Tucson, AZ 85742 Real Estate Market Report

ZIP Code: 85742
Report Date: May 2026
Market Temperature: NEUTRAL
Scope: This ZIP code analysis focuses on single-family residential (SFR) properties. Metrics are calculated from recent sales and active listings within the past 90 days.

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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

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

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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 are approximately 6.35%, which is 0.48% higher than the 5.87% average observed in February 2026.

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 primary indicator of recent market value is the median sold price of $364,500, which points to realized transaction levels below asking expectations where the median listing price is $424,900, suggesting sellers may need to moderate pricing to align with closed sales; down price momentum further supports this gap.

2. Market liquidity appears slow with a prolonged median days on market of 547, which likely indicates slower sales velocity and increased time-to-close for typical SFR and condominium transactions in the ZIP code.

3. Pricing structure shows a stable reference point at a median price per square foot of $200, which can help underwriters and appraisers benchmark offers; given the neutral market temperature, this per‑sqft metric appears to reflect a balanced but cautious negotiation environment.

4. Carry and demand dynamics are pressured by financing conditions: interest rate pressure is flagged as elevated and local 30-year fixed mortgage rates are reported at 6.35%, which is 0.48% higher than the February 2026 average of 5.87%; concurrently, rent performance is softer with a median market rent of $1,745 and a rent year-over-year trend of down, suggesting constrained rental upside for investors in the near term.

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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.

Tucson, AZ 85742 Real Estate Market Report

ZIP Code: 85742
Report Date: May 2026
Market Temperature: NEUTRAL
Scope: This ZIP code analysis focuses on condominium properties. Metrics are calculated from recent condo sales and active listings within the past 90 days.

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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

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Property Taxes

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Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

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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 are approximately 6.35%, which is 0.48% higher than the 5.87% average observed in February 2026.

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 primary market indicator is the median sold price of 392,450, which reflects recent transaction levels and suggests the neighborhood’s market value is set by closed deals; price momentum is down, so these sold outcomes may represent the top of recent buyer willingness to pay.

2. There is a notable spread between the median listing price of 335,000 and the median sold price of 392,450, which may indicate pricing friction between seller expectations and finalized transactions and suggests sellers may need to adjust ask strategies to align with executed sale prices.

3. The median days on market of 521 points to slower sales velocity in the sample, which, combined with neutral market temperature, appears to create a more balanced market where transactions take longer and urgency is reduced.

4. Median market rent of 2,000 alongside a rent year-over-year trend that is down and elevated interest rate pressure (current 30‑year rate ~6.35%) suggests weaker rental pricing power and financing headwinds that may weigh on investor demand and time-to-sale for SFR and condo product types.

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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.