on strategic pricing and marketing.