Conventional wisdom says that buyers who locked in 3 percent mortgage rates during the pandemic secured the best deals. But in Tucson’s current market, first-time buyers purchasing homes at 6 percent interest rates are often coming out ahead — thanks to lower prices, greater negotiating power, and meaningful seller concessions.
During the pandemic, Tucson’s housing market was defined by bidding wars and rapid sales. Buyers routinely paid $10,000 to $30,000 over the asking price just to get their offers accepted. Sellers rarely negotiated on repairs or closing costs. Many buyers waived inspections and accepted homes as-is, only to face unexpected repair bills after closing.
While the 3 percent interest rates looked appealing, the true cost of buying during that period was much higher than it appeared. Buyers paid inflated prices, often far above a home’s actual value, and spent years waiting for their equity to catch up. In addition, they missed out on seller-paid closing costs, repair credits, and other concessions that can significantly reduce the upfront cash needed to buy a home.
The dynamic has changed dramatically in 2024. Homes now sit on the market for 60 days or more, and sellers have become far more flexible. Many are offering to cover closing costs, pay for repairs, or include home warranties to attract buyers. Price reductions are common after just a few weeks without offers, and there’s less pressure to rush decisions.
“Buyers today are getting a much better value,” says Tony Ray Baker, team leader with RE/MAX Fine Properties in Tucson. “They’re spending less money upfront, and they’re getting a good rate somewhere between 5.5 and 6 percent.”
Several factors now give buyers the upper hand:
Consider a recent example from Tucson. Last month, a first-time buyer made an offer on a three-bedroom home listed at $350,000. The property had been on the market for six weeks with little interest. Instead of offering full price, the buyer bid $340,000 and requested $5,000 toward closing costs and a paid home warranty.
The seller accepted. The buyer secured the home below the asking price, received thousands in closing-cost assistance, and got peace of mind from the warranty—all at a 5.8 percent interest rate. By contrast, a comparable buyer in 2021 would likely have paid $370,000 or more for the same home, with no concessions and no opportunity to negotiate repairs or credits.
If you’re a first-time buyer in Tucson, the current climate works in your favor—but only if you look beyond the interest rate. Here’s how to maximize your advantage:
The difference between pandemic and current buyers isn’t just about interest rates—it’s about leverage and overall value. Today’s buyers are avoiding the premium prices and “take it or leave it” terms that defined the market just a few years ago. Instead, they’re securing fair prices, meaningful concessions, and homes that better fit their needs.
For the first time in years, first-time buyers in Tucson have the negotiating power. Homes are fairly priced, sellers are motivated, and buyers can structure deals that protect their finances both now and in the future. “If rates were ever to go down, they could refinance,” Baker says. “But they’re getting a better value right now.”
About the Expert: Tony Ray Baker leads The Tony Ray Baker Team at RE/MAX Fine Properties in Tucson, Arizona. With 31 years in real estate, his team serves buyers, sellers, and investors throughout Tucson and its suburbs.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
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