When people go out to shop for a home the first thing they see is the list price of the home they'd like to buy. And usually the list price either causes them to think hard about making an offer or it scares them away. And it seems that many buyers are still being scared away by list prices here in the Tucson Foothills.
In yesterdays post, an outsiders perspective on the Tucson Foothills market I quoted an article by Daniel Jaffe who said, "Tucson seems to be a real estate market that is divided into two basic camps. Camp one includes the sellers and realtors who have come to terms with the reality of today's bad market and are asking realistic prices and therefore selling houses. Camp two includes the sellers and realtors who are using comps of yesteryear's boom, and expecting parity in today's buyer's market".
I liked what he had to say and thought there was some truth to it.
So I thought I'd do a little experiment and see if the data supported that point of view.
Because the list price is what a home buyer sees first and decides to either move forward or move on, I pulled up the average list price of those homes that have sold in the last 30 days, and the average list price of those homes that are still for sale, to see if there's a difference.
In both cases I only looked at homes priced up to $1,000,000. Because above $1,000,000 there are 142 homes for sale and that would skew the data badly.
Here's what I found,
In Camp one, with the agents and sellers who have come to terms with today's bad market and are therefore selling homes, the average list price was $534,027, for the homes that have sold.
In Camp two are those homes which are still for sale, and of which some are presumably overpriced.
In this Camp the average list price is $580,450.
That's 8.7% higher than those in Camp one.
At $900,000, a Camp two house jumps to $978,300.
Would that scare you away?
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