The Arizona Daily Star published an excellent article today about falling home prices in Tucson. According to The Star, the medium price of a home in all of Tucson, dropped 21% in March 2011, compared to March 2010. The medium sale price in March was $125k, down from $157,680 the previous March. The Star’s article noted that bank owned properties (foreclosures) in the lower price range pushed prices down.
Interestingly, I noted in a previous post that 1st quarter (Jan-Mar.) average home prices in the Foothills fell 15% in 2011, compared to the 1st quarter of 2010. Even more interestingly, in the same post I noted that 1st quarter (Jan-mar) average home prices, in Oro Valley, rose 1% in 2011, compared to the 1st quarter of 2010.
So why the disparity between Tucson, Oro valley and the Foothills? Below find the number of current foreclosures (4/14/11), and average price for each area.
Tucson OroValley Foothills
# of foreclosures 899 19 43
# of total homes for sale 4939 450 670
% of home for sale that are 18% 4% 6%
foreclosures
Of all the homes currently for sale, Tucson has the greatest % that are foreclosures. Also, the Foothills home market has a greater % of foreclosures for sale than Oro Valley. As these foreclosures push pricing down, it makes sense that prices in all of Tucson would decline more than Oro Valley or the Foothills.
Tucson Real Estate Agent, Lisa Bayless, specializes in Tucson Foothills homes and Oro Valley homes.
Tucson Real Estate Agent, Lisa Bayless, specializes in Tucson Foothills homes and Oro Valley homes.
How true this is. It really shows how a high level of foreclosures negativly impacts the enite market in a specific area. Thank you.
Yes! Foreclosures do bring prices down. I think it is important for people to realize this; especially seller who are competing with foreclosures in their area. Thanks for reading the article!
I was really confused, and this answered all my qeustoins.
What a joy to find soonmee else who thinks this way.
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I’m imrpseesd! You’ve managed the almost impossible.
Hey, that’s powefurl. Thanks for the news.
I saw something about this topic on TV last night. Great post.