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100,000 AZ Properties auction block or bank-owned
This morning’s Arizona Daily Star carried this headline: “Almost 100,000 AZ Properties on auction block or bank-owned”
This lead one of our regular readers and commenter on this blog to leave the following comment this morning:
concerned
from the other blog Says:
March 12th, 2009 at 8:02 am eJust when we saw some good news Strobeck threw a bucket of cold water this morning. According to him, all of this won’t be done until the median price reaches 130K. It hasn’t been 130K since 2001! Granted, he is the expert, but I think this is ridiculous!
She is right that is ridiculous. However it provide us with a very good opportunity to see how Mr. Strobeck could come up with his comment.
Tucson Real Estate Markets
We don’t often take into account there are multiple real estate markets in Tucson. Because there are multiple real estate markets in Tucson and we need to differentiate them and put comments like Mr. Strobeck’s into context.
If we take a comment about the commercial real estate market and apply it to the residential real estate market it would present a skewed view of what the state of the residential market. When we read articles about Tucson Real Estate we need to put this into context. Something the Arizona Daily Star doesn’t do often and when it does it doesn’t do it very well. The paper seems to specialize in spreading “The Sky is Falling” genre of reporting the news. They should try and find a different type of brush to paint the news.
The Tucson Real Estate Markets
This isn’t an all inclusive list but it is some of the ones that do exist and are often reported on.
- The Tucson MLS Residential Real Estate Market
- The Tucson Residential Income Real Estate Market
- The Tucson Commercial Real Estate Market
- The Tucson For Sale By Owner Real Estate Market
- The Tucson New Construction Real Estate Market
- The REO (Bank-owned) Real Estate Market
- The John Strobeck Tucson Real Estate Market
The Tucson MLS Residential Real Estate Market
This is the Tucson Real Estate Market I report on every month and provide through the month update concerning what is being sold and reported through the Tucson MLS. This is the market most often reported in the news. This is the one that had a median sale price increase in February of almost $15,000 over January. This is the one that currently has 7,532 active listings down from last month and way down from last year. The median home price in this market for February was $178,000. These are only residential properties entered into the Tucson MLS
The Tucson Residential Income Real Estate Market
Many of these properties are also entered into the Tucson MLS System, but not all of them. There are some that fall under some of the other categories listed below. Some residential income properties are for sale by owner, bank-owned and in foreclosure. There might even be some that are new construction. There is no single reporting agency or report for these properties. However, these properties are a part of Mr. Strobeck’s reporting
The Tucson Commercial Real Estate Market
This is also a part of the Tucson MLS system, but not all commercial real estate transactions are entered into the system. I don’t know if Mr. Strobeck has a commercial real estate section for his reporting.
The Tucson For Sale By Owner Real Estate Market
There is no single reporting for this market that I know of. If a property is For Sale By Owner it might never be entered into the Tucson MLS, it could be if the buyer were represented by an agent, but not necessarily. However, once again these transactions are a part of Mr. Strobeck’s reporting.
The Tucson New Construction Real Estate Market
There are some new construction homes that are entered into the Tucson MLS and there are some that are not. Some new construction is done by local custom home builders and most is done by national real estate construction builders. Sometimes those builders enter properties into the Tucson MLS and sometimes they don’t. Again, Mr. Strobeck uses county records to include these transactions in his report.
The REO (Bank-owned) Real Estate Market
Some of these home are entered into the Tucson MLS and some are not. I don’t know of any reporting specifically dedicated to this group. I do know that when we see numbers like today’s 7,137 homes on the market from Trustee Notices or Bank-Owned they are not all in foreclosure and they are not all in the Tucson MLS. You can be assured that of the 7,532 homes in the Tucson Active Listings 7,137 of those are not Trustee Notices or Bank-owned.
The John Strobeck Tucson Real Estate Market
This might sound strange but it isn’t. John Strobeck is quoted all the time regarding his reporting on the condition of Tucson Real Estate. Mr. Strobeck reports on almost all if not all of these Tucson Real Estate Markets. But his is a compendium of transactions and properties for sale. Taking all of the markets he reports on as a single market it could be possible to see a median sale price down in the 130′s. If we are talking only about REO Trustee Notice transaction who knows we could already be there.
Sorting Out The Tucson Real Estate Markets
This is where the issue and confusion often lies in reporting about THE Tucson Real Estate market. THERE IS NO “THE” Tucson real estate market. There are multiple Tucson Real Estate Markets. To further muddy the waters these various real estate markets in Tucson are not clear cut. They sometimes (and often do) cross over into each other.
The Tucson MLS has bank-owned homes in the system. They have some for sale by owner properties in the system. Short sales, New construction, commercial properties residential income properties are contained in the Tucson MLS System. BUT NOT ALL of any of those properties.
So Which is the best?
There is no best there is only different. I can tell you this much, when a CMA is run it is usually run agains the properties in the Tucson MLS system.
When appraisers are trying to assign value to a home they use mulitple sources to come up with the value. These markets are always in a state of flux.
There is no “Gold Standard”. It changes, and in this current economy it changes often and sometimes substancially.
