Tucson Sold Units December 2007
January 29, 2008
Post Tags: Tucson-MLS-Statistics-Reports , Tucson-New-Construction , Tucson-Sold-Units-December-2007
Debate and Logic are almost things of the past. We have been reminded of this in the recent movie “The Great Debators”
Debate and Logic go hand in hand. Both used to be taught in High School, it is rare to find either now. Which brings us to our logic problem for the day.
- The Tucson MLS Reports on Listings entered into the MLS system
- There are a lot of New Construction Homes never entered into the Tucson MLS
- There have been many New Construction Homes built in Tucson in the past 2 years
- Many New Construction Homes in Tucson were closed (sold) in 2007
The Question
How many New Construction Homes sold in Tucson in 2007 that were not entered into the Tucson MLS are reported in the Tucson MLS Statistics Report each month?
The Answer
Zero, if there were 500 homes closed this year none were reported. If there were 1000 sold this year there were 0 reported. How many For Sale By Owner homes sold this year? If they were not entered into the Tucson MLS they will not be reported in the Tucson MLS Statistics.
The Summary
There were a lot more homes sold in Tucson in 2007 than were ever reported by the Tucson MLS. Which is fine because the Tucson MLS only reports on homes that are sold while entered into the Tucson MLS system.
The Conclusion
As of today there were 750 closed transactions in the Tucson MLS system reported for the Tucson 13 areas. When we search for all areas it is 790 closed transactions. The last month reported in the Tucson MLS Statistics where sales were under 800 was January 2002 at 743 for all areas in the Tucson MLS system.
There were many New Construction homes that went under contract in 2005 and 2006 which were to close in 2007. There were many New Construction homes which had their contracts cancelled due to the change in the Tucson Real Estate Market and the Mortgage Industies tightening credit policies. This translates in to some incredible incentives being offered in New Construction to move inventories of homes which were never entered in the Tucson MLS system.
When buyers can buy New Construction for less than resale properties they buy new. Therefore limiting the number of homes reported as sold in the Tucson MLS statistics reports. The past year in Tucson Real Estate has no historical precedent. These were totally new market conditions and old models and theories were simply inadequate to account for the true condition of the Tucson Real Estate Market.
