Well it depends how you look at it but here’s a look at single family home sales from Jan 1 through April 11 - broken down by normal sales, short sales and foreclosures.
there were;
157 were normal (non-distress) sales and they sold for an average of 94.91% of list price.
there were 14 were short sales and they sold for 94.90% of list price
and there were 22 foreclosures and they sold for 97.97% of list price
Pretty cheerful statistics wouldn’t you say. But, sad to say, the only ones that present an accurate picture of their little corner of the market are the foreclosure and possibly, and to a lesser extent, the short sale numbers. That’s because many, even most, of them sell from their original list price without the need for price cuts or re-listings.
While many of the normal sales have been reduced umpteen times before they attract a buyer and go to contract. And the percentages are calculated based on the last list price, that is, the list price at the time of contract, after any and all price reductions and re-listings.
So if your favorite hacienda started out listed at $1,000,000, and was reduced to $900k, then to $800k then $750k – and finally sold for $725k - the % of sale price/list price will show up in MLS statistics as having sold for 96.6% of list price – $725 is 96.6% of $750. Which of course leads you to believe that everything is honky dory and buyers and sellers are in close accord on prices - which of course in pure bunk – completely ignoring that it sold for 72.5% of original list price, and had a helluva a time getting there.
Were the stats to show the % of sale price/original list price, and also show % of sale price/list price (at time of contract) they would present a much more complete and accurate picture of the market for both buyers and sellers. But that’s not the way it is in real estate land.
see thefoothillsToday.com
to find your Tucson Foothills home
