Local Market Facts fly in the Face of Recent Doomsday Articles

Local Market Facts fly in the Face of Recent Doomsday Articles.

Good news is boring.  Really?

I heard a report on the radio this morning that our prices have fallen 17% from this time last year. The radio voice seemed to enjoy spouting the news as if he were reporting the score of a blowout football game with the home team up by 48 points – and climbing- in the 3rd quarter.  Bad news sells. This I understand.  What I also understand is that this is not the news that matters.  Behind that sad average are lots of unreported truths that indicate our real estate market is healing.

Many distressed properties sell at very low prices due to condition and difficult terms of purchase.  Those prices when combined with the prices of “normal” sales result in a much lower average price across our general Tucson market. What use is that statistic to you if you have a nice home to sell or want to buy a home in good condition?   Homes sold in an arms length transactions are selling for 50% more than the average sales price of distressed properties!   Properly priced homes sell in 60 days or less.

Did you know that the rate of foreclosures is falling in our town?

Here are some interesting local facts:

Existing Homes for sale in the greater Tucson Area have fallen in number from a high of approximately 11,000 in November of 2010 to approximately 6000 at the end of July 2011.

The number of days it has taken to sell a home has fallen from 156 days as of December of 2010 to 104 days.

Homes are currently selling for 97% of the asking price.

Foreclosures are down by 50%.The average selling price of these sales is $98,000.

Arms length homes sell quickly.  Properly priced homes sell in 60 days or less.  The average price of non-distressed properties is $150,000.

It is not at all uncommon for homes in great condition to receive multiple offers.  The strongest buyers usually win out rather than the highest bidder.  An appraisal will have to be done, and while our market is healthier than you might hear, the distressed properties are keeping the appraisers from feeling comfortable about justifying higher prices.

3 things affect selling prices, Location, Price and Condition.  If you need to sell, you can control only price and condition, if you want top of market price, you must have the cleanest, most attractive and best maintained property in your micro market.

The Parrish Team’s average sales price is up from $130,000 to $172,000 from last year.  We have already sold 25% more homes than all of last year.  That is our good news.  We would love to hear some of your good news.  Leave a comment.

Have a great day!

– Louis Parrish, Leader of The Parrish Team

P.S. If you would like information about our new Market Insider and about your local market, click the link below!

Market Insider

TheParrishteam.com and Tucson-AZRealesteate.com

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