My Ally in Tucson

We’ve never met, but Blogger and fellow real estate agent John Schneider is on the same page I am. Sellers out there are doing the same thing ours are doing here in Greenwich, with the same result. No sales.

Here’s his latest posting, which I include in its entirety just to make sure you read it:

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.

WoW-wee, here’s an 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.

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 in that price range, guess what, there are 52 homes for sale. And guess how many have sold in the last 3 1/2 months. She wouldn’t guess, so I told her. 0, none, nothing has sold. That’s the market.

So please, tell me again, how did you arrive at your price.

see my web site
to search for and learn more about Tucson Foothills Homes

Back here in Greenwich, it’s Broker Open House Thursday and in preparation I’ve been reviewing new listings. They might just as well be in Tucson.


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2 responses to “My Ally in Tucson

  1. CEA

    I really like how he used the “$/sq ft of what has sold” versus “$/sq ft of what is for sale”. That is a great idea.

    You can do that for some of the for-sale spec houses around here (and then use $4.5 mil for #480 – or was it #450? – North and that $6.15 for Beechcroft as recent actual spec sales). That would be amusing. Just do that for Dairy Road/Sabine/Meadowcroft. Or if you’re leaving I’ll try to do it when I have time.

    Can you give me sq ft for Beechcroft and North? This should be a good laugh.

    Then send to Hudson City’s bankers.

  2. PrimeTimeMom

    The Tucson foothills are gorgeous. I’d live there in a heartbeat.