I guess for me this is a week for numbers and data,(anything to avoid the DJIA) So here goes.
39 single family homes sold in October in the Tucson Foothills for an average of 92.5 % of the list price, as reported in the Tucson MLS.
We call that % of sale price/list price. (%SP/LP). And that figure is calculated based on the latest list price, not the original list price.
So if a home is listed for $125,000, and three months later the price is reduced to $115,000, and then reduced again to $100,000. And then sells for $90,000, the %SP/LP is reported as 90%.
List Price = $100,000/Sale Price = $90,000, so %SP/LP = 90%.
But based on the original list price, the %SP/LP = 72%
List Price = $125,000/Sale Price = $90,000, so %SP/LP = 72%
Are one of those figures more accurate and meaningful than the other. I don't think so. But I do think you need to have both of those figures to understand what's happening in the market. Using the example above, reporting that the house sold for 90% of list price is technically true. It did. But it's also true that there's more to it than that, and sometimes a lot more.
With that in mind here's an eye-opening look at the % of SP/LP for the homes that sold in October, based on the most recent list price as reported in the MLS & on the original list price.
| Original List Price | List Price at Sale | Sold Price | %SP/LP- as reported | %SP/LP-on original list |
| 234,900 | 234,900 | 237,000 | 100.89% | 100.89% |
| 369,000 | 289,900 | 285,000 | 98% | 77% |
| 295,000 | 295,000 | 285,000 | 96% | 96% |
| 374,900 | 316,900 | 300,000 | 94% | 80% |
| 745,000 | 570,000 | 325,000 | 57% | 43% |
| 420,000 | 385,000 | 365,000 | 94% | 86% |
| 450,000 | 399,000 | 375,000 | 93% | 83% |
| 508,900 | 389,900 | 375,000 | 96% | 73% |
| 389,000 | 389,000 | 375,900 | 96% | 96% |
| 380,000 | 380,000 | 385,000 | 101% | 101% |
| 560,000 | 449,000 | 410,000 | 91% | 73% |
| 439,500 | 439,500 | 430,000 | 97% | 97% |
| 445,000 | 445,000 | 455,000 | 102% | 102% |
| 575,000 | 499,000 | 467,500 | 93% | 81% |
| 549,000 | 499,000 | 485,000 | 97% | 88% |
| 530,000 | 530,000 | 498,000 | 93% | 93% |
| 619,000 | 525,000 | 505,000 | 96% | 81% |
| 550,000 | 550,000 | 525,000 | 95% | 95% |
| 665,000 | 585,000 | 530,000 | 90% | 79% |
| 585,000 | 585,000 | 570,000 | 97% | 97% |
| 650,000 | 650,000 | 575,000 | 88% | 88% |
| 650,000 | 650,000 | 575,000 | 88% | 88% |
| 800,000 | 600,000 | 590,000 | 98% | 74% |
| 688,000 | 649,900 | 623,500 | 95% | 90% |
| 829,000 | 695,000 | 631,500 | 90% | 76% |
| 835,000 | 775,000 | 740,000 | 95% | 88% |
| 749,000 | 749,000 | 742,500 | 99% | 99% |
| 768,500 | 768,500 | 775,000 | 100.85% | 100.85% |
| 1,500,000 | 785,000 | 783,500 | 99% | 52% |
| 1,250,000 | 995,000 | 800,000 | 80% | 64% |
| 969,000 | 875,000 | 848,750 | 97% | 88% |
| 1,150,000 | 990,000 | 880,000 | 89% | 76% |
| 995,000 | 995,000 | 900,000 | 90% | 90% |
| 1,074,900 | 1,074,900 | 1,000,000 | 93% | 93% |
| 1,199,900 | 1,199,900 | 1,100,000 | 91% | 91% |
| 1,549,000 | 1,549,000 | 1,410,000 | 91% | 91% |
| 1,950,000 | 1,795,000 | 1,600,000 | 89% | 82% |
| 1,795,000 | 1,795,000 | 1,675,000 | 93% | 93% |
| 2,595,000 | 2,495,000 | 2,250,000 | 90% | 87% |
A few observations from looking at those figures;
-the reported average of 92.5% SP/LP for October is just that,
an average.
-we're in a buyers market, duh!
-in many cases homes are being listed for too high a price,
sometimes ridiculously too high, and in the end suffering the consequences of overpricing.
-with few exceptions, even homes that are presumably 'priced right', and selling without price reductions, are selling for 7 to 10% below list price, because these days that's what buyers expect, and in the end, buyers call the shots. VS. let's say October 2005, when homes sold for an average of 97.55%SP/LP, with virtually no price reductions, and with many selling for over list price.
-and contrary to what you might expect, the higher end is more consistently selling closer to the original list price than other price categories.
And it's unfortunate, but in order to get the %SP/LP based on the original list price, it must be calculated one-by-one for each sold property. A tedious process at best.
see my web site thefoothillsToday.com
to search for and learn more about Tucson Foothills Homes
