Tucson, AZ 85716 Real Estate Market Report

ZIP Code: 85716
Report Date: February 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

The Tucson market, particularly in the 85716 ZIP code, has seen a decrease in the median sold price, currently at $420,000. This reflects a broader trend of price softening, with the overall market experiencing a shift towards a more balanced environment as inventory levels rise. The median listing price stands at $439,450, indicating a notable gap between seller expectations and market realities, which may contribute to slower sales velocity.

With a median days on market of 217, properties are taking longer to sell, suggesting a market that is adjusting to elevated inventory levels. Despite the current price declines, forecasts indicate a potential for modest appreciation in 2026, supported by a stable local economy. However, with rental prices also trending down, the market may face challenges in maintaining buyer demand in the near term.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Property Taxes

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Liquidity & Velocity

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Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Tucson, AZ, around 5.625% to 6.034% are notably lower than the 6.375% average seen in late February 2026, presenting a cost opportunity for recent borrowers.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The median sold price of $420,000 indicates a significant gap from the median listing price of $439,450, suggesting potential pricing friction.

2. Properties are experiencing a median days on market of 217, reflecting slower sales velocity and a shift towards a more balanced market.

3. The market temperature is currently neutral, indicating a balanced environment without strong buyer or seller advantages.

4. Rental prices are trending down, with a median market rent of $1,670, which may impact overall demand in the housing market.

5. Interest rate pressure remains elevated, with current mortgage rates around 5.625% to 6.034%, presenting cost opportunities for new buyers.

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Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.