Josh Brodsky of the Arizona Daily Star had an article the other day on foreclosures and how they’re effecting the values and appraisals of surrounding homes. > Josh Brodesky: Foreclosures factored into appraisals hit sellers hard <
The foreclosure figures in the article are for the entire Tucson market and, lest anyone assume they also apply to the Foothills, I thought I’d publish corresponding foreclosure figures for just the Foothills.
In the article;
For those keeping score, there is a huge difference in price — nearly $60,000 — between a foreclosure and a traditional resale.
The median price of a traditional re-sale in June was $178,000, according to real estate analyst John L. Strobeck.
The median price for a foreclosure? $120,000.
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In the Foothills;
The median price for a traditional re-sale in June was $465,000
and for a foreclosure it was $389,500 - a difference of $75,500 or about -16%.
(while in the Tucson market, the difference between $178,000 & $120,000 is -32.5%)
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In the article;
If you are trying to sell your home in this market, your biggest challenge probably isn't finding a willing buyer, but the foreclosure down the street.
Not only do you have to compete in price with it, but that foreclosure is going to factor into your appraisal as a comp, possibly scuttling a deal.
It makes a lot of sense to separate foreclosures out from the appraisal process, but here is the kicker: They make up roughly 30 percent of the sales in the Tucson market, so can you really ignore them?
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In the Foothills, in June anyway,
foreclosures made up 8.3% of sales. 48 total sales, 4 were foreclosures.
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And of the 493 homes currently for sale in the Foothills, just 10 are listed as foreclosures – 2%. But curiously, while they make up just 2% of listed homes, they made up 8.3% of sales in June.
In any case, so far, in the foreclosure department we’re doing much better than the overall Tucson market. Ho-Ho Ha-Ha!
**my figures are based on data I extracted from the Tucson Association of Realtors Multiple Listing Service.
see thefoothillsToday.com
to find your Foothills home
