We have this pricing pattern going on here in the Foothills, and it goes like this.
The homes that get listed for sale are priced a lot higher than the homes that are going under contract and selling. And we can't seem to break the pattern. You see what's happening is, lower price homes are selling pretty well but, very few higher priced homes are selling. And still a lot of higher priced homes keep getting listed for sale. And they're really starting to pile up.
For example, in just the last 5 days,
23 homes were listed for sale, and they averaged $221/sf, average list price was $695,461, median list was $569,000
and the 11 homes that went under contract averaged $191/sf, average list price was $500,527, median list was $449,000
and just 1 sold, so there's not much there to work with but, if you must know, it sold for $280,000, or a measly $159/sf.
And I realize that I've beat this drum to death, but still, it shows no sign of stopping, and I think one reason for that is that some people still don't get it.
Like in this example from real life.
I've been working with some buyers, and one of the homes we found that interested them is priced at around a million.
And after the showing, the listing agent called me to see 'how it went'. It went good, I said, nice house, lovely lemon trees, but I'm curious, how'd you arrive at your price, seems kinda high.
Well, in August a house up here sold for blah-blah-blah and...
August, August was, in August - that's history book stuff, has nothing to do with now, and by the way, you had to go all the way back to August for a comp.
Well, uh,
I told her that just for the fun of it, I'd book ended her list price by $125k - so from the $800's to over a million. And by the way, in that price range you've got some competition- there are 52 homes for sale. And guess how many have sold in the last 3 1/2 months. She wouldn't guess, so of course I told her. 0, none, nothing has sold. That's the market.
So please, tell me again, how did you arrive at your price.
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