TheTucsonFoothills

does range pricing work

When you see “ Seller will accept or counter offers between $599,000 and $669,000 “ you’re looking at a home that is range priced.

It’s a strategy that some agents believe will bring in more offers and also limit the bottom price that is offered, so it’ll discourage
low-ball offers.

I don’t know, and I’ve never seen any evidence, that range pricing actually encourages more offers than does a straight-forward well priced home. But looking at range priced homes that have sold, it’s obvious that range pricing is not very effective at limiting offers to the bottom end of the range.

And it seems to me that if it works at all, range pricing works better in a hot market where homes are flying off the shelf. In that case I think it would encourage buyers to at least consider offering more than the bottom of the range and could lead to a higher sale price.

But in the market we’re in, nah. Here are the range priced homes that’ve sold since Jan 1.

-SELLER WILL ACCEPT OR COUNTER OFFERS BETWEEN $200,000 & $215,000. SOLD $191,000

-Range priced $219,000-$239,000. SOLD $219,000

-SELLER WILL ACCEPT OR COUNTER OFFERS FROM 259,900 TO 299,000. SOLD $255,000

-Seller will accept or counter offers between $325,000 & $349,000
SOLD $305,000

-***Seller will Accept or Counter offers between $349,900-370,000*** SOLD $352,000

-Sellers will accept or counter offers $374,000-$389,000. SOLD $369,500

-Seller will accept or counter offers btw $399,000-$419,000. SOLD $375,000

-Owner will entertain or counter offers range priced between $399,000-$419,000. SOLD $399,000

-Sellers will entertain offers between $499,500-$507,000. SOLD $496,000

-LIST RANGE PRICE $719,000-$749,000. SELLER WILL ACCEPT OR COUNTER OFFERS WITHIN THE RANGE. SOLD $675,000

The point is, if you see a home that you like that’s range priced, but you don’t like the range, don’t be discouraged, there’s no law that you can’t offer under the range. Go for it.

This came to mind because of an article in today’s
New York Times that touts range pricing. The Price Range Strategy

UPDATE; A reader with a long memory reminded me that I’d done basically the same piece on range pricing last year.
Well, no johnny-come-lately anyway.
> range priced homes in the Tucson Foothills

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and yet another spec is spoken for

After 446 days on the market 4839 E Placita Provida, a 2008 built spec home listed for $999,999, also slipped in under the wire and found a buyer yesterday.

It debuted at $1,259,000 and rather than boring everyone with dozens of meaningless little price cuts, it had just 2 biggies, the last from $1,199,000 to $999,999, $301/sf. And Bingo!

That contract capped a week of increased activity in the high-end Foothills market, and is also notable for being the 2nd spec home to find a buyer this week.

See it here> 4839 E Placita Provida
**link will expire on 6/29/09**

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the many lives of 5771 N Campbell Ave

in April 2007, in it’s first day on the market, someone paid list price, $2,200,000, for the house at 5771  N Campbell Ave. And then in February 08, just 10 months later, put it back on the market for $1,100,000. No kidding $1.1. Now that’s an attractive price cut.

And the listing agent touted it as,

Rare Short Sale Opportunity to get an amazing house at a deeply discounted price. Contemporary custom home with sweeping mountain and city views. Kevin Howard designed home with amazing indoor/outdoor living areas. Master suite, guest suite and den all have private patios. Rift Oak Cabinets, Granite Counters, Glass Railing Balcony, structured wiring, tripple zoned AC & Gourmet Kitchen. Negative Edge Pool & Spa under construction.

Between the description and the 1/2 price sale, it sounded too good to be true. So 4 or 5 buyers came along and put it under contract 4 or 5 times. But apparently it was too good to be true, because each time it fell out again. So they got a new listing agent who priced it at $999,000 and tried a whole different approach.

Short Sale- Great opportunity, house needs a lot of work. The roof is leaking in several places and has damaged the ceiling, all the appliances are gone, parts of kitchen & bathroom cabinets are missing, parts of the flooring need replacing. There is also a partially finished pool, bring your contractor & make an offer.

OK, so now we know why it’s so cheap, but brutal honesty didn’t work either. So they pulled it off the market for a couple of months and, I’m not sure but, must’ve cleaned it up a bit, and now it’s back on and described as,

New Construction near Campbell and Skyline~Unbelievable mountian views! This home is listed for less than half of previous sales price-it's truly the best deal in the foothills!High ceilings, floor to ceiling windows and classy contemporary architecture make this a true gem. Lots of outdoor covered patios and decking overlook the pool and dramatically increase living space, Pool is unfinished but has an amazing layout.

So now it’s back to where it started as New Construction. Never mind that it was built in 2006, lived in, abused, and, maybe, patched up. 
Someone went for it and once again it’s under contract. But let’s wait and see, I wouldn’t be surprised to see it come round again, in yet a different guise. See it here> 5771  N Campbell Ave

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something’s happening here

2 more to contract today

6871 E Desert Wind Ct/$999,000/312.19/sf & just 2 days on the market and already it’s in contract.

&

6121 N Paseo Zaldivar/$2,250,000/394.74/sf, and a spec home in Alta Vista no less, also went to contract today after just 4.5 months on the market – and no price reductions.

See them here> latest high-end sales
**link will expire on 6/26/09**

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the 2nd home market in La Paloma

Because it’s so well located, beautiful, peaceful and private, and offers a good selection of smaller, low maintenance homes, La Paloma has long been popular with the Foothills 2nd home crowd.

But since so many of them are bought as 2nd homes - and therefore a completely discretionary purchase, because let’s face it, when it all hits the fan no one has to have a 2nd home – their popularity has waned. And so, unlike past years, there are quite a few for sale and very few selling.

I mentioned this yesterday to a friend and client who is thinking about buying a smaller home in the Foothills, and was wondering where he might find a nice smaller house and a good deal.

At that point I was winging it, and didn’t have the data at my finger tips, so I thought I’d follow up with a closer look at the La Paloma
2nd home market.

Looking at homes priced up to $800,000 in La P over the past few years, here's what I found. This data is for Jan 1 – May 27 for each year noted.

	2004	2005	2006	2007
# homes Sold	28	40	20	13
Avg Sold$	$376,796	$522,049	$563,330	$493,746
Med Sold$	$380,000	$517,500	$545,750	$495,000
$ Value of all Sold	$10,550,300	$20,881,950	$11,266,600	$6,418,700

	2008	2009	2009	2009
# homes Sold	13	7	# for sale	39
Avg Sold$	$553,385	$466,856	Avg list	$560,443
Med Sold$	$543,000	$450,000	Med list	$549,000
$ Value of all Sold	$7,194,000	$3,267,995	$ value of all for sale	$21,857,290

Green is good, Red is not so good.
As you can see, 2nd home sales are suffering in La Paloma

for 2009 we’ve had;
-the fewest # of homes sold, by a wide margin
-the lowest average and median sale prices since 2004
-the lowest $ value of homes sold going back longer than I know
And yet;
the average and median list prices of homes currently for sale are practically identical to what sold prices were at the peak of the market in 2006. Consequently, we sit with $21,857,290 of unsold inventory waiting for buyers. And sales for these 2nd homes are even more seasonal than for your average Foothills hacienda, and that season is now kaput.

So you’d think, given the sorry state of affairs, there oughta be some deals to be had in La P.

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coulda’, woulda’, shoulda’, but haven’t

Looking through all the homes that are leftover from this season of slow sales, I ran across a few that I thought woulda’ sold. Either because they’re just nice homes and not unreasonably priced or because they’re nice homes and also very well priced.

Either way it doesn’t matter, they haven’t sold, not yet anyway.

Have a look, and by the way, these are not my listings nor am I shilling these for anyone. I just like them and think thought they woulda’ sold and certainly shoulda’ sold before a lot of the stuff that did sell. Four are active listings and the other four have either been withdrawn or the listing has expired in the last few days, hopefully to return soon. 

-$1,295,000/ 3451 E Calle Puerta De Acero/ Withdrawn/20837265
masonry built by Mike Wachs on 3.6 acres in La Puerta on Hacienda del Sol, 4700 sf, private, and with marvelous mountain views

-$699,000/ 6202 N Placita Pajaro/Active/ 20909125
homes like this flew off the shelf a couple of years ago. It makes a good 2nd home, it’s in La Paloma, beautifully done, great mountain views and not a bad price, I thought.

-$1,099,000/ 6321 N Via Acacia/Withdrawn/20902129
a beautifully renovated contemporary in La Paloma, very well priced, too, 4181 sf, beautiful and very private backyard with pool, outdoor kitchen, mountain views, WOW, I can’t figure out why this hasn’t sold.

-$702,900/ 6950 E Wild Canyon Pl/Active/2091360  
a real deal at $187/sf and a foreclosure, in a small gated community, built 2003, high ceilings, huge open kitchen, it appears to be in excellent condition, nice backyard with pool. If this is anything like what you’re looking for, see this one now.

-$795,000/ 6001 N Vista Valverde/Active/20914211
Not everyone’s cup of tea but another really good deal at $134/sf.
I have a feeling people aren’t looking at this because they think it’s too cheap to be any good. It’s good,

-$875,000/ 4610 N CAMINO REAL/Expired/20906025
This is a very charming house, nicely redone, gorgeous backyard, perfect little guest house, beautiful setting. hopefully it’ll be back on the market soon.

-$1,495,000/ 4831 N Camino Luz/Active/20912821
this is a gorgeous Joesler that was listed just a few weeks ago, so I should just give it a little time. But if you’re in the market for a Joesler, have a look.

-$1,450,000/ 3550 E Entrada Del Sol/Expired/20901925
a gorgeous older La Quinta that had a 1200 sf addition and was completely and seamlessly remodeled. It is perched on it’s own little hill top in Cat 10, very special. It left the market a few days ago and I hope returns soon, but at a lower price. Because I think price definitely was an issue here.

See them all here> coulda’, shoulda’
link will expire on 6/24/09

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9th inning rally grows

Earlier today I mentioned the house at 7063 N Mission Hill Ln in Skyline Country Club dropping down to $1,200,000 - was $1,750,000 is $1,200,000 - well apparently that did it, (the price drop) and quickly, because two hours later and it’s already under contract.  
See it here> 7063 N Mission Hill Ln in Skyline CC

But the really big news is 901 E Magee Rd in Cobo Catalina Hills listed for $3,500,000, which has also just gone to contract. I had the pleasure of showing this wonderful hacienda a few weeks ago, and, because it is so special, and despite it’s hefty price tag, I’m not that surprised to see it go. If you have that kind of money to spend on a Foothills home, this wouldn’t be a bad way to do it.

See it here> 901 E Magee Rd

That’s 2 more for the million+ pile, making it 14 high-end homes in escrow. And now with Cobo we have 2 in escrow at over $3,400,000, and we haven’t seen that since January 08.

Stay tuned.

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was $1,750,000 is $1,200,000

Was, was in August of 07 when 7063 N Mission Hill Ln in Skyline Country Club was first listed and, today it is, $1,200,000 and a 
short sale too.

That’s $298/sf for what appears to be a beautifully remodeled
(by Robinson & Shades, no less) SW contemporary at the top of Skyline CC, on 4.5 acres.

When this sells it’s sure to exert some downward drag on prices of the other 9 homes for sale in Skyline listed at $1,200,000 and up and is sure to present a predicament for the appraisers. 

The average $/sf asking price of those 9 homes is $362/sf, with one at $418 and another at $453/sf.

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as we head into the stretch

With June and the end of our season just around the corner, it’s probably too late to pull one out of the hat, but with 83 homes now under contract it looks as if it'll at least be a lively finish.

83 homes under contract is more than we’ve seen in recent times. And more surprising still is they’re not all huddled at the low end of the market.

24 are Pending COE. So all contingencies have been satisfied, and these deals are headed for close of escrow.

8 of them, or 33%, are priced above the median list ($649K)and 6 of those are above a million. The remaining 16 are priced between $279,900 to $559,000. The average list price of this group is $761,217, vs. an average list of $569,799 for everything sold Jan 1 through April 30.

59 are Active Contingent. These are still in the inspection period, and, subject to cancellation due to inspection issues, or at the sole discretion of the buyer, or, due to financing or appraisal contingencies and who knows what else. So, while not a sure thing, they show good intent and agreement on price and terms. Things that have been hard to come by this year.

Of these, 18, or 30%, are above the ($649K) median list and 6 are above a million. The remaining 51 are priced $200,000 to $559,600.
The average list price of this group is $575,983.

Looking at the million+ market; since Jan 1 just 16 homes have sold at a million or more. So now with 12 in escrow, and I think more to come, we stand a decent chance of at least matching the 35 million+ homes that sold last year. We’ll see.

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deja vu

Real estate got just about everyone into trouble in Phoenix, and the thinking seems to be that real estate is going to get everyone out.

Once again, just about everybody seems to be buying as many houses as they can, positive it will make them rich — or at least allow them to recoup some of their losses.

One real estate agent was showing a foreclosed house to a prospective client when a passer-by saw the open door, came in and snapped up the property. Another agent says she was having the lock changed on a bank-owned home when a man happened by, found out from the locksmith that it was available, and immediately bought it. Bidding wars are routine.

Amid Housing Bust, Phoenix Begins a New Frenzy

From The New York Times

better late than never

432 days and 8 price cuts later and 6058 E Roadrunner Haven Pl is now under contract.

And the listing agent Terri Cropp, who is also the owner, looks happy don’t you think.

I would be too, since, with just 7 shopping days ‘til June, they may have gotten in just before last call.

Listed last January for $1,195,000, it went to contract today at $875,000, or $239/sf. And it looks like a nice, newer house so, I’m guessing, price may have been the sticking point.

See more of it here> 6058 E Roadrunner Haven Pl
link will expire on 6/21/09

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only in la-la land

Real estate agents file $6 million suit over 'CSI' episode 

Scott and Melinda Tamkin are alleging defamation and invasion of privacy, saying characters in the episode were based on them.
When married real estate agents Scott and Melinda Tamkin read about an episode of the hit crime drama "CSI: Crime Scene Investigation" that featured dirty-dealing, S&M-loving real estate agents named Scott and Melinda Tamkin, they didn't need to consult a forensic expert for an explanation.
(these I believe, but don’t know for sure because, darn it, I missed that episode, are the actual RE agents, rather than the actors allegedly portraying them, right)

Get all the juicy details> Real estate agents file $6-million suit over 'CSI' episode< from the Los Angeles Times

like it or not, all real estate is local

Unlike me, who concentrates on home sales in the Foothills, Long Realty tracks the housing market throughout southern Arizona. And perusing their charts and files, I came across this eye-opening map that shows months of inventory (MOI) by zip code.

Download HousingReportGenerate by ZIP

The yellow area on the map is 85718, which makes up about 80% of the Foothills and MOI is 18.1 months, the 2nd highest for all reported Zip codes. And 85750, which makes up the remainder of the Foothills, comes in with the 3rd highest MOI at 13.6 months.

Why is that, why do we have a higher MOI in the Foothills than in surrounding areas? Two things come to mind. The key reason is because the high-end market has been the hardest hit and the Foothills have the highest priced homes and a much higher share of high-end homes than other areas of Tucson.

And then there’s condos, which are included in this report, and which were a hot investment item during the 04 –07 condo craze, due largely to investors gone crazy converting apartment complexes to condos.
I’m guessing about 1500 condos came online in the Foothills during that craze, way more than we could absorb and way more than other areas, and while many have finally been sold off, we still have more condos for sale, along with slow sales, than other areas of Tucson, except for central.

The good news is that most of our neighbors are doing quite well, and hopefully, some of that will rub off.

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a big day for La Quinta

The new La Quinta in Pima Canyon sold today and another
La Quinta went to contract, also today.

The one in Pima Canyon sold for $2,100,000, listed for $2,395,000.
I represented the buyers. See it here>** 1902 N Sahuaro Blossom
**link expires on 6/20/09

And 5136 N Calle Ladero went to contract. This one, even at list price, is way-way under the cost of construction. Listed for $1,385,000/$248/sf/masonry construction/2008 built/5577 sf/5 bedrooms/5.5 baths/1.8 acres.
Planned during the go-go years when everything sold, it’s too close to Campbell for many of today’s more discriminating buyers. My buyers, who bought the one in Pima Canyon, wouldn’t even consider this one because of Campbell, even though it’s a million$$ less. But that’s what makes the world go round and I’m glad to see they got a buyer for this home, because, close to Campbell or not, it’s a wonderful La Quinta. See it here>** 5136  N Calle Ladero
**link expires on 6/20/09

With the smart design, ultra high quality construction, attention to detail and amenities that go into every La Quinta, construction costs have got to be well over $300/sf, maybe closer to $400. Yes they build great homes and I’m a big fan.

It seems like only yesterday that I mentioned these two homes,
would you put up with some traffic noise to save $900,000,

and now they’re gone.

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get real

whoever owns the house at 5450 N Hacienda del Sol Rd decided to do just that, and fast. Listed just 82 days ago for $825,000, today, they cut the price to $675,000, or $187/sf.

Built 1996/frame stucco/3602 sf/4 beds/2.5 baths/1.4 acres/3 car garage/no pool/and, a Sante Fe

Technically it’s part of Catalina Foothills Estates 10, but not within the gated area of Cat 10. Also, you may feel, it’s a tad too close to Hacienda del Sol Rd for comfort. But then, that’s why it’s $187/sf,

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at the right price, I think this is a good fixer-upper

On the market more than 6 months, this house at 6230  N Camino Esquina, sits on a very private elevated lot in Skyline Belair with very nice mountain and wonderful city views. Wonderful!

Grossly miscalculating, the sellers, who paid $760,000 for it in May 06, put it back on the market just 4 months later for $825,000. And now, more than 2 1/2 years and many price drops later, it’s still for sale, and can be yours for $675,000 or less.

 

The city/valley views are better than the picture shows, much better.

Built in 1966/masonry construction/1 + acre/3290 sf/4 beds/3 baths/
2 car garage/pool/$675,000

I don’t think that’s the right price, not yet, but, after 2 1/2 years, how long can you hold out. And the listing expired today too, again.

See the expired listing, here> 6230 N Camino Esquina

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this oughta do it

… on the market 6 months at $995,000, with nary a price drop, today, the owners of 6622 N LONGFELLOW Dr seem to have come to the realization that something’s gotta give. And so they have, perhaps after much hand wringing, dropped their asking price to $989,000.

Whoa! HOLD THE PRESSES

As I’m scribbling this, a client of mine, for whom I’d made an offer some months ago on this house, an offer that was rejected, sent me the following email offering to write this one up for me.  And of course I accepted. So from a ready, willing and able home buyer,
_________________________________________________________

You should blog this one.  I'll write it for you.

"Big" price change on Longfellow.  This is one of those done just to
get some attention as it was only a $6,000 price drop.  I had clients
that really loved this house, but weren't going to overpay for it.
They made an initial offer of more than 85% of the list price and were prepared to go quite a bit higher to make a deal, but incredibly, their offer was REJECTED. No counter offer, just REJECTED. Despite their willingness to go higher, they weren't going to bid against themselves, especially for a house that at the time was on the market for about four months with an owner that was being unreasonable.

Fast forward and it's almost June, my clients have found their dream house in an area they like better with one of the best lots in the Foothills.  Meanwhile, the owners of the house on Longfellow are holding firm waiting for that one buyer to magically appear and
essentially holding firm at their price after six months on the market despite all the data to the contrary.  Now they have to deal with a house down the road on Longfellow that has 1,000 more square feet and the same price.  When that one goes to contract it will almost certainly prevent their home from appraising even if they do get what they are looking for.

Footnote to the story that should be a lesson to the owners of this
house the next time they get an offer that is "insulting". My clients
also made a bid of about 85% of the list price on the house they ended up getting.  But the sellers on that one weren't insulted, they made a counter and ended up getting 98% of what they asked for.
________________________________________________________

PS- I guess we’ll just wait and see what happens, or doesn’t happen, on Longfellow Dr. Last Saturday I mentioned the other house on Longfellow, the one that’s 1000sf larger and the same price as this one - location, looks and now price

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let’s have a look at home sales for the last 30 days, this year, last year and the year before

this year

39 homes sold

32 (82%) sold below the $649,000 avg list price

7 sold above it

2 sold for $1.0 or more

average sale price = $497,013

median sale price = $410,000

average $/sf = $193

last year

59 homes sold

42 (71%) sold below the $646,736 avg list price

17 sold above it

6 sold for $1.0 or more

average sale price = $607,392

median sale price = $521,000

average $/sf = $223

the year before

70 homes sold

52 (74%) sold below the $708,071 avg list price

18 sold above it

12 sold for $1.0 or more

average sale price = $682,993

median sale price = $530,000

average $/sf = $238.95
______________________________________________________

79% more sales overall, 500% more sales at a 1.0+, 37% higher average sale price, 29% higher median sale price, than today.

and prices were higher yet in 06 and there were even more sales in 05. so now we’re approaching the 4th year of dwindling sales, followed by declining prices. are we there yet.

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it’s a sellers market

The market here in the Foothills, for short sales and REO’s, is working remarkably well, so well that, by traditional measurements, it’s a sellers market. 

Pulling up the latest data for short sales and REO’s, I find 22 single family homes for sale, 24 under contract and 25 sold since Jan 1.

At that rate, and with just a 4 month supply of short sale and REO properties, it’s a sellers market.

So even with lenders being difficult to deal with and making you jump through hoops to get the deal done, buyers are jumping at the chance for a good deal. Because price matters.

See them here> Short Sale & REO’s For Sale,
Short Sale & REO’s Under Contract & Short Sale & REO’s Sold
the links will expire on 6/16/09

Notice that a few of the homes sold for over list, indicative of a competitive bidding situation, not common, but no longer unheard of on attractively priced homes. And in all three categories, the homes run the price gamut from under $200k to well over $1.0

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and yet they keep coming

6 homes priced at a million and up were listed for sale in the last 7 days. 5 are actual new listings with 1 re-list.

Worth mentioning is 6015 N Camino Preciado, listed for $3,450,000, which immediately, upon being listed, went to contract. That makes two in one week, but what else could it be but another inside job. It’s a brand spanking new house in La Paloma Estates, 7266 sf/4beds/6 baths/masonry construction/4 car garage/$475/sf as listed. Whoa, that’ll pull up the averages.

Then there’s 6160 N Calle De La Culebra in Shadow Hills which, though it’s a high-end designer remodel + an addition, at $1,999,000, has got to be a record price for Shadow Hills.

Also in that group is 3260 E Sun Cloud Pl in Cobblestone, which I mentioned the other day, which sold in February for $1,000,000, and can now be yours $1,100,000.

Other action at $1.0+

Surprising to me is that 6190 N Cadena De Montanas in La Paloma, priced at $1.0, went to contract. Goes to show you, but it’s just not one of the one’s I’d have thought would sell anytime soon.

And with 7738 N Ancient Indian Dr in Pima Canyon selling for $1,150,000 or $384/sf, it too will boost the averages.

See them all here> latest action at $1.0+
that link will expire on 6/15/09

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(another) wealthy zip code where sale are suffering

Today’s SQUARE FEET column in The New York Times chronicles the woes in luxury home sales on Long Island’s North Shore, one of the top 10 wealthiest zip codes in the country.

A Wealthy Zip Code Where Sales Are Suffering

A few highlights that may ring a bell;

Dottie Herman, president and chief executive of Prudential Douglas Elliman, said there was a backlog of homes priced at $2 million to $4 million. Some belong to people who lost money in the Ponzi scheme constructed by Bernard Madoff, Ms. Herman said, while others are either casualties of the financial crisis or simply seeking to downsize.

Jonathan J. Miller, a real estate appraiser and president of the Manhattan-based Miller Samuel Inc., is the author of the Prudential report. He said, that with inventory rising in higher-priced housing markets, sale activities were “disproportionately lower.” Even those with stellar credit ratings and deep pockets may not have $1 million to plunk down as a 50 percent down payment on a $2 million home, he pointed out.

While buyers may think that with so much inventory they can “buy things at a fire sale,” Mr. Miller said, sellers “aren’t in sync” and may not be willing to “negotiate aggressively to the amount the buyers expect.” A result is fewer deals.

Anthony Piscopio, manager of Century 21 Laffey Syosset -“A lot of the people that are selling in the higher end are downsizing because of cost,”
_______________________________________________________________

While we’re not quite in the same league as Old Westbury, with 151 homes for sale priced $1.0 to $5.950 and just 15 sold since Jan 1, the Foothills ought to at least get an honorable mention.

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multiple offers making a comeback

That is according to this article, in AZBiz.com,
Sellers starting to see multiple bids on some home sales

Take homes priced to sell, combine that with record low interest rates, mix in tax credits for first-time home buyers and add a pinch of a little confidence and you have the recipe that’s starting to attract multiple offers from prospective buyers.
“I had one buyer make offers on four different homes and lost three before she got the fourth,” said Don Eugene, a real estate agent with Long Realty.

The phenomenon has been picking up  steam in the Tucson market over the past few months as sellers of resale homes tire of keeping them on the market drop their prices, often below what’s considered market value. Some agents say there have been cases when the multiple bidding winds up with the house being sold for more than the asking price.

This home located on Foothills Drive was listed by Louis Parrish at $175,000. It received 12 offers and eventually sold for $215,000

---

For now, this multiple offer business is pretty much exclusive to the lower end of the market. But, as prices drop at the high end, and they are, it would not be surprising to soon see some multiple bidding up there too. Stay tooned

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location, looks and now price

The owners of 6942 N Longfellow Ln want to sell, and now, they’ve put their money where their mouth is. Listed in February for the not too bad price of $1,195,000, dropped it today to a very good $998,000 or $199/sf. And that’s for a gorgeous house in a great location with massive mountain views.

The listing describes the house thus; Come explore a private treasure situated on a lush, elevated lot w/ unobstructed views of Finger Rock. This home has been completely & discriminately renovated from top to bottom. From the Cedar ceilings to the solid wood & brick floors you will find state-of-the-art finishings & appliances & charm.

It’s true. I saw it the day it came on the market, and the house is gorgeous, the renovation top to bottom, and the mountain views magnificent.

So what’s the catch. It’s a 2 story with the living areas on the upper level, and the bedrooms downstairs, at ground level.

If that’s not a deal killer for you, see it here> 6942 N Longfellow Ln and see what I mean.

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new or notable

first a couple of new listings,

---A Joesler, which the listing indicates as; ‘beautiful, clean original Joesler! Breathtaking views, fabulous grassed flat yard with large area for potential pool. Large front courtyard. Very private. This home has been graciously cleaned-up, new paint, new tile in kitchen and baths, new appliances, etc. Cute guest house. Owner is licensed to sell real estate in AZ’ 

Built 1944/burnt adobe construction/4075 sf/5 beds/4 baths/1 acre/$875,000/at 5450 N Calle La Cima

It was on and off the market in 05, 06, 07 and 08, and priced as high as $1,495,000 and failed to sell. It’s been two years since I’ve seen it so I’ll reserve my comments until I can get over there for a look. But hey, it’s a Joesler and it’s under a million.

---Then there’s 4388 N Sabino Mountain Dr on Sabino Mountain, and the listing agent says, ‘TRULY BREATHTAKING, KING OF THE HILL RIDGE TOP VIEWS, SEE THE EASTERN CATALINAS, REDDINGTON PASS, AND THE RINCONS FROM THIS EAST FACING PATIO, OVERLOOKING THE BLACK BOTTOM POOL. GATED EXCLUSIVE SABINO MOUNTAIN NEIGHBORHOOD

Built 2001/frame stucco construction/4735 sf/5 beds/4.5 baths/1+ acre/$1,395,000/at 4388 N Sabino Mountain Dr

It last sold for $920,000 in July 05, and so it’ll be interesting to see if today’s buyers agree with the 51% price appreciation now being asked for this house.

++

---Finally!! 7055 E Foothills View Ct went to contract today. It’s a spec house completed in 07 that’s been sitting on the market since July 06. It’s a nice house, but, it sits right next to Kolb Rd just a bit south of the retail plaza at Kolb & Sunrise, that’s a busy spot. And I know it only too well, because I’d listed the lot in 02 and had it on the market for more than 2 years with not much action. Then suddenly in 04 – the start of the craze- BAM!! everything sprang to life and I got two offers in one day and sold it for $1,000 over list - $121,000. And they built a spec house expecting to cash in, but instead got three years of agony. It started out in 06 at $900,000 and went to contract today at $595,000. I hope this stays together, enough is enough.

---now this takes the cake, the house I mentioned the other day that went to contract less than one minute after being listed, now takes the cake again, this time for the quickest sale in the west. It closed escrow today, two days after going to contract, for it’s $825,000 list price. And at $283/sf it might have been a good deal, but it wasn’t a steal. That’s 7481 N Moon Spirit Ln in Cobblestone.

---And late breaking, a little birdie just told me that the owners of the house at 4610 N CAMINO REAL are anxious for an offer, wink-wink, hint, hint. This house is in meticulous condition and oozes charm from every pore, including the guest house, and at 4254 sf, listed at $875,000, or $205/sf, it’s rather attractively priced already.

See all five here> new or notable
that link will expire on 6/13/09

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signs of life in Pima Canyon

Before today, the last home to sell in Pima Canyon sold on 10/27/08. And since then, and until just recently, it’s been unseasonably quiet in PC.

But 7738 N Ancient Indian Dr traded hands and has a new owner today. Listed for $1,295,000, it sold for $1,150,000, or $384/sf. 
And at 2997 sf, it’s the smallest home I’ve seen in there, and 
3 ft under what I thought was the 3000 sf minimum in PC. But maybe not and, if so, why quibble over 3 ft.

There are also two more homes pending close of escrow in Pima Canyon. One at 1476 E Canyon Spring Ct, listed for $1,595,000, and the incredible La Quinta, where I’m representing the buyers, at 1902 E Sahuaro Blossom Pl, listed for $2,395,000.

The other day I said, this year we may see a selling season that lasts further into summer than in years past.

And with no sales in PC until now, at the very tail-end of the season, perhaps this is a sign that other hesitant buyers will now be stepping forward. Let’s hope.

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tell me, what’s not to like

1978 built burnt adobe construction, 5919 sf, 4 bedrooms/3 baths + 2 half baths, newer sandstone & wood floors, kitchen and other areas totally and recently remodeled, on a private 2.6 acre ridge top lot in the old foothills – and all of it in, what appears to be, very good condition, very good. PS -the Pima County appraiser rates the quality of construction as EXCELLENT, a rare finding these days.

The kitchen, with new high-end appliances, new cabinets, counters, etc, and those great sandstone floors.

open to the breakfast area and family room

and a very dramatic living room, and more sandstone floors

and a massive master bedroom with sitting area and beamed ceilings

though you may find the front area a bit unconventional looking,
that can easily be dealt with

out back there are covered and open patios

And it’s all ready to go, 5919 sf, 2.6 acres, for $134/sf, or $795,000.

This has been on and off the market for a long time, priced as high as $1,895,000, but forget that, because now it’s $795,000, and it’s not a short sale or a foreclosure. It’s just a screamin’ deal.

See it here> 6001  N Vista Valverde

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now this takes the cake

less than a minute on the market and already it’s past the inspection period and heading toward close of escrow.

7481 N Moon Spirit Ln in Cobblestone showed up today as ACTIVE at 1:33:54 pm, and went PENDING at 1:34:17 pm. An inside job maybe, you think.

See it here> Gone in a flash

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"Flat is good. Flat means we are bottoming out,"

that’s what Marshall Vest, the University of Arizona economist, had to say about Pima County home sales.

And then he said, "The increases (in sales) have primarily been in the metro Phoenix market. Home sales in Tucson really have not moved up strongly like what you have seen in Phoenix," University of Arizona economist Marshall Vest said. "The Tucson market did not get overheated. The prices did not get nearly as far out of line. We don't appear to have nearly the overhang of foreclosed houses here."

And Jay Butler, the real estate studies director at Arizona State University, said, Pima County "never really participated in the hyper-market. You were about ready to, but it ended, so you are lucky."

That all sounds pretty good- because I picked out all the good parts -  but read the whole article, and see if you’re not as confused as I am about what’s good and what’s not and why.

This is courtesy of an article in our very own AZ Daily Star,
 Some see signs of life in AZ home sales

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a missed opportunity

Seemingly eager to cash in on the renovate/flip craze that took hold in Skyline CC in 04, 05 and 06, the owners of this house paid 
$640,000 for it in February 2005, then did a very nice, top to bottom, renovation and put it back on the market in April 2006 for the incredibly optimistic price of $1,390,000, or $411/sf.

That was almost 3 years ago, and still it hasn’t sold.

And this is one of those homes that has a lot going for it, the kind that there was a near frenzy for a few years ago in Skyline.  
-nice private lot - great mountain views-

beautiful renovation - new kitchen, baths, floors, etc, etc – that rare and special package that buyers crave, or craved.

but not at $1,390,000. Never.
So now, for the last two months, it’s been for sale for $899,000, but still no takers, and today the listing expired.

There’s a lot to like about this house but now, even at $899,000, the buyers I’ve shown it to, admire it, ponder and move on.

UPDATE It did get re-listed, see it here 4905 E Mission Hill Dr 
same price.

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throwing in the towel

a 2nd chance

If you’ve been kicking yourself for missing out on this Cobblestone beauty, that sold for an even million back in February, stop kicking and get out your checkbook, because it’s already back on the market, this time for $1,100,000 -ha-ha-ha ( I mentioned it here in February -on the other hand this house in Cobblestone)

-because I thought it was such a good deal - $242/sf in Cobblestone, for what looks to be a nice house with terrific views. And apparently the buyers, who are now the sellers, thought so too, because it sold in just 21 days – a near record for over a million, these days. 

I can’t imagine that it couldn’t be gotten for the same, or less, this time round. When they bought it it was listed for $1,099,000, so they know the drill.

See it here> 3260 E Sun Cloud Pl, Tucson, AZ  85718 well, no pictures, no nothing really- in the listing, just the barest of facts.

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the latest numbers

Now with just 20 shopping days ‘til June these are the latest top line numbers for Foothills home sales for the past 14 days.

New Listings- 66
Avg list - $728k
Med list - $584k

Of the 66 new listings 36 are priced below the overall Foothills median list price of $649,000, and 30 above it, with 9 of those above listed at $1.0mil+.

Under Contract – 26
Avg list - $642k
Med list - $524k

16 of those under contract are priced below the median, and 10 above it, with 4 of the 10 at $1.0mil+. 

Pending – 15
Avg list - $715k
Med list - $400k

11 of the 15 are priced below the $649,000 median list price, so just 4 above it, but all 4 are at $1.0 +.

Sold – 24
Avg Sold - $504k
Med Sold - $414k

19 of the solds are priced below the median and just 5 above it, with 1 at $1.0+.

Since the last time I looked- the pulse of the market, as we head into the stretch- there’s been a narrowing of the price gap between new listings and homes going to contract, and that’s a good thing – the average price of new listings has gone down while the price of those going to contract has gone up.

On the other hand, the average and median price of sold homes has dropped a bit since last time, $537/$440 back then, vs $504/$414 now. But then 9 more sold in this period than last. So, half full, half empty, or undecided.

In any case, the unseasonable heat has yet to slow the pace of activity and, I think this year, we may see a selling season that lasts further into summer than in years past.

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this one’s a deal

6950 E Wild Canyon Pl in Canyon Ridge, a small gated community off Kolb & Snyder.

It’s listed for $702,9000 ($187/sf) as a foreclosure. Built in 2003, 3746 sf, 4 bedrooms/3 baths/3 car/pool-spa/great big mountain views.

In 2005 it sold for $870,000, and sold again in 2006 for $995,000.
Then it was listed in 08 for $1,195,000, but that didn’t work. Then I listed it for $750,000 as a short sale in February, but 11 days later the bank closed in and took it over, so I had to yank it from the market. They diddled with it for two months and, now finally, here it is back on the market. Not my listing though.

You’ve heard this tired old pitch before, but I’ll say it anyway – this one won’t last. It’s too good a deal.

To all appearances, the house is in very good move-in condition, not the typical abused foreclosure.

See it now, the listing> 6950 E Wild Canyon Pl no pictures though,
so my February post with pictures>I've got a short sale coming up you might be interested in

It showed up in the MLS on Friday, but I waited to blog it, because I had some clients who I thought might be interested. But they’re not. Any other takers.

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I see this more and more

Yesterday I called the listing agent of a home I wanted to show, to make an appointment, and the first thing the agent said was “well, it’s overpriced but we’re working on it”.

I appreciated that and thanked her, and felt confident that if my clients were interested, that there might be a chance to strike a deal, because at least we’d be dealing with someone who knew the score.

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not hanging so tough anymore

Despite hanging tough and holding the line on prices, the first signs of seepage are now appearing at Villa Milano. They defied the market for a long time, thumbed their noses right at it but, while doing so, they also didn’t sell many homes. 
this is what I said about V Milano last November,
they're still hanging tough at Villa Milano

Here's how they went about things. On two units, 7577 & 7565 N Viale Di Buona Fortuna, they raised the prices about $85,000 each, and (had the gall) to do it on September 24th, just as the world was crashing around us.

And of course no one was too impressed with that really cool strategy or seemed to think they were missing out on some mysterious and exotic opportunity either. So no one took the bait.

And today, those two units went from $335/sf to $164/sf. But here’s how they worked it.

Back then they were proposing to build an 1840 sf unit for $617,250, or $335/sf. Today, trying somehow to squeeze more bucks from that same patch of dirt, they’re proposing to build a 2740 sf unit for $450,000, or, $164/sf.

The one's they've built were nicely done and, I wonder, can they still put that same quality into them for half the price.

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74 years old and still knockin’ ‘em dead

This magnificent Joesler built in 1935 on Calle La Vela sold today for $1.8mil.

Listed for $1,990,000, it sold in just 49 days, and last sold in 04 for $1.2mil. So the Joesler’s up $600k, while just about everything else is down.
5187 sf, 3 beds/3.5 baths/2.1 acres, on it’s own private hill top, with wonderful mountain and city views. The real thing.

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talk about a long shot

What are the odds of finding a buyer for a 10,529 sf spec house with a huge indoor pool in the Foothills.

 

It took a while, but apparently they found one somewhere, because today this gigantic house went to contract.

10,529 sf/5 bedrooms/6 baths/5 car garage/2.5 acres @ just $150/sf, Now listed for $1,580,000

first listed in July 2007 for $3,400,000

Big ones like this are rare in these here parts. Since 2000, just 3 at 10,000 sf or more, have sold in the Foothills.

See what you’ve missed > 3900 N Camino Blanco, Tucson, AZ  85718

And I did mention this house back in January> looking for bigger, more

It’s been a week of odd sales. First the pond house, then the house that has Skyline Dr in the backyard and now this. What’s next.

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there really is a butt for every seat

I don’t know how many times buyers have called wanting to look at this house at 2224 E Calle Los Altos – because on paper it looked like such a deal.

Every time someone called I explained that it backed right up to Skyline Dr just west of Campbell, and cars would be whizzing by their backyard, day and night, at 45 – 50 mph.
End of discussion, and thankfully, I never did end up having to show it.

But it worked for someone because, after a year+ on the market, it sold today

for $552,500, down from $860,000. So at 3436 sf, it went for just $161/sf. Such a deal, you think. And a short sale too.

The thing about a location like this is, in time, it will only get busier, noisier and even less desirable.

hope springs eternal

In the last week, 8 new listings priced at $1,000,000 & UP joined the crowded field of million$+ homes for sale in the Foothills. All toll we’re now at 155 mil$+ homes.

But the new one’s, if priced right, probably have a better chance than the one’s that have been sitting around forever and ever. And the one new one I did see, was priced right, I think.

New at a million & UP

the good, the bad and the ugly

in the Foothills,

$0 to $649,000
299 homes for sale
114 sold since Jan 1
a mere 7.8 month supply of homes for sale

$649,001 to $999,999
130 homes for sale
17 sold since Jan 1
a 30 month supply of homes for sale

$1,000,000 & UP
154 homes for sale
13 sold since Jan 1
a 47 month supply of homes for sale

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looks 10, price 3

Back from weeks of showing homes all across the foothills, homes priced from $700k up to about $3.5mil, there’s one thing that really struck me. And no, it isn’t the glut of run-of-the-mill overpriced homes, they’re part of the landscape by now, like old saguaros, and have become nearly invisible.

It’s those special homes, the one’s that are just right in almost every way. And there are quite a few out there.
Homes in good locations, on really nice lots, with good views. Terrific homes, with nice floor plans, in excellent condition, that show like a model, with nice kitchens and sparkling bathrooms, homes that have that, everything’s right, look. You know the one’s I’m talking about.
Homes that, if they were ice, you could sell them to the Eskimos. 
Except for the price.

The listing agents often call me for feedback, ‘how’d the showing go’, they want to know. If it was, in my opinion, overpriced, I used to tell them that. And then they’d defend the price, and then we’d go back and forth, and then we’d make nice and then say goodbye and hang up and that was that.

Now I say, that’s a beautiful house, I really like it, my clients like it, you could sell that house once a week, every week, from now til forever, yet it’s a year now, and it’s still for sale. What do you think the problem is.

“ if I had a million bucks …”

Today I was showing a house in a guard-gated community here in the Foothills. And when I told the guard where we were headed, his eyes light up, he smiled from ear to ear, and let me know that that was the best deal, bar none, in the Foothills on a million $+ home.

“ if I had a million bucks” he said, “ I’d be in there right now, that’s an incredible deal ”

the gate guy, and he was right, 

3 for 3

This house first sold in February 07 for just under list price, at $701,500, in 3 months. It sold again in May 08, again for just under list, this time for $705,000, in two months. And now, two weeks ago they listed it for $725,000, and already it’s under contract.

The price isn’t going anywhere, and no one’s making any money on these deals, except the Realtors of course, but they’ve got a hell of a batting average. Feng shui, eh.

You got me, maybe you can figure it out> 6365 N Ventana View Pl

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the 1st 4 months

There may be a few more sales that dribble in over the next few days but, if so I’ll update, here’s a look at how home sales are doing this Jan – Apr in the Foothills vs. years past

Year	# Sold	Avg Sold $	Med Sold $	Avg$/SF
2009	141	$515,400	$425,000	$182
2008	189	$664,040	$533,175	$223
2007	212	$685,199	$540,000	$239
2006	263	$777,208	$611,000	$251
2005	344	$591,613	$488,000	$198
2004	293	$509,276	$395,000	$171

So we’re now closer to 04 prices, but with sharply dwindling sales, than to any other year.

Obviously many sellers are having a hard time coming to terms with the reality of today’s prices, yet most buyers are not and, as evidenced by the lack of sales, are holding the line.

And as for the current climate, if you’re a seller, time does not appear to be on your side.
here’s a look at how things have shaped up as the year has progressed-

Jan – avg sold-$524, median-$399

Feb – avg sold-$539, median-$485

Mar – avg sold-$521, median-$425

Apr – avg sold-$476, med sold-$400

It is what it is, ignore it, and you may wish you hadn’t.

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